by Daniel Costello

Good Morning Planet Money Readers: Here are some highlights from the morning's business news.

Health economists and some high-profile lawmakers are raising new concerns about the extent of cost-cutting measures in the health bills currently working their way through Congress. At issue: many worry the legislation does too little to clamp down on the current fee-for-service system to pay doctors and hospitals, a main driver of health costs in recent decades. A podcast from last week explores the issue in more depth.

It's possible such concerns could sink health reform as the Senate considers the $1.1 trillion health reform bill that passed the Houes last week. Moderate Democrats have been adament that true cost reform must be part of the bill and momentum is building to include new cost reductions - such as fees on expensive health plans and lump-sum provider payments rather than money for each new patient procedure.

Most of these cost-cutting ideas are vehemently opposed by medical groups and insurance companies, raising more worries that a stand-off in the Senate could go nowhere in the coming days.

 

Meanwhile, surprising holiday sales are popping up on Wall Street as top-name money managers have begun cutting the lucrative fees they charges investors by as much as half.

The reductions are happening mainly among real estate funds, which have been especially battered in the past year. Real-estate private-equity giant Lone Star Funds announced it's reducing fund management fees to buy up to $20 billion of troubled mortgages and other kinds of distressed debt.

The fund giant, led by John Grayken, reduced the minimum management fee it will charge two new funds from 0.75% to 0.35%. Another big deal maker, CB Richard Ellis Group Inc. affiliate CBRE Investors, is also reportedly raising new funds and offerering discounts for early investors.

And there's more reason to believe the joyless economic U.S. recovery will continue for some time. A new survey of small business owners indicates layoffs are more likely than not in the coming months.

The National Federation of Independent Business Index of Small Business Optimism edged up 0.3 of a point in October to a reading 89.1, but the index has been below 90 for six straight quarters. In the 1980-82 recession, by comparison, the index fell below 90 for only one quarter.

The main small-business index reached its lowest point in the current downturn in March, when it fell to 81.