DNA, genetic genealogy helps ID man found in Michigan river in ’73

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DNA has led to the identification of a Texas man whose body was found floating in a mid-Michigan river nearly 50 years ago, police said Thursday.

Michigan State Police and The DNA Doe Project announced Thursday that the body found in the Saginaw River outside Saginaw on March 13, 1973, was that of Daniel G. Garza-Gonzales, who would have turned 29 two days later.

Garza-Gonzales had left Fort Worth hoping to find work in Flint, but his family never heard from him again, The Saginaw News reported.

An autopsy determined Garza-Gonzales had been shot seven times and had blunt force trauma to the back of his head, state police said. A medical examiner suspected he had died about six weeks earlier.

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In 2020, a state police cold case team and a state police missing persons coordination unit reopened the case and hair and bone samples were sent to a California forensic genetic genealogy lab.

A possible familial match was located last summer with help from the DNA Doe Project, which seeks to identify previously unidentified remains. And linked the remains to a family in Beeville, Texas. Investigators obtained family DNA reference samples that were sent to an FBI DNA lab for comparison.

The FBI confirmed in December that the remains were those of Garza-Gonzales.

Anyone with information about Garza-Gonzales’ slaying is asked to call MSP Detective Sgt. Bill Arndt at 989-615-6257.

 

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Stocks making the biggest moves midday: World Wrestling Entertainment, Bed Bath & Beyond, Costco and more

US Top News and Analysis 

Shoppers line up outside a Costco to buy supplies after the Hawaii Department of Health on Wednesday advised residents they should stock up on a 14-day supply of food, water and other necessities for the potential risks of novel coronavirus in Honolulu, Hawaii, U.S. February 28, 2020.
Courtesy of Duane Tanouye via REUTERS

Check out the companies making headlines in midday trading.

World Wrestling Entertainment The wrestling entertainment stock surged 21% after WWE announced that founder Vince McMahon is returning to its board of directors and that the company is exploring strategic moves. McMahon stepped down as CEO last year after an investigation into sexual misconduct, but has remained majority shareholder. The Wall Street Journal reported that McMahon is returning to pursue a potential sale of the business.

R1 RCM — Shares of the health-care technology firm soared more than 11% after the company raised its revenue outlook for 2023. The company also reaffirmed its projection for full-year 2022.

Costco Wholesale — Shares of the big-box retailer jumped more than 6% after it reported solid sales numbers for December. Costco posted net sales of $23.8 billion in December 2022, marking an increase of 7% year-over-year. Evercore ISI also added Costco to its “fab five” list, saying it’s a defensive stalwart.

First Solar — Shares of First Solar rose more than 4% after Wells Fargo upgraded it to overweight, saying Europe’s energy crisis and the Inflation Reduction Act in the U.S. will boost demand for solar energy.

Bed Bath & Beyond — Shares plunged 20% after the retailer warned it was running out of cash and was considering bankruptcy. That prompted KeyBanc to cut its price target by 95% to 10 cents from $2 per share.

Tesla — Shares of Tesla rose by 0.9% after falling to their lowest level in roughly two years earlier in the day. Tesla lowered prices for its Model 3 and Model Y vehicles in Asia.

Silvergate Capital Shares of the crypto-focused bank fell 13%, adding to its 42% loss from the previous day. JPMorgan downgraded SI to neutral from overweight, citing Silvergate’s worse-than-expected deposit outflows and called into question the company’s long-term profitability.

Greenbrier Companies — Shares fell more than 13% after the rail care maker’s latest quarterly earnings missed analyst estimates, though revenue beat expectations, according to consensus estimates on FactSet. CEO Lorie Tekorius said higher costs for outsourced parts and materials shortages hurt manufacturing margins.

Agilent Technologies — Shares dropped more than 4%. Agilent said Thursday it will partner with Akoya Biosciences to develop solutions for tissue analysis. Shares of Akoya rose more than 5%.

MGM Resorts International — Shares rose more than 4% after Stifel upgraded the hospitality stock to buy from hold, saying it will benefit from a strong recovery in Las Vegas.

Voya Financial — The financial stock gained 4.4% following JPMorgan’s upgrade to overweight from neutral. The firm cited Voya’s lower-risk business, ability to generate capital and valuation as pluses.

Doximity — Shares dropped more than 5% after Morgan Stanley downgraded the online networking service for medical professionals to underweight from equal weight, saying there will be a further slowdown in growth in the health care digital ad space in the year ahead, according to FactSet’s StreetAccount.

— CNBC’s Michelle Fox, Alex Harring, Yun Li, Tanaya Macheel, Jesse Pound and Samantha Subin contributed reporting.

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Alabama inmate found dead in cell after apparent assault at Limestone prison

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A man at Limestone Correctional Facility was killed Wednesday in an apparent inmate-on-inmate assault, the state prison system confirmed.

The Alabama Department of Corrections said Ariene Kimbrough, 35, was discovered deceased inside his cell at the north Alabama prison. The prison system did not say how Kimbrough died. The agency said the death is under investigation.

The state prison system has come under criticism and federal scrutiny for high rates of violence.

The U.S. Department of Justice has an ongoing lawsuit against Alabama, arguing that the conditions in state lockups are so poor that they violate the U.S. Constitution. The state has acknowledged problems within state prisons but disputes the Justice Department’s accusation.

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The prison system reported in monthly statistics that at least 11 prisoners were killed by other inmates in the fiscal year that ended in September. However, the prison system said the reported number does not include deaths that are still under investigation.

The Equal Justice Initiative has reported that at least 18 inmates died by homicide in 2022.

The Alabama Department of Corrections reported that 225 inmates died in the last fiscal year. At least four of those died by suicide, according to statistical reports.

 

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Errant Kabul drone strike was ‘deadly blunder,’ US military misled public about children killed: report

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A New York Times report on the investigation into how the U.S. military conducted a drone strike that killed several civilians, including children, in Afghanistan last year, characterized the attack as a “deadly blunder” that was motivated by the “assumptions and biases” of those conducting the strike.

The report also claimed that the U.S. military was aware that innocent children had been killed in the attack only hours after the strike, and it made “misleading” statements to the public about that reality.

The Times report noted that through a FOIA request, it obtained internal documents from a U.S. Central Command investigation into the August 2021 U.S. drone strike that killed 10 civilians in Kabul, Afghanistan. 

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The strike happened just days after the U.S.’s botched withdrawal from Afghanistan that led the deaths of 13 U.S. service members after an ISIS terrorist bombing just outside one of the entrances to the Kabul airport. 

As The New York Times stated upon reviewing the “66 partially redacted pages” of the investigation, “assumptions and biases led to the deadly blunder.” 

It elaborated: “Military analysts wrongly concluded, for example, that a package loaded into the car contained explosives because of its ‘careful handling and size,’ and that the driver’s ‘erratic route’ was evidence that he was trying to evade surveillance.”

Intelligence proved after the fact that the driver of the car was Zemari Ahmadi, a man who “worked as an electrical engineer for a California-based aid group” and “had spent the day picking up his employer’s laptop, taking colleagues to and from work and loading canisters of water into his trunk to bring home to his family.”

The report noted that military documents revealed that the U.S. military was on heightened alert for “an imminent attack on the airport that could involve suicide bombers,” which would purportedly involve a “white Toyota Corolla,” like the one Ahmadi drove. 

The documents detailed how U.S. intelligence analysts saw that Ahmadi had “’carefully loaded” a ‘package’ into the trunk” and assessed “the package to be explosives ‘based on the careful handling and size of the material.’”

Such “assumptions” led to the drone strike that killed Ahmadi and nine other civilians. The Times spoke to American Civil Liberties Union lawyer Hina Shamsi, who represented the families of the victims. She claimed the investigation “makes clear that military personnel saw what they wanted to see and not reality, which was an Afghan aid worker going about his daily life.”

US KABUL DRONE STRIKE APPEARS TO HAVE KILLED AN AFGHAN WHO WORKED FOR A US AID GROUP: REPORT 

According to the Times, the investigation showed that “military analysts reported within minutes of the strike that civilians may have been killed, and within three hours had assessed that at least three children were killed” in the attack. 

The Times accused U.S. officials of issuing “misleading statements” about these initial assessments.

For instance, the report noted that “Later that day, Central Command said in a statement that officials were ‘assessing the possibilities of civilian casualties’ but had ‘no indications at this time.’”

The report added, “An update several hours later noted that powerful subsequent explosions may have caused civilian casualties but did not mention that analysts had already assessed three children were killed.”

It also noted how “Gen. Mark A. Milley, the chairman of the Joint Chiefs of Staff, told reporters that the strike was ‘righteous’ and had killed an ISIS facilitator as well as ‘others,’ but who they were, ‘we don’t know. We’ll try to sort through all of that.’” 

Though the Times didn’t say whether Milley was himself misled, unaware of what analysts had indicated, or looking to mislead the public on the attack. 

The Times did note that the Pentagon “continued to say that an ISIS target was killed in the strike, even as evidence mounted to the contrary.” 

Only a week after the outlet’s September 2022 investigation into the witness accounts and video footage of the attack was published, did military officials acknowledge “that 10 civilians had been killed and that Mr. Ahmadi posed no threat and had no connection to ISIS,” The New York Times asserted. 

According to the report, the military investigation had never been released to the public though it had been completed only “a week and a half after the strike.”

 

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Indiana man sentenced for fatal hit-and-run involving 12-year-old girl, teen injured

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A northern Indiana man has been sentenced to nine years for a hit-and-run that killed a 12-year-old girl and injured a teenage boy.

A Fulton County judge sentenced Gage Rogers on Tuesday after the Akron, Indiana, man had pleaded guilty to two felony hit-and-run charges in the crash that killed Brelynna Felix.

The judge suspended about half of the sentence, and Rogers will serve part of it on either home detention or through community corrections, WSBT-TV reported.

INDIANA MAN SENTENCED FOR SCHOOL BUS HIT-AND-RUN THAT KILLED 16-YEAR-OLD

The Fulton County Sheriff’s Office said dispatchers were alerted in November 2021 that a child may have been struck by a vehicle along State Road 19.

First responders found a 15-year-old boy who had been struck and injured before they found Brelynna, who was pronounced dead at the scene.

 

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Costco’s December sales beat shows the Club holding is still the retailer to own

US Top News and Analysis 

Club holding Costco Wholesale (COST) delivered strong sales growth in December, demonstrating the retailer’s ability to consistently attract customers despite gathering economic headwinds. For the 5 weeks ended Jan. 1, Costco’s net sales increased 7% year-over year, to $23.8 billion, the company reported Thursday. Total comparable sales, which excludes the impact of fluctuations in gasoline prices and foreign exchange, increased 7.3% in December, ahead of Wall Street’s expectations for 5.7% growth. Shares of Costco soared nearly 7% in midday trading Friday, to roughly $481 apiece. Costco’s December sales were driven by food and sundries, followed by fresh foods. Meanwhile, sporting goods, tires and apparel outperformed, while discretionary goods like electronics and housewares underperformed. Costco’s ecommerce sales declined 5.4%, compared with an 8.9% drop in November. This coincided with higher global store traffic in December, which increased by 4.6% year-over-year, compared with 3.4% growth in November. In a research note Friday, analysts at UBS applauded Costco’s “strong improvement” sequentially, but said they “expect demand to remain choppy in the near-term as consumers continue to face higher costs and depleting savings.” Still, the analysts said the retailer “should be well positioned in this environment, and… see upside to shares at current levels.” The Club take Costco had a softer November sales report, with sales growing by 5.7% year-over-year, which sparked concerns over a slowdown in consumer spending. That put pressure on the stock, which tumbled more than 9% last month. But the wholesale retailer’s bounce back in December sales shows Costco is still delivering value to its members. While Costco isn’t immune to the inflationary pressures squeezing consumers, the company has stellar management that consistently posts top-line sales growth. We’re also anticipating a potential membership-fee increase and a special dividend this year, two would-be positive catalysts for the stock. We maintain that Costco is the best-run retailer in the world, ably serving both customers and shareholders. (Jim Cramer’s Charitable Trust is long COST. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Sopa Images | Lightrocket | Getty Images

Club holding Costco Wholesale (COST) delivered strong sales growth in December, demonstrating the retailer’s ability to consistently attract customers despite gathering economic headwinds.

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As COVID ravages China, US expands testing system for incoming travelers

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Shubham Chandra knows how dangerous the coronavirus can be: He lost his dad during the pandemic. So when he cleared customs at Newark Liberty International Airport and saw people offering anonymous COVID-19 testing, he was happy to volunteer.

“It’s a minimum amount of effort to help a lot of people,” said the 27-year-old New York City man, who had just stepped off a plane from Cancun, Mexico.

The airport testing is part of the government’s early warning system for detecting new variants, which began expanding recently in the wake of a COVID-19 surge in China.

With the addition of Los Angeles and Seattle, there are now seven airports where arriving passengers can volunteer for COVID-19 tests. The Centers for Disease Control and Prevention program now covers about 500 flights from at least 30 countries, including more than half from China and surrounding areas.

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As of Thursday, the CDC is also requiring travelers to the U.S. from China, Hong Kong and Macao to take a COVID-19 test no more than two days before travel and provide a negative result before boarding a flight.

And down the road, some scientists are calling for wider use of an additional strategy: screening wastewater from toilet tanks on arriving airplanes.

“Without surveillance, it’s very hard to know what’s going on,” said Dr. Stuart Campbell Ray, an infectious disease expert at Johns Hopkins University. “Hopefully, with more sampling, we will get more information about what’s circulating.”

Some scientists are worried the COVID-19 surge in China could unleash a new coronavirus mutant on the world, since every infection is another chance for the virus to change. There’s no sign of a new variant from China at this point. But one reason for new testing requirements, according to the CDC, is a lack of adequate and transparent information from China on viral strains infecting people there.

“We have very little control over what happens elsewhere,” said epidemiologist Katelyn Jetelina, a consultant to the CDC. “What we can control is what’s happening in the United States.”

The airport program is based on an unfortunate reality: “Travelers … go across the globe quickly and they can get and spread infectious diseases really fast,” said Dr. Cindy Friedman, chief of CDC’s travelers’ health branch.

Friedman said the program is a partnership with two companies that take care of the testing and lab work — XpresCheck and Concentric by Ginkgo. A pilot program was expanded around the time the first omicron variant emerged in the U.S. more than a year ago. Besides Newark, Seattle and Los Angeles, the program includes New York’s Kennedy, Washington’s Dulles and airports in Atlanta and San Francisco.

The latest expansion of the traveler surveillance program aims to capture more flights from China. But on Wednesday in Newark, some of the targeted planes arrived from Mexico, France and Belgium. After clearing customs, travelers could stop at a table, swab their noses and fill out a form. Chandra said it took about a minute.

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Like other travelers, he won’t get the results. But he tests for COVID-19 when he flies to Ohio every other month to see his mom, he said, since “the last thing I want to do is bring (the virus) home to her.”

About 10% of people on targeted flights volunteer. Their samples are pooled and PCR tested. Positive ones are genetically sequenced. Volunteers get free home COVID-19 tests.

Over time, Friedman expects the program to grow and potentially go global. It’s already shown it can spot coronavirus variants early — detecting omicron variants BA.2 and BA.3 and reporting them to a global database weeks before others did.

But Jetelina said a surveillance program at seven airports is “just not that big” so trying to spot variants might be like “looking for a needle in the haystack.”

To aid the search, experts suggest taking more samples from airplane bathrooms.

“It’s a little gross when you start thinking about it,” Jetelina said. “But these are really long flights and we would expect the majority of people would go to the bathroom.”

The CDC, which monitors wastewater in municipal systems, ran a pilot program last summer testing airplane wastewater at Kennedy airport. Friedman said the agency is working to expand this type of surveillance.

Such testing has been used elsewhere. A study last year in the journal Environment International looked at wastewater testing from 37 flights chartered to bring Australians home earlier in the pandemic, concluding that the practice “can provide an additional and effective tool” for monitoring the virus coming into a country. Recently, Canada announced an expanded wastewater pilot program and Belgium said it would test wastewater from airplanes coming from China.

As surveillance continues, scientists believe that the omicron variant BF.7, which is extremely adept at evading immunity, is driving China’s current surge. CDC data shows BF.7 is already in the U.S., and currently accounts for about 2% of COVID-19 cases. The most prevalent mutant in the U.S. is XBB.1.5, another variant responsible for 41% of U.S. cases. Ray said this one attaches more tightly than its competitors to a receptor that allows viruses to enter a cell.

Scientists said the virus will surely keep evolving — which is why they need to keep searching for new variants. The coronavirus is like a predator stalking humanity, Ray said, and “the predator adapts to the prey.”

 

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Maryland man sentenced for cold case rape, murder of mother of 4 in 1982

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Maryland man has been sentenced to 25 years in prison for the murder of a mother of four that went unsolved for 40 years.

Howard Jackson Bradberry Jr., 64, was sentenced Thursday to 25 years in prison by Howard County Circuit Court Judge Richard Bernhardt after he entered an Alford plea in July to a second-degree murder charge over the killing of 28-year-old Laney Lee McGadney in 1982, according to a press release.

An Alford plea allows a defendant to maintain his or her innocence but acknowledges that prosecutors have sufficient evidence to secure a conviction. 

McGadney, a mother of four, was seen by witnesses being abducted as she walked to the grocery store in Columbia, Maryland. Her body was discovered hours later in a vacant lot.

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Investigators say McGadney was raped and stabbed to death.

Police collected evidence from the scene but were unable to determine a suspect, and the case went cold for decades. 

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Investigators from the Howard County Police Department recently revisited the evidence, and in 2021, they were able to link Bradberry to the scene using DNA from items discarded at the scene. 

“The brutal murder of Laney Lee McGadney fractured her family beyond repair and for 40 years there were very little leads in the case with no one being held responsible for her senseless killing,” State’s Attorney Rich Gibson said in the press release. 

“I want to thank Howard County police and our prosecutors for working so diligently on this case. We know today’s sentencing cannot bring back the matriarch of this family, but we do hope it provides some much-needed closure for her 4 kids, 22 grandchildren and 4 great-grandchildren knowing Bradberry will spend the rest of his life in prison for the innocent life he took and heinous crime he committed.”

 

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SEC ends insider trading probe of ex-Sen. Richard Burr and brother-in-law without taking action, lawyers say

US Top News and Analysis 

U.S. Senator Richard Burr (R-NC), ranking member of the Senate Health, Education, Labor and Pensions Committee, gives opening remarks at the confirmation hearing for Xavier Becerra, U.S. President Joe Biden’s nominee for Secretary of Health and Human Services, at the U.S. Capitol in Washington, February 23, 2021.
Leigh Vogel | Pool | Reuters

The Securities and Exchange Commission has ended its insider trading investigation of former U.S. Sen. Richard Burr of North Carolina and his brother-in-law without taking action against either man, their lawyers said Friday.

The SEC, which did not deny the attorneys’ statements, was eying Burr, a Republican, and his brother-in-law Gerald Fauth, who sits on a federal board, in a civil probe for their stock sales on the same day in February 2020.

The stock sales occurred, a week before equities markets in the U.S. and elsewhere plunged as a result of the Covid-19 pandemic, and after Burr had received briefings about the threat of the pandemic. Burr and Fauth had a very short phone call on the same day as the stock sales, the SEC has said in court filings.

Burr retired from the Senate on Tuesday after three terms. He had said before his 2016 reelection that he would not seek a fourth term if he won that year.

The SEC previously said in court filings that the agency was “investigating whether [Burr] sold stocks on the basis of nonpublic information.”

Members of Congress are barred by law from using nonpublic information that they obtain through their official positions to profit from stock trades.

Gerald Fauth
Source: Wikipedia

The Department of Justice earlier had closed a criminal investigation of Burr and Fauth without taking action against either man.

As part of that criminal probe, Burr had his cellphone seized by the FBI in May 2020, which led to him stepping aside as chairman of the Senate Select Committee on Intelligence.

Burr, in a statement provided to CNBC on Friday, said, “This week, the SEC informed me that they have concluded their investigation with no action.”

“I am glad to have this matter in the rearview mirror as I begin my retirement from the Senate following nearly three decades of public service,” Burr said.

In her own statement, his attorney Alice Fisher said, “We have believed all along that this is the right result.”

Burr “is glad to put this matter behind him as he embarks on his retirement from his dedicated service in the Senate,” Fisher said.

In a statement, Fauth’s lawyer, F. Joseph Warin, said, “The SEC has closed its investigation into our client. “

“We are thrilled that the SEC and the DOJ appropriately closed their investigations without any findings of insider trading,” Warin said. “Mr. Fauth looks forward to continuing his public service and leadership in the transportation industry.” 

A spokesperson for the SEC, in an email to CNBC, said, “As a matter of policy, the SEC does not comment on the opening or closing of a possible investigation.”

Burr, like other senators, had been briefed by federal health officials in early 2020 about the coronavirus before it began spreading widely in the U.S., leading to nationwide lockdowns and decreases in business activities.

At the time, Burr, due to his membership on the intelligence committee, had access to classified intelligence reports that contained dire warnings about the pandemic.

Fauth, who is the brother of Burr’s wife, is a member and former chairman of the National Mediation Board, an agency that facilitates labor-management relations in the U.S. railroad and airline industries.

The SEC in court filings has said that on Feb. 13, 2020, Burr called his stockbroker and directed him to sell more than $1.65 million worth of stock. The holdings accounted for “all but one of the equities in his and his wife’s joint individual retirement account … portfolio.”

Almost three hours later, Burr called Fauth’s cellphone for a call that lasted 50 seconds, the SEC has said.

A minute or less after that, Fauth called his primary stockbroker, who did not answer, the SEC has said in a filing. Fauth then called a second broker within two minutes and “directed her to sell several stocks in his wife’s account,” the filing reveals.

That broker sold between $97,000 and $280,000 worth of Fauth’s shares in six companies, several of which ended up having their stocks plummet in the following weeks, the filing indicates.

After Burr’s stock sales came to light in March 2020, he said, “I relied solely on public news reports to guide my decision regarding the sale of stocks.”

“Specifically, I closely followed CNBC’s daily health and science reporting out of its Asia bureaus at the time,” Burr said at that time.

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Here are key things you need to know if you’re eyeing a Medigap policy alongside basic Medicare

US Top News and Analysis 

Dragos Condrea | Istock | Getty Images

If you’re signing up for Medicare, you’ve likely discovered that there are a lot of out-of-pocket costs that come with your coverage.

For about 23% of Medicare’s 65.1 million beneficiaries, the solution for covering those outlays is a so-called Medigap plan.

These policies, sold by private insurance companies, generally pick up part or most of the cost-sharing — i.e., deductibles, copays and coinsurance — that comes with basic Medicare (Part A hospital coverage and Part B outpatient care).

However, they do have limitations, and monthly premiums can be pricey.

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Nevertheless, some beneficiaries determine that pairing basic Medicare with a Medigap policy is a better fit than choosing to get their Parts A and B benefits delivered through an Advantage Plan (or having no supplemental insurance at all). Those plans, which can restrict coverage to in-network providers, also usually include Part D prescription drug coverage, often come with no premium and may offer extras like dental and vision. 

The reasons that some beneficiaries instead choose Medigap alongside basic Medicare vary from person to person, according to Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare plans.

For example, she said, they may want more freedom in choosing doctors and other providers or need coverage while away from home  — i.e., they travel a lot, sometimes for extended stays. (Advantage Plans may disenroll you if you remain outside their service area for a certain time — typically six months.)

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Here’s what to know about Medigap policies if you’re considering purchasing one.

Medigap policies are standardized

Medigap policies are standardized across most states — available plans are designated A, B, C, D, F, G, K, L, M and N — so you know the benefits are the same regardless of where you live or which insurance carrier is offering, say, Plan G or Plan N.

However, not every plan is available in all states. And, Plans C and F aren’t available to people who are newly eligible for Medicare in 2020 or later.

To be clear, each lettered plan differs in what is covered.

For instance, some may pay the full Part A deductible ($1,600 per benefit period in 2023), while others don’t. The Centers for Medicare & Medicaid Services has a chart on its website that shows the differences. You also can use the agency’s search tool to find available plans in your ZIP code.

Many states let doctors charge 15% ‘excess charge’

Also be aware that in many states, some doctors or other providers may charge you the difference between the Medicare-approved amount under Part B and their full fee, with a 15% cap on that “excess charge.” 

“If your state is one that allows up to the 15% excess charge, consider [a plan] that covers it,” Gavino said. 

Also, be aware that Medigap plans don’t cover costs associated with prescription drug coverage (unless, perhaps, the policy was issued prior to 2006.) This means you’d need to purchase a standalone Part D plan if you want that coverage.

Medigap also doesn’t cover services that are excluded from Medicare’s coverage, generally speaking, such as dental or vision.

There are rules that go with Medigap signup

When you first enroll in Part B, you generally get six months to purchase a Medigap policy without an insurance company checking on your health history and deciding whether to insure you.

After that, depending on the specifics of your situation and the state you live in, you may have to go through medical underwriting.

There’s huge variation in cost

Despite Medigap policies’ standardization, the premiums can vary greatly.

For example, in New York, the lowest monthly premium for Plan G is $278 and the highest is $476, according to the American Association for Medicare Supplement Insurance. In Iowa, the least expensive Part G policy is $79 and the most expensive is $192.

There are several reasons for the wide variance in pricing, said Danielle Roberts, co-founder of insurance firm Boomer Benefits. That includes the cost of health care in your area, the open enrollment rules for your state and the actual loss ratio experienced by the insurance company across all policyholders with that same plan, she said.

“For example, Medigap plans cost more in New York because they have year-round open enrollment,” Roberts said.

If the carrier can’t underwrite for health, then they must raise the rates for everyone.
Danielle Roberts
Co-founder of Boomer Benefits

“This means that residents there can literally wait until they get sick to buy a policy,” she said. “If the carrier can’t underwrite for health, then they must raise the rates for everyone.”

Additionally, insurance companies routinely roll out new plans, Roberts said. So if an insurer begins offering a plan and taking on new policyholders for it, over time the premiums rise a little each year due to inflation and claims, making that plan less competitive when another insurer opens a new plan that hasn’t incurred any losses yet, she said.

“Healthy people who can pass underwriting begin to switch plans to the cheaper company and then the first company is left with a lot of people who can’t pass underwriting to switch,” Roberts said. “That is an aging block of business with many policyholders who have costly health conditions, which further drives up the rates.”

The way a Medigap plan is ‘rated’ also matters

Another difference in Medigap premiums can come from how the plans are “rated.” If you know this, it may help you anticipate what may or may not happen to your premium down the road.

Some plans are “community-rated,” which means everyone who buys a particular one pays the same rate regardless of their age. 

Others are based on “attained age,” which means the rate you get at purchase is based on your age and will increase as you get older. Still others use “issue age”: The rate won’t change as you age, but it’s based on your age at the time you purchase the policy (so younger people may pay less).

These are some other things to consider

Svetikd | E+ | Getty Images

If you work with an agent, ask how many insurance companies they work with (or are “appointed with”), according to the American Association for Medicare Supplement Insurance. They may not recommend a particular insurer’s policies if they don’t get a commission to do so.

There also may be a household discount offered.

“One trend we see is that carriers are becoming more lenient with this and not requiring the spouse to be on the policy to qualify,” Roberts said. “Many will give you a discount just for having another person living at the same residence.”

Also, be aware that some insurance companies give large discounts to new enrollees, but the reduction in price may go away in a year or two.

“You’ll want to know that up front,” Roberts said.

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