Current Events in June 2022

Since the middle of 2021, users of Buy Now, Pay Later (BNPL) apps have been falling behind on payments for their purchases. That’s obviously not good for consumers, but it is also taking a toll on the companies that are making these short-term loans.

The Wall Street Journal reports that BNPL companies like Affirm, Afterpay, and Zip are having to adjust because of missed payments and rising interest costs.

“We are putting a real focus on sustainable growth, strong unit economics and, critically, accelerating our pathway to profitability,” Zip co-founder Peter Gray told the Journal.

Alternative to credit cards

BNPL was all the rage at the beginning of the pandemic. The system allows consumers to make a purchase with a down payment and then two or three more equal payments every two weeks to complete the purchase.

Many consumers prefer the system because they aren’t adding to high-interest credit card balances that never seem to get paid off. But sometime in 2021, BNPL companies started sending out late payment notices.

In September, Credit Karma released research showing that 44% of Americans had used a BNPL plan. Of those consumers, 34% said they have fallen behind on payments.

Those missed payments have had significant consequences for consumers. Of those who admitted to having missed at least one payment, 72% said they believe their credit score declined as a result. Nearly a third said they experienced “significant” declines in their credit score.

Annie Millerbernd, one of Nerdwallet’s financial experts, says many consumers are under the mistaken belief that they’re getting a deal. Actually, it’s just a different financing plan.

“You only have to pay for a quarter of the price tag at checkout, but the actual cost isn’t lowered at all,” Millerbernd told ConsumerAffairs. "More payments will follow, usually in two-week increments, and not having a plan to make those payments can get you off track.”

That appears to be what’s happening. If a consumer goes shopping and makes three BNPL purchases, they may be able to handle the three initial down payments. However, they will be on the hook for additional payments over the next six weeks.

Instant gratification

Claudia Valladares, a financial advisor at Kovar Wealth Management, says BNPL plays on consumers’ appetite for instant gratification. If not properly managed, it can have the same result as running up credit card debt.

“The consumer doesn't realize those ‘small’ monthly payments can quickly throw off their monthly budget,” Valladares told us. "[Spending] $50 here, $35 there will add up! But as I mentioned, our generation wants things now so we don't think through the financial consequences at the time of the purchase.”

Millerbernd advises consumers to know their budget before making a BNPL purchase and to stick to it. Valladares says consumers should probably wait until they can pay the cost of the item entirely before making the purchase.

In March, a coalition of 77 consumer groups asked the Consumer Financial Protection Bureau to provide oversight and regulation of these financial products. The letter warned that BNPL is contributing to an explosion in consumer debt.

“BNPL products have largely evaded oversight by federal and state regulators,” the groups stated. “Although these products could have a place in meeting consumer needs if they operate as promised, they pose a risk to consumers and should be covered by basic consumer protections.” 

The U.S. Department of Education is wiping the slate clean for 560,000 students who borrowed money to attend Corinthian College. The agency announced that it is discharging all those students' remaining federal student loans, an amount that equates to $5.8 billion.

The Department said the discharge will include everyone, even borrowers who have not yet applied for a borrower defense discharge. The discharge will be done automatically without any additional action from borrowers.

Addressing a longstanding problem

It took nearly three administrations to make this happen, but the Corinthian students have the Biden-Harris White House to thank for their loan discharges. Officials have cited an ongoing commitment to helping student loan borrowers get the relief they are entitled to. With the Corinthian action on the books, the administration has approved $25 billion in loan relief. 

Bringing Corinthian to justice has been a personal crusade for Vice-President Harris. She sued the institution when she was the attorney general of California in 2013, claiming that the for-profit college purposely misrepresented its job placement rates and was engaging in deceptive and false advertising and recruitment. 

"As of today, every student deceived, defrauded, and driven into debt by Corinthian Colleges can rest assured that the Biden-Harris administration has their back and will discharge their federal student loans," said U.S. Secretary of Education Miguel Cardona. 

"For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep. While our actions today will relieve Corinthian Colleges' victims of their burdens, the Department of Education is actively ramping up oversight to better protect today's students from tactics and make sure that for-profit institutions – and the corporations that own them – never again get away with such abuse."

The Department says it’s not finished

The Department of Education made it clear that its efforts to clean up the whole student loan mess doesn’t stop here. Last week, it announced a revamp of its student loan program in hopes of getting students and loan borrowers a full slate of benefits, including loan discharges.

If it sticks, the promises the Department makes could forever change the student loan business -- from making student loans more affordable to preventing a future debt crisis by holding colleges liable for leaving students with mountains of debt and without good jobs.

The Department also recently announced fixes to longstanding problems with income-driven repayment that will help thousands of borrowers receive forgiveness through that program, as well as 40,000 borrowers who receive Public Service Loan Forgiveness (PSLF).

A new study conducted by researchers from Cornell University explored how technology can help reduce consumers’ food waste. Their work tested a milk carton QR code that, when scanned, gave consumers a more accurate best-by date for their milk (as opposed to traditional cartons that have the dates printed on the product.) 

They learned that not only were the study participants eager to adopt this technology, but they were less likely to waste fresh milk when using it. 

“During the two-month study, over 60% of customers purchased the milk with the QR code, showing a considerable interest in using this new technology,” said researcher Samantha Lau. “This revealed that the use of QR codes on food products can be an innovative way to address the larger issue of food waste.” 

Improving food waste

The purpose of the study was to gauge consumers’ interest in milk carton QR codes and then see how successful the codes were at reducing food waste. The researchers noted that milk accounts for 65% of dairy product food waste in the U.S., which translates to over $6 billion in costs. 

Lau explained that much of this stems from confusion related to best-by and sell-by dates on cartons. She said shoppers tend to naturally gravitate towards milk that’s dated the farthest out; however, this means a lot of milk sits on shelves and ultimately goes unused. 

This experiment revealed some promising trends. When given the choice between purchasing milk with a printed best-by date or one with a QR code that would display the more accurate best-by date when scanned, the majority of participants opted for the QR code. 

Another component of the study was offering the participants a discount for buying milk that was closer to its best-by date. This helped the participants save money on milk and was also an effective way to reduce waste by getting more drinkable milk off store shelves. 

While the researchers want to see more of this technology integrated throughout the food industry, these findings highlight a valuable way to help reduce a significant portion of dairy waste in the U.S. 

“This makes digital trends really valuable, particularly if they’re combined to really allow us to collect data along the food chain,” said researcher Martin Wiedmann.

A new study conducted by researchers from the University of California Los Angeles explored some of the risks that pregnant women face when exposed to air pollution.

According to their study conducted on mice, women who are exposed to air pollutants during pregnancy may have a higher risk of complications that affect their health and their babies’ health. 

“The cellular changes we have observed could provide the missing link between exposure to air pollutants and adverse pregnancy outcomes, thereby helping to focus development of preventive strategies for at-risk pregnancies,” said researcher Dr. Sherin Devaskar. 

Pollution may affect the placenta

The researchers divided female mice into two groups for the study: one group was nasally exposed to pollutants two months before conception and then throughout pregnancy; the second group was exposed to saline. The team analyzed tissue samples from both groups to understand what effect pollution could have on pregnant women and their babies. 

The study showed that the mice exposed to the pollution were affected on a cellular level and that the impact can affect health outcomes for mothers and infants.

As pollution enters the lungs, the immune system is activated in an unhealthy way that can ultimately affect the placenta. The researchers explained that this immune response can lead to a loss of vascular cells in the placenta, which could affect the food and nutrient supply going to the baby. It can also increase the risk for serious pregnancy complications, including preeclampsia and preterm birth. 

The researchers also observed that exposure to pollution during pregnancy was associated with inflammation in the lining of the uterus. 

While the researchers plan to do more work in this area to better understand the precise dynamics behind air pollution exposure and pregnancy risks, they say these findings highlight some specific ways that pollutants can affect pregnant women and their babies. 

America New York Ri Wang Food Group of Bay Shore, N.Y., is recalling approximately 14,635 pounds of ready-to-eat sausage sticks and luncheon loaf.

The products may be contaminated with pieces of metal. There have been no confirmed reports of injuries or adverse reactions.

The following items, produced from April 5, 2022, to May 5, 2022, are being recalled:

• 16-oz. plastic bags containing one luncheon loaf with a “Use/Refreeze by NOV. 11, 2022” date and lot numbers between 422094 and 422110.
• 23-oz. plastic bags containing 10 sausage sticks with a “Use/Refreeze by NOV. 13, 2022” date and lot numbers that include 422094, 422102, 422112, 422116, 522122, and 522124.
• 10-oz. plastic bags containing four sausage sticks with a “Use/Refreeze by NOV. 13, 2022” date and lot numbers of 422094, 422102, 422112, 422116, 422119, 522122, and 522123.

The recalled products, bearing the establishment number “EST. 40200A” inside the USDA mark of inspection, were shipped to retail locations nationwide.

What to do

Customers who purchased the recalled products should not consume them. Instead, they should discard or return them to the place of purchase.

Consumers with questions may contact the firm at (631) 231-8999.

HP Hood of Lynnfield, Mass., is recalling 4,481 cases of Planet Oat Chocolate Chip Cookie Dough and Planet Oat Chocolate Peanut Butter Swirl Non-Dairy Frozen Dessert.

The products may contain peanuts, an allergen not declared on the label.

No illnesses have been reported to date.

A list of the recalled items, sold in retail stores nationally and in Puerto Rico, St. Maarten, and the Cayman Islands, may be found here.

What to do

Customers with an allergy or sensitivity to peanuts who purchased the recalled products should not consume them. Instead, they should return the products to the place of purchase for a full refund or exchange.

Consumers with questions may contact the firm at (800) 242-2423 Monday through Friday from 9 a.m. to 4 p.m. (EST).

Volvo Car USA is recalling 5,351 model year 2021-2022 XC40 BEVs.

Water may enter the cable harness, corroding the accelerator pedal sensor (APS) circuit.

A corroded APS circuit may send corrupted signals, causing unintended acceleration, a lack of acceleration, or a loss of drive power that increases the risk of a crash.

What to do

Dealers will inspect for corrosion, install a cable splice to prevent water intrusion, and -- as necessary -- replace the connector terminal and APS free of charge.

Owner notification letters are expected to be mailed on June 20, 2022.

Owners may contact Volvo at (800) 458-1552. Volvo's number for this recall is R10170.

Americans say they’re putting aside their retirement dreams for the moment – at least until the price of consumer goods and inflation settle down.

The BMO Real Financial Progress Index, a quarterly survey conducted by BMO and Ipsos that measures Americans' opinions about financial confidence, found that nearly 60% of those surveyed think that inflation has adversely impacted their personal finances. Another 25% feel that rising prices have had a “major” effect on their finances.

The survey also showed that 36% of Americans have reduced their rainy day savings, and 21% have cut back on putting money away for retirement. Younger Americans – aged 18 to 34 – are taking the biggest hit, with over 60% of respondents in that demographic saying they have had to reduce contributions to their savings in order to make ends meet.

What people are doing to offset the growing costs of living

Consumers are taking a wide range of steps to keep their financial lives from crashing down around them. Some of them include: 

Changing how they shop for groceries. Forty-two percent of survey respondents are opting for cheaper items and avoiding brand names. Instead, they're buying more store brands and limiting purchases to necessary items.

Dining out less. Forty-six percent of the respondents said they either dine out less frequently or are consciously spending less when they do go out. 

Driving less. Thirty-one percent of respondents are driving only when it’s necessary to offset the soaring cost of gas.

Spending less on vacations. Twenty-three percent of consumers said they’ll be cutting back on some of the frills when they go on vacation or canceling their vacation plans altogether.

Cutting back on subscriptions. Twenty-two percent of respondents said they are ending subscriptions to their gym, streaming platforms, and other services to save money.

What financial plan experts suggest as best practices

ConsumerAffairs reached out to retirement planning experts to see what they suggest Americans do to gain some financial balance between their spending habits and rising inflation. Paul Tyler, the Chief Marketing Officer at Nassau Financial Group, said the first thing near-retirees should do is continue to work if they can.

“By continuing to work, near-retirees can continue to bring in a paycheck to cover surprise expenses and let their 401(k) balances grow a little longer,” he told ConsumerAffairs.

He added that cutting back on unnecessary expenses is also a good strategy right now.

“Analyze your credit card bills and see where you can conserve cash. Call your cable provider and request a discount. Tell your cell phone company your thinking of switching carriers and they may offer a discount. Plan errands to maximize your gas dollars.”

Another insight comes from Mark Williams, CEO at Brokers International. He says consumers should try to reduce expenses by cutting out certain "luxury" purchases, but he also notes that credit card spending is also something to keep an eye on.

"If you are noticing money is getting tighter, try not to start using your credit card more often and go into debt," Williams told ConsumerAffairs.

His suggestions for small changes you can make to your retirement strategy that might help?

• Reduce the amount you contribute to your retirement accounts by reducing the withdrawal percentage you are contributing to your 401K, IRA, 403B, etc…
• Reduce the amount of auto-withdrawal (if you have one) that is going to a savings account.
• Reduce the amount you may be saving for secondary education.
• Consider using the equity in your home for certain expenses by using a HELOC or other type of equity loan.
• Consider increasing your deductible(s) on certain insurance policies (homeowners, car, boat, etc…) to reduce the monthly premiums. However, consumers should note that increasing deductibles means paying more out of pocket if there is a claim. If you take this approach, Williams says you should increase your safety net emergency savings account to offset the increase.
• Consider a review of your life insurance policies and determine if you are overinsured. If you are, you could lower the face amount of the policies to reduce cost. This should be done after speaking to a financial advisor. 

"Always seek professional advice when making changes to any retirement strategy and that becomes increasingly more important the closer you are to retirement," Williams emphasized.

COVID-19 ‌tally‌ ‌as‌ ‌‌compiled‌‌ ‌by‌ ‌Johns‌ ‌Hopkins‌ ‌University.‌ ‌(Previous‌ ‌numbers‌ ‌in‌ ‌parentheses.)‌

Total‌ ‌U.S.‌ ‌confirmed‌ ‌cases:‌ 84,263,093 (84,022,711)

Total‌ ‌U.S.‌ ‌deaths:‌ 1,007,254 (1,004,770)

Total‌ ‌global‌ ‌cases:‌ 530,311,334 (529,487,333)

Total ‌global‌ ‌deaths:‌ 6,293,630 (6,289,298)‌

Omicron variants are proliferating, report finds

A new report from the Centers for Disease Control and Prevention (CDC) shows just how fluid the Omicron variants can be. Last week, the BA.2.12.1 Omicron subvariant became the dominant strain infecting Americans.

This week, two newcomers – BA.4 and BA.5 – are emerging as the strains that are spreading the fastest. Researchers say the latest subvariants are not only highly transmissible, but they have a stronger ability to reinfect.

Researchers also say the new Omicron strains are spreading more quickly in some parts of the U.S. than others. The BA.2.12.1 strain hit the Northeast very hard in March. Now, Midwestern states like Iowa, Kansas, Nebraska, and Missouri are seeing cases rise from BA.4 and BA.5.

Study promotes three shots for the best protection

For the best protection against the coronavirus, a new study published in the British Medical Journal (BMJ) recommends three shots of a COVID-19 vaccine. The study found equal results for three shots of the same vaccine or a mixture.

The study is significant because it is the largest conducted on vaccine combination effectiveness. It analyzed data from more than 100 million people, and scientists say it confirms the number of doses needed to boost immunity.

The researchers found that three doses of any mRNA vaccine appear to provide the highest level of protection against non-severe COVID-19 infections. It was also most effective in reducing COVID-19 hospitalizations.

Poll: Pregnant women likely to believe misinformation

Perhaps because having a baby is often an anxious time under the best of circumstances, a new poll has found that pregnant women are especially vulnerable to incorrect information about COVID-19 vaccines that has spread on social media.

The poll by the Kaiser Family Foundation found that about one in five adults and about three in ten women who are pregnant or planning to get pregnant believe at least one of three false statements about pregnancy and the vaccines. As a result, many of these women do not believe pregnant women should be vaccinated against COVID-19.

“While most of the public say they are at least somewhat confident in the safety of the COVID-19 vaccines for adults in general, they are less likely to express confidence that the vaccines are safe for those who are pregnant or trying to become pregnant,” the authors write. “Even among Democrats and vaccinated adults – groups that express high levels of confidence in the safety of the vaccines for adults – less than half say they are ‘very confident’ the vaccine is safe for those who are pregnant.”

Around the nation

• California: California is now in the midst of a surge in COVID-19 cases, but not all areas have been affected equally. San Joaquin County coronavirus cases declined by 14.1% over the past week. At the same time, the San Francisco Bay Area has become the state’s COVID-19 hot spot.

• Arkansas: State health officials are cautiously optimistic after a surge in new COVID-19 cases leveled off this week and actually declined in some areas. The Arkansas Department of Health's website reported 118 new cases of the coronavirus on Monday, a decrease in the number of new cases reported at the end of last week and over the weekend.

• New York: A month ago, New York was the epicenter of new cases of the Omicron subvariant. Now it’s not. Data analysis shows that New York's statewide COVID-19 case count fell by 36.5% last week, suggesting that the wave caused by several Omicron subvariants is fading. 

• Oklahoma: John Rampey of Tulsa is back home after spending 512 days in a hospital and fighting for his life against COVID-19. Rampey was infected just two weeks before he would have been eligible to receive the vaccine in December 2020.

• Oregon: Health officials report that new cases of COVID-19 are trending lower across the state, with daily cases down more than 200 since peaking a week ago. At the same time, officials point to a decline in testing and say some cases may go unreported.

Between record-high gas prices, infant formula shortages, and surging grocery bills, May was a tough month for consumers.

That’s reflected in the Conference Board’s Consumer Confidence Index, which declined in May after a small increase in April. Rising prices appear to be taking a toll on consumers’ pocketbooks and are affecting their overall outlook.

“Purchasing intentions for cars, homes, major appliances, and more all cooled—likely a reflection of rising interest rates and consumers pivoting from big-ticket items to spending on services,” said Lynn Franco, senior director of Economic Indicators at The Conference Board. 

Franco also said consumers appear to be reevaluating summer vacation plans because of rising hotel rates and airfares.

“Indeed, inflation remains top of mind for consumers, with their inflation expectations in May virtually unchanged from April's elevated levels,” Franco stated. “Looking ahead, expect surging prices and additional interest rate hikes to pose continued downside risks to consumer spending this year."

Consumers feeling inflationary pressure

An analysis of recent reviews posted at ConsumerAffairs also suggests that some consumers are feeling inflationary pressures. Kenneth, of Manchester, Pa., told us he was “very satisfied” with the coverage he was receiving from CarShield but recently decided he could no longer afford it.

“They helped me with two repairs I would not have wanted to deal with alone,” Kenneth wrote in a ConsumerAffairs review. “Unfortunately with the past years growing inflation with everything from groceries to gas I had to cancel my subscription, sadly.” 

Brett, of Jackson, Miss., was considering Smile Direct but was reluctant to sign up because the $90 monthly fee was outside his current comfort zone.

“I knew I couldn't afford much,  inflation has hit my family hard, especially groceries and gas, and as the sole income, I can't stray far from the budget,” Brett told us.

Inflation isn’t the only thing that weighed on consumers’ minds last month. Despite the well-publicized difficulty that businesses have had hiring employees, consumers are feeling less secure in the workplace.

The Conference Board report shows that 51.8% of consumers described jobs as "plentiful," down from 54.8% in April. Just over 12% of consumers said jobs are "hard to get," up from 10.1%.

Effective immediately, New York state has suspended its gas tax for the rest of the year – a move that will automatically roll back the price per gallon of gas by as much as 16 cents.

The move should come as a relief to residents of the state, who are paying an average of $4.93 a gallon. Those living in New York City have it even worse, paying $5.03 per gallon. That's nearly 30 cents per gallon higher than the national average.

Fortune reports that there are areas of New York where drivers could see even bigger discounts at the pump because some counties have their own gas taxes and are capping how much they collect per fill-up at between $2 and $3 per gallon.

Those who commute to New York from Connecticut are extra lucky because of Connecticut’s recent decision to suspend its 25-cent-per-gallon gas tax. Those who come in from New Jersey aren't so lucky because officials in that state have not made the move to suspend the gas tax.

A smattering of other states across the country – Florida, Maryland, and Georgia – have also suspended gas taxes, and there are proposals in Michigan, Alaska, Illinois, California, Minnesota, and Virginia to do the same. 

Will the federal government take the same approach?

If you’re thinking that the White House should just wave its magic wand and suspend gas prices across the country, don’t bet on it. When asked about the possibility, President Biden says the problem we’re facing with gas prices is tied to the pandemic and global tensions surrounding Russia.

“When COVID struck, demand for oil plummeted, so production slowed down worldwide. Because of the strength and the speed of our recovery, demand for oil shot back up much faster than the supply.  That’s why the cost of gas began to rise last year,” Biden remarked.   

“At the start of this year, gas was about $3.30 a gallon. Today, it’s … nearly a dollar more in less than three months. And the reason for that is because of Putin’s war. Our prices are rising because of Putin’s actions. There isn’t enough supply. And the bottom line is: If we want lower gas prices, we need to have more oil supply right now.”

Biden concluded by saying U.S. oil companies are also partly responsible for current struggles at the pump. 

"U.S. oil companies ... are recording their largest profits in years, [and] they have a choice," he said. "They can put those profits to productive use by producing more oil, restarting idle wells, or producing on the sites they already are leasing."

Key Bank reports that another 4,343 of its customers have moved from a secured credit card to a traditional account after they were able to significantly raise their credit scores.

Since 2018, the bank has operated a program in which consumers with poor or no credit can build up their credit standing through the use of a secured credit card. This is important because many of these consumers would otherwise be unable to qualify for a credit card.

A secured card works the same way that a regular credit card does, but there's one big difference. With a traditional “unsecured” card, the lender has no collateral in case of default. 

To open a secured credit card account, a consumer deposits a sum of money – often around $500 – into a bank account to serve as collateral in the event of default. They make purchases with the card and, if they pay their bills on time, earn points with the credit reporting agencies. In the process, they also tend to develop good financial habits.

Among the latest group of “graduates,” Key Bank says 69% had no FICO credit score at the time that they opened an account. Another 31% were designated as having low FICO scores at origination. At the end of the program, the bank says the average improvement in credit score for those in the low category was 81 points.

"Our graduates are in a greater financial position coming out of this program," said Mitch Kime, KeyBank executive vice president of Consumer Client Growth. "With their newly improved standing, they are better positioned in applying for loans, more banking opportunities, and in some cases, better insurance rates. All of it adds up substantially towards creating a financially healthy life for themselves."

Shop carefully

Many other banks offer secured credit cards, but consumers should shop carefully because some may carry much higher fees than others. Danni White, a member of the ConsumerAffairs credit card research team, says a secured credit card can be a useful tool for a significant portion of the population.

“If your credit score is too low for you to get approved for a personal credit card, then a secured credit card might be your path to rebuilding your credit history,” she wrote.

Secured credit cards are available with no annual fee. However, these cards tend to have interest rates that are greater than 20%, even though the account is secured and there is no risk to the lender.

That should encourage users to pay the account in full each month. That helps save money on interest charges while helping to develop good financial habits.

Recent studies have highlighted the effects that maternal stress during pregnancy can have on infants’ development. Now, researchers from the Max Planck Institute for Evolutionary Anthropology have found that having older siblings can lead to better behavior and stronger development in young children. The findings remained true even when children were exposed to their mothers’ stress in utero. 

“In the first years of their lives, children develop the cognitive, social, and emotional skills that will provide the foundations for their lifelong health and achievements,” the researchers explained. “To increase their life prospects and reduce the long-term effects of early aversive conditions, it is therefore crucial to understand the risk factors that negatively affect child development and the factors that are instead beneficial. 

“Overall, our results confirm the negative effects that maternal stress during pregnancy may have on the offspring, and suggest an important main effect of older siblings in promoting a positive child development.” 

Benefits of siblings

The researchers had nearly 400 mother-child pairs answer questions about behavior, development, and stress. The team followed the women and their children from pregnancy until their children were 10 years old. They also took into account social and environmental factors that could affect stress levels and the role that siblings played on children’s developmental and behavioral outcomes. 

The study showed that women who reported higher levels of stress during pregnancy were more likely to report that their children struggled with behavior once they reached seven years old. They found that many of the mothers reported feeling tense, worried, and experienced a loss of joy during pregnancy. Over time, this translated to poorer behavioral outcomes for their children. 

“These results confirm previous findings about the negative impact that even mild forms of prenatal stress might have on child behavior, even after several years, and highlight the importance of early intervention policies that increase maternal well-being and reduce the risks of maternal stress already during pregnancy,” said researcher Federica Amici. 

However, a positive takeaway from this study was that children who had older siblings were more likely to have better behavioral and developmental outcomes regardless of their mothers’ stress levels. The team explained that interactions with older siblings can give kids important social tools. These sibling social dynamics may also help improve kids’ emotional development and problem-solving skills. 

“We were especially impressed by the important role that siblings appear to play for a healthy child development,” said researcher Anja Widdig. “We hope that our findings will draw attention to the importance of public health policies that directly target children and their siblings, and promote a healthy environment for their well-being and the development of high-quality sibling relationships.” 

A new study conducted by researchers from Yale University explored how spending on cancer treatments globally affects the mortality rate. Their findings showed that the U.S. spends more than any country in the world on cancer care; however, six other countries spend less on these treatments and have better mortality rates. 

“There is a common perception that the U.S. offers the most advanced cancer care in the world,” said researcher Dr. Ryan Chow. “Our system is touted for developing new treatments and getting them to patients more quickly than other countries. We were curious whether the substantial U.S. investment on cancer care is indeed associated with better cancer outcomes.”

High costs may not improve health outcomes

The researchers analyzed data from nearly two dozen high-income countries. They looked specifically at costs related to cancer care and related deaths from September 2021, through March 2022. 

The team found that spending more on cancer didn’t yield the greatest health outcomes. The U.S. ranked first in spending on cancer care but did not have the best cancer mortality rate worldwide. There were six countries that spent less on cancer costs and had better mortality rates than the U.S. – Iceland, Switzerland, Australia, Korea, Finland, and Japan. 

“The U.S. is spending over $200 billion per year on cancer care – roughly $600 per person, in comparison to the average of $300 per person across other high-income countries,” said researcher Cary Gross. “This raises the key question: Are we getting our money’s worth?” 

The researchers also looked at how smoking affects cancer mortality rates around the world. Although the U.S. has lower smoking rates than other countries globally, its performance actually got worse when the researchers adjusted for this factor; there were nine countries with better cancer mortality rates than the U.S. after accounting for smoking status. 

The team hopes these findings highlight some of the ways that countries outside of the U.S. have managed to keep health care costs reasonable while also lengthening cancer patients’ lives. 

“The pattern of spending more and getting less is well-documented in the U.S. health care system; now we see it in cancer care, too,” said researcher Elizabeth Bradley. “Other countries and systems have much to teach the U.S. if we could be open to change.”