Current Events in December 2016

Oil prices move up and down like the stock market, and it takes some time before those movements translate to consumers at the gas pump.

Even so, many motorists might have noticed gasoline prices have moved up in the last week. The AAA Fuel Gauge Survey shows the national average price of self-serve regular is $2.19 a gallon, up four cents from last week and 17 cents from a year ago.

The main reason for the slightly higher prices is last week's agreement by OPEC that its members will reduce their output in the coming year to shrink the persistent glut of oil on world markets. The move is aimed at pushing the price of oil above $50 a barrel, which would increase profits for producers while raising fuel costs for consumers.

“Traditionally this time of year gives way to lower gas prices as a result of cheaper to produce winter-blend fuel and less demand,” AAA said in a statement. “However, due to the agreement from OPEC it is still unclear if prices will retreat considerably ahead of the upcoming holidays.”

Can the agreement hold?

But OPEC historically has had problems enforcing its production cuts, and industry analysts are already pointing to what they say are cracks in the brand new, yet to be implemented agreement. MarketWatch reports that analysts are pointing out that OPEC oil production reached a record level of 34.2 million barrels a day last month.

Analysts say OPEC was producing nearly 1.7 million barrels a day more than the amount it has set as a target, beginning in January. They say when non-OPEC countries like Russia see these figures, they may be much less likely to curtail their own oil output, which must happen in order for supplies to go down. Meanwhile, Russia also stepped up production last month.

Reuters reports Russia produced more than 11 million barrels a day in November, its highest level in nearly 30 years. Between Russia and OPEC, there was enough oil produced in November to meet half of the world's demand.

While this may be bad news for oil producers, consumers stand to benefit, especially when they fill their tanks. The modest price hikes consumers have experienced in recent weeks, it should be pointed out, are all speculative.

Gasoline futures prices have been bid higher simply on the expectation that oil is going to cost more in the future. But if oil production doesn't actually go down, eventually that sentiment will change, and it will bring gasoline prices down again.

With the holiday season upon us, chances are you've ordered a few things online and are expecting a package delivery or two.

So if you were to get an email from Fed Ex asking for information or informing you of a problem with one of your deliveries, you might not doubt its authenticity. Unfortunately, that would be a mistake.

Hackers and scammers are well aware that more consumers are expecting deliveries, so the odds are much higher that their spam emails, disguised as messages from a delivery company, will snag a victim.

This week we received an email with the subject line “Fed Ex delivery problems notification.” But right from the start the message was suspect.

Even though it bore the Fed Ex logo, the message sender was “Gracie,” and the email was not from a Fed Ex email account. It was clear a hacker had gained access to Gracie's account or computer and was using it to send spam messages.

Glaring grammatical errors

“An package containing confidential personal information was sent to you,” the brief message read, with the glaring grammatical error flagging it as not being from Fed Ex.

Below the message, the words “Tracking Update” were in the form of a hyperlink. When the the cursor was placed over the link, it revealed that it would have directed us to some weird website.

It might have been a benign scam – getting us to help the spammer earn a little ad revenue. Or it could have been more sinister, downloading malware or, worse still, loading ransomware to seize complete control of the computer.

Fed Ex's advice

This, of course, is nothing new to Fed Ex, which says it has received many reports of fraudulent emails using its name and logo. The company says other subject lines include “Shipping Conformation,” “Verify Info,” “Some important information is missing,” and “Please fulfill the documents attached to verify your identity.”

Fed Ex says it does not send unsolicited emails to consumers requesting information regarding packages, invoices, account numbers, passwords, or personal information.

The company says when you get one of these messages – and your chances are higher during the holiday season – you should delete the email or forward it to abuse@fedex.com.

Mortgage applications were down for the second week in a row last week.

The Mortgage Bankers Association reports applications dipped 0.7% in the week ending December 2. The prior week’s results included an adjustment for the Thanksgiving holiday.

While the Refinance Index was down 1% percent from the previous week, the refinance share of mortgage activity increased to 56.2% of total applications from 55.1% a week earlier.

The adjustable-rate mortgage (ARM) share of activity was 6% -- the highest level since February; the FHA share rose to 11.3% from 10.4% the week prior; the VA share went to 12.6% from 11.7%; and the USDA share of total applications rose to 0.9% from 0.8% the week before.

Contract interest rates

• The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) rose four basis points -- from 4.23% to 4.27% -- its highest level since October 2014, with points decreasing to 0.37 from 0.41 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
• The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) increased to its highest level since September 2014 -- moving to 4.22% from 4.18%, with points unchanged at 0.29 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
• The average contract interest rate for 30-year FRMs backed by the FHA remained unchanged at 4.99% -- its highest level since July 2015, with points decreasing to 0.38 from 0.44 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 15-year FRMs jumped five basis points to 3.53%, its highest level since September 2014, with points increasing to 0.39 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
• The average contract interest rate for 5/1 ARMs increased to its highest level since September 2013 -- 3.39% from 3.23% -- with points decreasing to 0.28 from 0.44 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.

FMIF Holdings is recalling Snow Monkey Goji Berry and Cacao pods that may be contaminated with Listeria monocytogenes.

No illnesses have been reported to date from consuming Snow Monkey products.

The following products, packed in 8-oz plastic pods with sticker labels, are being recalled:

• 8 oz. Snow Monkey Subzero Superfood in Cacao delivered from online order between May and June 2016. Barcode reads ‘000000000000 Sample Only - Not for Resale’
• 8 oz. Snow Monkey Subzero Superfood in in Goji Berry delivered from online order between May and June 2016. Barcode reads ‘000000000000 Sample Only - Not for Resale’

The barcode can be found printed horizontally on the side of the label next to the nutritional facts.

The recalled products were distributed via online order between May and June 2016 in California, Missouri, Massachusetts, New York, Florida, Illinois, Nevada, Arizona, Texas, Hawaii, Oregon, Colorado, District of Columbia, Michigan, Connecticut, Maine, New Jersey and New Hampshire. None of these products were sold at retail stores.

What to do

Customers who purchased the recalled products should not consume them but dispose of them.

Consumers with questions may contact the company at (951) 878-0887 weekdays, 9am-4pm (PST) or by email at kingdom@snow-monkey.com.

Mother Hubbard’s Cupboards is recalling about 100 Mathew & Lauren collection cribs sold in Canada.

The mattress support system may dislodge resulting in a change in the side height. The change in side height poses a fall hazard for the child. Thus these cribs do not meet the requirements of the Cribs, Cradles and Bassinets Regulations in Canada.

The company says there are no reports of incidents or injuries.

This recall involves Mathew & Lauren collection cribs, identified by model 8700-700. The recalled product is a crib that can be converted into a double bed. The model number can be found on the product's packaging and on a label on the inside of the side panel.

The cribs, manufactured in Canada, were sold from January 2015, to November 2016.

What to do

Customers who purchased the recalled product should immediately stop using it and contact Mother Hubbard’s Cupboards to arrange for replacement fasteners for the mattress support system.

Consumers with questions may contact Mother Hubbard’s Cupboards at 1-888-661-8201, by email at sales@mhcfurniture.com or online at http://www.mhcfurniture.com/baby-furniture/.

A lot is at stake Wednesday as AT&T executives go before the Senate Judiciary Committee to answer questions about the company's proposed acquisition of content provider Time Warner.

President-elect Trump is already on record opposing the deal and a number of lawmakers have expressed skepticism as well.

The $108.7 billion acquisition would join America's largest pay TV provider with a media and entertainment company that has a massive catalog of movies and TV shows.

From the beginning, AT&T executives have maintained the merger is a “vertical” one that brings together two entities providing different products, and therefore will not decrease competition. But AT&T could face some pointed questions at Wednesday's hearing.

“This proposed massive consolidation of distribution and content raises potentially serious questions about competition, consumer choice, and privacy across the media, cable TV, wireless and broadband industries,” Sen. Patrick Leahy (D-Vt.), ranking member on the Senate Judiciary Committee, said in a statement.

'Zero-rate' could be the sticking point

Even though the proposed merger would be “vertical,” critics charge it could give the telecom giant a huge advantage in the marketplace. At issue is something called “zero-rate.” That means the ISP, in this case AT&T, won't count a customer's viewing of AT&T-owned content against his or her data allowance.

Currently, AT&T has such a promotion with DIRECTV. AT&T wireless customers who also subscribe to DIRECTV can watch that content on their mobile devices without it counting against their data allowance.

If you are both an AT&T and DIRECTV customer, that's a great deal. But if you are a small ISP trying to compete against AT&T, you may think the playing field has suddenly become a lot less even.

Small ISPs worried

Jimmy Carr of All Points Broadband in Ashburn, Virginia, who chairs the Wireless Internet Service Providers Association (WISPA) Legislative Committee, says it will hurt the mostly small companies that are bringing broadband to underserved rural areas.

“AT&T has recently begun to zero-rate its DIRECTV content, and it has stated its intention to expand zero-rating to the Time Warner content it would obtain through this proposed merger,” Carr said. “Allowing any ISP to favor certain content has a direct, harmful impact on thousands of small, competitive ISPs that do not own content and lack the ability to negotiate fair, reasonable and non-discriminatory access to content.”

Carr says AT&T’s proposed acquisition of Time Warner raises serious concerns and should be rejected by federal regulators.

So far, AT&T is batting one for two on proposed mega-mergers. Last year it's deal to acquire DIRECTV got a green light from regulators. Before that, its deal to acquire rival T-Mobile did not

Does Donald Trump care about highway safety? AutoNation is betting he doesn't. The new-car chain has backed down on its pledge to fix all outstanding recalls before selling cars to customers, apparently based on an assumption that Trump will not pursue the matter.

AutoNation started selling used vehicles with open recalls on Monday, Nov. 28, after CEO Mike Jackson concluded that Trump's victory would mean the end of legislative efforts to require used car dealers to stop selling recalled used cars that have not been repaired.

But U.S. Senators Richard Blumenthal (D-Conn.) and Edward J. Markey (D-Mass.), say Jackson's conclusion is dead wrong.

“AutoNation’s decision to resume the sale of deadly used cars in the wake of this presidential election is deeply troubling, and will lead to tragic consequences on our nation’s roads and highways," the two said in a statement emailed to ConsumerAffairs.

"After reversing course on its widely-advertised pledge to not sell defective cars, AutoNation now bears the responsibility of informing consumers about its broken promise. The company now has an obligation to publicize its decision to reverse course as widely as its original move towards better safety,” the senators said. “In the wake of this announcement, we plan to double down on efforts to protect consumers from the worry that they might be buying a used car with unrepaired recalls.”‎

CEO frustrated

Blumenthal and Markey are the authors of the Used Car Safety Recall Repair Act, introduced in 2015. It would require used car dealers to repair any outstanding safety recalls in used automobiles prior to selling or leasing and the Repairing Every Car to Avoid Lost Lives (RECALL) Act that would require owners of vehicles with open safety recalls to be notified and help ensure defects are repaired.

Jackson expressed frustration with the situation, seeming to say that AutoNation had done its part but had not been supported by lawmakers or the rest of the auto industry.

AutoNation, the largest car-dealer chain in the country, voluntarily adopted its policy of performing all outstanding recalls around the time Blumenthal and Markey introduced their bill, which is still pending and unlikely to pass in the few days remaining in the current Congress, but other dealers failed to follow suit and there was little evidence the heavily advertised initiative produced much in the way of new business for AutoNation.

Jackson is, in effect, throwing up his hands.

"It's been a very difficult journey, but with the Trump administration there's no way that that issue is going to be addressed from a regulatory point of view," he said, according to an Automotive News report.

Jackson said his company will still try to perform all outstanding recalls if it is able to do so but, like all dealers, it's not able to fulfill recalls if the manufacturer fails to make parts available.

"If parts are available, we repair them," Jackson told Automotive News. "If the parts are not available, we'll either auction or retail it. In both cases, we use full disclosure if we retail or auction it without having made a repair."

The recall of millions of Takata airbags worsened the situation. By the end of 2015, AutoNation had allowed some vehicles to go to auction if they had waited six months or more for parts. 

Hypertension, or high blood pressure, is a growing health concern in the U.S., mainly because of lifestyle factors. A poor diet, lack of exercise, and obesity are all contributing factors.

High blood pressure is easily treatable, but first you have to know if you are affected by it. Blood pressure is measured using a cuff that applies pressure to your arm or wrist. Unless you have one of these cuffs at home, the only time you take a reading is when you visit a healthcare provider.

Researchers at Stony Brook University and Columbia University wondered if occasional measurements at a doctor's office provided an accurate determination of whether someone suffered from high blood pressure.

They enlisted a group of patients who had normal readings on their infrequent measurements in a clinical setting and placed wearable monitors on them to measure blood pressure around the clock. They say they discovered that for some subjects, their blood pressure was outside the normal range during daily activities, even though it seemed normal at the doctor's office.

Reverse of 'white coat hypertension'

The researchers say it's the reverse of so-called “white coat hypertension,” when the slight stress of being in a doctor's office results in higher blood pressure readings. When blood pressure spikes during normal day-to-day activities, the researchers call it “masked hypertension.”

The only way to uncover masked hypertension is with around the clock monitoring, using a wearable device. The researchers say that compared to blood pressure measured infrequently in a clinic, ambulatory blood pressure is a better predictor of future heart disease.

In the study, nearly 16% of patients with normal clinic blood pressure were found to have “masked hypertension.” It was more common in men than women. Interestingly, it also affected younger, normal weight participants more than those who were older and overweight.

Debunking a widely held belief

“These findings debunk the widely held belief that ambulatory blood pressure is usually lower than clinic blood pressure,” said lead author Dr. Joseph Schwartz.

Schwartz said healthcare providers need to know that there appears to be a tendency for blood pressure during normal activities to be higher than clinic blood pressure in healthy patients who are being evaluated for high blood pressure during well-patient visits.

It's an important issue because high blood pressure, left untreated, can lead to more serious health conditions, such as heart attack and stroke.

Last month, United Airlines released information on its new Basic Economy fare. It immediately garnered attention from regulators and fliers due to a provision that limits the amount of carry-on baggage that can be brought on the plane.

Under the new fare, fliers would only be allowed to bring one small item with them into the cabin, measuring a maximum of 9 inches by 10 inches by 17 inches. The items would need to be stored under the seat, and if it didn’t fit, then the flier would have to pay to check it.

While the purpose of the new rule was to cut down on boarding time and clutter in the aisles, many have come out in opposition. One of them is New York Senator Chuck Schumer, who says that the measure is “one of the most restrictive polices” that travelers have faced for some time, according to the New York Post.

Nickel-and-dimed

“The overhead bin is one of the last sacred conveniences of air travel and the fact that United Airlines—and potentially others—plan to take that convenience away unless you pay up is really troubling. . . Air travelers are sick and tired of being nickel-and-dimed for every bag they carry and every morsel they eat by airlines that are already making sky-high profits,” he said.

Schumer says that the new policy would end up costing consumers quite a lot over the next four years, estimating that United stands to make an additional $1 billion from charges on the Basic Economy fare by 2020. In a release, he points out the unfairness of customers being locked out of lower prices unless they give up their rights to the overhead bin, calling the situation a “lose-lose.”

“No matter the ticket price, the overhead bin should be free. Period,” he said. “It seems like each year, airlines devise a new, ill-conceived plan to hit consumers and it has simply got to stop. Already, airlines charge extra for checked luggage, pillows, peanuts, and headphones and now you’ll have nowhere to store them. United Airlines should reverse this plan and allow the free use of the overhead bin for all.”

Hamburger chain Wendy's has always tried to set itself apart with the beef it uses to make its burgers. Its advertising proclaims its patties are “fresh, never frozen.”

Now the chain is doubling down on its beef, announcing a partnership with the U.S. Roundtable for Sustainable Beef that is says will advance sustainability efforts throughout the U.S. beef value chain.

The company says it has always tried to support sustainable beef production and responsible animal production practices. It says its partnership with the Roundtable will give it a place at the table when environmental, social, and economic sustainability issues are discussed.

Liliana Esposito, Chief Communications Officer for The Wendy's Company, says the partnership simply solidifies long-time commitments.

“We have a long-term interest in promoting the continued sustainability of the U.S beef supply chain, and we are proud to join the efforts of the U.S. Roundtable for Sustainable Beef and align on common goals and metrics to drive continuous improvement in U.S. beef production," Esposito said.

Millennial influence

As Millennial consumers, especially, have held companies to higher ethical standards, dozens of chains operating on massive scales have made commitments in the area of animal welfare. Wendy's is one of many fast food companies to pledge to move to 100% cage free eggs at its restaurants. Early this year it announced it would make that transition by 2020.

Wendy's says it understands that consumers are increasingly want to know more about their food and where it comes from. The company says the Roundtable is trying to make the U.S. beef value chain to be the best in breed when it comes to environmentally sound, socially responsible, and economically viable beef.

Roundtable members include farmers and ranchers, processors and industry partners, as well as academics, retailers, and environmental groups.

"The strength and success of the U.S. Roundtable for Sustainable Beef is dependent on a diverse membership that encompasses the entire beef value chain," said John Butler, beef producer and Roundtable chairman. "We are very proud to have Wendy's join the Roundtable as we all work to improve the sustainability of the U.S. beef industry."  

Over the last couple of years the U.S. housing market has transformed into something of a seller's market, especially in fast growing cities favored by Millennials.

Declining inventory of homes for sale has increased competition for the remaining homes on the market, driving up prices. So it's been good for sellers but not so good if you are trying to buy a home.

Real estate marketplace Zillow has found fewer than half of buyers successfully close on the first home they make an offer on.

But Zillow's market experts now predict the situation is about to change, but it won't do so overnight. However, with home values expected to slow to 3% next year, buyers could be back in the driver's seat by 2018 or 2019.

"Sellers in the current housing landscape often have the luxury of listing their home 'as-is' without fixing it up or with only minimal window-dressing since demand for homes has been high and inventory low,” said Zillow Chief Economist Dr. Svenja Gudell. “It's common for sellers to receive multiple bids, and in the hottest markets, sell for over asking price, but these conditions will change in the future. As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favor of buyers within the next two to three years."

Hot markets the last to flip

Of course, that might not be the case everywhere. Red hot housing markets will be the last to flip to a buyer's market. Zillow reports Portland, Seattle, and Dallas had the largest increase in appreciation among the 35 largest metros across the country in October.

The value of homes in Portland rose almost 15% to a median value of $349,500. In Dallas and Seattle, the price of typical homes increased just over 12% since October 2015. Consumers hoping to buy there will likely face stiff competition for some time.

New home construction is key

Housing markets that see the greatest increase in new home construction will likely be among the first to flip to a buyer's market, since new housing developments are the fastest way to increase housing inventory. As things now stand, new home construction remains about half of what it was during the housing bubble, but the National Association of Home Builders (NAHB) says the trend is moving higher.

“Builders are adding to inventory based on consistent gains in sales, solid builder confidence and ongoing job and economic growth,” said NAHB Chief Economist Robert Dietz.

According to the association's October numbers, the inventory of new homes for sale in the U.S. was 246,000, a 5.2-month supply at the current sales pace. The median sales price of new houses sold was $304,500.

Lexibook S.A., of France is recalling about 7,00 baby bath seats and chairs.

The bath seats can tip over while a baby is in it, posing a drowning hazard to babies.

No incidents or injuries have been reported.

This recall includes all Lexibook Baby Bath Seats and Chairs. The plastic baby bath seats/chairs are intended for children 6 months and up. They have a plastic base with suction cups on the bottom, a back/arm support and a toy tray.

“Lexibook” is stamped on the back/arm support. “Made in China” and “2014 Lexibook Limited IT028/IT029 SN: 1407/VA09” are stamped on the bottom of the base. They were sold in a variety of colors.

The bat seats and chairs, manufactured in China, were sold online at Amazon.com, Unbeatablesale.com, Wayfair.com and Youngexplorers.com from January 2013, through August 2016, for between $30 and $60.

What to do

Consumers should immediately stop using the recalled baby bath seats and contact the online retailer where it was purchased for return instructions and to receive a full refund, or a refund in the form of a store credit or gift card, depending on the online retailer. All known purchasers will be contacted directly about the recall.

Consumers may contact the retailers as follows:

Long-term care insurance is one of those things that responsible people buy, hoping to ensure that they don't become a burden on society or their family in their old age. Since Medicare doesn't pay for nursing home services, consumers must bear the cost themselves or rely on their families, or burn through their assets to become eligible for Medicaid.

But as so often happens to responsible people who try to do the right thing, affordable long-term care policies that provide decent coverage are becoming nearly impossible to find. Even worse, existing policyholders are facing sharp premium increases, decreased benefits, and, in some cases, the outright collapse of their insurer.

That's the case with those who bought policies from two units of Penn Treaty American Corp., a small Pennsylvania insurance company that has an estimated $4 billion in long-term care liabilities but assets of only $600 million. Liquidation is expected next year, which may leave consumers who paid their premiums for years facing reduced benefits when they need them.

Those who presently have policies from Penn Treaty should not abandon them, since they will receive at least some of the benefits owed them and, more importantly, may not be able to find coverage anywhere else. 

Because insurance is regulated on a state-by-state basis, Penn Treaty policyholders will fare better in some states than others but all are likely to receive far less coverage than they anticipated. 

Financial pressures

Many insurers have already gotten out of the long-term care business because of the same factors that have combined to sink Penn Treaty -- rising medical costs, longer life expectancies, and, perhaps most critical, low interest rates that have made it impossible for many insurers to earn the kind of returns they need in order to meet their obligations.

While not every case is as drastic as Penn Treaty, there are very few long-term care policyholders who haven't experienced major rate increases, including those who bought policyholders from Genworth, a major insurer that once enjoyed top ratings from consumer groups and state agencies. 

"After seven years with Genworth, we have been hit this year with a 60% rate increase," said Elizabeth of New York, N.Y., in a recent ConsumerAffairs review. "My husband and I simply cannot afford to pay the new rates, but we are in our seventies and are likely to need the coverage."

"I called the New York State Insurance Department, and their lawyer explained that the rate increase was approved by the state. Some consumer protection agency!" Elizabeth said. 

Linda of St. Joseph, Mo., has a similar problem. "When I (a widowed senior) purchased my LTC policy from Genworth, It was represented as a policy in which the premiums would not go up unless the entire class of policies had an increase. ... WOW! I just received the letter informing me that to retain my current policy would require an increase of 50.55% (correct, that is Fifty percent) effective January 1. This would be more than $1200 for the year for me."

Linda concluded by saying she will look elsewhere for coverage. "I will definitely be acquiring LTC insurance elsewhere."

Unfortunately, she will be hard-pressed to do so. The price of long-term care coverage is based on a number of factors, including the customer's age and state of health. If Linda is already a widowed senior, she is not going to be an attractive prospect to an insurance company, for the simple reason that as an older person, she is more likely to need long-term care within the next few years.

Young, healthy consumers are more attractive prospects because, barring an accident or rare illness, they are not likely to need long-term care for decades. By that time, in many cases, they will have canceled their policy because of -- you guessed it -- rising premiums. 

A different world

There is plenty of blame to go around and, while there have been lawsuits by aggrieved policyholders, it is difficult for consumers to prevail because insurers' rate increases are, as Elizabeth learned, approved by state insurance regulators. It's hard to sue someone for doing something legal. 

Regulators say their hands are tied because if they do not grant premium increases, insurance companies will be unable to meet their obligations and will wind up like Penn Treaty. This ends up costing everyone, since other insurers must pay into a fund to help cover the obligations of companies that fail, an expense that winds up contributing to future premium increases.

While there are arguments to be made on either side, long-term care insurance -- which was launched on a large scale back in the 1990s -- may simply turn out to be an idea that collided with unforeseen changes in healthcare costs, longevity, and the state of the financial markets.

All it would take to turn the situation around would be for Americans to resume dropping dead in their 60s, for someone to find a cure for Alzheimer's, and for inflation to bring back double-digit interest rates for institutional investors.  

What to do

What's a consumer to do? There's no easy answer. There are still a few companies writing long-term care insurance (including New York Life, Mutual of Omaha, and Northwestern Mutual, according to a recent Wall Street Journal report) but it is hard to qualify and any pre-existing condition will likely cause you to be rejected. 

With nursing homes costing $100,000 a year or more, even a millionaire could run out of money if incapacitated for a decade or more. Staying healthy is obviously the key, but there are many cases of people whose healthy diets and frequent exercise give them the heart of a horse but who nevertheless contract Alzheimer's or another form of dementia and live for many years in a state of total dependency.

The ultimate answer is beyond an individual consumer's control and lies in the realm of public policy. Whether you call it socialized medicine or sound governmental policy, federal action is needed to address the problem. Whether that's possible in today's sound-bite and Twitter-bit era is a question beyond the scope of this article. 

When compiling a holiday wish list, kids don’t often stop to consider the possible safety risks of the toys they’re requesting. If you’ll be shopping for a child this holiday season, it’s crucial to note that not every toy may be safe for its pint-sized recipient.

While you’re probably already aware that sharp edges or long strings can pose a safety risk to young children, experts say there are many other guidelines that are more easily overlooked.

Toy toxicity

Steer clear of plastic toys that include phthalates and older toys made with unsafe materials. Before purchasing a used toy or passing one down from an older sibling, parents should check for worn out pieces, peeling paint, or other dangers.

“As recently as 10 years ago, the guidelines as to what constituted a safe toy were very different,” Morgan said. “Many materials and chemicals are not as safe as experts once believed they were."

Age appropriateness

Parents shouldn’t purchase a toy thinking that their child will “grow into” it, says Sue Rzucidlo, a nurse practitioner with Penn State Pediatrics. In the case of a gift such as a bike, doing so can be dangerous as the child may not have the skills to control it.

Make sure the toy will support your child’s development by checking the age recommendation on its label. And if you are purchasing a bike or another gift on wheels, Rzucidlo recommends making protective gear part of the gift

Choking risk

If shopping for a child under the age of 3, watch out for choking hazards. These may be present on toys with small removable parts or those with concealed small parts, such as button batteries or small magnets.

For children under three, choose toys that are too big to fit through a toilet paper tube.

Johnson & Johnson has been ordered by a Texas jury to pay over $1 billion in damages because claimants said that the company covered up flaws in its Pinnacle artificial hips. The suit claims that the DePuy unit of the company knew about the defects but still chose not to warn doctors and patients about the inherent risks.

The company was ordered to pay $30 million in damages to six plaintiffs and over $1 billion in punitive damages, according to a Chicago Tribune report. Those who had the defective devices installed had to have them surgically removed. The company will likely appeal the decision, but University of Michigan law professor Erik Gordon says that company may want to start making settlement offers to the thousands of potential claimants across the country.

“They may think they have good defenses to these claims, but they don’t seem to be working with juries. There’s no easy way out of these cases now that they have a billion-dollar verdict against them. They better start thinking of how they can settle these claims before the price goes up any more,” he said.

Setting the tone

Early signs indicate that the company will continue digging in and defending its actions. Company spokesperson Mindy Tinsley released a statement saying that the DePuy unit had designed and tested the hip products appropriately.

Further, the company says it has strong grounds for an appeal, alleging that Texas Judge Ed Kinkeade did not allow a “fair presentation to the jury.” In a statement, attorney John Beisner said that an appellate court would need to review the case for errors; representatives will be asking Judge Kinkeade to postpone scheduling any more trials until that review is conducted.

Regardless of the outcome, Johnson & Johnson will have long road of litigation ahead of it connected to the hip products. The U.S. Securities and Exchange Commission estimates that there are roughly 9,000 pending suits connected to Pinnacle hip failures, and a billion dollar settlement would set a grim tone going forward.

“The jury is telling J&J that they better settle these cases soon,” said John Lanier, who represented the six Texas claimants. “All they are doing by trying more of these cases is driving up their costs and driving the company’s reputation into the mud.”

A study finds the Transportation Security Administration could save money and speed up security lines by eliminating the $85 fee it now charges frequent travelers for the TSA PreCheck program.

"This is an easy case where spending some money will save the federal government more money," Sheldon H. Jacobson, a computer seience professor at the University of Illinois, said. "There is a transition period - the savings are realized over the first five years, and then in perpetuity. So if the federal government is looking for a way to save money, giving TSA PreCheck at no cost to high-volume, high-value fliers makes sense."

The study by Jacobson and graduate students Arash Khatabi and Ge Yu calculated the cost of extensive screening compared with expedited screening in terms of workforce labor hours and equipment. They found that costs saved by frequent travelers using expedited security exceeded the cost of waiving their enrollment fees for PreCheck.

The study looked at different scenarios and found that the average travel frequency of those enrolling would have to be six round trips, or 12 screenings a year.

Cost savings

"We only look at the direct cost savings in labor and equipment. We don't even talk about the savings in time of the passengers who would no longer have to wait hours in line," Jacobson said. "That could add tens or hundreds of millions of dollars a year, which would be a bonus to the economy. More people could decide to fly, because of the time and cost savings."

The benefits would extend beyond the cost, though. According to Jacobson, an expert in aviation security, submitting every passenger to heightened security actually has the adverse affect of making air travel less safe by diluting resources that should be focused on high-risk, unknown passengers. TSA PreCheck reduces the number of unknowns by pre-screening passengers.

The problem with PreCheck is that enrollment has lagged far behind the projected numbers. Jacobson said waiving the fee might boost enrollment to more effective levels.

"The strength of PreCheck is the background check. It's not the item that we're trying to stop, it's the person with ill intent who we're trying to stop," Jacobson said. "PreCheck vets people and says, 'These people are not likely to be a problem to the air system.' They make sure you are who you say you are, and that your background shows no evidence that you are going to cause a problem."

The study was published in the Journal of Transportation Security.

Recently, researchers began developing a potential therapy for concussions, using an FDA-approved drug that helps reduce the harmful effects of swelling. Specifically, they found that the expression of a certain membrane protein called aquaporin-4 increased dramatically after a head injury and caused damage.

While work on that project continues, other experts believe that aquaporin-4 may be a prime target for Alzheimer’s research. A study conducted by researchers from Oregon Health & Science University has revealed a connection between the protein and possible prevention of the brain disease. While it may not materialize into a lasting cure, the researchers believe that their work could contribute to future therapies and prevention strategies.

"It suggests that aquaporin-4 might be a useful target in preventing and treating Alzheimer's disease," said Dr. Jeffrey Iliff, senior author of the study. "However, we aren't under any illusion that if we could just fix this one thing, then we'd be able to cure Alzheimer's Disease."

System breakdown

In a broad sense, Alzheimer’s isn’t a disease that happens all at once – it takes time and is much more progressive. There is currently no cure for it, but several therapies have been developed that may be effective in slowing it down; the researchers believe that aquaporin-4 could provide another.

Aquaporin-4’s functions as part of the brain's glymphatic system. Under certain conditions, it is the protein that allows cerebral-spinal fluid to enter the brain and wash away other proteins like amyloid and tau – the build up of which are main drivers of Alzheimer’s.

The researchers believe that when the system regulating aquaporin-4 breaks down, amyloid and tau are allowed to build up unchecked, leading to nerve damage. They tested this theory by analyzing three groups of 79 donated brains – people younger than 60 with a history of Alzheimer’s, people younger than 60 without a history of any neurological disease, and people over 60 without Alzheimer’s.

They found that aquaporin-4 levels were well organized and ordered in the brains of people without Alzheimer’s or a history of neurological disease, but older brains with Alzheimer’s had very disorganized aquaporin-4 levels. The researchers posit that Alzheimer’s may have developed in these brains due to decreased function to clear away harmful proteins.

Last year, the researchers were given a $1.4 million grant from the Paul G. Allen Family Foundation to continue their research and develop new imaging techniques that could capture brain processes as they happened. The team’s full study has been published in JAMA Neurology.