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Nearly 15.9 million people have signed up for health coverage through the exchange during open enrollment, which started Nov. 1, according to the Centers for Medicare & Medicaid Services.
Most people who get health insurance this way qualify for tax credits that reduce the cost of premiums.
Open enrollment for the federal exchange ends Jan. 15, although if your state has its own marketplace, it may have a later deadline.

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If you don’t have health insurance for 2023, you may still be able to get it through the public marketplace.
Open enrollment for the federal health-care exchange ends Sunday, with coverage taking effect Feb. 1. If your state operates its own exchange, you may have more time.

Most marketplace enrollees — 13 million of 14.5 million in 2022 — qualify for federal subsidies (technically tax credits) to help pay premiums. Some people may also be eligible for help with cost sharing, such as deductibles and copays on certain plans, depending on their income.
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So far, nearly 15.9 million people have signed up through the exchange during this open enrollment, which started Nov. 1. Four out of 5 customers can find 2023 plans for $10 or less per month after accounting for those tax credits, according to the Centers for Medicare & Medicaid Services.
After the sign-up window closes, you’d generally need to experience a qualifying life event — i.e., birth of a child or marriage — to be given a special enrollment period.
For the most part, people who get insurance through the federal (or their state’s) exchange are self-employed or don’t have access to workplace insurance, or they don’t qualify for Medicare or Medicaid.

The subsidies are still more generous than before the pandemic. Temporarily expanded subsidies that were put in place for 2021 and 2022 were extended through 2025 in the Inflation Reduction Act, which became law in August.
This means there is no income cap to qualify for subsidies, and the amount anyone pays for premiums is limited to 8.5% of their income as calculated by the exchange. Before the changes, the aid was generally only available to households with income from 100% to 400% of the federal poverty level.
The marketplace subsidies that you’re eligible for are based on factors that include income, age and the second-lowest-cost “silver” plan in your geographic area (which may or may not be the plan you enroll in).

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While some of the state programs are voluntary, others require companies to either have their own 401(k) plan or facilitate automatically enrolling employees in a Roth IRA through the state’s option.
Of these so-called auto-IRA programs that are up and running, workers have saved more than $630 million.
Some employers are choosing to offer a 401(k) plan instead of participating in their state’s program.

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Whether you have access to a retirement plan through work increasingly depends, at least partly, on where you live.
Within the last decade, 16 state legislatures have adopted retirement-savings programs targeting workers whose employers don’t offer a 401(k) plan or similar option. Some programs are up and running, while others are in the planning stages. 

Some also are voluntary for businesses to participate in. But most require companies to either offer their own 401(k) or facilitate automatically enrolling their workers — who can opt out — in individual retirement accounts through the state’s so-called auto-IRA program.
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“On average, we’ve seen one to two new state programs enacted each year and expect that trend to continue in 2023,” said Angela Antonelli, executive director of Georgetown University’s Center for Retirement Initiatives.
“We should see program assets soon exceed $1 billion, and more than 1 million saver accounts soon in 2023, and then more rapidly continue to grow as other states open,” Antonelli said.

Here’s what’s in the pipeline

Last year, Maryland and Connecticut launched their auto-IRA programs, joining Oregon, California and Illinois. Colorado and Virginia are expected to do so this year. Others — including Delaware, New Jersey and New York — are still in the planning phases.

Overall, 46 states have taken action since 2012 to either implement a program for uncovered workers, consider legislation to launch one or study their options, according to Antonelli’s organization. 

Although there are some differences in the programs, they generally involve auto-enrolling workers in a Roth IRA through a payroll deduction starting around 3% or 5%, unless the worker opts out (about 28% to 30% do so, Antonelli said). There is no cost to employers, and the accounts are managed by an investment company.
Contributions to Roth accounts are not tax-deductible, as they are with 401(k) plans or similar workplace options. Traditional IRAs, whose contributions may be tax deductible, are an alternative in some states, depending on the specifics of the program.
Among the current auto-IRA programs, workers have amassed more than $630 million among 610,000 accounts through 138,000 employers, according to the center.

About 57 million lack access to a workplace plan

Of course, there’s still a long way to go to reach all of the estimated 57 million workers who lack access to an employer-based retirement account.
While you can set up an IRA outside of employment, people are 15 times more likely to save if they can do so through a workplace plan, according to AARP.
Large companies are more likely to offer 401(k) plans. Among employers with 500 or more employees, 90% offer a plan, according to the U.S. Bureau of Labor Statistics. That compares with 56% at firms with under 100 workers.

The auto-IRA programs address that disparity: All but the smallest firms — say, under 10 workers or those that don’t use an automated payroll system — face the mandate to participate or offer their own plan.

Some companies choose 401(k) over the state program

It appears some companies are choosing a 401(k) instead: In the one year after the first three auto-IRA programs launched — Oregon (2017), Illinois (2018) and California (2019) — there was a 35% higher growth rate among new 401(k) plans at private businesses in those states versus other states, according to recent research from Pew Charitable Trusts.
“We’ve seen a growth of new 401(k) plans in those states that have adopted auto-IRAs,” said John Scott, director of Pew’s retirement savings project. “A lot of employers are saying they’d rather have a 401(k), so in a lot of ways I think the state programs are nudging employers toward offering 401(k) plans.”

Federal rules encourage businesses to offer 401(k)s

Changes at the federal level, enacted as part of the 2019 Secure Act, also are intended to help small businesses offer 401(k) plans. Instead of sponsoring their own plan and taking on the administrative and fiduciary responsibilities that go with that, they can join a so-called pooled employer plan with other businesses — a sort of shared 401(k).
Legislation known as Secure 2.0, which was enacted last month, includes provisions to further enhance the appeal of a pooled plan.
“The idea is to try to fill in the [access] gaps as much as possible,” Scott said.

While Congress has appeared loath thus far to require companies to offer a 401(k), lawmakers did include a mandate in Secure 2.0: 401(k) plans will have to automatically enroll their employees. However, it excludes existing plans, businesses with 10 or fewer workers and companies less than three years old.

Limitations to the state programs

There are limitations to the state programs. For example, they do not provide a matching contribution as many 401(k) plans do.
Contribution limits also are lower than in 401(k) plans. You can put up to $6,500 in a Roth IRA in 2023, although higher earners are limited in what they can contribute, if at all. Also, anyone age 50 or older is allowed an additional $1,000 “catch-up” contribution.

For 401(k) plans, the contribution limit is $22,500 in 2023, with the 50-and-over crowd allowed an extra $7,500.
However, Roth IRAs — unlike traditional IRAs or 401(k) plans — also come with no penalty if you withdraw your contributions before age 59½. To withdraw earnings early, however, there could be a tax and/or penalty.
The programs also are partly borne out of necessity. Essentially, states have recognized that doing nothing means risking increased pressure on state-funded social services for retirees who are struggling financially.
“States took the lead to begin to close the access gap,” Antonelli said. “The cost of doing nothing is too great, with significant multibillion dollars in estimated budget and fiscal impacts for many states over the next 20 years due to an aging population that will have little or nothing saved for retirement.”

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The logo of Alphabet Inc’s Google outside the company’s office in Beijing, China, August 8, 2018.
Thomas Peter | Reuters

Last week, December’s consumer price index reading showed that prices are cooling.
The index dropped 0.1% on a monthly basis, but the metric gained 6.5% from the prior year. Investors seemed to appreciate the news, as the three major indexes closed higher on Friday.

Nevertheless, investing in this uncertain environment can be tricky.
To help the process, here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their track records. 

Alphabet

Google-parent Alphabet (GOOGL) is a frontrunner in every major trend in technology, including the growth of mobile engagement, online activities, digital advertising and cloud computing. Additionally, its focus on artificial intelligence is driving the development of better and more functional products.
Tigress Financial Partners analyst Ivan Feinseth recently reiterated a buy rating on the stock. His bullishness is attributed to robust trends in cloud and search, which “continues to highlight the resiliency of its core business lines.” (See Alphabet Blogger Opinions & Sentiment on TipRanks)
AI-focused investments and efforts to achieve cost and operating efficiencies should continue to drive Alphabet’s growth. Feinseth said that any weakness in the near term is a great buying opportunity.

The analyst is also upbeat about Alphabet’s financial health. “GOOGL’s strong balance sheet and cash flow enable the ongoing funding of key growth initiatives, strategic acquisitions, and the further enhancement of shareholder returns through ongoing share repurchases,” said Feinseth, who is ranked No. 229 among more than 8,000 analysts on TipRanks.
The analyst’s ratings have been profitable 60% of the time and each rating has generated average returns of 11.1%.

Hims & Hers

Another stock that Feinseth has recently reiterated as a buy is the multi-specialty telehealth company, Hims & Hers (HIMS). The analyst also raised his 12-month price target on the stock from $11 to $12.
Feinseth is confident in HIMS’s strong brand equity and customer loyalty, which he expects will continue to drive business performance. Moreover, new product innovations are supporting the company’s highly scalable business model, and they are expected to boost this year’s profits. (See Hims & Hers Health Hedge Fund Trading Activity on TipRanks)
The massive health-care market is always evolving and requires strong players with flexible business models to serve the growing demand. The analyst thinks that HIMS is well positioned in this area to be one of the top beneficiaries.
“HIMS’s scalable business model, expanding services, and rapidly growing customer base will drive significant revenue growth. Its asset-light business model of connecting patients to service providers and providing access to high-quality branded healthcare products will eventually drive a significant Return on Capital (ROC), grow Economic Profit, and increase shareholder value creation,” said Feinseth.

OrthoPediatrics Corp.

As the name suggests, OrthoPediatrics (KIDS) deals in the design, manufacture, and commercialization of products that are used in the treatment of orthopedic conditions in children. The company operates in more than 35 countries worldwide.
The pediatric orthopedic market is a niche market that is relatively underserved, which has worked to the company’s advantage. OrthoPediatrics has dominance in this market, giving it a competitive edge in the medical equipment industry. BTIG analyst Ryan Zimmerman notes that the company stands to benefit from this space as larger players have mostly overlooked the opportunity. (See OrthoPediatrics Financial Statements on TipRanks)
Last week, Zimmerman reiterated his buy rating and $62 price target on KIDS stock. In addition to the market opportunity, the analyst said that “with a leading brand among pediatric orthopedic surgeons and a concentrated customer base that performs the majority of cases at a limited number of hospitals, the model is scalable and defendable.”
Zimmerman has the 660th ranking among more than 8,000 analysts tracked on TipRanks. Moreover, 47% of his ratings have been successful, generating 9% average returns per rating.

Intuitive Surgical

Medical technology company Intuitive Surgical (ISRG) is a pioneer in robotic-assisted, minimally invasive surgery. The company is also one of Zimmerman’s favorite stocks for the year.
Recently, Intuitive Surgical announced preliminary 4Q22 results and growth guidance for procedures in FY23, which were as Zimmerman expected. Following the results, the analyst reiterated his bullish stance on the company with a buy rating and $316 price target. (See Intuitive Surgical Stock Investors on TipRanks)
“There continue to be headwinds entering FY23, but we think ISRG is poised to continue to see improving market dynamics coupled with the potential for the launch of a next-generation system. We would be buyers on today’s weakness,” said Zimmerman, justifying his bullishness.
The analyst is bullish on the company’s long-term growth potential in the area of robotic surgery, and sees ISRG as a “clear leader in the space.” Zimmerman said that the pandemic has increased the importance of computer-aided surgery, thanks to accurate clinical outcomes. This is expected to drive the adoption of Intuitive Surgical’s products over time.

The Chefs’ Warehouse

Another BTIG analyst, Peter Saleh, who has the 491st ranking in the TipRanks database, has recently reiterated his bullish stance on food distributor Chef’s Warehouse (CHEF). The company is a premier distributor of food to high-end restaurants and other expensive establishments. 
Saleh sees several upsides to share growth thanks to its “compelling business model as a niche foodservice distributor, more upscale and differentiated customer base, and unfolding sales recovery in key markets.” (See The Chefs’ Warehouse Stock Chart on TipRanks)
The analyst is upbeat about the reopening of markets in key regions and gradual recovery in serviceable areas like hospitality. These upsides are expected to drive sales this year. Saleh said that these upsides, combined with CHEF’s long-term opportunity to enhance market share, underpin his bullish stance on the company.
The analyst gave a “Top Pick” designation to CHEF stock, with a buy rating and $48 price target. “While the capital structure has changed and the technical overhang from the recent convertible issuance seems to remain, we view shares as simply too cheap given fundamentals,” said Saleh.
The analyst has delivered profitable ratings 61% of the time, and each of his ratings has generated returns of 10.9% on average.

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A masked family walks past Cinderella Castle in the Magic Kingdom, at Walt Disney World in Lake Buena Vista, Fla.
Orlando Sentinel | Tribune News Service | Getty Images

Activist investor Nelson Peltz plans to mount a proxy fight for a seat on Disney’s board.
Disney offered Peltz, founding partner of Trian Fund Management, a role as a board observer and asked him to sign a standstill agreement, which Peltz declined. Here are our thoughts on the situation.

Offer of a board observer position

Sometimes a board observer position can be beneficial, particularly for investors who do not have a lot of board experience and are less likely to be a regular contributor to board discussions. But offering Peltz a position as a board observer is like saying to Whitney Houston, “You can join the band, but you are not allowed to sing.” There is no way that Disney thought for a second that Peltz would accept this offer, and there is no way he should have accepted it.

Why is this happening?

It is curious as to why Peltz started this proxy fight in the first place and why Disney is resisting it. Peltz acquired his position when Bob Chapek was CEO and likely had a plan to replace him with someone Peltz had already identified. That would have been a great activist plan, but it went awry a week later when Disney announced that it had replaced him with former CEO Bob Iger. Knowing Trian’s history and process, the firm had probably been working on that plan for many months and was waiting for the perfect time to build its position. It is unfortunate that all of Trian’s hard work developing its plan somewhat went to naught, but at that time the firm should have regrouped and developed a different approach taking into account the new circumstances. That plan should not have included opposition to Iger. While Trian says it is not opposing Iger as CEO now, the firm initially opposed him and that made it very hard for the board to agree to a settlement for a board seat for Peltz. Having said that, a strong board with a strong CEO – who is admittedly a short-term CEO – should not have a problem with an experienced shareholder in the room who might have an unpopular opinion. In fact, the board should welcome it.

Trian’s claims

Trian put out a presentation making its case. In proxy fight presentations, each side uses the facts and data to paint a picture that benefits them and often those claims do not withstand scrutiny. For example, Trian takes issue with Disney’s total shareholder return under Iger: 270% versus 330% for the S&P 500 over the same time. I am not sure how that compares to the industry, but I expect if the industry returns were more favorable to Trian, they would have used those. As the British economist Ronald Coase had said: “If you torture the data long enough, it will confess to anything.” In this case, we can get it to say that Bob Iger was a bad CEO for Disney. Trian also takes issue with Iger’s decision to acquire Fox, and he should – it was a terrible decision in retrospect. But he should also include in that analysis, Iger’s decisions to acquire Pixar, Marvel and Lucasfilm, which have grossed Disney more than $33.8 billion at the global box office, and billions more in merchandise and theme park extensions.

Nelson Peltz as a director

All this criticism of proxy fight tactics and strategy aside, and regardless of how we torture the data of Peltz’s record as a director, of course he should be on the board of Disney. He is a large shareholder with a strong track record of creating value through operational, strategic and capital allocation decisions. No, Peltz is not going to be the most valuable director when it comes to deciding who should star in the next blockbuster Disney movie or which rides should be built at the entertainment parks – the board relies on management for those insights. But he will be the most prepared and valuable board member when it comes to doing the financial analysis on the various strategic and capital allocation opportunities available to Disney and advising the board on which decisions would be best for shareholders. Peltz also has proven to be a valuable director in helping management teams cut operating costs and improve margins, something Disney could use. And if his past is any indication, at the end of his term he will probably be good friends with Bob Iger.

Chance of winning

Unfortunately, I think the deck is stacked against Peltz here. It is a herculean effort to get large institutional investors to vote against the board of an iconic company like Disney. That task becomes even harder when the company has just removed its CEO and replaced him with a respected prior CEO and replaced its chairperson. Adding to that, Disney recently settled with another top-tier activist, Third Point, which had a lot of the same suggestions Trian is making. I believe that Institutional Shareholder Services and large institutional shareholders are going to want to give this new team at least a year to work on their plan before supporting more change at the company. And I do not think the universal proxy is going to make that much of a difference in a proxy fight for one director on a unitary board. However, having said that, while I do not own any Disney shares in my fund, my 10 year old and 12 year old have a small amount of shares and when their ballots come in the mail, we will be voting for Nelson.    
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and he is the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. Squire is also the creator of the AESG™ investment category, an activist investment style focused on improving ESG practices of portfolio companies. 

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The founder of a college planning platform allegedly lied to Chase to convince the bank to acquire it.
Consumers who used the platform may have also been deceived.
Before JPMorgan acquired the startup in 2021, lawmakers and a consumer watchdog expressed concerns over Frank’s marketing claims.

The JP Morgan Chase & Co. headquarters, The JP Morgan Chase Tower in Park Avenue, Midtown, Manhattan, New York.
Tim Clayton – Corbis | Corbis Sport | Getty Images

Earlier this week, JPMorgan Chase shut down college financial aid platform, Frank, which it acquired in September 2021 for $175 million, alleging it was misled about the scale of the startup.
Consumers who used the platform may have also been deceived.

related investing news

According to JPMorgan, Frank founder Charlie Javice told the bank that over 4 million students had signed up with the company, which promised to ease the student loan and financial aid application process. But when the bank sent out marketing emails to a batch of 400,000 Frank customers, around 70% of the messages bounced back, the bank said in a lawsuit filed last month in federal court.
Earlier, JPMorgan spokesman Pablo Rodriguez referred a CNBC reporter to its lawsuit against Javice, saying that “any dispute will be resolved through the legal process.” Javice’s lawyer, Alex Spiro, did not respond to an email requesting comment.
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‘If it’s too good to be true, it probably is’

Before JPMorgan acquired the startup in 2021, lawmakers and a consumer watchdog expressed concerns over Frank’s marketing claims.
Bipartisan members of Congress wrote a letter to the Federal Trade Commission in July 2020, saying that Frank was “creating false hope and confusion for students” by advertising an application for pandemic-era relief funds, including the newly available emergency grants to students.

“These funds are distributed by and at discretion of individual institutions and, thus, it is impossible to provide a legitimate, uniform application for this funding,” the lawmakers wrote, adding they suspected the company of exploiting students’ data for profit.

In response, the FTC sent a warning letter to Frank, pointing out a number of claims on its website could be “unlawfully misleading consumers.” For example, it said consumers could obtain a cash advance of up to $5,000 on their student loans without being charged any interest or fees, although Frank charged a fee of $19.90 a month.
Besides the problems flagged by government officials, higher education expert Mark Kantrowitz said he noticed other questionable claims made by Frank. At one point, the company said it could complete people’s Free Application for Federal Student Aid, or FAFSA, in just four minutes.
According to the U.S. Department of Education, he noted, it takes about an hour for new applicants to complete the form, which is the main way students request financial aid to help them pay for college.
“If it’s too good to be true, it probably is,” Kantrowitz said.

Student loan, financial aid help is available for free

There are plenty of free resources families can turn to for help with financial aid, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
“The simplest thing to keep in mind is that nobody should ever have to pay for student loan or financial aid help,” Mayotte said. “Doing so will never get you access to a program that you wouldn’t normally be eligible for.”
The best place to start looking for that aid is at the Department of Education’s site, studentaid.gov, Mayotte said.
In addition, the nonprofit mappingyourfuture.org and TISLA’s freestudentloanadvice.org also don’t charge for comprehensive financial aid advice, she said.

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A whopping 96% of workers are looking for a new position in 2023, largely in search of better pay, according to a recent report by Monster.com. 
Job-hopping is widely considered the best way to give your salary a boost.
But there are other considerations that matter too, experts say, such as healthy work-life balance.

Kate_sept2004 | E+ | Getty Images

It will soon be the Year of the Rabbit, according to the Chinese calendar, but it might as well be the year of the new job.
A whopping 96% of workers are looking for a new position in 2023, largely in search of better pay, according to a recent report by jobs site Monster.com. 

“This is phenomenally high,” even compared with the numbers at the height of the “great resignation,” said Vicki Salemi, career expert at Monster.
Nearly half, or 40%, of job seekers said they need a higher income due to inflation and rising expenses, Monster found. Others said they have no room to grow in their current role or that they are in a toxic workplace.
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The start of the year ‘is always a good time to look’

While wage growth has been high by historical standards, it isn’t keeping up with the increased cost of living, which is still up 6.5% from a year ago and leaving more workers unsatisfied with their pay.
Job-hopping is widely considered the best way to improve your career prospects and pay. In fact, the difference in wage growth for job switchers relative to those who stay in their current role is at a record high.

The latest data shows job switchers have seen 7.7% wage growth as of November, while workers who have stayed in their jobs have seen 5.5%, according to Daniel Zhao, lead economist at Glassdoor, citing data from the Atlanta Federal Reserve.

Although there is a chance that the job market will cool as recession fears take hold, recent government data shows the U.S. labor market is still strong, with a record low unemployment rate of 3.5%.
“The first quarter of the year is always a good time to look because fiscal budgets have been replenished,” according to Barbara Safani, president of Career Solvers in New York.
Despite recent reports of extensive layoffs, some industries continue to do very well, she said. “If cuts are going to happen, they are typically planned months and months in advance, and those companies wouldn’t be hiring in January.”

Key considerations before taking a new job

There are other things to consider besides salary before accepting a new position, Safani said. “You may be getting paid more but it’s important to vet that opportunity.” Safani advises clients to consider how all aspects of the job measure up.
“It’s not always apples to apples,” she said.

Workers can have both — a higher salary and a positive, healthy work environment.

Vicki Salemi
career expert at Monster

When it comes to finding a better job, pay isn’t everything, Salemi also cautioned. Other factors to consider include increased opportunities for advancement, flexibility and a healthy work-life balance.
“Do your research,” Salemi said. “Find out what the benefits are, find out what the culture is like.”
“Workers can have both — a higher salary and a positive, healthy work environment.”
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As everyday prices have soared, Social Security benefits have not necessarily kept up, according to a new analysis.
How much beneficiaries are able to catch up in 2023 will mostly depend on inflation coming down.

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New government inflation data shows the measurement used to calculate Social Security annual cost-of-living adjustments was up 6.3% for the past 12 months as of December.
That’s as this year’s 8.7% COLA kicks in for more than 65 million Social Security beneficiaries this month.

That new data indicates Social Security beneficiaries will recover $38.70 after months of grappling with record high inflation, according to a new report from The Senior Citizens League.
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Consumer prices rose 6.5% on an annual basis as of December, according to headline consumer price index data released on Thursday. The consumer price index for Urban Wage Earners and Clerical Workers, or CPI-W, which is used to calculate Social Security’s annual COLA, rose 6.3%.
Average Social Security benefits fell short of inflation by about $1,054 from the start of the pandemic through 2022, according to a new analysis from the non-partisan senior group. That excludes Medicare Part B premiums, which are typically deducted directly from Social Security benefit checks.

‘It’s going to be extremely difficult for people to recover’

So will retirees who rely on Social Security for income finally catch up in 2023 after record high inflation?

The answer to that question is still uncertain, according to Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League.
How much beneficiaries are able to catch up will mostly depend on inflation coming down.

Yet if inflation declines substantially, that may lead to a much lower — or even no — COLA to benefits in 2024, which would also make it difficult to recover, according to Johnson.
“It’s going to be extremely difficult for people to recover, if at all,” Johnson said.
In 2020, a 1.6% COLA kept pace with inflation. Average benefits ended that year ahead by about $53 prior to deductions for Medicare Part B.
In 2021, however, with a 1.3% COLA, the average benefit came out behind by $612, or $51 per month.

In 2022, a 5.9% COLA helped curb the shortfall, yet average benefits still came out behind by $495, or $41.25 per month.
The predicament has made it more important for retirees to carefully plan for all income streams, not just Social Security.
“It’s a good thing for people who are planning for retirement to consider, understand the impacts of inflation, not only on your Social Security benefits, but especially on retirement benefits that are not protected for inflation,” Johnson said.

The 8.7% COLA is ‘probably not a real raise’

The 8.7% COLA may not greatly increase beneficiaries’ buying power, as everyday costs are still high, according to Joe Elsasser, founder and president of Covisum, a Social Security claiming software company.
“Although it might seem like a raise, it’s probably not a real raise,” Elsasser said.
The Social Security Administration uses a measurement called the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, to calculate the COLA each year.

The annual cost-of-living is based on the year over year percentage increase in the CPI-W for the third quarter. If no increase happens, there will be no COLA.
The chart above shows which costs have gone up the most, based on the CPI-W data through December. To be sure, some advocates have argued other measurements may better reflect the costs retirees face, such as the Consumer Price Index for the Elderly, or CPI-E, and therefore may be better gauge for the annual cost-of-living adjustment.

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Two law professors, in a brief to the Supreme Court, said they think Biden’s student loan forgiveness plan is “unlawful” but they still urge the court to reject the legal challenges brought against the policy.
William Baude, of the University of Chicago, and Samuel Bray, of the University of Notre Dame, said the plaintiffs’ theories in the two lawsuits the court is considering are “wrong.”
More than 10 other briefs in support of the president’s plan have been filed with the justices.

Activists hold a student loan forgiveness rally near the White House on April 27, 2022.
Anna Moneymaker | Getty Images News | Getty Images

Although they call President Joe Biden’s student loan forgiveness plan “unlawful,” two university law professors are urging the Supreme Court to reject the legal challenges that have been brought against it.
“The standing theories that have been thrown at the wall in these cases are wrong, and many of them would have dangerous implications,” wrote William Baude, a law professor at the University of Chicago Law School, and Samuel Bray, a University of Notre Dame law professor, in an amici curiae brief filed on Wednesday with the nation’s highest court.

An amicus, or amici, curiae brief allows individuals or organizations other than the parties in the case to offer their information or expertise.
Biden announced in August that tens of millions of Americans would be eligible for cancellation of their education debt — up to $20,000 if while in college they received a Pell Grant, a type of aid available to low-income families, and up to $10,000 if they didn’t.
Since then, Republicans and conservative groups have filed at least six lawsuits to try to kill the policy, arguing that the president doesn’t have the power to cancel consumer debt without authorization from Congress and that the policy is harmful.
The Supreme Court has agreed to hear two of those legal challenges.
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Baude and Bray, in their brief, address the issue of so-called legal standing. The law professors say it’s supposed to be the party most affected by a policy that challenges it in the courts.
In their lawsuit against the president’s plan headed to the Supreme Court, six GOP-led states argue that companies in their states that service federal student loans, particularly the Missouri Higher Education Loan Authority, or MOHELA, would lose profits as a result of federal student loan forgiveness. But the law professors say that, in that case, MOHELA should have brought the legal challenge, not the states. The other states in the suit are Nebraska, Arkansas, Iowa, Kansas and South Carolina.
“Missouri is not the proper party to pursue relief for MOHELA’s lost loan servicing fees,” Baude and Bray wrote.
“Whether under modern doctrine or more classical terminology, the federal courts have the power to issue the requested relief only if it is being requested by the correct plaintiffs,” they wrote.
The legal challenges follow a trend that Baude and Bray say they find worrisome, in which states are too easily allowed to challenge a federal action they disagree with.
If the justices side with the states and overlook their shaky legal standing, the professors write, the Supreme Court risks sitting “in constant judgment of every major executive action — which is not its constitutional role.”

More than 10 other amici curiae briefs have been filed with the Supreme Court in support of the president’s loan forgiveness plan.
A former U.S. representative from California, George Miller, filed one of those defenses, arguing that the Heroes Act of 2003 allows the Biden administration to carry out its plan. Miller was a co-sponsor of that legislation.
“The Heroes Act gives the Secretary of Education the authority to ‘waive or modify any statutory or regulatory provision’ regarding federal student-loan programs ‘as the Secretary deems necessary in connection with a … national emergency,'” Miller wrote in his amicus curiae brief. The country has been operating under an emergency declaration due to Covid since March 2020.

The Biden administration has cited the Heroes Act of 2003 as the law that grants it permission to carry out its loan forgiveness plan, saying that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation is necessary to stave off a historic rise in delinquencies and defaults.
More than 20 state attorneys general argue in their brief that “the relief offered to borrowers falls squarely within the authority Congress gave the Secretary to address such emergencies.”
“The Secretary’s action here is appropriately calibrated to ensure that the borrowers who have been hardest hit during the pandemic will not needlessly default on their student loans and suffer the attendant cascade of economic harms,” the attorneys general wrote.
The justices will hear oral arguments Feb. 28.

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