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Politics

Medicaid Enrollment Jumped Throughout the Pandemic, New Report Says

Medicaid enrollment soared during the coronavirus pandemic, with nearly 10 million Americans joining the public health program for the poor by January, a government report released Monday shows.

80 million people – more than ever in the history of the program – are now on Medicaid insurance, which is shared by the state and the federal government. The new figures show the increasingly important role of the program not only as a safety net, but also as a pillar of American health insurance, which covers a quarter of the population.

“The purpose of Medicaid during times like these is when there is an economic downturn,” said Peggah Khorrami, a researcher at Harvard Chan TH School of Public Health who has studied the program’s surge in enrollments during the pandemic. “As people lose their jobs, Medicaid comes in and we insure people that way.”

The Affordable Care Act transformed Medicaid from a targeted health service aimed at helping specific groups of people – such as expectant mothers and people with disabilities – to a much broader program that provides largely free insurance to most people below a certain income threshold. The exception is in 12 states, mostly in the South, that have resisted expanding Medicaid under the Health Act to cover all adults on incomes up to 138 percent of the poverty line, which would be $ 17,774 for one person this year .

However, the expansion of Medicaid in most states since most of the ACA came into effect in 2014 has proven important during the pandemic, creating a public source of protection for the newly unemployed that did not exist a decade ago. Adult enrollment at Medicaid grew twice as fast as child enrollment in the past year, suggesting that widespread job loss related to the pandemic has created a large group of newly eligible adults.

“There has been significant growth in Medicaid enrollments over the past economic downturn, but their focus has been on children,” said Rachel Garfield, co-director of the Medicaid and Uninsured Program for the Kaiser Family Foundation. “This time around, it’s interesting that a lot of the enrollment is among adults.”

Ms. Garfield also noted that Medicaid coverage rose much faster during this recession than in previous downturns. At the start of the Great Recession in 2009, fewer than 4 million Americans joined the program.

There may also be increased interest among uninsured Americans who were previously eligible for Medicaid but only chose to enroll because of heightened health concerns during the pandemic.

“The surge we are seeing is exactly how Medicaid works: the program steps in to support people and their families during difficult times,” said Chiquita Brooks-LaSure, who oversaw the Medicaid program, in a Biden administration Explanation.

In the years before the pandemic, the number of Medicaid enrollments had decreased. More than a million children lost insurance coverage between December 2017 and June 2019, a trend that rocked health care proponents. Many attributed the changes to new rules during the Trump administration that made it more difficult to sign up for the benefits.

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Business

Client merchandise gross sales jumped 9.4% to $1.53 trillion final yr

People buy toilet paper at a Costco store in Novato, California on March 14, 2020.

Josh Edelson | AFP | Getty Images

Soaring demand from the coronavirus pandemic saw sales of packaged consumer goods, which include everything from toilet paper to canned soup, surge 9.4% to $ 1.53 trillion last year, according to a new report from the Consumer Brands Association -Dollar.

But the boom in demand hasn’t let up, and the trading group said manufacturers are still struggling to catch up on their stocks. To meet this challenge, companies are hiring more workers, adding new factory lines, and raising wages in light of the continued surge in demand.

“This was the greatest test the system has ever seen,” said Geoff Freeman, chief executive officer of the CBA. “Our wildest imaginations may not have been able to imagine the 12 month climb we just went through.”

Even if the pandemic subsides, the CBA predicts that industry revenue will still increase 7.4% to 8.5% in 2021 from 2019 onwards. Sales in January are up 16% year over year which is the biggest change from last year last March. Revenue growth slowed slightly in February but was still in double digits. Prior to the pandemic, strong growth for a CPG company meant an increase in the low single digits.

“This industry is still sprinting a marathon,” said Katie Denis, CBA’s vice president of research and industry storytelling.

The surge in demand over the past year means manufacturers are still trying to catch up, and any obstacle can result in millions in lost sales. Freeman cited a conversation with a business executive who saw that more than a quarter of its manufacturing facilities were closed for a week in February because of the Texas winter storm. The blockade of the Suez Canal in March caused even more headaches.

General Mills and Clorox are among the companies that have reached out to third-party manufacturers for a temporary fix to the skyrocketing demand. The situation has led some CPG companies to rethink inventory targets and how close products are to retailers. Freeman said some manufacturers won’t be able to catch up on inventory until new investments go online.

The current stress on the supply chain is making some bottlenecks, such as the ongoing shortage of ketchup packages first reported by the Wall Street Journal, harder to predict.

“We should see something like this six to twelve months in advance,” Freeman said.

The rise in demand has resulted in higher wages for CPG manufacturing workers. PepsiCo and Hormel were among those who gave rewards to their frontline employees last year. From July to September, wages for food processing workers rose 3.4% from the same period last year, according to the CBA report. Nationwide non-farm wages fell 0.8% over the same period.

“I do not know if [wages] will rise higher than 2020 but there is no reason to believe there will be a decline, according to the companies we surveyed with McKinsey, “said Denis.

CPG companies have also increased their recruitment. After initially losing jobs in the industry, particularly among food service providers, other manufacturers of food, beverages and household products sought to attract more workers. Some companies hired 10 to 20% more workers than they actually needed to account for employees who quarantined or cared for sick loved ones, Freeman said.

Current manufacturing employment in the industry is only 2% down from January 2020, while the total employment rate in the US was 6% in March, according to the CBA report.

Categories
Business

Retail Gross sales Jumped 5.3% in January, Far Increased Than Anticipated

Retail sales rose 5.3 percent in January, well above the expectations of analysts and economists. This was the necessary upswing for an economy that showed signs of slowing late last year.

The big jump in sales reflected in the data released by the Commerce Department on Wednesday was most likely triggered by the latest round of stimulus checks that were sent out late last year. The $ 600 checks, in addition to some lessening of the virus outbreak and the increasing spread of vaccines, helped keep customers coming back to stores and restaurants last month.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, called the January surge “remarkable” and forecast that spending would continue to rise in the coming months as the country made strides against the coronavirus and consumer sentiment continued to improve.

“The overall strength of the numbers cannot be emphasized enough as every retail category rose in December,” Mickey Chadha, retail analyst with Moody’s Investors Service, said in an email.

Companies, from car dealers to department stores, that struggled to attract customers during the pandemic saw strong sales growth. The positive numbers came after three straight months of falling retail sales, worrying policymakers that efforts to mitigate the financial impact of the pandemic were failing.

The deep drop around the holidays – with sales dropping 1 percent in the typically strong month of December – led some economists to predict that the economy would be heading for a “double dip” recession unless the federal government allowed ailing consumers more financial aid Support.

After Congress passed the final economic round and signed it by President Donald J. Trump in late 2020, economists expected retail sales to rise 1.2 percent in January. But stimulus money quickly seemed to turn into more spending than savings.

“At least half of the stimulus money sent to individuals has already been spent,” estimates Robert Frick, a corporate economist with the Navy Federal Credit Union. “The expansion of unemployment benefits likely gave those without work the confidence to spend or save money.”

The main reason for the unexpectedly strong increase was the strong sales of electronics, which rose by 14.7 percent compared to December, and of furniture and furnishings, which rose by 12 percent.

Even restaurants, which are among the hardest hit by the pandemic, recorded a sharp rise in sales of around 7 percent in January – although they were almost 17 percent below the level of the previous year.

Department stores were another highlight, with sales up 23.5 percent.

The retailers’ trade group, the National Retail Federation, called the stimulus money a “lifeline” but urged the Biden government to distribute the vaccines as soon as possible.

Despite some challenges ahead, many economists said on Wednesday that the consumer spending rebound should be sustained in order to stimulate the overall economy if jobs grow again.

Pantheon Macroeconomics’ Mr Shepherdson said the recent winter storms crippling the Southwest could dampen sales this month, but could rebound again this spring if more financial support flows from the Biden government’s stimulus plan, which is currently being drawn up by the Congress.

“Greater gains should then follow in the second quarter, as the herd immunity approach can lift more restrictions and reduce people’s fear of becoming seriously ill from Covid,” Shepherdson wrote in a research report.

“Overall, households have more than enough cash – and more will come from the business cycle, which we expect to pass in March – to fund both a huge rebound in spending on services and a further surge in spending on goods.” , he wrote.