Shooter Among 3 Dead at Oregon Mall

A masked gunman opened fire at Clackamas Town Center, a mall in suburban Portland, Ore., killing at least two people before he was killed himself, police said.

"I can confirm that we believe at this point that there was one and only one shooter involved and that that shooter is deceased," Clackamas County Sheriff's Office spokesman Lt. James Rhodes said. "In addition to that we have at least one patient who was taken taken from the mall with a traumatic injury and at least two that were deceased."

Hundreds of people were evacuated from the busy mall full of holiday shoppers after the shooting began at around 3:30 p.m. PT.

Witnesses described seeing a gunman who looked like a teenager with a white hockey mask, wearing what was believed to be a black, bulletproof vest and carrying an assault rifle.

The person entered the mall through a Macy's store, ran through the upper level of Macy's and opened fire near the mall food court, firing multiple shots, one right after another, with what is believed to be a black, semiautomatic rifle, according to witness reports.

Witnesses described the shooter as being on a mission and determined, looking straight ahead.

Those interviewed said that Macy's shoppers and store employees huddled in a dressing room to avoid being found.

Evan Walters told ABC News Radio that he was locked in a store for his safety and he saw two people shot and heard multiple gunshots.

"It was over 20, and it was kind of surreal because we hear pops and loud noises," he said. "We're next to the food court here and we hear pops and loud noises all the time, but we don't -- nothing like that. It was very definite gunshots."

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Egyptian army to host unity talks as crisis deepens

CAIRO (Reuters) - Egypt's army chief will host national unity talks on Wednesday, seeking to end a growing political and economic crisis in the Arab world's most populous nation.

The meeting scheduled for 1430 GMT was called in response to a wave of protests since President Mohamed Mursi awarded himself sweeping powers on November 22 to push through a new constitution shaped by his Islamist allies, which is due to go to a referendum on Saturday.

"We will not speak about politics nor about the referendum. Tomorrow we will sit together as Egyptians," armed forces chief and Defense Minister Abdel Fattah al-Sisi said at a gathering of army and police officials on Tuesday.

Mursi and the Muslim Brotherhood, which propelled him to power in a June election, were expected to attend, while the main opposition coalition said it would decide on Wednesday morning whether to participate. The opposition stayed away from an earlier reconciliation meeting called by Mursi last weekend.

The judiciary committee overseeing the vote decided late on Tuesday that the referendum would be conducted on two days instead of one, as previously planned.

"The committee had officially asked the President to issue a law approving that the referendum takes place on two stages on Saturday December 15 and Saturday December 22," Judge Mahmoud Abu Shousha, a member of the referendum judiciary committee, said. Voting for Egyptians living abroad starts on Wednesday.

"The reason for the splitting of the vote into two stages is due to a shortage of judges needed to supervise the ballot stations," another member of the committee, who asked not to be named, said.

Many judges had decided in a joint meeting on Tuesday to not supervise the vote on a constitution they say had divided the country into two groups.

Outside the presidential palace - where anti-Mursi protesters are demanding the Islamist postpone the vote on a constitution they say does not represent all Egyptians - there was skepticism tinged with some hope.

"Talks without the cancellation of the referendum - and a change to the constitution to make it a constitution for all Egyptians and not the Brotherhood - will lead to nothing and will be no more than a media show," said Ahmed Hamdy, a 35-year-old office worker.

But the fact that the army was calling such talks "is an indication to all parties that the crisis is coming to a head and that they need to end it quickly", he said.

Earlier, Finance Minister Mumtaz al-Said disclosed that a $4.8 billion International Monetary Fund loan, a cornerstone of Egypt's economic recovery hopes, would be delayed until next month because of the crisis.

The delay was intended to allow time to explain a widely criticized package of economic austerity measures to the Egyptian people, Said told Reuters.

REBUILD CONSENSUS

Prime Minister Hisham Kandil said the measures would not hurt the poor. Bread, sugar and rice would not be touched, but prices of cigarettes and cooking oil would go up and fines would be imposed for public littering. In a bid to rebuild consensus, he said there would be a public consultation about the program next week.

In Washington, the IMF said Egypt had asked for the loan to be postponed "in light of the unfolding developments on the ground". The Fund stood ready to consult with Egypt on resuming discussions on the stand-by loan, a spokeswoman said.

On the streets of Cairo, thousands of opposition supporters gathered outside the presidential palace to demand that Mursi postpone Saturday's referendum.

A bigger crowd of flag-waving Islamist Mursi backers, who want the vote to go ahead as planned on Saturday, assembled at two mosques and remained on the streets as night fell over the Egyptian capital. There were also protests in Alexandria and other cities.

The extended upheaval following the fall of Hosni Mubarak last year is causing concern in the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

State Department spokeswoman Victoria Nuland emphasized "deep concerns" over the situation in Egypt and repeated calls on protesters to demonstrate peacefully and on security forces to act with restraint. She declined to be drawn on whether Washington believed the referendum should be postponed.

The latest unrest has so far claimed seven lives in clashes between the Islamist Muslim Brotherhood and the opposition. But the Republican Guard has yet to use force to keep protesters away from the presidential palace, now ringed with tanks, barbed wire and concrete barricades.

(Additional reporting by Tamim Elyan and Edmund Blair in Cairo, and Andrew Quinn in Washington; Writing by Giles Elgood; Editing by Michael Roddy)

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No attempt to shoot down N.Korea rocket: Japan govt

TOKYO: Japan did not try to shoot down a North Korean rocket as it passed over its southern island chain of Okinawa, the government said Wednesday, strongly condemning the launch.

Tokyo confirmed the launch had taken place and that said it believed parts of the rocket had fallen into the sea off the Korean peninsula, with another part dropping into the ocean near the Philippines.

"Launch time was around 9:49 am (0049 GMT). The missile that North Korea calls a satellite passed over Okinawa around 10:01. We launched no interception," a government statement said.

Japan had been on high alert since the 13-day lift-off window opened, despite a suggestion from Pyongyang that it could delay the much-criticised blast-off.

Tokyo deployed missile defence systems to intercept and destroy the rocket if it looked set to fall on its territory, with missile batteries in and around Tokyo and in the Okinawan archipelago.

Japan reacted quickly to the launch on Wednesday, with national media informed by government-run alert system.

"It is extremely regrettable that North Korea went through with the launch despite our calls to exercise restraint," chief government spokesman Osamu Fujimura said.

"Our country cannot tolerate this. We strongly protest to North Korea."

The impoverished but nuclear-armed nation insists the long-range rocket launch -- its second this year after a much-hyped but botched mission in April -- is for peaceful scientific purposes.

But the United States, and allies South Korea and Japan, say Pyongyang's launch was a disguised ballistic missile test that violates UN resolutions triggered by its two nuclear tests in 2006 and 2009.

- AFP/ck

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Apna Ghar case: Contempt petition seeks action against Haryana chief secretary

CHANDIGARH: A contempt of court petition was filed on Tuesday before the Punjab and Haryana high court against the chief secretary (CS), Haryana, following the disappearance of two female inmates of Apna Ghar.

Petitioner Usav Singh Bains, a member of Child Rights Protection Network (CRPN), has sought contempt of court proceedings against the chief secretary for state government's failure to provide safety and security to the sexually-abused children of Rohtak's controversial shelter home - Apna Ghar.

Petitioner has submitted that on October 31, HC had ordered to ensure that none of the accused who have been enlarged on bail should be in a position to either meet or contact the children under any circumstances and if any such instance is brought to the notice of the court, the same shall be viewed with seriousness and taken to be a violation of the order

He alleged that just five days after these orders, a victim of Apna Ghar shelter home, lodged at Panipat, went missing under mysterious circumstances and again on December 10, two more Apna Ghar girls were reported as missing.

Petitioner has also added that it would be in interest of safety and security of the children that all kids in Apna Ghar be immediately shifted from Haryana to "Snehalaya" - a shelter home in Chandigarh, which would not only benefit the safety and security of the children but will also help Chandigarh branch of CBI to meet the children on a regular basis as the case is being tried at the Panchkula special CBI court. The petition would come up for hearing on Wednesday.

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DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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Guilty Verdict in Lottery Winner's Murder

DeeDee Moore, the Tampa woman accused of swindling and then killing lottery winner Abraham Shakespeare, was found guilty today of first degree murder and other charges, after she declined to take the stand and the defense rested without calling a single witness.

In addition to the murder charge, Moore was also found guilty of possessing and discharging a firearm resulting in death. Prosecutors did not pursue the death penalty in the case, and Moore was sentenced to life in prison without parole.

"After trial and listening to all of this over two weeks, words that were said cool, calculated, manipulated. Abraham Shakespeare was your prey and victim. Money was the route of evil you brought to Abraham. You are sentenced to life in prison you shall not be elegible for parole," Judge Emmet Battles said.

Jurors deliberated for more than three hours Monday before delivering their verdict.

Prosecutors argued that Moore, 40, befriended Shakespeare before he vanished in April 2009 after he'd won $30 million in the Florida lottery. After Shakespeare had given away most of his money to people who simply asked for it, Moore agreed to manage the little he had left, but instead, prosecutors said, stole his winnings and killed him.

During a dramatic trial Moore has broken down in tears several times, and at one point said that she went into anaphylactic shock while in custody after taking the drug Bactrim when she was having problems with cuts on her ankles from being cuffed every day.

Early today the defense announced it would rest its case without calling any witnesses. Moore did not testify during her trial.

Jay Conner/The Tampa Tribune/AP Photo

Florida Lotto Murder Trial: Bizarre Moments Watch Video

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"There is no witness that can say she ever admitted to doing the killing or participating as a principle in helping anyone else do the killing," Moore's defense attorney Byron Hileman said today.

In the courtroom this morning, Moore's friend, former inmate Rose Condora was accused of threatening witnesses by Tampa Judge Emmett Battles, and was thrown out of the courtroom.

Authorities say Shakespeare, 47, was shot twice in the chest by a .38-caliber pistol sometime in April 2009. He wasn't reported missing until November 2009. His body was found under a slab of cement in a backyard in January 2010.

Polk County authorities claim Moore offered someone a $200,000 house in exchange for reporting a false sighting of Shakespeare. She also allegedly sent the victim's son $5,000 in cash for his birthday, and used the victim's cellphone to send text messages purportedly from him.

Shakespeare's mother, Elizabeth Walker, also testified that Moore tried to hide that her son was missing, and said that he had AIDS.

Sentorria Butler, Shakespeare's ex-girlfriend and the mother of his child, also testified. Butler told the court last week that Moore is a divisive and manipulative woman who told her Shakespeare "ran off with the lady from the bank."

During the trial, jurors also watched a Walmart surveillance video that the prosecution said links Moore to Shakespeare's killing. The footage shows Moore making a $104 cash purchase of gloves, duct tape, plastic sheeting and other items detectives later found close to where Shakespeare's body was buried.

Jurors hearing the case also heard a rambling two-page letter that witness Greg Smith, a police informant who was a former friend of Shakespeare and supposed friend of Moore, says Moore allegedly forged while at a Comfort Inn & Suites in Lakeland, Fla.

The letter was meant to appear to be from Shakespeare, prosecutors said. They say the letter was a ruse to convince Shakespeare's mother that he was still alive. Moore attempted to cover her tracks while it was written, according to prosecutors.

During the trial, jurors had to be accompanied by a security escort into the courtroom after they told the judge Smith and Shakespeare's family and friends were making them feel uncomfortable outside the courthouse. None of the jurors had to be excused by the judge.

The Associated Press contributed to this report.

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Cairo faces rival protests over constitution crisis

CAIRO (Reuters) - Opponents and supporters of Egyptian President Mohamed Mursi's plans to vote on a new constitution will take to the streets in central Cairo later on Tuesday, risking more violent confrontation after last week's deadly clashes.

Leftists, liberals and other opposition groups have called for marches to the presidential palace in the afternoon to protest against the hastily arranged referendum planned for Saturday, which they say is polarizing the country.

Islamists, who dominated the body that drew up the constitution, have urged their followers to turn out "in millions" the same day in a show of support for the president and for a referendum they feel sure of winning and that critics say could put Egypt in a religious straitjacket.

Seven people were killed and hundreds wounded last week in clashes between the Islamist Muslim Brotherhood and opponents besieging Mursi's graffiti-daubed presidential palace.

The elite Republican Guard has yet to use force to keep protesters away from the palace, now ringed with tanks, barbed wire and concrete barricades, but a decree issued by Mursi late on Sunday gives the armed forces the power to arrest civilians during the referendum and until the announcement of the results.

Leftist politician Hamdeen Sabahy, one of the most prominent members of the National Salvation Front opposition coalition, said Mursi was driving a wedge between Egyptians and destroying prospects for consensus.

As well as pushing the early referendum, Mursi has angered opponents by taking sweeping temporary powers he said were necessary to secure the country's transition to stability after a popular uprising overthrew autocratic former president Hosni Mubarak 22 months ago.

"The road Mohamed Mursi is taking now does not create the possibility for national consensus," said Sabahy.

If the constitution was passed, he said: "Egypt will continue in this really charged state. It is certain that this constitution is driving us to more political polarization."

The National Salvation Front also includes Nobel Peace Prize laureate Mohamed ElBaradei and former Arab League chief Amr Moussa.

The opposition says the draft constitution fails to embrace the diversity of 83 million Egyptians, a tenth of whom are Christians, and invites Muslim clerics to influence lawmaking.

But debate over the details has largely given way to noisy street protests and megaphone politics, keeping Egypt off balance and ill equipped to deal with a looming economic crisis.

Lamia Kamel, a spokeswoman for Moussa, said the opposition factions were still discussing whether to boycott the referendum or call for a "no" vote.

"Both paths are unwelcome because they really don't want the referendum at all," she said, but predicted a clearer opposition line if the plebiscite went ahead as planned.

Mahmoud Ghozlan, the Muslim Brotherhood's spokesman, said the opposition could stage protests, but should keep the peace.

"They are free to boycott, participate or say no; they can do what they want. The important thing is that it remains in a peaceful context to preserve the country's safety and security."

The army stepped into the conflict on Saturday, telling all sides to resolve their disputes via dialogue and warning that it would not allow Egypt to enter a "dark tunnel".

The continuing disruption is also casting doubts on the government's ability to push through tough economic reforms that form part of a proposed $4.8 billion IMF loan agreement.

(Writing by Edmund Blair; Editing by Will Waterman)

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Twitter adds Instagram-style photo features

SAN FRANCISCO: Twitter on Monday added Instagram-style smartphone photo sharing features after the Facebook-owned service made it impossible for Internet users to integrate its images into tweets.

"Starting today, you'll be able to edit and refine photos, right from Twitter," the globally popular one-to-many messaging service said in a blog post.

"Every day, millions of people come to Twitter to connect with the things they care about and find out what's happening around the world," it added.

"As one of the most compelling forms of self-expression, photos have long been an important part of these experiences."

Twitter said its partner Aviary is powering "filters" and other effects for images using the latest Twitter applications for Apple iPhones or smartphones running on Google-backed Android software.

A social media feud between Twitter and Instagram escalated over the weekend as the popular smartphone photo-sharing service made it impossible for Internet users to view its images in "tweeted" messages.

Instagram, which has some 100 million users, is seeking to route photo viewers to its own website, where it has the potential to make money from ads or other mechanisms, instead of letting Twitter get the benefits.

Previously, Instagram pictures shared in messages tweeted from smartphones could be viewed unaltered at Twitter.

Twitter indicated in a status update Sunday that Instagram had "disabled photo integration with Twitter" and that "as a result, photos are no longer appearing in Tweets or user photo galleries."

"While tweeting links to Instagram photos is still possible, you can no longer view the photos on Twitter, as was previously the case," Twitter said.

Last week, Instagram had made it more difficult to view pictures in tweets, with the images cropped from the posts called Twitter Cards. By Sunday, the images were no longer viewable.

The moves escalated the battle between the smartphone app Instagram, which was acquired by Facebook this year, and the popular message service Twitter.

Instagram co-founder Kevin Systrom told a Paris conference last week that the move was part of a shift by the photo app to direct more users to the Instagram site.

Instagram rose to stardom with the help of Twitter, but has distanced itself from the messaging service since being acquired by leading social network Facebook.

Facebook completed its acquisition of Instagram in September. The original price was pegged at US$1 billion but the final value was less because of a decline in the social network's share price.

Instagram last month was given a Facebook spin with the roll-out of online profiles that let people showcase themselves and photos they have taken with the smartphone application.

People can share their profiles with whomever they wish, as well as "follow" other Instagram users, commenting on or expressing "likes" for pictures.

A distinctive feature of Instagram is that it allows users sharing smartphone snaps to enhance them with image filters for artistic effects such as mimicking historic types of film.

- AFP/ck

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All politicians aren't criminals: Sukhbir Badal

AMRITSAR: Completely disowning the leaders of his Shiromani Akali Dal (SAD) found to be involved in recent criminal activities, Punjab deputy chief minister Sukhbir Badal, who on Monday visited the house of ASI Ravinderpal Singh, who was shot dead by an Akali leader, said all politicians are not criminals.

"If some low rung Akali leader or his remote relative was is involved in some criminal case, it doesn't mean that all Akalis are criminals," he said.

"And in these particular cases they were very low level leaders whom we never knew," said Badal adding that wherever required, the party would re-examine its enrolments.

About Sukhdev Singh Namdhari, arrested in the Ponty Chadha murder case, Sukhbir said he had ordered registration of FIR and detailed investigations against him.

Badal also asked the Amritsar deputy commissioner of police to probe about the presence of policemen at the spot when the shooting happened. "Amritsar commissioner of police would finalize this report by 9am tomorrow and erring policemen would be straightway dismissed for running away from their duty," said Sukhbir.

He issued these instructions after meeting the family members of slain Ravinderpal Singh at their residence at Rampura village. He said the commissioner of police has also been asked to probe the conspiracy angle in the killing of ASI as the victim girl complained she was deliberately targeted by accused Ranjit Singh Rana, as she was daughter of ASI.

She complained to Sukhbir that when her scooter was hit by them on the first instance they had uttered that she was a daughter of thanedar and on second occasion also they pointed out that she was the same girl, daughter of thanedar.

"Commissioner of Police would examine the fact that whether there was a conspiracy to eliminate ASI," Sukhbir said. He also issued instructions to the district president of SAD to probe that who recommended the induction of Rana in the SAD fold and strict action would be taken against that person. He said the state government had already decided to enlist Robinjit Kaur, the daughter of the deceased, as sub-inspector in Punjab Police keeping in view the exemplary bravery shown by her.

He said he had already issued orders to provide two security guards permanently to the family.

Was Rana high on drugs?

Was Ranjit Singh Rana, the main accused in the killing of Assistant Sub-Inspector Ravinderpal Singh, under the influence of drugs when he confronted Singh and his daughter on December 5 near Chheharata? Rana had also ignored the advice of his co-accused to not harass policeman's daughter but he didn't listen to them. According to sources, Rana who allegedly used to sell and consume heroin was under the influence of the drugs.

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Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

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