Justice Department Settles Claims Against California Supermarket Chain and Affiliated Money Lender for Discriminating Against Asylee Worker

The Department of Justice today announced that it signed a settlement agreement with Northgate Gonzalez Markets Inc., a California-based supermarket chain, and Northgate Gonzalez Financial LLC d/b/a Prospera Gonzalez, an affiliated payday loan company (collectively, Northgate).

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    Why This Matters Contact tracing can help reduce transmission rates for infectious diseases like COVID-19 by identifying and notifying people who may have been exposed. Contact tracing apps, notably those using proximity tracing, could expedite such efforts. However, there are challenges, including accuracy, adoption rates, and privacy concerns. The Technology What is it? Contact tracing is a process in which public health officials attempt to limit disease transmission by identifying infected individuals, notifying their "contacts"—all the people they may have transmitted the disease to—and asking infected individuals and their contacts to quarantine, if appropriate (see fig. 1). For a highly contagious respiratory disease such as COVID-19, a contact could be anyone who has been nearby. Proximity tracing applications (apps) can expedite contact tracing, using smartphones to rapidly identify and notify contacts. Figure 1. A simplified depiction of disease transmission. Through contact tracing, an infected individual’s contacts are notified and may be asked to quarantine. (In reality, some contacts may not become infected, and some of those infected may not show symptoms.) How does it work? In traditional contact tracing, public health officials begin by identifying an infected individual. They then interview the individual to identify recent contacts, ask the individual and their contacts to take containment measures, if appropriate (e.g., a 14-day quarantine for COVID-19), and coordinate any needed care and testing. Proximity tracing apps may accelerate the process by replacing the time-consuming interviews needed to identify contacts. Apps may also identify more contacts than interviews, which rely on interviewees' recall and on their being acquainted with their contacts. Public health authorities provide the apps, often using systems developed by companies or research groups. Users voluntarily download the app for their country or region and opt in to contact tracing. In the U.S., state or local public health authorities would likely implement proximity tracing apps. Proximity tracing apps detect contacts using Bluetooth, GPS, or a combination of both. Bluetooth-based apps rely on anonymous codes shared between smartphones during close encounters. These codes contain no information about location or user identity, helping safeguard privacy. The apps allow public health authorities to set a minimum time and distance threshold for someone to count as a contact. Contact tracing can be centralized or decentralized. With a centralized approach, contacts identified by the app are often saved to a government server, and an official notifies contacts of possible exposure. For a decentralized approach, contact data are typically stored on the user's device at first. When a user voluntarily reports infection, the user's codes are uploaded to a database that other app users' phones search. Users who have encountered the infected person then receive notifications through the app (see fig. 2). Figure 2. Bluetooth-based proximity tracing apps exchange information, notify contacts exposed to an infected person, and provide follow-up information. How mature is it? Traditional contact tracing is well established and has been an effective infectious disease response strategy for decades. Proximity tracing apps are relatively new and not as well established. Their contact identifications could become more accurate as developers improve app technology, for example by improving Bluetooth signal interpretation or using information from other phone sensors. Opportunities Reach more people. For accurate COVID-19 contact tracing using traditional methods, public health experts have estimated that the U.S. would require hundreds of thousands of trained contact tracers because of the large number of infections. Proximity tracing apps can expedite and automate identification and notification of the contacts, reducing this need. Faster response. Proximity tracing apps could slow the spread of disease more effectively because they can identify and notify contacts as soon as a user reports they are infected. More complete identification of contacts. Proximity tracing apps, unlike traditional contact tracing, do not require users to recall or be acquainted with people they have recently encountered. Challenges Technology. Technological limitations may lead to missed contacts or false identification of contacts. For example, GPS-based apps may not identify precise locations, and Bluetooth apps may ignore barriers preventing exposure, such as walls or protective equipment. In addition, apps may overlook exposure if two people were not in close enough proximity long enough for it to count as a contact. Adoption. Lower adoption rates make the apps less effective. In the U.S., some states may choose not to use proximity tracing apps. In addition, the public may hesitate to opt in because of concerns about privacy and uncertainty as to how the data may be used. Recent scams using fake contact tracing to steal information may also erode trust in the apps. Interoperability. Divergent app designs may lead to the inability to exchange data between apps, states, and countries, which could be a problem as travel restrictions are relaxed. Access. Proximity tracing apps require regular access to smartphones and knowledge about how to install and use apps. Some vulnerable populations, including seniors, are less likely to own smartphones and use apps, possibly affecting adoption. Policy Context and Questions Although proximity tracing apps are relatively new, they have the potential to help slow disease transmission. But policymakers will need to consider how great the benefits are likely to be, given the challenges. If policymakers decide to use proximity tracing apps, they will need to integrate them into the larger public health response and consider the following questions, among others: What steps can policymakers take to build public trust and encourage communities to support and use proximity tracing apps, and mitigate lack of adoption by some populations? What legal, procedural, privacy, security, and technical safeguards could protect data collected through proximity tracing apps? What can policymakers do to improve coordination of contact tracing efforts across local, state, and international jurisdictions? What can policymakers do to expedite testing and communication of test results to maximize the benefits of proximity tracing apps? What can policymakers do to ensure that contact identification is accurate and that its criteria are based on scientific evidence? For more information, contact Karen Howard at (202) 512-6888 or HowardK@gao.gov.
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    Fifteen years into development, the CH-53K program has made progress in testing the aircraft. Program documentation indicates that there is a moderate risk of not demonstrating the required levels of reliability or payload carrying weight by the end of operational testing. The technical issues identified during testing caused program milestones to slip. For example, the full-rate production decision was delayed by nearly 7 years—from December 2015 to November 2022. CH-53K total program costs also increased by nearly $15.3 billion since the program began due to technical issues and a quantity increase fielded helicopters from 156 to 200. The program faces several challenges going forward. First, the schedule for completing the development of the CH-53K does not meet all of the leading practices, which makes the schedule unreliable. Specifically, GAO found that the master schedule is not fully credible or well-constructed. For example, the schedule indicates there is more flexibility in the schedule than it truly has, which can affect the ability to change allocated resources appropriately to meet schedule milestones. Second, the program faces potential further cost increases due to concurrency—or overlap between testing and procurement—which has increased due to delays in the completion of testing. In previous reviews of weapon systems, GAO found that while some concurrency is understandable, it can also result in cost increases and schedule delays, and deny timely, critical information to policy makers. Concurrency, coupled with plans for increased numbers of helicopters to be produced, beyond the six per year currently being built, could result in costly retrofits to helicopters built before the completion of operational testing. This testing will provide decision makers needed information on the resolution of the technical issues facing the program (see figure). CH-53K Helicopter Testing and Procurement, Fiscal Years 2017-2030 The Marine Corps is replacing its aging CH-53E helicopters with the CH-53K heavy-lift helicopter. Designed as an evolution of the CH-53E, the CH-53K is intended to transport armored vehicles, equipment, and personnel from ships to deep inland locations. The CH-53K program office is overseen by the Department of the Navy. As we have previously reported, the program has experienced delayed milestones and cost increases from almost its inception in 2005, in part, due to technical issues. GAO was asked to review the CH-53K program. This report examines the program's (1) progress toward completing testing and demonstrating system experience, (2) schedule and cost performance to date, and (3) potential future challenges. GAO analyzed cost, schedule, performance, test, manufacturing, and planning documents; and interviewed officials from the CH-53K program office, other defense offices—such as the Defense Contract Management Agency—the testing community, and the prime contractor, Sikorsky. GAO recommends that the Navy take steps to ensure the CH-53K schedule is credible and well-constructed, and that the Navy should not exceed the current annual procurement of six helicopters per year until the completion of initial operational test and evaluation. The Department of Defense did not concur with these recommendations. GAO continues to believe that the recommendations are valid, as discussed in this report. For more information, contact Jon Ludwigson at (202) 512-4841 or ludwigsonj@gao.gov.
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    Literature GAO reviewed indicated that private insurance payments for anesthesia services on average were more than 3-1/2 times those of Medicare payments. This payment difference increased from what GAO reported in 2007—average private insurance payments for certain anesthesia services in 2004 were about 3 times those of Medicare. While Medicare rates for anesthesia services are set by the Centers for Medicare & Medicaid Services (CMS), private insurance rates are set through negotiations between providers and private insurers. GAO identified three recent studies with analyses of private insurance and Medicare payments for anesthesia services: Researchers from Yale University calculated that private insurance payments were 3.67 times Medicare payments, on average, for services provided by anesthesiologists for one large private insurer in 2015 operating across all 50 states and the District of Columbia. The Health Care Cost Institute calculated that in 2017 private insurance payments ranged from 2 to 7 times Medicare payments, on average, across six common services provided by anesthesiologists in 33 states. Wide state-to-state variation within specific services was reported. The American Society of Anesthesiologists reported that private insurance payments were 3.46 times Medicare payments, on average, based on a survey of its members in 2019. According to studies GAO reviewed and stakeholders GAO interviewed, market factors likely enhanced anesthesia providers' negotiating position and allowed them to secure higher private payments. For example, several studies and stakeholders cited market concentration as a key factor that increased private payments for anesthesia services. In a market with high provider concentration—or relatively few providers in a given market—there is little competition between providers, enabling the providers within that market to negotiate for higher payments from private insurers. Studies also indicated that specialists, including anesthesia providers, could negotiate higher in-network payment rates because they were able to leave an insurer's network with little risk of losing patients or revenue. In addition, when anesthesia providers are not a part of a private insurer's network, they are typically able to bill for a higher amount than the insurer would pay for an in-network provider, known as out-of-network billing. This dynamic decreases providers' incentives to participate in insurer networks because it creates an attractive alternative to network participation. GAO's interviews with stakeholders, literature review, and review of agency data generally did not indicate that the supply of anesthesia providers was insufficient for Medicare beneficiaries. CMS data indicate that the number of active anesthesia providers per 100,000 Medicare beneficiaries increased from 2010 through 2018 and that a very small number of anesthesia providers opted out of the Medicare program. Furthermore, researchers and stakeholders GAO interviewed were not aware of any issues with access to anesthesia services for Medicare beneficiaries, including those in traditionally underserved rural areas. In 2018, Medicare paid over $2 billion for anesthesia services, such as general anesthesia administered to beneficiaries undergoing surgical or other invasive procedures. The joint explanatory statement for the Further Consolidated Appropriations Act, 2020 included a provision for GAO to update its 2007 report and examine how differences in payment rates for anesthesia services have changed since that time. In 2007, GAO reported that Medicare payments in 2004 for certain anesthesia services provided by anesthesiologists were on average 67 percent lower than private insurance payments in certain geographic areas—indicating that private payments were about 3 times more than Medicare payments at that time. This report describes what is known about (1) recent trends in differences between Medicare and private payments for anesthesia services, and (2) the sufficiency of the supply of anesthesia providers for Medicare beneficiaries. GAO reviewed literature and available published data on payment differences for anesthesia services, published in the United States since 2010. GAO also reviewed data from CMS on the number of anesthesia providers from 2010, 2018, and 2020. GAO also interviewed a nongeneralizable selection of three research groups, two beneficiary advocacy groups, and five stakeholder groups, including those representing anesthesiologists, nurse anesthetists, and hospitals, to obtain their perspectives on these issues. The Department of Health and Human Services provided no comments on this report. For more information, contact Jessica Farb at (202) 512-7114 or farbj@gao.gov.
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    In response to the Department of Labor's Home Care Rule—which extended Fair Labor Standards Act (FLSA) minimum wage and overtime protections to more home care workers—some states made changes in their Medicaid programs, according to studies and GAO interviews with stakeholders and selected state officials. Many stakeholders said the rule led some states to limit home care workers' hours in their Medicaid programs to avoid overtime costs. For example, in Oregon, newly hired home care workers provided through Medicaid were generally limited to 40 hours per week, according to state documentation. Some states also budgeted additional funds for overtime pay. In addition, according to a few stakeholder groups, some states changed service delivery in their Medicaid programs, for example, by discontinuing services such as live-in care. In contrast, several stakeholders said some states did not make any major changes to their Medicaid programs' home care services. Provider agencies, workers, and consumers experienced changes after the Home Care Rule took effect. Specifically, some provider agencies restricted workers' hours to limit overtime costs, though this can result in the need to hire more workers, leading to increased costs of recruiting, training, and scheduling, according to several stakeholders. GAO's analysis of national survey data found that home care workers, when compared to occupations with similar education and training requirements, were more likely to work full-time but did not earn significantly higher earnings following the Home Care Rule (see figure). Many stakeholders GAO spoke with described ongoing challenges consumers face in obtaining home care services, such as difficulty finding workers to hire. Estimated Median Weekly Earnings of Employed Workers, 2010 through 2019 Note: The margins of error at the 95 percent confidence level are within plus or minus 7.2 percent of the estimate itself. Employment in home care is projected to grow nearly 40 percent over the next decade to meet demand from an increasing population of older adults and people with disabilities. Home care workers help those who need assistance with activities of daily living such as dressing, eating, or bathing. State Medicaid programs may allow home care for eligible individuals as an alternative to institutional care. The Department of Labor's (DOL) Home Care Rule, which went into effect in 2015, extended FLSA protections to more home care workers. GAO was asked to review the implementation and effects of the Home Care Rule. This report examines what is known about (1) changes states made to their Medicaid programs in response to the Home Care Rule; and (2) the Home Care Rule's effect on home care provider agencies, workers, and consumers. To address these objectives, GAO analyzed 2010 through 2019 national survey data on workers' hours and wages; interviewed stakeholders from 15 organizations that represent the different groups affected, DOL officials, and home care program officials from three states selected based on variation in their Medicaid programs and minimum wage levels; and reviewed studies on state strategies to implement the Home Care Rule. For more information, contact Melissa Emrey-Arras at (617) 788-0534 or emreyarrasm@gao.gov.
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    A criminal complaint unsealed Friday in federal court in Pittsburgh charges Desmond Fodje Bobga for his alleged involvement in a puppy fraud scheme perpetrated against American consumers.  Fodje Bobga, 27, is a citizen of Cameroon who is in Romania on a visa to attend a university there. 
    [Read More…]
  • Secretary Michael R. Pompeo At the Mining, Agriculture, and Construction Protocol Signing Ceremony
    In Crime Control and Security News
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  • Honoring the Contributions of the Citizens of the Republic of the Marshall Islands
    In Crime Control and Security News
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  • Judges Bring Students and Their Families an Inside Look at The Bill of Rights
    In U.S Courts
    Students and parents across the Midwest gathered around computer screens set up at kitchen tables, desks, and couches to join federal judges and volunteer attorneys in an educational celebration of the Bill of Rights in advance of its Dec. 15 anniversary.
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  • Some Courts Slow Reopening Plans as COVID Cases Rise
    In U.S Courts
    At a time when some states are backtracking on plans to restore business and government operations, a number of federal courts also are slowing plans to reopen courthouse doors as coronavirus (COVID-19) case numbers escalate in many states. In recent weeks, federal courts, especially in Sun Belt “hot spot” states, have issued orders extending courthouse closures, postponement of jury trials, and the use of video and teleconferencing for most or all proceedings. Most of the orders cited rising COVID-19 numbers.
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  • Indiana Man Charged with Hate Crime for Making Racially-Motivated Threats Towards Black Neighbor, and With Unlawful Possession of Firearms
    In Crime News
    The Justice Department announced today that Shepherd Hoehn, 50, has been charged by criminal complaint in federal district court with one count of violating 42 U.S.C. § 3631 for making threats to intimidate and interfere with his African-American neighbor because of the neighbor’s race and because of his use and enjoyment of his property, as well as two counts of violating 18 U.S.C. § 922(g) for unlawfully possessing firearms.
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  • Federal Research Grants: OMB Should Take Steps to Establish the Research Policy Board
    In U.S GAO News
    As of January 2021, the Office of Management and Budget (OMB) had not established the Research Policy Board as required by the 21st Century Cures Act. The act requires OMB to establish the Board within 1 year of the December 13, 2016 enactment of the act. The Board is to provide information on the effects of regulations related to federal research requirements. OMB stated that it had not established the Board because of issues with the Department of Health and Human Services’ (HHS) and other federal agencies’ full participation in the Board’s potential activities to develop or implement a modified approach to indirect cost policies. According to OMB, “the Board would necessarily delve into issues related to compliance burden and indirect cost reimbursement to entities that receive federal funding for research.” Specifically, OMB pointed to a statutory provision appearing in annual appropriations bills that it believes prohibits HHS and other agencies from taking action on issues that could implicate certain indirect cost provisions. According to OMB, this provision could, if continued in future bills, “complicate or even possibly prohibit HHS from participating in major elements of the Board’s process.” OMB stated that, without representation of a major research agency such as the National Institutes of Health (NIH), which is part of HHS, “OMB would not be equipped to meet the statutory goals of the Board.” However, HHS stated in October 2020 that the indirect cost provision would not prohibit NIH’s participation on the Board and that the department was not aware of any other appropriations law provision that would prohibit such participation. GAO has no basis to disagree with HHS’s position. The 21st Century Cures Act does not specifically direct the Board to examine issues related to indirect costs, and we identified other issues that may fall within the scope of the Board’s activities. For example, the act specifies five activities that the Board may conduct, including creating a forum for the discussion of research policy or regulatory gaps, and identifying regulatory process improvements and policy changes. The Board could consider examining these or other issues related to streamlining and harmonizing regulations and reducing administrative burden in federally funded research in accordance with the 21st Century Cures Act. By not having established the Board, OMB is missing opportunities for the Board to provide information on the effects of regulations related to requirements for federally funded research, and to make recommendations to harmonize and streamline such requirements. Further, OMB has limited time to establish the Board and the Board may have insufficient time to complete its work before the Board is set to terminate on September 30, 2021. The 21st Century Cures Act requires OMB to establish an advisory committee, to be known as the Research Policy Board, that is responsible for making recommendations on modifying and harmonizing regulation of federally funded research to reduce administrative burden. The Board is to consist of both federal and non-federal members and include not more than 10 members from federal agencies, including officials from OMB, the Office of Science and Technology Policy (OSTP), HHS, the National Science Foundation, and other departments and agencies that support or regulate scientific research, as determined by the OMB Director. The 21st Century Cures Act includes a provision for GAO to conduct an independent evaluation of the Board’s activities. This report examines the steps OMB has taken to establish the Board as required by the 21st Century Cures Act. GAO reviewed written responses and other information from OMB, HHS, and OSTP; the 21st Century Cures Act and other laws related to the Board and its establishment; relevant reports on issues related to administrative burden; and related documents such as memoranda and agency guidance. GAO submitted a draft report containing the results of its evaluation to Congress on December 10, 2020. Congress should consider extending the period of authorization for the Research Policy Board, giving OMB additional time to establish the Research Policy Board and complete its statutory mission under the 21st Century Cures Act. GAO recommends that OMB establish the Research Policy Board as mandated by the 21st Century Cures Act and report to Congress on the Board’s activities. OMB did not agree or disagree with this recommendation. We maintain that the evidence in this report shows the need for our recommendation. For more information, contact John Neumann at (202) 512-6888 or neumannj@gao.gov.
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  • 16-Year-Old Cosmic Mystery Solved, Revealing Stellar Missing Link
    In Space
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  • Spain National Day
    In Crime Control and Security News
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  • NASA-led Study Reveals the Causes of Sea Level Rise Since 1900
    In Space
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  • 2020 International Women of Courage Award Recipients Announced
    In Women’s News
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