The permanent stay-at-home economy

And more of the week's best financial insight

contactless food delivery.
people are spending more on goods rather than services
(Image credit: The Good Brigade / Getty Images)

Here are three of the week's top pieces of financial insight, gathered from around the web:

The stock-picking guru next door

Be cautious about Medicare Advantage

Be careful about switching to a Medicare Advantage plan, said Terry Savage in the Chicago Tribune. "More than half of Medicare participants have left traditional Medicare," lured by the promise of lower costs. Traditional Medicare, though, comes with one big advantage: "You can use any physician or hospital or testing service that accepts Medicare. Period." That covers most medical providers. That’s not the case with Advantage plans. Generally, you’ll also need approval from plan administrators, who aim to keep costs down. Medicare Advantage plans denied more than 2 million authorization requests in 2021 and the rate of denials has tripled since 2019. Agents get commissions that can bring them $600 when they persuade you to sign up, plus $300 each year you renew.

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The permanent stay-at-home economy

The pandemic has led to lasting changes in consumer behavior around the world, said The Economist. We are living in the "age of the hermit." While overall wealth and spending have gotten back to pre-pandemic levels, there’s more spent on stuff, less on services and experiences. "Leisure activity" has suffered most, with the money saved getting redirected to goods, ranging from “chairs and fridges to things like clothes, food and wine." Overall, it adds up to a $600 billion per year shift in the global economy. Hotels are crowded and restaurant reservations are hard to get. However, the source of the crowding is "not sky-high demand but constrained supply," with few new restaurants and hotels opening.

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