Rome, Italy (AHN) – Italy’s lower house of parliament approved a series of austerity measures on Saturday paving the way for the resignation of Prime Minister Silvio Berlusconi.

The package, demanded by euro zone leaders to shore up confidence in the financially strapped country, was passed by a vote of 380 for to 26 against.

Approved by the Senate on Friday, the passage, which includes pension reform with plans to raise the retirement age to 67 from 65, the privatization of state-owned companies and the sale of state owned properties, sent markets surging.

Berlusconi has survived numerous sexual and ethic scandals in the past. But Italy’s financial woes will end his reign. The Prime Minister vowed to step down once the measures were approved in both houses of parliament after losing his majority.

Italy is the fourth largest economy in Europe. A financial meltdown in the “Boot” would have a dramatic impact on global markets and could cause massive ripple effects worldwide.

Berlusconi could resign as early as Saturday night.

Italy’s borrowing costs eased somewhat Friday after rising above 6.75 percent Wednesday. Yields on the Italian 10-year bond were trading at 6.5 percent at the close of trading Friday. Keeping yields below 7 percent is imperative. That is the level that led to eventual bailout for Ireland, Portugal and Greece.

Italy is currently the biggest bond issuer in Europe. While the country is considered too big to fail, it may also be just too big to bail out.

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Paducah, KY, United States (AHN) – Dippin’ Dots, the futuristic ice cream company, signed on the dotted line Friday for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Paducah, KY.

The manufacturer of the colorful ice cream beads, frozen using liquid nitrogen, owes $12 million, the majority of it to Regions Financial Corp., which moved to foreclose on the loan this week.

Dippin’ Dot employees 170 workers, has about 140 Dippin’ Dots retail locations, mostly owned by franchisees, and agreements with 9,952 small vendors who sells the frozen treat the company calls “the ice cream of the future,” at fairs, festivals, carnivals and sporting events.

The meltdown came at the near end of an expensive and lengthy legal battle that the company lost, over whether founder Curt Jones, a microbiologist who started the company in 1988, properly filed the patents that protected its special freezing process.

The company said sales are slowing recovering. As of Thursday, it reported having $27.7 million in revenue, better than the $26.7 million reported in 2010.

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Cannes, France (AHN) – European Union (EU) leaders meeting in Cannes for the G20 Summit are now open to Greece leaving the eurozone if only to save the single currency bloc.

However, the G20 discussions have gone beyond Greece’s continued use of the euro, but on how to craft a sustainable solution to the area’s debt crisis. Among the initiatives the G20 leaders are considering is to increase the firepower of the International Monetary Fund (IMF) to support struggling nations that belong to the eurozone.

Greek Prime Minister George Papandreou on Thursday made an about-face from his previous stand that he would submit the debt deal to a referendum after pressure from EU officials. Instead of a referendum, the embattled prime minister sought to form a national unity government. However, the attempt appears headed for doom following rejection by the Greek opposition of the call, which instead pushed for Papandreou to step down and to hold a snap election immediately.

Following Papandreou’s backtrack on the referendum, share prices rose at the end of the day when it became clear that Greeks would no longer vote on the debt deal.

French President Nicolas Sarkozy, who is hosting the summit, said Papandreou was convinced not to push through with the referendum because of EU’s progress on dealing with the Greek debt crisis. Sarkozy said the zone wants to keep Greece in the one-currency bloc, but if Athens wants out, EU leaders must defend the currency.

Sarkozy said the EU cannot accept the breakup of the eurozone because it would be tantamount to breaking up Europe.

U.S. President Barack Obama said on Thursday that finding a solution to the eurozone debt crisis would be the most important task of the G20 Summit over the next two days.

After Papandreou announced the referendum, eurozone leaders withheld $11 billion (€8 billion) of fresh bailout funds to Greece, which would cause the embattled government to run out of funds in the next few weeks and default.

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Washington, DC, United States (AHN) – Monday morning the Federal Housing Finance Agency announced new rules that will allow many more “underwater” homeowners, those who owe more than their properties are worth, to refinance at current historical low mortgage rates.

Up to a million borrowers are expected to take advantage of the new program, the FHFA estimates. Originally rolled out in early 2009, the program has fallen far short of the number of people it was expected to help.

Prior to the new rules, only borrowers who owed more than 25 percent more than their homes are worth could participate in the program. The new rules have no cap on how much a borrower owes.

Only mortgages backed by Fannie Mae and Freddie Mac will be eligible under the new rules.

Officials hope the new rules will help the ailing housing market and the flailing economy. By reducing monthly payments, more homeowners will hopefully avoid foreclosure and have more cash to spend, giving a much-needed boost to the depressed economy.

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Washiington, DC, United States (AHN) – The ailing housing market in the United States has not been able to recover even with historic low interest rates, bargain-hunting American consumers or U.S. government intervention. So, the Senate is proposing a bill that would give foreigners a part in bailing out the industry.

U.S. Sens. Charles Schumer (D-NY) and Sen Mike Lee (R-UT) have introduced a bill that would permit foreigners who shell out at least $500,000 on U.S. residential property to obtain visas allowing them to live in the United States.

The plan might be the boon the U.S. real estate market needs, especially in states particularly hard hit such as California and Florida, which often attract wealthy Chinese and Canadian buyers.

The National Association of Realtors reported that in the 12-month period that ended March 31 residential sales nationwide to foreigners and recent immigrants totaled $82 billion, an increase from $66 billion in the same period a year earlier.

The bipartisan proposal, part of a package that would make it easier for international tourists to visit and vacation in the United States, is similar to an existing program that puts foreigners on a fast track to a green card if they invest at least $500,000 in an American business that creates at least 10 jobs.

There are restriction in the new proposed bill. The purchase must be in cash, with no mortgage or home equity loan. And, the property would have to be purchased for more than its most recent appraised value. In addition, the buyer must live in the home at least 180 days a year, which would require paying U.S. income taxes on any foreign earnings.

The buyer would be able to bring a spouse and minor children to live in the U.S., but would need to apply for a work visa to hold a job. Neither the buyer nor the dependents would be eligible to receive Medicaid, Medicare or Social Security benefits.

Schumer and Lee, who have already secured backing for the bill from the U.S. Chamber of Commerce, the U.S. Travel Association and the American Hotel & Lodging Association, are working to get support from the Obama administration, which received details of the bill Thursday.

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Madrid, Spain (AHN) – Standard & Poor’s downgraded Spain’s credit rating by one notch on Thursday over growth challenges for the country’s private sector as Madrid seeks fresh external financing to roll over its external debt.

With the downgrade, Spain’s new rating is AA-, which is three steps below the AAA rating. S&P also gave a Spain a negative outlook.

S&P said Spain’s economy will likely grow at 1 percent in real terms in 2012, down from the rating agency’s February forecast of 1.5 percent expansion.

It was the third credit rating cut for Spain in three years. Fitch Ratings gave Madrid a similar level of rating on Oct. 7 when it cut the country’s debt rating.

S&P said the financial profile of Spain’s banking system will further weaken as problematic assets rise.

Spanish, Italian and Greek bonds continued to fall over concerns that the eurozone will struggle to contain the debt contagion that may trigger another global financial crisis. To prevent that scenario, International Monetary Fund officials hinted the IMF may seeks more funds to protect nations such as Spain and Italy.

On news of the downgrade, the main Ibex 35 index declined 0.5 percent in Madrid trading. Yield of 10-year Spanish bonds also went up to 5.26 percent from 5.21 percent, which means Spain will pay more than twice what Germany pays to borrow for the next 10 years.

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Cleveland, OH, United States (AHN) – Some U.S. banks have started to demolish foreclosed properties and are even paying for the cost, which saves the financial institutions from maintenance, taxes and real estate marketing expenses.

In some areas, the properties that were demolished became community parks, church extensions and parking lots.

In Ohio, the company that is charged with razing the foreclosed homes is the Cuyahoga County Land Reutilization Corporation, which was created by a 2009 state law and tasked with creating land banks.

Other states such as New York, Georgia and Philadelphia are using the Ohio model to put up similar organizations.

Lenders and mortgage firms are also donating properties to land banks. Bank of America and Well Fargo said they will donate over 100 properties to land banks. JPMorgan Chase has made regular donations and Fannie Mae donates about 30 properties monthly.

While disposing of unwanted properties on their hands, the banks are also battling lawsuits over securities fraud claims filed by states and municipalities despite the lenders having settled some of the complaints.

Bank of America and JPMorgan are negotiating an agreement with state attorneys general and federal officials that would fund loan modifications for homeowners and set requirements on how the banks should conduct foreclosures.

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Athens, Greece (AHN) – Thousands of restive Greek workers struck on Wednesday to protest the new round of budget cuts that Prime Minister George Papandreou approved to qualify for another tranche of bailout funds.

The 24-hour industrial action paralyzed the Athens International Airport and other forms of public transportation as workers protested the planned salary cut and eventual layoff of 30,000 public employees. The job walk-off canceled 448 flights in and out of the Athens International Airport.

Protests have been going on in Greece since the government initiated austerity measures, but this is the first time this year that the country’s main gateway was closed the whole day.

Besides canceled plane, bus, rail and ferry services in Athens, schools also closed and hospitals ran on skeletal staffs.

Tiana Andreou, a trade union leader and public employee, said Greeks are now at a boiling point. She said the anger is not only over the austerity measures, but because of lives that the cost-cutting measures will destroy. The general public strike, Andreou said, is their way of telling Greek officials that they want a stop to the continuous belt-tightening since the country had its credit rating downgraded.

The Greek government has also agreed to impose a property tax as another way of increasing government revenue. Finance Minister Evangelos Venizelos disclosed on Tuesday that the government has cash sufficient to pay pensions, salaries and bondholders only until the middle of November.

Venezelos described the situation of the country as being at the worst circumstances under the worst conditions. He pointed out that Greece is dependent on international aid and loans and the embattled nation must make superhuman efforts to win what he called “the wager of history.”

The Greek government has about 750,000 public servants. It has a national debt of $477.3 billion (€358.5 billion) or 161.8 percent of its gross domestic product.

Following the 24-hour general strike, 10-year Greek bonds dipped anew on Wednesday and hiked the yield three basis points to 23.13 percent, more than twice the rate on July 21.

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Berlin, Germany (AHN) – The Bundestag, Germany’s Parliament, agreed on Thursday to increase the country’s guarantees on European Union loans to $284 billion (€211 billion) from $167 billion (€124 billion).

The 523 to 85 vote gave the European Financial Stability Facility (EFSF) power to purchase bonds in secondary markets, enable bank recapitalization and offer precautionary credit lines.

The Bundestag also approved the increase in the EFSF to $599 billion (€440 billion). The measure was approved because of the support of the Christian Democrats, Free Democrats, Social Democrats and Greens.

The approval of the hike represents a victory for German Chancellor Angela Merkel, who spent weeks campaigning for approval of the July 21 agreement by eurozone leaders. Germany holds the largest amount of Greek government bonds.

However, German Finance Minister Wolfgang Schauble and Economics Minister Philipp Roster said any further increase was out of the question.

With the European Commission expecting the larger EFSF in place by mid-October, zone leaders are now focusing on how to prevent the region’s debt crisis from spreading further. One of the measures they are eyeing is the establishment of a permanent rescue fund that would provide more capital and tools to manage defaults.

However, the chairman of a private-equity firm said the newly approved bailout package would not be enough to solve the eurozone’s debt problems. He suggested that the amount should be in the trillion-euro level, not just billion.

Austria is expected to ratify the expanded rescue fund on Friday, while four other countries have yet to vote on it.

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Washiington, DC, United States (KaiserHealth) – Autism treatment advocates have won one legislative battle after another since 2007, most recently in California, which sent a bill to the governor this month mandating that insurers cover the disorder. Now more than half the states have such requirements, but that success could be in jeopardy as federal officials set new national standards for health coverage.

Insurers and employers argue that the laws increase health costs because treatment is often expensive and lasts years. But the advocates have prevailed by using federal data showing a growing number of children with the disorder, compelling stories about middle-class families struggling to afford treatment and testimony from celebrity parents of children with autism, including former pro football stars Dan Marino and Doug Flutie.

However, a provision in the 2010 health overhaul law gives the federal government authority to define “benefits” that will be offered on the health insurance exchanges, or marketplaces, to individuals and small businesses starting in 2014. If states mandate a benefit, but it isn’t on the federal list, the states would be responsible for the cost of the coverage.

As a result, autism benefits and dozens of other state-required benefits, covering services and conditions such as infertility, acupuncture and chiropractic care, could be at risk. By the end of September, the Institute of Medicine is scheduled to recommend criteria the Department of Health and Human Services should use in determining the essential benefits package. HHS is expected to announce its decision by the end of the year.

“We do think states will be under enormous pressure to repeal benefits” not deemed essential, said Stephen Finan, senior director of policy for the American Cancer Society’s Cancer Action Network. The society is concerned that the benefits package will not include all the cancer screenings that it has recommended.

“It will be a new day,” said Amanda Austin, a lobbyist for the National Federation of Independent Business, which typically fights new insurance mandates because the costs will lead to higher premiums.

HHS faces a difficult balancing act: The more comprehensive the benefits package, the more it would cost insurers and their customers. Taxpayers would pay more, too, because the law provides government subsidies to help millions of people afford coverage.

Tens Of Thousands Of Dollars In Services

Most of the state laws covering autism require insurers to pay for behavioral analysis as well as physical and occupational therapy. These services can cost tens of thousands of dollars a year, although many states put dollar limits on coverage.

Autism encompasses many disorders ranging from mild to severe that can affect a child’s behavior and ability to communicate. Applied behavioral analysis typically involves one-on-one counseling to teach children how to behave or act in different situations. Although parents and many clinicians consider it the most effective therapy for children with autism, the results are mixed in peer-reviewed research.

Insurers typically oppose state benefit mandates, saying they reduce their ability to control costs. In addition, they argue that autism is a development disorder that is best addressed by the educational system, not the medical system.

Parents worry the essential-benefits provision could reopen the debate over covering treatment for autism and spark another showdown with insurers.

“Fear runs through my mind,” said Ann Rounseville of Newton, Mass., whose son Luke, 4, has been able to get speech, occupational and behavioral therapy because of the insurance benefit that started this year.

“Without this coverage he would not be getting any of the extra therapy he needs,” said Rounseville, estimating the Massachusetts law has saved her family more than $10,000 since May.

Stuart Spielman, a lobbyist for Autism Speaks, the New York-based group that has led the push for coverage laws, said he’s confident HHS will include autism because the federal law lists behavioral health treatment in its broad outline of what should be considered essential. The law also spells out the need for emergency services, hospitalization, maternity care, prescription drugs and prevention.

It’s unclear how HHS will decide what to deem an essential benefit. The agency could declare a broad list of categories of treatments and services essential and leave the specifics to the states.

At the state level, autism treatment advocates have argued that the problem is too big – and too expensive for families – not to be covered by insurers. They also say providing treatment to young children can save money in the long run by reducing the later need for institutionalized care.

The state mandate laws typically only affect about half of people with health coverage because they do not apply to self-insured employers, typically large companies.

1 In 110 Children Affected

According to the federal Centers for Disease Control and Prevention, 1 in 110 American children have been diagnosed with Autism Spectrum Disorder, including 1 in 70 boys. A Harvard University study in 2006 found that on average the annual care for a person with autism runs about $29,000 for medical costs and $38,000 for non-medical costs such as special education, camps and child care.

“The mandates have been a way for states to be doing something on a major issue without money coming out of the state treasury,” said Jack Pitney, professor of American politics at Claremont McKenna College in California. “It’s a cost borne by insurance companies who are not an object of a great deal of public affection.”

Insurers argue that the cost of autism coverage gets passed on to all their customers through higher premiums. The Council for Affordable Health Insurance, an insurer-backed group, estimates that autism mandates boost premiums from 1 percent to 3 percent.

Highmark, Pennsylvania’s largest private health insurer, says the autism mandate enacted in the state in 2009 increased premiums from 0.6 to 1 percent. Overall, the cost of employer-paid insurance for family coverage last year was $13,770, according to a Kaiser Family Foundation study. (Kaiser Health News is an editorially independent part of the foundation.)

Autism advocates point to lower estimates. They say data from the agency overseeing health benefits for South Carolina state employees shows that autism coverage added just 44 cents per member per month.

Richard Cauchi, program director of the health program of the National Conference of State Legislatures, said HHS has not yet said how it will determine the cost to states of keeping certain mandates. States may be required to pay the insurer or the enrollee.

Cauchi was surprised 16 states approved a variety of new mandates in 2011 given the uncertainty about future costs. Four of the states imposed autism benefits: Arkansas, Rhode Island, Virginia and West Virginia.

Until 2007, only Indiana required insurers to cover autism treatment. Today, 26 states do, not including California, where Gov. Jerry Brown (D) has not yet said if he will sign the bill, and New York, where a bill awaits the signature of Gov. Andrew Cuomo (D).

Autism advocates and other patient groups continue to press for more benefits laws. By 2014, Cauchi said, “There could certainly be a number of mismatches between what’s considered essential and what states have on their books.”

Wilson Cristancho of Miami hopes the autism treatment Florida requires remains part of his insurance. Before the law took effect in 2009, he said he piled up nearly $30,000 in debt for his son’s medical bills. The intensive therapy now paid for by his insurer has helped his son, Marc Anthony, 9, communicate and improve his hand-eye coordination.

“The mandate has had a huge impact on me and my family,” Cristancho said. “We don’t want to see it go away.”

– Provided by Kaiser Health News.

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