Feds OK insurance exchange partnership

Health and Human Services Secretary Kathleen Sebelius on Wednesday said her department conditionally approved Illinois’ plan to operate a health insurance exchange in a partnership with the federal government, a widely expected move that makes the state the third to receive the official go ahead. 

Sebelius plans to make the announcement Wednesday afternoon at a West Side clinic alongside Gov. Pat Quinn, Sebelius said the approval will allow the state and the federal government to continue work on readying the online marketplace for Oct. 1, when uninsured Illinoisans can begin signing up for health insurance offered under the 2010 health care overhaul law.

Under the partnership model, Illinois will maintain its responsibility for regulating the insurance market, a function that will allow the state to tailor the types of private health insurance plans offered through the exchange. Illinois also will be in charge of customer assistance, which will allow it to conduct outreach efforts and aid people in signing up.

The federal government is responsible for building and operating the exchange.

Illinois becomes the third state to have its partnership plan approved, following Delaware and Arkansas. A handful of other states, including Iowa, Michigan, West Virginia and New Hampshire, also are interested in the partnership model. Other states have opted to set up and run their own exchanges, while a majority refused to participate, relying on the federal government to do so.

Sebelius is in town through Thursday to meet with several large stakeholders, including union leaders, clergy and community groups, to raise awareness about the forthcoming exchanges, a spokesman said.

The exchanges are a crucial part of the government's plan to expand the number of Americans who have some form of health insurance.

Eventually, an estimated 20 million people will benefit from federal tax credits starting in 2014 that will help offset the cost of paying for insurance premiums. Even so, the government estimates that about 6 million Americans will not sign up and will start paying tax penalties in 2014.

In the first year, those penalties are relatively modest, starting at $95 for adults and $47.50 per child. But they’re expected to increase in future years, eventually totaling nearly $7 billion in 2016, an average fine of about $1,200 per person.

While states were given the option of setting up and running their own exchanges, only 18 chose to do so, with most of the rest opting to allow the federal government to operate them, at least in the beginning.

Julie Hamos, director of the state Department of Healthcare and Family Services, has said she hopes to get legislation passed this spring to authorize a purely state-run exchange that will be up and ready in time for open enrollment for 2015.

Meanwhile, consumers can expect a marketing blitz during the summer and into the fall touting the exchanges, which will serve individuals who are not eligible for Medicare or Medicaid and not offered health insurance through their employers.

pfrost@tribune.com | Twitter: @peterfrost

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Hadiya Pendleton shooting suspect: 'She was just there'

The gunman in the slaying of Hadiya Pendleton told police he was in the middle of a three-year battle with a rival gang when he opened fire at a South Side park and hit the 15-year-old who "had nothing to do" with the feud, according to prosecutors.

"She was just there," Michael Ward, 18, told police after he was arrested with Kenneth Williams, 20, prosecutors said during a hearing where both were denied bail.

Williams told witnesses he and Ward were driving around on Jan. 29, looking for members of a rival gang that had killed one of Ward's friends, according to prosecutors. Williams had also been wounded by a rival gang member last summer, police said.

"Ward stated that his gang and the rival gang had been shooting at one another since 2010. [Ward] stated that when the rival gang killed one of his friends, he thought, 'If we keep standing for this, we are going to be some straight bitches,' " prosecutors said.

"It hurt, it hurt," he told police, according to prosecutors. "It hurt to a point where everyone had to go."

Ward confessed to police that he and Williams mistook a Pendleton companion for a rival gang member as the girl was with friends at the park near King College Prep High School, about a mile away from President Barack Obama's home.

In court today, prosecutors disclosed that surveillance video captured the white Nissan the two used to flee after the shooting. Police had identified Williams and Ward as occupants of the car "within approximately 10 minutes of the shooting," prosecutors said.

The two were not arrested until this past weekend.

Williams said he and Ward pulled up to Harsh Park in the North Kenwood neighborhood, according to prosecutors. Ward got out and "snuck up on the group and they didn't see him coming," prosecutors quoted Ward as telling police. "Ward admitted he approached the fence and fired the gun six times. He ran back to the car and both defendants fled."

Relatives and supporters showed up in court for both defendants, but no one spoke to reporters following the bond hearing.

Ward’s lawyer, Jeffrey Granich, contended that police refused his client’s repeated requests for a lawyer while he was being questioned by detectives. He also maintained that Ward was being “railroaded” because of the high-profile homicide.

“This is a serious case, not a political platform,” Granich told reporters in the lobby of the Leighton Criminal Court Building.

Granich said Ward was attending Malcolm X College to obtain a GED, a requirement of his probation sentence for a weapons conviction.

Williams’ attorney, Matthew McQuaid, said his client had graduated from the same high school as Hadiya – King College Prep – and was working for an air courier service at O’Hare International Airport. He has no criminal background.

McQuaid also denied that Williams belonged to a gang.

Detectives arrested the two Saturday night as the suspects were on their way to a suburban strip club to celebrate a friend's birthday, police said. Pendleton had been buried only hours earlier in a funeral attended by first lady Michelle Obama.

Police Superintendent Garry McCarthy said that two days before the killing, police had stopped Ward in his Nissan Sentra as part of a routine gang investigation. That information wound up being the starting point for detectives when witnesses in the shooting described seeing a similar car driving away from the shooting scene, he said.

Through surveillance and interviews — including several fruitful interviews with parolees in the neighborhood — detectives were able to home in on Ward and Williams, police said. On Saturday night, the decision was made to stop the two if they were spotted. Police watched as they departed in a caravan of cars headed to the strip club in Harvey. They were stopped near 67th Street and South King Drive and taken in for questioning.

McCarthy said Williams was shot July 11 at 39th Street and South Lake Park Avenue and an arrest was made. But that gunman was let go after Williams refused to cooperate, McCarthy said.

McCarthy noted that at the time of Hadiya's slaying, Ward was on probation for a weapons conviction. McCarthy said weak Illinois gun laws allowed Ward to avoid jail time because of the absence of mandatory minimum sentences.

"This incident did not have to occur," McCarthy said. "And if mandatory minimums existed in the state of Illinois, Michael Ward would not have been on the street to commit this heinous act."

jmeisner@tribune.com

jgorner@tribune.com

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Apple CEO calls Einhorn lawsuit a "sideshow"

SAN FRANCISCO (Reuters) - Apple Inc Chief Executive Tim Cook called David Einhorn's lawsuit against his company a "silly sideshow" but said the board is carefully considering the star hedge fund manager's proposal to issue preferred stock, calling it "creative."

Waving aside Einhorn's assertion that Apple is clinging to a "Depression-era" mentality, Cook said on Tuesday the board is in "very active discussions" on how to share more of its $137 billion hoard of cash and marketable securities.

Einhorn is suing Apple as part of a wider effort to get the iPhone maker to share more of its cash pile, one of the largest in the technology industry. Einhorn wants the company to issue perpetual preferred shares that pay dividends to existing shareholders, arguing that such a vehicle would be superior to dividends or share buybacks.

His clash with Apple centers on a proposed change to its charter that would eliminate the company's ability to issue "blank check" preferred stock at its discretion. Apple, which said the change would not preclude future issuance of preferred shares, is recommending shareholders vote in favor at its annual meeting on February 27.

The lawsuit, filed in the U.S. district court in Manhattan, challenges the bundling of the charter change with two other corporate governance-related proposals in "Proposal 2," in the proxy document for the annual meeting.

Cook gave Einhorn credit for the idea, but the usually calm chief executive turned slightly impatient when discussing the topic. He was dismissive of Einhorn's media and legal blitz - which included the lawsuit as well as multiple television and media interviews - terming it "bizarre."

Cook, who traded in his usual casual jeans attire for a suit jacket, said the more serious issue here was finding ways to return cash.

"This is a waste of shareholder money and a distraction and not a seminal issue for Apple. That said, I support Prop 2. I am personally going to vote for it," Cook told investors at Goldman Sachs' annual technology industry conference in San Francisco.

"My preference would be that everyone on both sides of the issue would take the money they are spending on this and donate it to a worthy cause," he said at the start of an hour-long, on-stage interview conducted by the investment bank.

The conflict over Prop 2 "is a silly sideshow," he added. Cook said he thought it "bizarre that we would find ourselves being sued for doing something good for shareholders."

Apple's share price has tumbled in recent months from a high of just over $700 last September. In early afternoon trade on Tuesday, the shares were down around 1.2 percent at $474.24.

DIMINISHING CLOUT

Apple stock is a mainstay of many fund managers' portfolios, with research firm eVestment estimating that 75 percent of U.S. large-cap growth managers had invested more than 5 percent of their portfolios in Apple as of the end of the third quarter of 2012.

But that also increases the pressure on Apple to give away a bigger portion of its cash hoard, which is rising as the share price declines and its outlook grows murkier.

Cook touched on Apple's acquisition strategy, saying that the company has looked at more than one large acquisition but that none passed the company's internal test.

But Apple could do one in the future, if the technology fits, he said.

"We have the management talent and depth to do it," he said. "We don't feel the pressure to go out and acquire revenue."

Cook, introduced briefly by Goldman Sachs CEO Lloyd Blankfein, disputed a popular view that the smartphone market in developed markets may be saturated.

"On a longer-term basis, all phones will be smartphones and there's a lot more people in the world than 1.4 billion, and people love to upgrade their phones very regularly," he said.

The company is also trying to appeal to cost-conscious customers. Apple has moved to make the iPhone more affordable without introducing a specific cheaper phone, by cutting prices of older models.

"We didn't have enough supply of iPhone 4 after we cut the price," he said. "It surprised us, the level of demand for it."

The chief executive, who departed for Washington, D.C after the conference to join U.S. first lady Michelle Obama at the President's State of the Union address later on Tuesday, otherwise stuck pretty much to his regular script - with a sprinkling of lighter, more personal moments.

He grew animated when praising Apple employees or talking about the company's efforts to improve labor conditions across its sprawling supply chain, and touted the Apple store concept for its uplifting ability.

Cook said that when he is down, he just visits an Apple retail store. "It's like Prozac. It's a feeling like no other."

(Additional reporting by Jennifer Saba in New York; Editing by Gerald E. McCormick, Claudia Parsons and Steve Orlofsky)

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Wrestling body reacts to Olympic rejection

LAUSANNE, Switzerland (AP) — The governing body of wrestling says the IOC's move to drop the sport is an "aberration" against a founding event of the Olympics.

Known by its French initials FILA, the organization says it is "greatly astonished" by the IOC executive board decision.

FILA says it will take "all necessary measures" to convince IOC members to maintain wrestling's Olympic status when they meet in Buenos Aires, Argentina, in September.

Still, FILA President Raphael Martinetti faces criticism when his ruling board meets this weekend in Thailand.

Russian federation leader Mikhail Mamiashvili says FILA is the problem, and Martinetti's tasks include defending "wrestling's place before the IOC."

German official Jannis Zamanduridis says "a piece of the Olympic idea is dying with this decision."

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Pope shows lifetime jobs aren't always for life

The world seems surprised that an 85-year-old globe-trotting pope who just started tweeting wants to resign, but should it be? Maybe what should be surprising is that more leaders his age do not, considering the toll aging takes on bodies and minds amid a culture of constant communication and change.

There may be more behind the story of why Pope Benedict XVI decided to leave a job normally held for life. But the pontiff made it about age. He said the job called for "both strength of mind and body" and said his was deteriorating. He spoke of "today's world, subject to so many rapid changes," implying a difficulty keeping up despite his recent debut on Twitter.

"This seemed to me a very brave, courageous decision," especially because older people often don't recognize their own decline, said Dr. Seth Landefeld, an expert on aging and chairman of medicine at the University of Alabama at Birmingham.

Age has driven many leaders from jobs that used to be for life — Supreme Court justices, monarchs and other heads of state. As lifetimes expand, the woes of old age are catching up with more in seats of power. Some are choosing to step down rather than suffer long declines and disabilities as the pope's last predecessor did.

Since 1955, only one U.S. Supreme Court justice — Chief Justice William Rehnquist — has died in office. Twenty-one others chose to retire, the most recent being John Paul Stevens, who stepped down in 2010 at age 90.

When Thurgood Marshall stepped down in 1991 at the age of 82, citing health reasons, the Supreme Court justice's answer was blunt: "What's wrong with me? I'm old. I'm getting old and falling apart."

One in 5 U.S. senators is 70 or older, and some have retired rather than seek new terms, such as Hawaii's Daniel Akaka, who left office in January at age 88.

The Netherlands' Queen Beatrix, who just turned 75, recently said she will pass the crown to a son and put the country "in the hands of a new generation."

In Germany, where the pope was born, Chancellor Angela Merkel, who is 58, said the pope's decision that he was no longer fit for the job "earns my very highest respect."

"In our time of ever-lengthening life, many people will be able to understand how the pope as well has to deal with the burdens of aging," she told reporters in Berlin.

Experts on aging agreed.

"People's mental capacities in their 80s and 90s aren't what they were in their 40s and 50s. Their short-term memory is often not as good, their ability to think quickly on their feet, to execute decisions is often not as good," Landefeld said. Change is tougher to handle with age, and leaders like popes and presidents face "extraordinary demands that would tax anybody's physical and mental stamina."

Dr. Barbara Messinger-Rapport, geriatrics chief at the Cleveland Clinic, noted that half of people 85 and older in developed countries have some dementia, usually Alzheimer's. Even without such a disease, "it takes longer to make decisions, it takes longer to learn new things," she said.

But that's far from universal, said Dr. Thomas Perls, an expert on aging at Boston University and director of the New England Centenarians Study.

"Usually a man who is entirely healthy in his early 80s has demonstrated his survival prowess" and can live much longer, he said. People of privilege have better odds because they have access to good food and health care, and tend to lead clean lives.

"Even in the 1500s and 1600s there were popes in their 80s. It's remarkable. That would be today's centenarians," Perls said.

Arizona Sen. John McCain turned 71 while running for president in 2007. Had he won, he would have been the oldest person elected to a first term as president. Ronald Reagan was days away from turning 70 when he started his first term as president in 1981; he won re-election in 1984. Vice President Joe Biden just turned 70.

In the U.S. Senate, where seniority is rewarded and revered, South Carolina's Strom Thurmond didn't retire until age 100 in 2002. Sen. Robert Byrd of West Virginia was the longest-serving senator when he died in office at 92 in 2010.

Now the oldest U.S. senator is 89-year-old Frank Lautenberg of New Jersey. The oldest congressman is Ralph Hall of Texas who turns 90 in May.

The legendary Alan Greenspan was about to turn 80 when he retired as chairman of the Federal Reserve in 2006; he still works as a consultant.

Elsewhere around the world, Cuba's Fidel Castro — one of the world's longest serving heads of state — stepped down in 2006 at age 79 due to an intestinal illness that nearly killed him, handing power to his younger brother Raul. But the island is an example of aged leaders pushing on well into their dotage. Raul Castro now is 81 and his two top lieutenants are also octogenarians. Later this month, he is expected to be named to a new, five-year term as president.

Other leaders who are still working:

—England's Queen Elizabeth, 86.

—Abdullah bin Abd al-Aziz al-Saud, king of Saudi Arabia, 88.

—Sabah al-Ahmad al-Jaber al-Sabah, emir of Kuwait, 83.

—Ruth Bader Ginsburg, U.S. Supreme Court associate justice, 79.

__

Associated Press writers Paul Haven in Havana, Cuba; David Rising in Berlin; Seth Borenstein, Mark Sherman and Matt Yancey in Washington, and researcher Judy Ausuebel in New York contributed to this report.

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Life imitates film in story of vengeful LA ex-cop

LOS ANGELES (AP) — It sounds like the plot line to a movie: He's a former LA cop on a violent, rage-filled rampage who will stop at nothing for revenge.

Instead, police say, it is the latest real-life crime story to grip Southern California, a place where fiction frequently blurs with reality and pop culture often plays larger than the truth.

Christopher Dorner's alleged killing spree hasn't just terrorized a section of the country — it has captured people's imagination and attention.

As of Monday, the triple-murder suspect had more than 70 Facebook fan pages, some with thousands of "likes." Many people were going on those pages to call him an American hero, a man of true conviction who is fighting for his beliefs.

Others praised him for attempting to fight injustice and racism "by any means necessary," quoting the expression popularized by Malcolm X during the 1960s Black Power movement.

Even Charlie Sheen asked the missing suspect to give him a call.

"Let's figure out together how to end this thing," the star of the TV series "Anger Management" says in a 17-second video posted on the website TMZ.com in which he also thanks Dorner for praising him as an actor.

Dorner's shoutout to Sheen, "You're effin awesome," came in a long, rambling manifesto the former cop allegedly posted online in which he accused the Los Angeles Police Department of wrongly firing him, railed against racism and other abuses, and weighed in on his favorite movies and celebrities.

He also vowed vengeance against the police officers he believes wronged him and ruined his reputation. So far, authorities say, he has carried out that threat, killing a Riverside police officer, attempting to kill three other police officers and killing the daughter of a former Los Angeles police captain and her fiance.

And then, just like a scene out of a movie, he vanished Rambo-like, presumably into the deep snow of a sprawling national forest 90 miles east of Los Angeles. Authorities found his burned-out car with weapons inside last week but, so far, no trace of him despite a search coordinated by the FBI, LAPD and other police agencies.

"My first thought was this is the stuff movies are made of," said Karen North, a social media expert at the University of Southern California's Annenberg School. But then her second thought, North said, was that unlike the anti-heroes played to such great effect by Sylvester Stallone in the "Rambo" movies and Arnold Schwarzenegger in "The Running Man," Dorner has no redeeming qualities.

"He's killed people who are real people with real families and real friends, and he's terrorized entire communities," she said.

His ability to so far elude one of the largest manhunts in memory, however, has quickly elevated Dorner to folk-hero status among some.

Dorner T-shirts were selling Tuesday for as much as $18. In addition, a photo of a large man who vaguely resembles Dorner and is wearing a T-shirt with the words "Not Chris Dorner, Please Do Not Shoot," has been shared repeatedly on Facebook and Twitter.

So have pictures of Dorner released by police that fans later labeled "American Hero." At least one was altered to resemble Shepard Fairey's famous "Hope" poster of President Barack Obama.

"People, especially Americans, like to identify with anti-heroes and underdogs, and if you take away the fact that he has killed innocent people, people identify with his messages," North said of the attention and sometimes sympathy that Dorner's online rants against racism, injustice and police brutality have brought.

In that way, she said, some will identify him with popular outlaws of the past such as Bonnie and Clyde or Butch Cassidy and the Sundance Kid.

"But when we do this, we often forget that these people are creating heartbreak for the individuals' lives they affect," North continued.

People watching the case haven't overlooked that Los Angeles police officers who are clearly on edge have mistakenly opened fire on two different vehicles they thought Dorner might be driving.

Since those shootings, one of which wounded a woman and her daughter, some pickups around town now carry handmade signs reading, "Don't Shoot. Not Dorner."

The manifesto linked to Dorner rambles on for more than 10,000 words, spending much of the first half accusing Los Angeles police of wrongly firing him, destroying his reputation and leaving him with no choice but to kill people to bring those actions to the public's attention and restore his name. He also tells of enduring racist taunts during much of his school years, when he says he was often the only black student in his classes.

In the second half, the ex-cop addresses numerous celebrities, including Sheen.

Dorner, who has said he expects to die in a violent confrontation with police, also laments that he likely won't live to see the third "''Hangover" movie. He also advises director Todd Phillips to end the franchise after that film and not cheapen it by milking it for more sequels. He sides with Larry David's character in an episode of the TV comedy "Curb Your Enthusiasm" in which David's black friends tell him white people keep their homes too cold at night.

He also heaps praise on Ellen DeGeneres and Bill Cosby.

Except for Sheen, the celebrities have chosen to ignore Dorner.

"We will look back on this not as somebody with a great cause who called attention to it in a bad way," she said. "This is somebody who created terrible heartbreak."

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Chicago leads nation in gas-price spikes

Drivers in Chicago are seeing a painful rise in gas prices get even worse this month.

The average price of regular unleaded in the Chicago metro area on Tuesday is $3.93, according to AAA. That's up 12 cents from a week ago. A month ago, the average was $3.42. Statewide, the average is about $3.79, up 8 cents from last week and 46 cents last month.

Prices are rising at pumps across the country, too, but not as dramatically. The national average is $3.60, up about 7 cents from a week ago and 30 cents higher than this time last month.

It's not typical to see gas price spikes at this time of year. Demand is typically low and picks up in the spring before driving season. And in general, gas is cheaper to produce in the winter because refineries can use less expensive blends.

The main reason for the spike is the higher price of crude oil. The price of oil has gone from around $85 a barrel in December to around $97 now because of improving economic certainty as the country moved past the election and the fiscal cliff deadline, according to energy analyst Phil Flynn. It's also being driven by better-than-expected growth in China, the world's second largest economy.

Prices in the Chicago area are typically some the highest in the nation, but the cost of a local fill-up is accelerating at almost double the national rate.

Flynn attributes this to a number of refinery issues in the region. Some scheduled maintenance at refineries -- where gasoline and other products are produced from oil -- occurred earlier than usual, which cut off some supply, affecting prices. Many close at this time of year to start the switchover to lower-emission summer blends of gasoline.

Besides a major overhaul of BP's Whiting refinery, the largest supplier of gasoline to Midwest markets, that's believed to be driving prices higher, a fire temporarily shut down a refinery in northwest Ohio.

AAA, which tracks daily gasoline prices around the country, predicts they will continue their rapid climb as local refinery issues continue into the beginning of peak driving season.

Flynn is more optimistic.

He believes that once the major Whiting refinery overhaul is complete later this year, gas prices will stabilize.

"I'm probably in the minority but I think we are starting to see some light at the end of the tunnel," he said.

sbomkamp@tribune.com | Twitter: @SamWillTravel

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Charges in Hadiya Pendleton slaying could come soon: McCarthy

Charges could come this evening against two people being questioned in the shooting death of 15-year-old Hadiya Pendleton, Police Superintendent Garry McCarthy said today.
"We will bring this all to closure, probably sometime this evening we're anticipating hopefully that we'll have charges," McCarthy said at a news conference with Mayor Rahm Emanuel and Cook County State's Attorney Anita Alvarez to announce a push for stiffer jail terms for people convicted of gun crimes.
McCarthy declined to provide more specifics, saying the investigation is ongoing.

"We're still doing lineups. We're still crossing some t's and dotting some i's that we need to do before we can get charges approved for these individuals," he said.

Chicago police picked up the two men, 18 and 20, were picked up over the weekend, hours after first lady Michelle Obama attended the funeral for the teenager whose death has become a symbol of escalating violence in Chicago.

The men were pulled over near East 67th Street and South Chicago Avenue late Saturday night or early Sunday morning after detectives canvassed the area of the park where she was shot and killed Jan. 29 and tracked down witnesses, the sources said.

Hadiya was fatally shot in Vivian Gordon Harsh Park, about a mile north of President Barack Obama's Kenwood neighborhood home on the South Side, a little more than a week after the honor student performed with the King College Prep band in Washington during inauguration festivities. Two other teens were wounded.

The shooting in the 4400 block of South Oakenwald Avenue happened after classes were dismissed for the day during finals week at King. Hadiya, a sophomore at King, was at the park with a group of teens, primarily other students from the school, when a male gunman climbed over a fence, ran to the group and started firing, police have said. The shooter escaped in what has been described as a white Nissan vehicle, possibly driven by a getaway driver.

One of the sources said at least one of the men brought into custody was riding in a Nissan Sentra, one of the two vehicles police pulled over when bringing the pair into custody. The source didn't know that Nissan's color.

Police have insisted the teens in Hadiya's group who had gathered in the park were not involved in gangs. But police have been looking into whether the gunman may have mistaken them for rival gang members.

While police and neighbors have generally described Harsh Park and its immediate surroundings as safe, there has been an internal gang conflict brewing in the area between factions of the Gangster Disciples, police said. The two men being questioned Sunday are alleged members of the Gangster Disciples, sources said.

One of the two men has a previous weapons conviction, according to court records.

In addition to Hadiya's homicide, there have been at least three other shootings within blocks of Harsh Park so far this year, according to police records.

No charges have been filed against the men, who are being held at Area Central police headquarters on the South Side.

Mayor Rahm Emanuel personally called Hadiya's parents, Cleopatra Cowley-Pendleton and Nathaniel Pendleton, to inform them of the development, according to a source. Nathaniel Pendleton told the Tribune on Sunday night that he didn't want to say too much about the men being questioned because charges have not been filed.
“Right now, we're just happy that Chicago police have some leads and things are moving,” he said.

Shatira Wilks, a cousin of Hadiya's and a family spokesperson, said the development is a “good response” and better news than the family had Saturday.

Arrests and charges “will bring a small level of closure to the family, although (the shooter) still will be allowed to eat, drink, mingle,” Wilks said. “The thing about that is, Hadiya is no longer (able) to do so.”

On how Hadiya's family is doing, Wilks said, “Everyone keeps asking that. I don't know if you'll ever get an answer that we're feeling good or we're feeling fine.”

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Australia to grill Apple, others on pricing

CANBERRA (Reuters) - Apple Inc has been ordered to appear before Australia's parliament with fellow technology giants Microsoft Inc and Adobe Systems Inc to explain why local consumers pay so much for their products, despite the strong Aussie dollar.

Broadening a row between the world's most valuable company and Australian lawmakers over corporate taxes paid on Apple's operations, Apple executives were formally summonsed on Monday to front a parliamentary committee in Canberra on March 22.

"In what's probably the first time anywhere in the world, these IT firms are now being summoned by the Australian parliament to explain why they price their products so much higher in Australia compared to the United States," said ruling Labor government MP Ed Husic, who helped set up the committee.

High local prices and soaring cost-of-living bills for basic services are hurting the popularity of the minority Labor government ahead of a September 14 election it is widely tipped to lose, giving political momentum to the inquiry.

All three companies have so far declined to appear before the special committee set up in May last year to investigate possible price gouging on Australian hardware and software buyers, despite the Australian dollar hovering near record highs above the U.S. currency around A$1.03.

A 16GB WiFi iPad produced by Apple with Retina display sells in Australia for A$539, $40 above the price in the U.S., despite the stronger local currency. Microsoft's latest versions of office 365 home premium cost A$119 in Australia versus $99.99 in the United States.

IT firms and other multinationals have blamed high operating costs in Australia including high local wages and conditions, as well as import costs and the relatively small size of the retail market in the $1.5 trillion economy.

Failure to appear before the committee as ordered could leave all three firms open to contempt of parliament charges, fines or even jail terms.

"For some time consumers and businesses have been trying to work out why they are paying so much more, particularly for software, where if it's downloaded there is no shipping or handling, or much of a labor cost," Husic told Reuters.

Adobe and Microsoft have previously provided separate written statements and submissions to the inquiry. But executives have been reluctant to explain their pricing before a public inquiry.

Apple executives in Australia declined to comment when contacted by Reuters.

"The companies have blamed each other for not appearing. One will say 'we're not going to appear if the other is not going to appear'. So we've cut straight to the chase and said we'll just summons you," Husic said.

Price gouging in IT for hardware and software, Husic said, could be costing Australia's more than 2 million small and medium businesses as much as $10 billion extra.

Husic took aim at Apple last week over local taxes paid by the company, telling parliament that Apple generated A$6 billion in revenue in Australia in 2011, but paid only A$40 million in tax - less than one percent of turnover.

"While they generated A$6 billion in revenue, they apparently racked up from what I understand A$5.5 billion in costs. How?" Husic said. "They do not manufacture here. They have no factories here."

He accused Apple executives of maintaining a "cloak of invisibility", while dodging scrutiny of operations. Apple has been criticized elsewhere for its zealous secrecy.

"Ask anyone who has sought answers from them about their Australian operations and you will hear a common theme. They will not talk," he said.

(Editing by Shri Navaratnam)

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Eagles, QB Vick agree to restructured deal

PHILADELPHIA (AP) — Quarterback Michael Vick, who was slated to earn $16 million next season, has agreed to a restructured deal with the Philadelphia Eagles.

Vick, who was injured and inconsistent last season, eventually giving way to rookie Nick Foles, now has a three-year contract, and will compete with Foles over the next nine months to see who runs new coach Chip Kelly's offense this season.

Vick, who returned to start the season finale vs. the New York Giants in December because Foles was injured, finished the season with 2,362 yards passing, 12 touchdowns and 10 interceptions. The Eagles finished 4-12 and in last place in the NFC East.

Andy Reid was fired as coach the day after the season ended, and Kelly was hired last month. Vick, who will be 33 when next season begins, is still elusive when healthy, and seems equipped to run Kelly's aggressive, up-tempo offense that he is bringing to the Eagles from Oregon.

"He wanted to be here," Kelly said Monday in his first meeting with the media following his opening press conference on Jan. 17. "I had never met him before. The one thing that attracted me to him, is Michael is a competitor. Nick is, too. You want guys who want to compete."

Vick was signed by Philadelphia in 2009, and became the starter in 2010. He led the Eagles that season to an NFC East title, and a memorable 38-31 December win over the Giants in which he rallied the team from a 21-point deficit.

There are questions, of course, about his durability and his age, as he now seems far removed from that resurgent 2010 season. He finished that year with 3,018 yards passing, 676 yards rushing and 30 total touchdowns.

"He's younger than (Dallas quarterback) Tony Romo, and he's right about the same age as (Giants quarterback) Eli Manning," Kelly said. "The only reason I say that is because I told Michael that this morning, and he didn't know."

Vick only played in 10 games last season, and in the finale vs. New York, he had a quarterback rating of just 68.4 en route to a 42-7 loss.

"I looked at the films, and studied the tape. When you look at Michael, it's his toughness. That cannot be overrated at all," Kelly said. "We looked at his skillset. He still has that skillset. He can still throw the football.

"He's got an unbelievable release, and it's our job as coaches to make sure he can get the ball out quickly."

All told, Vick has started 35 games for Philadelphia over the last three seasons. Foles has started six. The Eagles scored just 280 points last season as they endured an eight- and a three-game losing streak. Only Arizona (250) scored fewer in the NFC.

When asked which quarterback would work with the first-team offense in training camp, Kelly smiled and quickly showed he's going to be able to handle the Philadelphia media just fine.

"We'll go alphabetical," he said with a grin. "First name? Last name? We'll flip a coin."

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