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The best dataset on American health care will be harder to access

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Prachi Sanghavi, a health-policy researcher at the University of Chicago, studies whether ambulances that provide medical care at the site of the emergency are better than basic ones that simply rush a patient to the hospital. (They are not.) She also studies whether the federal government’s rating system for nursing home quality is any good. (That’s a no, too). Her research helps Americans evaluate the country’s health-care practices. Unfortunately her work is now at risk.

Dr Sanghavi’s research uses data provided by the Centres for Medicare and Medicaid Services (CMS), the federal health-care agency that administers America’s public-health insurance. CMS announced plans in February to change its data-sharing practices. The proposal raises the fees for data and makes access less convenient. Nearly 400 researchers, including Dr Sanghavi, from over 75 institutions across America have signed a letter in protest. They claim that the new restrictions will jeopardise ground-breaking research.

America does not have a national health-records system, so the CMS numbers are the best data available. Over a third of Americans are covered by CMS, and over 1bn medical claims a year are processed through the agency. This makes it a trove for researchers studying anything from health-care privatisation to the causes of the opioid epidemic.

The agency says it is changing the rules over concerns for data security. On the face of it, that sounds reasonable. CMS had a data breach just last year. Sensitive personal information, such as social-security numbers and mailing addresses, was compromised for over 600,000 people. Last month Change Healthcare, a health-care payment company bought by UnitedHealth Group, a large private insurer, was also targeted.

Under the current model of data-sharing, researchers can receive physical copies of the CMS data. They are then responsible for keeping the data secure, explains Alice Burns, a researcher at KFF, a health-policy think-tank. Unlike the CMS data that were hacked, the data for researchers do not contain individual names and social-security numbers.

However, they do contain sensitive information such as health diagnoses and a person’s age, race and zip code. In some instances a determined hacker could be able to identify an individual, but it is highly unlikely, says David Maimon of Georgia State University, who studies cyber-security. The proposed policy requires researchers to switch instead to a virtual centre hosted by CMS.

This is about balancing risk and benefit, says Haywood Talcove of LexisNexis Risk Solutions, a firm that sells fraud-prevention services. In this case the calculus seems lopsided. Since CMS has been hacked before, hoarding the data there doesn’t make it secure.

The researchers say that the benefits of the current model far outweigh the security risks. The protesting scientists claim that less-established researchers and those at poorer academic institutions could lose access. “Why wouldn’t we invite the best public-health experts in the world to look at the same data that we have?” asks Paul Mango, a former chief of staff at CMS under the Trump administration.

All is not lost. The changes have yet to go into effect, and the agency is accepting feedback from researchers until May 15th. But for now, the researchers would like to keep the status quo. Since the vast majority of older adults are on Medicare, these numbers give “a beautiful longitudinal view of a person’s life”, says Dr Sanghavi. It’s hard to put a price on that.

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Economics

A protest against America’s TikTok ban is mired in contradiction

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AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

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Economics

Home insurance costs soar as climate events surge, Treasury Dept. says

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Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

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Economics

How bad will the smoke be for Angelenos’ health?

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Where there is fire, there is smoke. For the people of Los Angeles, this will add to the misery. Some are already suffering from burning throats and irritated eyes. Many miles from the wildfires, people are wearing masks; shops are running out. The fires may also cause long-term problems.

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