Consumer News: Federal Reserve cuts interest rates to lowest point since 2022

If you have an Obamacare policy, get ready for some sticker shock

By Mark Huffman of ConsumerAffairs

• Health insurers plan to raise Affordable Care Act (ACA) Marketplace premiums by an average of 26% in 2026, the steepest increase since the marketplaces launched.

• If Congress allows enhanced premium tax credits to expire at the end of 2025, consumer payments could more than double, rising about 114% on average.

• The surge is driven by higher hospital costs, costly new drugs, and policy uncertainty over the future of federal subsidies.

Premiums for health plans sold on the Affordable Care Act (ACA) Marketplaces are expected to surge an average of 26% in 2026, according to a new analysis by KFF. The spike reflects what insurers are charging before tax credits are applied a sharp acceleration compared to prior years.

The increase will not hit all consumers equally. In states running their own Marketplaces, the average benchmark silver plan premium used to calculate federal tax credits is set to rise 17%. In the 32 states using Healthcare.gov, premiums will climb even higher, by about 30%.

Currently, about 22 million of the 24 million Marketplace enrollees receive federal premium tax credits that cap what they pay based on income. These enhanced subsidies, expanded under the American Rescue Plan and extended by the Inflation Reduction Act, ensure that most low- and middle-income consumers pay a fixed share of their earnings, not the full price set by insurers.

If Congress extends these enhanced tax credits, the out-of-pocket cost for most enrollees will remain stable despite rising insurer charges. But if lawmakers allow the expanded aid to expire at the end of this year, average consumer payments would more than double, according to KFF estimates.

Without the enhanced subsidies, enrollees with incomes below four times the federal poverty line would receive less assistance, while those above that threshold would lose eligibility altogether leaving many to face a double hit of higher premiums and reduced aid.

Shifting plans and rising deductibles

Even if subsidies lapse, some lower-income consumers could still find bronze-tier plans with little or no premium after smaller tax credits are applied. However, those plans come with a steep tradeoff: deductibles exceeding $7,000, compared with reduced deductibles below $100 for silver-tier plans that include cost-sharing reductions.

The likely result, experts say, is a migration from silver to bronze coverage reducing financial protection for millions of enrollees.

Whats driving the surge

Insurers cite several forces behind the 2026 premium hikes. The biggest culprits include:

• Rising hospital and medical costs

• The growing use of expensive GLP-1 weight-loss drugs such as Ozempic

• Broader inflation and potential tariffs increasing healthcare supply costs

In addition, insurers say they are adding roughly four percentage points to their requested increases because they expect healthier enrollees to drop coverage if subsidies lapse leaving a sicker, costlier risk pool behind.

Because the ACAs tax credits are pegged to the second-lowest-cost silver plan, higher benchmark premiums automatically drive up the federal governments subsidy spending. Even as insurers raise rates, taxpayers may bear more of the cost especially if Congress renews the enhanced credits.

Whether lawmakers extend those subsidies or let them expire could determine whether 2026 brings a financial shock for millions of Americans or another year of stability in the ACA marketplaces.

The one-year agreement will reduce tariffs on some Chinese imports

By Mark Huffman of ConsumerAffairs

• U.S. consumers may soon see modest relief in prices on certain imported goods as parts of the United StatesChina trade deal take effect.

• The deal shifts key supply-chain elements (especially rare-earths and critical minerals) and may change where and how U.S. companies source goods, affecting product availability and cost.

• Yet significant trade frictions remain unresolved, meaning any benefits for consumers are likely to be gradual and unevenwatch for which goods are affected and how quickly.

President Trump and Chinas President Xi have reached agreement on a new, one-year trade deal that may offer some welcome relief for U.S. consumers. The agreement eases certain tariffs and opens specific supply-chain channels.

Under the agreement reached in South Korea, China will ease some export restrictions on rare-earth minerals and magnets, key inputs for U.S. electronics, auto-parts, and other high-tech manufacturing, while the U.S. will roll back or suspend certain punitive tariffs on Chinese goods.

For consumers, the deal carries three main implications:

1. Potential for lower prices on some imports

Tariffs levied during the U.S.China trade war have raised costs for U.S. companies and translated into higher prices for many consumer goods. For example, research shows that the average U.S. tariff rate reached historically high levels, adding to household costs.

By easing tariffs and reducing some import restrictions, the new deal may help soften near-term inflationary pressures on goods imported from Chinaand thus relieve some burden on U.S. consumers.
But that doesnt mean a full rollback of all tariffs: major structural issues such as forced technology transfer, Chinese industrial policy, and supply-chain shifts remain unresolved. So, while some prices may stabilize or dip, widespread steep price drops are unlikely in the short term.

2. Improved supply-chain certainty

One of the key deals involves Chinas export of rare-earth elements and magnetsitems critical to American manufacturing of things like smartphones, electric vehicles, and military/defense components.

For U.S. consumers, this means that products relying on those inputs may become less vulnerable to sudden supply disruptions, which had earlier pushed costs up, delayed product launches, or forced companies to substitute more expensive inputs.

In addition, U.S. companies may feel more confident investing in or sourcing from China if export-controls and tariffs are less volatile, which again could improve product availability or slow inflation in goods.

3. Still-unresolved risksand mixed benefits for consumers

Its important to note that while the deal is being hailed as a framework or first step, many thorny issues remain: market access for U.S. companies in China, Chinese structural economic reforms, intellectual-property enforcement, and the full rollback of prior tariffs.

What that means for consumers is a few caveats:

• Some product categories may get benefit sooner than others (electronics and inputs are likely; apparel/consumer goods may lag).

• There may be transitional costs: companies may shift supply chains, adjust sourcing from China to other countries (or vice versa), and those logistics changes can momentarily raise costs or cause delays. (arXiv)

• Even with easing tariffs, U.S. producers who rely on Chinese inputs may pass savings slowly (or not at all) if they use the margin elsewhere.

• The broader inflation and macro-economic environment still influences prices; trade policy is one factor among many.

What U.S. consumers should watch for

• Keep an eye on price trends in product categories heavily tied to Chinese importsfor example, smartphones, laptops, electric-vehicle components, imported furniture or home goods.

• Watch news on tariffs being officially removed versus just being paused or suspended. Many past deals were temporary and subject to renewal or rollback.

• Pay attention to China + 1 supply-chain shifts: companies may diversify away from China to other countries, which could create both opportunities (lower cost sourcing) and risks (logistics disruptions).

• Realize that benefit to the consumer may come in more subtle forms than dramatic price cutse.g., fewer product delays, more stable availability, slower price growth, rather than big bargains.

Ticks thrive as climate warms

• Warmer weather and longer tick seasons are fueling a surge in tick-related illnesses across the U.S.

• Lyme disease remains the most common infection, but new threats like alpha-gal syndrome are spreading.

• Public-health experts say prevention and prompt tick removal are key to staying safe.

Ticks are becoming more numerous and more dangerous across much of the United States as warmer winters and wetter weather allow them to survive longer and expand their range, according to infectious-disease and biology experts.

Were seeing more diverse species of ticks, more often, said Timothy Driscoll, associate professor of biology at West Virginia University. Tick ranges are expanding with changing climate, and milder winters mean more ticks survive through the season. Warmer, wetter conditions also let ticks stay active longer and thrive in greater numbers.

Scientists say tick populations are increasing not only in traditional hot spots like the Northeast and Upper Midwest but also in regions where they were once rare, including parts of the South and Midwest. Flooding and changing wildlife patterns can also push tick-carrying animals closer to peoples homes.

Lyme disease still leads, but other infections are rising

Lyme disease, transmitted by the blacklegged (deer) tick, continues to be the most common tick-borne illness in the United States, with cases climbing sharply in recent years. The Centers for Disease Control and Prevention (CDC) now estimates nearly half a million Americans may be diagnosed with Lyme each year far more than previously reported.

Theres no human vaccine yet, but several are in development, Driscoll said, noting that his lab has been part of a federally funded effort to explore new vaccine targets.

Other tick-borne illnesses including anaplasmosis, ehrlichiosis, and babesiosis are also spreading, aided by the same environmental changes. All the ticks that carry these diseases are present across much of the country, meaning residents face multiple potential risks, Driscoll said.

Red-meat allergy linked to lone star tick bites

Beyond bacterial infections, doctors are seeing more cases of alpha-gal syndrome (AGS) a red-meat allergy triggered by bites from the lone star tick, which is expanding northward and westward.

Alpha-gal is a sugar molecule found in most mammals but not humans, said Matt Lokant, assistant professor in the Division of Infectious Diseases at WVUs School of Medicine. After a tick bite, alpha-gal can be introduced, and subsequent exposure to red meat can cause allergic symptoms from hives and itching to life-threatening anaphylaxis.

Symptoms typically appear two to six hours after eating red meat and may also follow consumption of dairy, gelatin, or other mammal-based products. Theres currently no cure for AGS, Lokant said, so management focuses on avoiding red meat and carefully reading ingredient and medication labels.

Unlike Lyme disease, alpha-gal syndrome doesnt have a characteristic rash, Lokant added. If there are any signs of a serious allergic reaction, seek emergency medical care immediately.

Prevention is the best protection

Health experts say the best defense against tick-borne disease is prevention and early detection. Key steps include:

• Wearing long sleeves and pants in wooded or grassy areas.

• Using EPA-approved repellents containing DEET or picaridin.

• Checking people and pets carefully after outdoor activities.

• Removing attached ticks promptly with fine-tipped tweezers and monitoring for symptoms.

Prevention is the first line of defense, Driscoll said.

Tick safety checklist

Before you go outside

• Apply insect repellent with DEET, picaridin, or permethrin (for clothing).

• Wear light-colored clothing to spot ticks more easily.

• Tuck pants into socks and shirts into waistbands when hiking or gardening.

After outdoor activity

• Check your entire body especially scalp, ears, knees, and waistband.

• Examine pets and gear before bringing them indoors.

• Shower soon after being outdoors to wash away unattached ticks.

If you find a tick

• Grasp it close to the skin with tweezers and pull straight out.

• Clean the bite area with soap and water.

• Save the tick in a sealed plastic bag for possible identification.

• Contact a doctor if you notice rash, fever, fatigue, or allergic reaction.

Just in time to plan your online holiday shopping

• Mailed returns often cost $4.95$9.99 at apparel stores; big-box retailers typically offer free labels or partner drop-offs

• Free in-store returns are your safest bet; on Amazon (and others) pick label-free/box-free drop-offs to avoid fees

• Policies change fastcheck the return method before buying; join free loyalty tiers that waive mail-in fees and initiate marketplace returns through the platform

Free returns arent the default anymore. This holiday season, the smart move is checking the return method before you buy. Clothing retailers, in particular, often deduct $4.95 to $9.95 for mailed returns, while most big box stores still offer free labels or free drop-offs, if you pick the right option at checkout.

Keep in mind that policies change fast around the holidays, so check the return policy before you click Buy. This is especially important when shopping with an online retailer youre unfamiliar with.

Stores that now charge a fee (or make you pay postage) for mailed returns

Abercrombie - $7 by mail (often waived for exchanges/e-gift card); free in-store.

American Eagle - $5 for mail-in returns.

Anthropologie - $5 deducted from refund; exchanges free; free in-store.

DSW You pay a steep $9.95 with their label; free in-store.

DSW - $8.50 with their label; free in-store. (free for VIP Gold and Elite members)

H&M - $3.99 fee by mail; free for members; free in-store.

JCPenney - $8 fee with their prepaid label; free in-store.

J.Crew - $7.50 with their prepaid label; free in-store.

Kohls - you pay postage on mailed returns; free in-store.

Macys Youll pay $9.99 unless you join their Star Rewards program (free to join) which makes by-mail returns free.

Nordstrom Rack - $9.95 per prepaid label; free in-store.

REI - $7.99 by mail, free in-store.

Saks Fifth Avenue - $9.95 by mail; free in-store. (OFF 5TH similar.)

UNIQLO - $7 mail-in fee (plus tax in some states); in-store options vary by item.

Ulta - you pay postage on mailed returns; free in-store.

Urban Outfitters - $5 restocking fee on most mailed returns; free in-store.

Wayfair Varies. They require you to pay the return shipping fee which varies depending on the size and weight of the item youre returning.

Zara - $4.95 per return request; free in-store.

The big stores where mail returns are usually free

Amazon - Choose label-free, box-free drop-offs (Kohls, Whole Foods, UPS Store, Staples) to avoid charges. If the reason for the return is not Amazons fault, theyll charge you to return the item if you return it yourself and dont pick one of the drop-off points.

Target - Free in-store; by-mail can vary making store drop-off the safest bet.

Walmart - Strong free & easy returns; marketplace sellers arent supposed to charge you return shipping; store/curbside drop-off is easiest.

Best Buy - Free prepaid label in your return window but some items incur a 15% restocking fee if the item is opened (drones, cameras, camcorders, scooters).

Nordstrom - Free prepaid label (different from Rack).

Howto shop smarter online (and dodge return fees)

Before you fill that cart, check out these 6 quick moves that keep holiday returns free (or close to it). Theyre simple yet often overlooked, and theyll save you from those gotcha fees.

1. Pick your return path before you buy - On the product page or at checkout, click Returns. If you see a dollar amount for mailed returns, assume youll need to return in-store to make it free.

2. Always choose the free drop-off option - Amazon and others show multiple return methods. Be sure to pick label-free/box-free options at partner locations. If you see fee deducted, back up and change the method.

3. Join the free loyalty tier when it helps - H&M and Macys, for example, waive the mail fees for members. Signing up at checkout is worth it.

4. Favor retailers with free labels if you cant get to a store - Best Buy, Nordstrom, and many Gap/Old Navy items typically include prepaid labels.

5. Watch marketplace fine print - On Walmart/Best Buy marketplaces, sellers generally follow the platforms free-return rules. But remember to always initiate the return through the platform, not the sellers site.

6. Size smarter to reduce returns - Read recent fit reviews, check photos, use size tools, and only order multiple sizes at stores with free returns. Otherwise youll have pay to ship back the items that doesnt fit.

Dont forget about extended holiday returns

To encourage gift buying this year, many retailers offer an extended holiday return policy so the gift receiver has ample time to make a return or exchange.

Here are 12 such policies from some of the biggest names in retail.

Amazon Anything bought between Nov 1Dec 31, 2025 is returnable through January 31, 2026 (brand exceptions like Apple may differ).

Apple Store All items purchased between Nov 8Dec 25, 2025 can be returned through January 8, 2026.

Barnes & Noble - Purchases made Nov 1Dec 31 are returnable/exchangeable through Jan 31, 2026 (includes NOOK).

Best Buy - Most gifts bought Oct 31-Dec 31 are returnable through Jan 15, 2026. This is especially notable because their regular return policy only gives shoppers 15 days to make a return. My Best Buy Plus/Total members get through Jan 31, 2026.

GameStop Return are extended to January 15, 2026 for all purchase made between Nov 1Dec 24.

Kohls - Purchases made between Oct 5Dec 31 are returnable through Jan 31, 2026 (Sephora at Kohls and some categories excluded).

JCPenney - Holiday purchases on/after Oct 1, 2025 may be returned through Jan 31, 2026 with an original or gift receipt

Macys - Most items bought Oct 6Dec 31, 2025 returnable through Jan 31, 2026 (standard category exceptions; possible fee for some mail-in returns).

Marshalls- In-store purchases Oct 5Dec 24, 2025 returnable through Jan 25, 2026; online purchases in that window returnable through Feb 4, 2026.

Target While they havent announced it for 2025 yet, in years past theyve given shoppers 90 days from December 26^th to make a return. This policy was good for all purchases made between October 6-December 25. I expect them to do the same this year.

TJ Maxx Anything you buy between Oct 5-Dec 24 can be returned to any TJ Maxx location through January 25, 2026.

Walmart - Most items bought Oct 1Dec 31, 2025 are returnable through Jan 31, 2026 (exceptions: phones, major appliances, certain premium/luxury/seasonal items, etc.).