Category: US

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

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.

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.

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.)

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

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.

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.

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.

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.

“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.”

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).

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.

Amazon and Salesforce are among the latest tech companies to announce job cuts, after rapid hiring over the last several years. For every company announcing layoffs, senior leaders and managers must keep the remaining employees motivated and productive. 

Among U.S.-based companies, announced layoffs were up 172% in the fourth quarter of 2022 — with more than 154,000 jobs cut, as compared with nearly 57,000 in final quarter of 2021, according to the latest report from Challenger, Gray and Christmas.  

“Managers should know what to expect after a layoff,” said Connie Whittaker Dunlop, founder of Monarch Consulting Group, which develops leaders, teams, and organizations through coaching and training. “Layoffs done wrong are going to incur additional costs of hiring and defeat the initial purpose.”

The aftermath of a layoff is significant not only for those who lose their jobs but also those who remain. Companies that go through layoffs are often left with employees who are less trusting, less committed and less satisfied, experts say.

About 70% of “layoff survivors” say their motivation at work has declined since the layoff, according to a survey done in late November by BizReport. Additionally, 66% report they feel overworked since the job cuts, and a third of those who survived a layoff believe that things will worsen for their company in the future. 

Workers feeling insecure in their jobs and higher levels of stress lead some employees to quit out of frustration. To counter those negative sentiments, experts say leaders need to communicate the organization’s near-term goals and plans very clearly with front-line managers.

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“Leaders have to show how they’re in tune with what’s the most important thing for their teams to accomplish with fewer people,” said Mark Dollins, president of North Star Communications Consulting, a consulting firm focused on talent development.

Having a clear and compelling story about how the layoffs are going to better prepare the company for the future is an important component to managing change.

That means “giving employees confidence that we’re doing this because it’s not just a reactive thing,” Dollins said, “and when we get to the end of this state, as a result of this restructuring or layoffs or whatever we’re calling it, we’re gonna be in a better place.”

“Quiet hiring” is when an organization acquires new skills without actually hiring new full-time employees. That may mean current employees temporarily move into new roles.

To avoid the pushback from layoff survivors who already feel overwhelmed, experts say leaders should let workers know what skill sets will be needed and how they can get them and communicate that clearly. Otherwise, they risk a public employee backlash.

“Workers don’t take this out in the breakroom anymore, they take it out on TikTok,” said Sam Caucci, founder and CEO of workforce training platform 1Huddle.

Layoffs tend to come around the end of the fiscal year, as companies close their books and make adjustments for the future. Of course, economic conditions can always change, but giving employees an ‘all-clear’ signal when the company is done with a round of layoffs can help reset the stage.

“That creates a sense of ‘OK, now let’s get back to work’,” Dollins said.