Jobless claims: Another 1.48 million Americans file for unemployment benefits

https://finance.yahoo.com/news/coronavirus-covid-weekly-initial-jobless-claims-june-20-195644738.html

More than three months into the COVID-19 crisis in the U.S., countless Americans are still unemployed. According to the U.S. Labor Department, weekly initial jobless claims data showed yet another week of claims exceeding 1 million.

Another 1.48 million Americans filed for unemployment benefits in the week ending June 20, exceeding economists’ expectations for 1.32 million. The prior week’s figure was revised higher to 1.54 million from the previously reported 1.51 million claims. While this week’s report marked 12 consecutive weeks of deceleration, more than 47 million Americans have filed for unemployment insurance over the past 14 weeks.

“Jobless claims are not falling fast enough,” Renaissance Macro’s Neil Dutta said in an email Thursday. “Everything we have seen in the last week or two between rising case counts/hospitalizations, stalling economic progress in some important states, government job cuts, means one thing: the Phase 4 of fiscal stimulus must be bigger. Things should be better in 3-4 weeks, but the news will get worse before it gets better. Take some chips off the table and reload the chamber for August.”

Continuing claims, which lags initial jobless claims data by one week, totaled 19.52 million in the week ending June 13, down from 20.29 million in the week ending June 6. Consensus expectations were for 20 million continuing claims.

“Initial jobless claims continue to moderate only gradually,” Nomura economist Lewis Alexander wrote in a note Wednesday. “While the labor market remains exceptionally weak, signs of gradual improvement suggest another month of NFP gains during June.”

In the week ending June 20, California reported the highest number of jobless claims at an estimated 287,000 on an unadjusted basis, up from 241,000 in the previous week. Georgia had 124,000, down from 132,000, Florida reported 93,000, New York had roughly 90,000 and Texas reported 89,000 jobless claims.

Additionally, Pandemic Unemployment Assistance (PUA) program claims, which include those who were previously ineligible for unemployment insurance such as self-employed and contracted workers, was also closely monitored in Thursday’s report.

PUA claims totaled 728,120 on an unadjusted basis in the week ending June 20, down from the prior week’s 770,920.

As states reopen their economies, cases and hospitalization figures are back on the rise. As of Thursday morning, there were more than 9.4 million cases and 483,000 COVID-19 deaths around the world, according to Johns Hopkins University data. The U.S. had 2.3 million cases and 121,000 deaths.

 

 

Coronavirus Cases may be 10x higher than official count says CDC

https://www.axios.com/newsletters/axios-vitals-59e9ac1a-ab86-4f8a-917a-8c9d52f5835f.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosvitals&stream=top

NC coronavirus update June 25: North Carolina's mask mandate goes ...

The real number of U.S. coronavirus cases could be as high as 23 million — 10 times the 2.3 million currently confirmed cases — the Centers for Disease Control and Prevention told reporters yesterday, Axios’ Marisa Fernandez reports.

Between the lines: The new estimate is based on antibody testing, which indicates whether someone has previously been infected by the virus regardless of whether they had symptoms.

  • “This virus causes so much asymptomatic infection. The traditional approach of looking for symptomatic illness and diagnosing it obviously underestimates the total amount of infections,” CDC director Robert Redfield said.

The agency also expanded its warnings of which demographic groups are at risk, which now include younger people who are obese and who have underlying health problems.

  • The shift reflects what states and hospitals have been seeing since the pandemic began, which is that young people can get seriously ill from COVID-19.

The new guidance also categorizes medical conditions that can affect the severity of illness:

  • Conditions that increase risk: Chronic kidney disease; chronic obstructive pulmonary disease; obesity; weakened immune system from solid organ transplant; serious heart conditions, such as heart failure, coronary artery disease or cardiomyopathies; sickle cell disease; Type 2 diabetes.
  • Conditions that may increase risk: Chronic lung diseases, including moderate to severe asthma and cystic fibrosis; high blood pressure; a weakened immune system; neurologic conditions, such as dementia or history of stroke; liver disease; pregnancy.

 

 

 

 

ACA enrollment up 46%

https://www.axios.com/newsletters/axios-vitals-59e9ac1a-ab86-4f8a-917a-8c9d52f5835f.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosvitals&stream=top

Obamacare Coverage Spikes After Covid-Related Job Losses

The number of people who lost jobs and related health coverage and then signed up for Affordable Care Act health plans on the federal website was up 46% this year compared with 2019, representing an increase of 154,000 people, the federal government said in a new report.

The bottom line: The government said the rush of people going to HealthCare.gov was tied to “job losses due to COVID-19,” Bob writes.

Yes, but: Medicaid enrollment due to coronavirus-related job losses appears to be growing even faster than enrollment in ACA plans, according to the Georgetown University Health Policy Institute.

Go deeper: Medicaid will be a coronavirus lifeline

 

 

 

 

Coronavirus Dashboard

https://www.axios.com/coronavirus-latest-news-quick-highlights-57a186a3-7547-45bf-852a-83019849d8d5.html

Coronavirus dashboard: Catch up fast - Axios

 

  1. Global: Total confirmed cases as of 9 a.m. ET: 9,635,935 — Total deaths: 489,922 — Total recoveries — 4,861,715 — Map.
  2. U.S.: Total confirmed cases as of 9 a.m ET: 2,422,312 — Total deaths: 124,415 — Total recoveries: 663,562 — Total tested: 29,207,820 — Map.
  3. Public health: America’s workers still aren’t protected from the coronavirus — Gilead says coronavirus drug should likely cost no more than $2,800.
  4. White House: Trump administration asks Supreme Court to overturn ACA during pandemic.
  5. Sports: Universities cut sports teams, as they struggle with coronavirus fallout.

 

 

 

 

The U.S. divide on coronavirus masks

https://www.axios.com/political-divide-coronavirus-masks-1053d5bd-deb3-4cf4-9570-0ba492134f3e.html

Politics, not public health, drive Americans' attitudes toward ...

Mask-wearing has become the latest partisan division in an increasingly politically divided pandemic.

Why it matters: It’s becoming increasingly clear that wearing even a basic cloth mask is one of the most effective ways to prevent the spread of COVID-19. But whether or not people are willing to wear one has less to do with the risk of the pandemic than their political affiliation.

By the numbers: Results from months of the Axios-Ipsos coronavirus polls show a clear and growing political divide between Democrats and Republicans on mask-wearing habits.

  • Nationally, the percentage of Democrats who reported wearing a mask all the time when leaving home rose from 49% between April 10 and May 4 to 65% between May 8 and June 22.
  • During the same time period, the percentage of Republicans who reported constant mask-wearing rose from 29% to just 35%.

Context: The political divide Americans are reporting on mask use echoes one seen within nearly all levels of the government.

  • President Trump has not been seen to wear a mask, and he told Axios last week that attendees at his Tulsa campaign event on June 20 should “do what they want” on masks, which were not required at the rally.
  • Governors in many red states like Nebraska have refused to mandate facial masks in public, even as cases have begun to rise in recent weeks. At the same time, leaders in blue states — especially those that grappled with large outbreaks of COVID-19 — have urged residents to wear masks, with California Gov. Gavin Newsom mandating their use last week as cases in the state passed 4,000 a day.
  • The situation is even more divided at the local level, with leaders of red towns in blue states pushing back against mask mandates, and vice versa.

Flashback: Some of the blame for the divide can be traced back to muddled public health messaging on mask use in the early stages of the pandemic, when Americans were urged not to go out and buy masks in bulk because of concerns that there wasn’t enough personal protective equipment for front-line health care workers.

  • Those fears were real, as government virus expert Anthony Fauci pointed out in congressional testimony on Tuesday. And public health officials worried that pushing masks would inadvertently encourage Americans to continue going out in public at a moment when lockdowns demanded they stay inside.
  • Like the divide among experts on whether mass protests would increase coronavirus cases, just the perception that health advice might be based on politics rather than science gives cover to those who would forego masks, especially since the outbreak itself initially seemed like a blue state problem.

Health experts now know that cloth masks are most effective not so much at protecting individuals from infection as protecting the community from infected individuals. But that makes masks as much about social signaling as they are about public health.

  • Conservatives who prize individual autonomy over social responsibility experience “a massive pushback of psychological resistance” when presented with mask mandates, says Steven Taylor, the author of “The Psychology of Pandemics.”
  • That reaction is reinforced “if leaders like Trump downplay the significance of COVID-19 or if they won’t wear masks,” says Taylor. As a result, wearing a mask in conservative communities means visibly going against public opinion, while the opposite is true in communities where mask use is common.
  • The Axios-Ipsos data reflects this reality, showing that while Republicans in blue states use masks less than Democrats, they wear them at higher rates than Republicans in red states, just as Democrats in red states use masks at lower rates than Democrats in blue states.

What to watch: The one factor that seems capable of breaking the political deadlock is the outbreak itself. As cases have skyrocketed in red states like Arizona recently, there’s been a significant increase in Google searches for masks.

 

 

 

 

America’s workers still aren’t protected from the coronavirus

https://www.axios.com/americas-workers-vulnerable-coronavirus-944e3451-4458-4f1d-83d2-c86a1beb1117.html

America's workers still aren't protected from the coronavirus - Axios

Essential workers have borne the brunt of the coronavirus pandemic for months, but the U.S. is still doing relatively little to protect them.

Why it matters: With no end to the pandemic in sight, America’s frontline workers still must choose between risking their health and losing their source of income.

Driving the news: The Trump administration said this week that health insurers aren’t required to cover coronavirus diagnostic tests performed as part of workplace safety or public health surveillance efforts.

  • It didn’t say who is supposed to pay for these tests. If employers are stuck footing the bill, that makes the testing less likely to happen.

The big picture: There’s been no national effort or initiative to protect essential workers, and America is still failing to implement basic public health measures as new cases skyrocket.

  • Masks have become a political flashpoint and aren’t required in many of the states that are emerging coronavirus hotspots.
  • That means essential workers go to work each day without any guarantee that the people they’re interacting with will take one of the most basic and effective steps to prevent transmission of the virus.
  • No one is even talking about mass distribution of personal protective equipment beyond health care workers. And even some health care workers — particularly those who work in nursing homes — don’t have the protective gear that they need.

More broadly, the financial incentives for frontline workers, particularly those who are low-income, to keep working make it nearly impossible for them to avoid health risks.

  • At least 69 million American workers are potentially ineligible for the emergency paid sick leave benefits that Congress passed earlier this year, per the Kaiser Family Foundation.
  • An estimated 25-30 million people — particularly lower-wage workers in service industries — are unable to work from home but also face a high risk of severe infection, KFF’s Drew Altman wrote earlier this week.

What we’re watching: The line between essential workers and those who are required to return to the office by their employer has become blurry, and millions more Americans are facing dilemmas similar to those faced by grocers and bus drivers.

  • The sickest — and thus most vulnerable — Americans may feel the most pressure to return to work, as that’s often where they get their health insurance, the NYT points out.
  • Nearly a quarter of adult workers are vulnerable to severe coronavirus infections, per KFF.

The bottom line: Essential workers and their families will continue to feel the impact of America’s coronavirus failures most acutely.

Go deeper: “Disposable workers” doing essential jobs

 

 

 

 

Credit downgrades aren’t attributable to COVID-19 but cash flow will be a challenge

https://www.healthcarefinancenews.com/news/credit-downgrades-arent-attributable-covid-19-cash-flow-will-be-ongoing-challenge?mkt_tok=eyJpIjoiTUdSbVptVmhaR0ZpT0RJMyIsInQiOiJ2TVwvb3g5VWF4R05DeWFScVJ4U0lXeW9xWG1cL0pVMWo1RE1cL24rd21ySEErbk9kZWNIXC9hdmZYYmJBcGU1RDQ5MDVDNXVyZ2RZSWo2djRRSXhSOVFVQk1yNjFWOTVoVjlkTXVxXC95QXU1SU8yMEhJcEtHZXJ3ZDhDc2RMb2RcLzlMcSJ9

Just How Bad Is My Bad Credit Score? | Credit.com

The coronavirus is mainly affecting the credit outlook for the rest of the year and beyond as hospitals adapt to new financial realities.

While the COVID-19 coronavirus is likely to cause cash flow and liquidity issues for hospitals through the end of the year and into 2021, the credit outlook for the healthcare industry isn’t as dire as some had feared. While there have been some downgrades this year, most of those are attributable to healthcare financial performance at the end of 2019.

At a virtual session of the Healthcare Financial Management Association on Wednesday, Lisa Goldstein, associate managing director at Moody’s Investors Service, said the agency is taking a measured approach to issuing credit ratings and will “triage” these ratings based on factors such as liquidity and cash flow.

“Changes are happening daily, and sometimes hourly with funding coming from the federal government,” said Goldstein, “so we’re taking a very measured approach.”

Healthcare is among the most volatile industries being affected by the coronavirus due to the fact that it operates like a business, with a general lack of government support to pay off debt.

Credit downgrades are on the rise, but there’s historical precedent at play. Looking at data beginning with the 2008 financial crisis, there were consistently more downgrades than upgrades in the healthcare industry, owing to its inherent volatility. It was and has generally been subject to public policy and competitive forces. In any given year, downgrades exceed upgrades.

After passage of the Affordable Care Act, however, the number of uninsured Americans hit an all-time low. Hospitals grew in occupancy and revenues improved. The situation started to worsen once more when it became clear that there was a national nursing shortage, as well as top-line revenue pressure from government and commercial payers lowering their rates, but credit downgrades didn’t truly explode until this year. There have been 24 downgrades so far this year, already exceeding the 13 downgrades in all of 2019.

The rub is that it’s not the coronavirus’s fault.

“Most downgrades were in the first quarter of the year,” said Goldstein. “We did have a lot of downgrades in March, which is when the pandemic really started – when it became a pandemic – but even though there were 11 downgrades in March, it was based on what we’d seen through the end of 2019. There were problems that were appearing that had nothing to do with the pandemic.”

Basic fundamental operating challenges were becoming more pronounced during that time. A decline in inpatient cases, a rapid rise in observation stays, a decline in outpatient cases to competing clinics and health centers, and staffing and productivity challenges all contributed to material increases in debt.

COVID-19’s effects on hospital credit ratings are in the outlook for the rest of the year and beyond. Interestingly, in March, Moody’s changed its outlook from negative to stable.

“We haven’t seen anything like this,” said Goldstein. “The industry has been through shocks, but something this long in duration has been something we think will have an impact on financial performance going forward.”

Moody’s anticipates cash flow will remain low into 2021, mostly from the suspension of elective surgeries, rising staffing expenses and uncertainty around securing enough personal protective equipment. Liquidity is still a concern, but is more of a side issue due to Medicare funding providing a Band-Aid of sorts. The CARES act will help to fill some of that gap, but not all of it, said Goldstein.

She added that the $175 billion in stimulus funding is favorable, but modestly so, since it is estimated to cover only about two months’ worth of spending. The good news is that the opportunity to apply for grant money, which doesn’t have to be repaid, can help to fill some of the gap.

Some hospital leaders are concerned that if they violate covenants – also known as a technical default – their credit outlook will be downgraded. Goldstein sought to assuage those concerns.

“Debt service covenants are expected to rise, but an expected covenant breach or violation won’t have an impact on credit quality because it’s driven by an unusual event happening,” she said. “It doesn’t speak to your fundamental history as an operating entity.”

 

 

500 Delta Airline Staff Test Positive for Coronavirus, 10 Dead

https://www.newsweek.com/500-delta-airline-staff-test-positive-coronavirus-10-dead-1513016

Coronavirus Travel: What Happens to Planes Grounded by Covid-19 ...

Hundreds of staff at Delta Air Lines have tested positive for the novel coronavirus. Ten workers have died after contracting the virus, the company confirmed.

According to a transcript of the company’s latest shareholders meeting held on a phone conference June 18, Delta’s Chief Executive Officer Ed Bastian said: “We have had approximately 500 employees that have tested positive for COVID-19. The vast majority have recovered, thankfully. Unfortunately, we have lost 10 employees to the disease.”

Speaking to Newsweek, a spokesperson for Delta noted the latest tally of infected employees is “inclusive of all positive cases reported to us since March out of our 90,000 employees worldwide.

“Since initial reporting in March, Delta has seen a significant reduction in positive employee COVID-19 tests and is currently tracking at a rate five times lower than the national average.”

Bastian said: “We have recently announced that we are going to be testing all of our employees. In fact, we started this week in Minneapolis for both the blood serology, as to whether they have already been exposed to the disease and have antibodies, as well as the active test to see if they, indeed, are carrying the virus. And that test is being led by Mayo Clinic.”

“And we are also working very closely with Quest Diagnostics in that we will have all 90,000 of our employees available to be tested. And from getting a good baseline, we will be able to provide better protection for our people and then, eventually, certainly, our customers as we go forward,” Bastian confirmed on the call.

It is unknown whether the infected staff members are cabin crew or ground-level workers and which flights they may have been operating. The majority of Delta’s employees are reported to be flight attendants, pilots and airport agents, while less than 10,000 are administrative staff, most of whom are working from home, according to Bastian.

“Given that we are a frontline customer service business, the majority of our employees need to be at work to conduct business,” Bastian said.

On Monday, Delta announced it will resume flights between the U.S. and China. The carrier will operate a service between Seattle and China’s Shanghai Pudong International Airport via South Korea’s Incheon International Airport twice a week from June 25.

From July, the airline will operate weekly flights from Seattle and Detroit to Shanghai, also via Incheon International Airport. Delta is the first U.S. airline to resume services between the U.S. and China since the temporary suspension of flights in February following the outbreak.

Earlier this month, Delta announced it will be suspending flights to 11 U.S. airports from July 8 while “customer volume is significantly reduced,” the carrier confirmed in a statement.

These airports make up five percent of the airline’s domestic operations. “All of these airports will continue to receive service from at least one other carrier after Delta suspends its operations,” the statement added.

The 11 airport locations include Aspen in Colorado (ASE), Bangor in Maine (BGR), Erie, PA (ERI), Flint in Michigan (FNT), Fort Smith in Arkansas (FSM), Lincoln in Nebraska (LNK), New Bern/Morehead/Beaufort in North Carolina (EWN), Peoria in Illinois (PIA), Santa Barbara, California (SBA), Scranton/Wilkes-Barre, Pennsylvania (AVP) and Williston in North Dakota (XWA).

“Delta has announced an 85 percent reduction in our second-quarter schedule, which includes reductions of 80 percent in U.S. domestic capacity and 90 percent internationally,” including service to Canada’s Ottawa International Airport in the province of Ontario which was suspended indefinitely from June 21, the statement confirmed.

Last month, Delta also announced the temporary suspension of operations at airports in locations with “more than one Delta-served airport to allow more frontline employees to minimize COVID-19 exposure risk while customer traffic is low.”

“Delta will continue providing essential service to impacted communities via neighboring airports,” the statement said.

The 10 airports where operations were temporarily suspended include Chicago Midway International Airport (MDW) in Illinois, Oakland International Airport (OAK), Hollywood Burbank Airport (BUR) and Long Beach Airport (LGB) in California, T. F. Green International Airport (PVD) in Rhode Island, Westchester County Airport (HPN) and Stewart International Airport (SWF) in New York, Akron-Canton Airport (CAK) in Ohio, Manchester-Boston Regional Airport (MHT) in New Hampshire and Newport News/Williamsburg International Airport (PHF) in Virginia.

Services at Canada’s Saskatoon International Airport were also temporarily suspended last month.

Delta extended its waiving of change fees and the flexibility to travel through September 30, 2022, to customers with canceled flights through September 2020.

“Eligible customers include those who have upcoming travel already booked between now and September 30 as of April 17, 2020,” and those with “canceled travel on flights between March 2020 and September 2020,” the airline said.

From May 4, Delta has required all passengers to wear a face mask or other appropriate face covering on its flights. Other safety measures introduced include sanitizing all aircraft with electrostatic spraying before departure and disinfecting all high-touch points throughout the aircraft interior.

Aircraft are also equipped with “state-of-the-art air circulation systems with HEPA [high efficiency particulate absorbing] filters that extract more than 99.99 percent of particles, including viruses,” the company said in a statement Monday.

Last week, American Airlines flight crew asked a passenger to disembark a plane after the man refused to wear a mask on board a flight.

In the same week, a survey by the International Air Transport Association (IATA) found that 45 percent of travelers said they would fly within two months after the novel coronavirus is no longer seen as a threat, down from 60 percent in April.

The novel coronavirus, first reported in Wuhan, China, has infected more than 9.2 million people across the globe, including over 2.3 million in the U.S. More than 477,800 have died following infection, while over 4.6 million have reportedly recovered from infection, as of Wednesday, according to the latest figures from Johns Hopkins University.

 

 

 

Houston ICUs at 97 Percent Capacity as Texas Coronavirus Cases Break Records

https://www.newsweek.com/houston-icus-90-percent-capacity-texas-coronavirus-cases-break-records-1513077

Coronavirus Briefing: What Happened Today - The New York Times

Almost all intensive care unit beds at Houston hospitals were occupied on Wednesday as Texas reported a record number of statewide patient admissions related to the novel coronavirus.

During a City Council meeting Wednesday morning, Houston Mayor Sylvester Turner said 97 percent of the city’s ICU beds were filled. A report from the Texas Medical Center (TMC) said 27 percent of those beds were occupied by COVID-19 patients.

According to data published earlier this week by the TMC, a network of health care and research institutions based in Houston, 90 percent of the city’s ICU beds were filled as of Monday. Virus patients accounted for more than one-quarter of those occupancies.

The TMC’s latest report incorporated ICU admission numbers from seven affiliate hospitals in the Houston area: CHI St. Luke’s Health, Harris Health System, Houston Methodist, MD Anderson Cancer Center, Memorial Hermann, Texas Children’s Hospital and University of Texas Medical Branch. The hospitals can collectively admit 1,330 ICU patients at regular capacity, when 70 to 80 percent of total beds are typically occupied, according to the TMC.

The TMC’s Monday report noted that an additional 373 beds could become available under its “sustainable surge” plan, a procedure that would indefinitely increase ICU capacities as needed during the pandemic. Another 504 beds could be added to Houston ICUs under an emergency “unsustainable surge” plan, which the TMC would implement to address a “significant, temporary” influx of patients, according to its report.

Houston’s heightened ICU admissions were reported as cases and hospitalizations related to the coronavirus are spiking throughout Texas. Ongoing data released by the Texas Department of State Health Services show that of all the state’s regions, the Houston area is one of the hardest hit in terms of virus incidence and hospital admissions. The latest DSHS data estimated that 179 ICU beds were available at medical facilities located in the Greater Houston area as of Tuesday afternoon.

The number of patients hospitalized with the virus peaked in Texas on Tuesday, as the DSHS confirmed more than 4,000 current admissions. The state has set new records for hospitalizations related to COVID-19 every day since June 12, when 2,166 patients were reported.

On Monday, the Houston Health Department said hospitalizations due to the virus had increased 177 percent throughout the surrounding county since May 31. It also noted a 64 percent increase in ICU patients who had tested positive for the virus.

Texas also saw its highest daily increase in virus cases on Wednesday, with 5,489 new diagnoses confirmed. The latest single-day record surpassed its previous high of 4,430 new cases reported last Saturday. Cumulative diagnosis data reflected in graphics published by the DSHS show a sharp upturn in cases reported statewide since the start of June, when about 64,800 total cases were confirmed. As of Tuesday afternoon, the number had risen to more than 120,300. The DSHS estimated that roughly 47,400 of those cases remain active.

Businesses in Texas started to reopen at the beginning of May. Although Texas Governor Greg Abbott has not required residents to wear face masks in the state’s public spaces during the reopening process, he did encourage people to do so earlier this week in response to increasing case counts and hospitalizations.

“Wearing a mask will help us to keep Texas open. Not taking action to slow the spread will cause COVID to spread even worse, risking people’s lives and ultimately leading to the closure of more businesses,” he said during a news conference on Monday.