The Trump Administration plans to increase rates paid to Medicare Advantage plans by less than 1/10 of a percent in 2027, much lower than expected. This could lead to cuts in services for retirees and higher premiums. However, the move aims to crack down on abuses and make the program more sustainable. Seniors may switch back to traditional Medicare if needed, potentially avoiding underwriting for Medigap plans. The final decision is pending, but the outcome could help control costs. In other news, maximizing Social Security benefits could boost retirement income by $23,760 annually.
Source: Nasdaq.com 1. The stock market reached record highs today, with the S&P 500 closing at a new all-time high of 4,500 points. This milestone comes as investors remain optimistic about the economic recovery and strong corporate earnings.
2. The latest jobs report showed that the unemployment rate fell to 5.2% in August, down from 5.4% in July. The economy added 235,000 jobs last month, slightly below economists’ expectations but still a sign of continued growth.
3. In international news, tensions between the US and China escalated as the two countries imposed new tariffs on each other’s goods. The ongoing trade war has led to concerns about the impact on global supply chains and economic growth.
4. On the technology front, Apple unveiled its latest iPhone model, the iPhone 13, with improved camera capabilities and a faster processor. The new device is set to hit the market next month, with pre-orders already surpassing expectations.
Read more at 1. “Tech Giants Post Strong Quarterly Earnings” – CNBC
Leading tech companies such as Apple, Amazon, and Microsoft reported impressive quarterly earnings, beating analyst expectations. Apple reported a revenue of $81.4 billion, Amazon’s revenue grew by 27% to $113.1 billion, and Microsoft saw a 21% increase in revenue to $46.2 billion.
2. “Inflation Rises to 5.4%, Highest in 13 Years” – Wall Street Journal
The Consumer Price Index (CPI) increased by 5.4% in June, marking the highest inflation rate since August 2008. Prices for used cars, airline tickets, and hotels were among the categories that saw significant increases, prompting concerns about the impact on consumer spending and the overall economy.
3. “Unemployment Rate Drops to 5.4%” – Reuters
The U.S. unemployment rate fell to 5.4% in July, with employers adding 943,000 jobs. This marks a significant improvement from the previous month and signals a strengthening labor market as businesses continue to recover from the impact of the pandemic. The leisure and hospitality sector saw the most job gains, adding 380,000 positions.: President Trump’s Shocking Medicare Advantage Announcement Is a Mixed Bag for Seniors