As COVID-era subsidies for health insurance are set to expire, millions of Americans are bracing for significant premium increases. The expiration of enhanced premium tax credits could lead to average premium hikes of over 114%, impacting low- and middle-income enrollees the hardest.

## Millions Face Health Insurance Premium Hikes as Subsidies Expire

The expiration of enhanced premium tax credits (PTCs) at the end of this year is poised to significantly impact millions of Americans who rely on the Affordable Care Act (ACA) for health insurance.

With over 24 million people enrolled in ACA plans, many are facing the prospect of double-digit premium increases alongside reduced federal subsidies, which have made health coverage more affordable since their introduction during the COVID-19 pandemic.

Health insurers are proposing a median rate increase of 18% for 2026, a sharp rise from the 7% increase seen in the previous year.

This increase is attributed to rising medical costs, a sicker risk pool due to the expiration of enhanced subsidies, and other factors.

If Congress does not act to extend these subsidies, many enrollees will experience a "double whammy" of losing their tax credits while also facing higher premiums.

The enhanced PTCs, which were first introduced in 2021 and extended through the Inflation Reduction Act in 2022, have allowed many low- and middle-income individuals to afford health insurance by significantly lowering their premium contributions.

For instance, an individual earning $28,000 would see their annual premium payment rise from approximately $325 to $1,562 if the enhanced credits expire.

This represents a staggering increase of over 75% in premium costs for many enrollees.

The potential consequences of these changes are dire.

Analysts estimate that if the enhanced subsidies are not renewed, the average premium for subsidized enrollees could more than double, increasing from $888 in 2025 to $1,904 in 2026.

This could lead to a significant drop in enrollment, with estimates suggesting that ACA enrollment could fall by as much as 57% due to the combination of expiring tax credits and new paperwork requirements.

The political landscape surrounding this issue is complex.

With Congress currently deadlocked over government funding, the fate of the enhanced subsidies remains uncertain.

Democrats are advocating for the extension of these subsidies as part of any funding deal, while Republicans have indicated they will only negotiate on the issue once the government is funded.

This impasse leaves millions of Americans in limbo as the open enrollment period for ACA plans approaches on November 1.

The expiration of enhanced PTCs will disproportionately affect those with incomes above 400% of the federal poverty level, who will lose their eligibility for subsidies altogether.

For example, a couple earning $85,000 could see their annual premium payments rise by over $22,600, making health insurance unaffordable for many.

Conversely, lower-income individuals may also face increased costs, albeit to a lesser extent, as they will still qualify for some level of financial assistance.

The implications of these changes extend beyond individual finances.

Health policy experts warn that a reduction in coverage could lead to increased emergency care needs, straining hospitals and potentially resulting in closures or higher costs for those who remain insured.

As more individuals drop out of the insurance market, the risk pool will become sicker, leading to further premium increases for those who remain enrolled.

In summary, the expiration of enhanced premium tax credits at the end of this year poses a significant threat to the affordability of health insurance for millions of Americans.

With rising premiums and reduced subsidies, many individuals may find themselves unable to afford necessary medical care, leading to broader public health implications.

As Congress continues to debate the future of these subsidies, the urgency for action grows, with millions of lives hanging in the balance.

Millions Face Health Insurance Premium Hikes as Subsidies Expire

millions-face-health-insurance-premium-hikes-as-subsidies-expire

Flying in economy class can be uncomfortable, but there are ways to improve your experience. From choosing the right seat to packing smartly, these tips can help make your journey a little less miserable.

## Tips to Make Economy-Class Flights More Bearable

Traveling in economy class often feels like a test of endurance, with cramped seating and limited amenities.

However, there are several strategies you can employ to make your experience more tolerable.

Selecting the right seat can significantly impact your comfort level.

Websites like SeatGuru provide detailed information on seat dimensions and configurations across different airlines, helping you find the best option available for your flight.

For instance, opting for a bulkhead seat can offer extra legroom, while avoiding seats near the galley or lavatories can minimize disturbances during your flight.

The debate over whether to recline your seat is ongoing.

While some passengers feel entitled to recline, others find it inconsiderate, especially in tight quarters.

If you do choose to recline, consider the space of the person behind you.

Flight attendants often recommend keeping your seat upright during meal service to accommodate others.

Bringing the right items can enhance your comfort.

A travel pillow, noise-canceling headphones, and a light blanket can make a significant difference in your ability to relax during the flight.

Additionally, packing snacks can help you avoid overpriced in-flight meals and keep your energy levels up.

Air travel can lead to dehydration, so it's essential to drink plenty of water before and during your flight.

Moreover, taking short walks up and down the aisle can help improve circulation and reduce the risk of deep vein thrombosis, a condition that can arise from prolonged sitting.

Many airlines now offer in-flight entertainment systems, but if yours doesn't, consider downloading movies or shows onto your device before your flight.

Additionally, using apps to track your flight status can help you stay informed about any delays or gate changes, reducing stress during your journey.

Understanding that flying in economy class comes with limitations can help you adjust your mindset.

Airlines have increasingly focused on maximizing profits, often at the expense of passenger comfort.

Accepting this reality can make it easier to cope with the inconveniences of air travel.

While flying in economy class may never be a luxurious experience, implementing these tips can help make your journey more bearable.

By choosing your seat wisely, being considerate of fellow passengers, and preparing adequately, you can navigate the challenges of economy travel with greater ease.

With a little planning and mindfulness, your next flight can be a more pleasant experience, even at 30,000 feet.

Tips to Make Economy-Class Flights More Bearable

tips-to-make-economy-class-flights-more-bearable

Unused funds in 529 college savings plans can be repurposed in several ways, including rolling over to a Roth IRA or paying off student loans. The Secure 2.0 Act introduces new options for managing these funds, allowing for greater flexibility and tax efficiency.

## Utilizing Unused 529 College Savings Funds Effectively

529 college savings plans are designed to help families save for education expenses, but many account holders find themselves with leftover funds after covering costs.

This can occur for various reasons, such as scholarships, lower-than-expected tuition, or a change in educational plans.

Fortunately, there are several strategies to utilize these unused funds effectively while minimizing taxes and penalties.

### Understanding the New Rollover Option

Starting in 2024, the Secure 2.0 Act allows families to roll over unused 529 funds into a Roth IRA for the same beneficiary.

This option provides a way to convert education savings into retirement savings, but it comes with specific rules.

The 529 plan must have been open for at least 15 years, and contributions made within the last five years cannot be included in the rollover.

Additionally, the total amount that can be rolled over is capped at $35,000 over the beneficiary's lifetime, and the rollover must be executed as a direct transfer to avoid taxes.

**Change the Beneficiary**: One of the most straightforward options is to transfer the 529 plan funds to another qualifying family member.

This can be done without incurring taxes, making it a practical choice if you have other children or relatives who may need educational funding.

**Use for Student Loan Payments**: The SECURE 2.0 Act also permits tax-free distributions from 529 plans to pay off student loans.

You can use up to $10,000 per beneficiary to pay down federal and private student loans, which can be a significant relief for families managing educational debt.

**Save for Future Educational Needs**: If the original beneficiary decides not to pursue a traditional four-year degree, the funds can still be kept in the 529 account for future educational needs.

This includes graduate programs, vocational training, or even continuing education courses.

**Withdraw for Non-Educational Expenses**: While not the most tax-efficient option, you can withdraw funds for non-educational expenses.

However, this will incur taxes on the earnings portion and a 10% penalty on those earnings.

**Utilize for ABLE Accounts**: Families with a child who has disabilities can roll over 529 funds into an ABLE account, which allows for tax-free savings for qualified expenses related to the individual's disability.

This option provides additional flexibility for families facing unexpected challenges.

The introduction of the rollover option to Roth IRAs under the Secure 2.0 Act offers a new avenue for families with unused 529 funds, allowing them to bolster retirement savings while adhering to tax regulations.

Additionally, the ability to change beneficiaries, pay off student loans, or save for future educational needs ensures that families can make the most of their 529 plans.

As always, consulting with a financial advisor can help navigate these options effectively and ensure compliance with IRS regulations.

By understanding these strategies, families can maximize the benefits of their 529 college savings plans and avoid unnecessary penalties, ensuring that their educational savings work for them in the long run.

Utilizing Unused 529 College Savings Funds Effectively

utilizing-unused-529-college-savings-funds-effectively

The mobility tech industry faces a significant challenge not from competition but from how travel is discovered. As companies shift towards direct partnerships and AI-driven platforms influence search behaviors, the need for transparency and trust in travel discovery becomes paramount.

## The Real Threat to Mobility Tech: Discovery Over Competition

The mobility tech industry is undergoing a transformation, but the real threat it faces is not from competitors; rather, it stems from how travel is discovered.

Mike McGearty, CEO and co-founder of Meili, emphasizes that while the technology landscape has not dramatically changed, the approach of major travel brands towards customer ownership, data, and commercial relationships is evolving.

As airlines and travel companies increasingly seek direct partnerships with car rental providers, a critical question arises: why should intermediaries dictate what travelers see?

In an era where transparency and trust are becoming essential for conversion, the industry must reconsider its discovery processes.

### The Friction in Travel and Mobility Tech

McGearty points out that much of the friction in travel and mobility tech is rooted in legacy systems, biased displays, and confusing insurance models that travelers encounter at rental desks.

This confusion can lead to negative experiences, especially when customers do not see the brands they expect or when they face unexpected upsells upon arrival.

The importance of direct booking models is underscored, as they not only foster loyalty but also build trust.

However, the role of artificial intelligence (AI) in this landscape is complex.

While AI has the potential to enhance customer experiences, it is not a panacea.

McGearty challenges the industry to consider whether AI can genuinely assist customers when it is often constrained by margin biases and revenue targets.

One of the most pressing concerns for mobility tech is the influence of AI-driven platforms like OpenAI and Perplexity on search behavior.

As these platforms shape how travel options are surfaced, the question of who controls this discovery process becomes critical.

If partnerships dictate what travelers see, the industry risks losing the openness that has traditionally characterized travel discovery.

Moreover, the rise of new forms of expression, such as "vibes," video, and voice, is rapidly changing how travelers articulate their intentions.

Travel brands must adapt to these shifts without sacrificing transparency.

The automotive industry is also experiencing a shift in consumer preferences, moving from ownership to usership.

This change is reflected in the growing acceptance of alternative transportation methods, such as ride-hailing and car-sharing services.

A 2018 study indicated that nearly 40% of consumers believe that while transportation is necessary, owning a vehicle is not, highlighting a cultural shift towards access over ownership.

As consumers increasingly seek flexibility and convenience, the automotive industry must adapt its business models to meet these evolving demands.

This includes exploring new mobility solutions and integrating them into existing operations.

Technological advancements are at the forefront of this transformation.

The integration of cloud, mobile, and AI technologies is enabling companies to deliver personalized and immediate experiences to customers.

As consumer expectations rise, businesses must leverage these technologies to create seamless interactions and contextual engagements.

While personal vehicle ownership remains prevalent, the perception of cars is changing.

They are increasingly viewed as part of a broader transit ecosystem rather than as standalone sources of transportation.

This "car-lite" approach reflects a growing willingness among consumers to utilize multiple modes of transportation to complete their journeys.

The mobility tech industry stands at a crossroads, where the real threat lies not in competition but in how travel is discovered.

As AI and new technologies reshape consumer behavior, companies must prioritize transparency and trust in their discovery processes.

By embracing these changes and adapting to evolving consumer preferences, the industry can navigate the challenges ahead and thrive in a rapidly changing landscape.

The Real Threat to Mobility Tech: Discovery Over Competition

the-real-threat-to-mobility-tech-discovery-over-competition

President Trump's recent economic policies have sparked debate over their impact on the wealth gap in America. While the administration touts a 'Golden Age' for the top 10 percent, critics argue that these measures have led to rising unemployment and economic instability for the broader population.

## Trump's Policies Favor the Wealthy Amid Economic Challenges

President Donald Trump's administration has declared a new 'Golden Age' for America, particularly benefiting the top 10 percent of earners.

This narrative, however, is met with skepticism as economic indicators suggest a troubling trend for the average American worker.

In a recent address, Trump claimed that his policies have ushered in a period of unprecedented economic success, citing a surge in small-business optimism and a significant electoral mandate from the recent elections.

However, the reality on the ground tells a different story.

The US Bureau of Labor Statistics reported a rise in the unemployment rate to 4.3 percent, the highest since the pandemic, with only 22,000 jobs added in August 2025.

This stark contrast raises questions about the sustainability of Trump's economic claims.

The administration's approach has included imposing tariffs aimed at protecting American manufacturing and reducing trade deficits.

Trump has argued that these tariffs are necessary to restore economic sovereignty and create better-paying jobs.

Yet, the immediate effects have been detrimental, with manufacturing jobs declining sharply as companies grapple with increased costs and retaliatory tariffs from trading partners.

Don Beyer, have pointed out that while billionaires may benefit from tax cuts, the average American family faces rising prices and job insecurity.

Moreover, the economic policies have led to a significant trade deficit, projected to reach an all-time high of $49 billion in agricultural trade alone.

This situation has been exacerbated by the ongoing trade wars, which have not only failed to boost domestic manufacturing but have also resulted in job losses across various sectors.

The administration's focus on tariffs has been criticized for creating a "double-whammy" effect, where American companies face higher costs while foreign competitors benefit from lower tariffs.

Despite the administration's claims of a robust economy, the reality is that many Americans are feeling the pinch.

The job market has shown signs of weakness, with a notable decline in job growth over recent months.

The average monthly job addition has dropped from 186,000 in 2024 to just 27,000 in recent months.

This slowdown raises concerns about the long-term viability of Trump's economic policies, particularly as inflation continues to rise.

The administration's narrative of a 'Golden Age' is further complicated by the fact that many Americans do not feel the benefits of this supposed prosperity.

Polls indicate that a significant portion of the population believes the country is headed in the wrong direction, contradicting Trump's assertions of widespread optimism.

The disparity between the experiences of the wealthy and the working class is becoming increasingly pronounced, leading to calls for a reevaluation of the current economic strategy.

In conclusion, while the Trump administration promotes a vision of economic success for the top earners, the broader implications of its policies suggest a growing divide.

The challenges faced by the average American worker, including rising unemployment and inflation, highlight the need for a more inclusive approach to economic policy that addresses the needs of all citizens, not just the affluent few.

As the administration continues to navigate these complex issues, the question remains: who truly benefits from this 'Golden Age' in America?

Trump's Policies Favor the Wealthy Amid Economic Challenges

trump-s-policies-favor-the-wealthy-amid-economic-challenges

Federal Reserve Chairman Jerome Powell's approach to interest rates and inflation has proven prescient as the US economy navigates complex challenges. His careful calibration of monetary policy aims to balance maximum employment with stable prices, reflecting a nuanced understanding of economic dynamics.

## Jerome Powell's Insights on Interest Rates and Inflation

Federal Reserve Chairman Jerome Powell has faced significant scrutiny over his management of interest rates and inflation, yet recent economic indicators suggest that his strategies may have been more accurate than critics have acknowledged.

As the US economy continues to evolve, Powell's insights into monetary policy have become increasingly relevant.

Over the past year, the US economy has demonstrated resilience amid shifting economic policies.

The labor market remains near maximum employment, and while inflation is still elevated, it has decreased significantly from its post-pandemic highs.

This context underscores Powell's assertion that a careful approach to interest rates is essential for fostering sustainable economic growth.

In his recent remarks, Powell highlighted the importance of maintaining a balance between aggregate demand and supply.

He noted that the policy rate had been set at 5-1/4 to 5-1/2 percent for over a year, a stance deemed necessary to combat inflation and support the labor market.

This careful calibration reflects a broader understanding of the economic landscape, particularly as new challenges arise, such as higher tariffs and tighter immigration policies, which have impacted labor force growth and consumer spending.

The current economic environment presents a complex interplay of cyclical and structural factors.

For instance, the July employment report indicated a slowdown in job growth, with payrolls increasing by only 35,000 per month over the past three months, a significant drop from earlier in the year.

Despite this, the unemployment rate remains historically low at 4.2 percent, suggesting that the labor market is still in a state of balance.

Powell's approach acknowledges these nuances, emphasizing that monetary policy can stabilize cyclical fluctuations but has limited capacity to address structural changes.

Inflation remains a critical concern, with higher tariffs contributing to price increases in certain goods.

The Personal Consumption Expenditures (PCE) price index rose by 2.6 percent over the past year, with core PCE prices increasing by 2.9 percent.

Powell has indicated that while these price increases may be temporary, they warrant careful monitoring to prevent a more persistent inflation problem.

His commitment to maintaining stable inflation expectations is crucial, especially as households and businesses remain concerned about rising prices.

Critics of Powell's policies often overlook the broader context of his decisions.

For instance, former President Donald Trump frequently criticized the Fed's interest rate policies, arguing for lower rates to stimulate growth.

However, Powell's measured approach reflects a deeper understanding of the economic dynamics at play, particularly the risks associated with overly aggressive monetary easing.

The Fed's recent adjustments to its policy framework, including a focus on flexible average inflation targeting, demonstrate a commitment to adapting to changing economic conditions while maintaining long-term stability.

Moreover, Powell's communication style has evolved to foster greater transparency and public understanding of monetary policy.

Unlike previous Fed chairs, he has made efforts to engage with the public and clarify the implications of Fed actions on everyday Americans.

This shift is essential in an era where many citizens remain unaware of the Fed's role and the complexities of monetary policy.

In conclusion, Jerome Powell's approach to interest rates and inflation reflects a nuanced understanding of the US economy's challenges.

His commitment to balancing maximum employment with stable prices, along with a focus on clear communication, positions the Fed to navigate the complexities of the current economic landscape effectively.

As the economy continues to evolve, Powell's insights will remain critical in shaping monetary policy and addressing the challenges ahead.

Jerome Powell's Insights on Interest Rates and Inflation

jerome-powell-s-insights-on-interest-rates-and-inflation

Recent government reports on inflation and GDP growth have sparked confusion and skepticism among economists and the public. While the figures suggest a robust economy, many experts warn that they are distorted by data collection issues and do not reflect the lived experiences of most Americans.

## Government Inflation and GDP Figures: A Misleading Snapshot

Recent reports from the Bureau of Labor Statistics and the Bureau of Economic Analysis have presented a seemingly positive picture of the US economy, with inflation dropping to an annual rate of 2.7% and GDP growth soaring by 4.3% in the third quarter of 2025.

However, these figures have been met with skepticism, as many economists argue that they are misleading and do not accurately reflect the economic realities faced by most Americans.

The release of these statistics has historically been a moment for political posturing, with parties seizing the opportunity to claim credit or assign blame.

This month, however, the numbers have led to more confusion than celebration.

White House economic advisor Kevin Hassett hailed the inflation report as "an absolute blockbuster," while House Speaker Mike Johnson attributed the GDP growth to the policies of the Trump administration.

Yet, many economists caution against taking these figures at face value.

Diane Swonk, chief economist at KPMG US, emphasized the need for caution, stating, "You've got to take it with a grain of salt." She noted that the inflation report does not align with the prices observed in everyday life.

This sentiment is echoed by financial analyst Zachary Karabell, who argues that while the numbers provide some insight into the economic system, they fail to capture the lived experiences of ordinary Americans.

One significant factor contributing to the skepticism surrounding these figures is the impact of the recent government shutdown, which disrupted data collection processes.

The Bureau of Labor Statistics had to rely on "imputed" numbers rather than actual data, leading to potentially skewed results.

For instance, the inability to collect rental data for October resulted in an artificially low inflation rate, as the agency assumed no change in rents during that period.

Experts predict that it will take months to gather reliable data that accurately reflects housing inflation, further complicating the interpretation of the current statistics.

Moreover, the economic growth reflected in the GDP figures appears to be driven primarily by spending from wealthy consumers and significant corporate investments in technology, particularly artificial intelligence.

This has resulted in a "K-shaped" economy, where the rich are thriving while middle- and lower-income households struggle to keep up.

According to Bank of America analysts, spending by the top third of earners has surged, while the lower-income demographic has seen stagnation in their spending habits.

This disparity raises questions about the overall health of the economy and who truly benefits from its growth.

Consumer confidence has also been on a downward trend, indicating that many Americans do not feel the positive effects suggested by the GDP and inflation figures.

The highest-earning 10% of households now account for nearly half of all consumer spending, a stark contrast to the situation in the 1980s when they represented only a third of spending.

This growing divide highlights the disconnect between economic statistics and the realities faced by the majority of the population.

Federal Reserve Chairman Jerome Powell has acknowledged that job growth may already be negative, despite published figures suggesting otherwise.

He noted that non-farm payroll gains have averaged about 40,000 a month since April, but he believes there is an overstatement in these numbers, suggesting a more accurate figure could be negative.

This discrepancy further illustrates the challenges in interpreting economic data and the potential for misleading conclusions.

The historical context of economic statistics also plays a role in the current skepticism.

Kennedy Sr famously criticized the limitations of gross national product as a measure of societal well-being, pointing out that it fails to account for factors that truly enhance quality of life.

This perspective remains relevant today, as many economists argue that the current metrics do not adequately reflect the complexities of the modern economy.

In conclusion, while the latest government figures on inflation and GDP growth may appear promising, they are fraught with complications and do not accurately represent the economic experiences of most Americans.

As the effects of the government shutdown continue to reverberate through the data collection process, it is crucial for policymakers and the public to approach these statistics with a critical eye and an understanding of their limitations.

The true state of the economy may be more nuanced than the numbers suggest, and ongoing scrutiny will be essential in the months to come.

Topic

Economy

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