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Why health insurance got so expensive... [Advertisement] October 19, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [DealMaker]( Good morning. We never thought we’d see the day, but Skechers might get worn on an NBA basketball court—by an MVP, no less. According to The Athletic, the often-mocked sneaker brand is in talks with Philly’s Joel Embiid to become its star endorser. He would wear them in games if a deal is completed. Odds of repeating as MVP = down 95%. Odds of looking the most fly on the court = up 200%. Don’t sleep on Skechers (or in them). It signed a lifetime deal with Bayern Munich’s Harry Kane and is potentially pushing into basketball with Embiid and Julius Randle of the Knicks. —Matty Merritt, Molly Liebergall, Neal Freyman, Abby Rubenstein MARKETS Nasdaq 13,314.30 -1.62% S&P 4,314.60 -1.34% Dow 33,665.08 -0.98% 10-Year 4.942% +4.0 bps Bitcoin $28,380.62 -0.09% Netflix $346.19 +12.83% AH *Stock data as of market close, cryptocurrency data as of 3:00am ET. [Here's what these numbers mean.]( - Markets: Stocks [fell]( yesterday as bond yields continued soaring. The bond market activity also sent the 30-year fixed mortgage rate [to 8%]( for the first time since 2000. High rates have been pushing demand for mortgages way down. - Stock spotlight: Netflix popped after-hours thanks to higher-than-expected profits.  GOVERNMENT [Still no House speaker]( [A general view shows House of Representatives vote on a new Speaker of the House at the US Capitol on October 18, 2023 in Washington, DC. US lawmakers rejected hard-line conservative Jim Jordan’s bid for speaker of the House of Representatives in the first round of voting October 17, 2023, entrenching a stalemate that has paralyzed Washington for two weeks.]( Mandel Ngan/Getty Images The House of Representatives, like your cheap friend who swears by the iPhone-in-a-bowl method for parties, is still speakerless. After Ohio Republican Jim Jordan [failed]( to get enough votes in a second round of voting yesterday to secure the top job in the House, the GOP remains divided on what steps to take next, and the body remains frozen without a leader. Jordan was 18 votes shy of replacing ousted House Speaker Kevin McCarthy in the vote yesterday—receiving two fewer votes than he got in the first floor vote on Tuesday, a sign that support for Jordan’s nomination might be waning. Since every House Democrat (212) voted for House Minority Leader Hakeem Jeffries (and will likely continue to), there’s little margin for disagreement among the 221 Republicans. What’s next? Vote again…and again. In January, it took five days and 15 rounds of voting for McCarthy to finally win his brief speakership. Jordan expects a third floor vote today at noon ET. - Some GOP members have urged Jordan to take negotiations off the floor and come back when he knows he has the votes. - But California Republican Mike Garcia said that won’t work either and House Republicans need a little off-site at somewhere like Gettysburg to “remember why we do what we do.” The temp may get more power. One quick fix that’s gaining steam is allowing Speaker Pro Tempore Patrick McHenry, a Republican from North Carolina, to have more latitude than just overseeing the voting for a new speaker. Republican Rep. Mike Kelly [introduced]( a resolution that would temporarily give McHenry some of the speaker’s powers, like moving essential bills through the House. What’s the rush? Aid packages for Ukraine and Israel are currently in limbo. And remember that shutdown we narrowly avoided because McCarthy worked with Democrats to move the deadline to November 17? Now, without a speaker, the House is losing time to pass a budget for real. We’re feeling mad deja vu saying this, but a shutdown would have serious implications: It could stall IPOs and prevent the release of data the Fed needs for making rate decisions.—MM   PRESENTED BY DEALMAKER [From vision to venture]( [DealMaker]( Attention investors: Want to attend an informative and inspiring event all about a founder’s journey? Of course you do! That’s why Morning Brew’s co-founder and executive chairman, Alex Lieberman, will be joined by the founders of Boxabl, LiquidPiston, and EnergyX for [Meet the Founders: How Entrepreneurs Are Leveraging the Crowd](. Hear from 4 experienced entrepreneurs about their journeys, where they started, and where they’re going. Plus, you’ll get the inside scoop on the value of [early-stage investing]( how these products are poised to revolutionize their respective industries because of it. You won’t wanna miss this. Be sure to [register for this virtual event ASAP](. WORLD [Tour de headlines](#) [US President Joe Biden with Israeli Prime Minister Benjamin Netanyahu]Brendan Smialowski/Getty Images Biden vows support for Israel during visit. As he wrapped up his trip to Israel, the president said US intelligence supported Israel’s position that the bombing of a Gaza hospital that spurred anti-Israel protests across the region was caused by the militant group Palestinian Islamic Jihad. Independent security experts have also [backed up]( the claim that it was an errant rocket fired from Gaza. During Biden’s visit, Israel agreed to allow [humanitarian aid]( to enter Gaza via Egypt, and Biden later said Egypt was prepared to let up to 20 trucks carrying supplies cross the border. Biden said the US would send $100 million in humanitarian assistance to Gaza and the West Bank, as well as an “unprecedented” package for Israel’s defense. He also offered words of caution to Israel, saying the US had “made mistakes” after 9/11 and, “while you feel that rage, don’t be consumed by it.” ⏯️ You’ll have to pay more for Squid Game. Netflix is planning to [raise prices]( (again) for some subscriptions immediately. But it’s not because the streamer is suffering: Netflix reported yesterday that its password-sharing crackdown is bearing fruit, and the company added 8.8 million subscribers in the third quarter compared to just 2.4 million in the same period last year. Although Netflix gained customers in every region, average revenue per member decreased year over year because many subscribers were on lower-priced plans. Despite the higher price, there’ll be less new content because of the Hollywood strikes. Tesla’s price cuts ate into profits. The electric vehicle-maker’s [profits fell]( by 44% last quarter after several price reductions meant to juice sales tightened its margins. The company said its operating margin was 7.6% for the quarter, similar to a traditional car company’s and down from the 17.2% margin it enjoyed the previous year. CEO Elon Musk stressed that getting cost down is important to keep car buyers’ payments low amid high interest rates, saying it’s like “Game of Thrones, but pennies.” Tesla still plans to deliver more cars this year than last and promised its Cybertruck will finally start delivering by the end of November. HEALTHCARE [Health insurance gets a decade-high price hike]( [Up arrows hover over hospital symbols]( Francis Scialabba The average cost of a health insurance plan offered through an employer [rose 7%]( this year, to $23,968 for family plans and $8,435 for individuals, according to a new survey from the private health foundation KFF. The jump—the highest [since 2011]( driven by inflation, as well as higher wages for [healthcare workers]( and hospital system [mergers]( health policy experts say. Here’s what it means for employers and the 150+ million Americans who get insurance through work: - The increase amounted to ~$500 more out of pocket for family plan-holders, and $75 more for solo riders—further squeezing consumer spending power, which is already constrained by wages that haven’t [caught up]( to high inflation. - Employers often bear the brunt of [increased health spending]( because, in the interest of staying competitive, they’re wary of offloading too much of the rising costs onto their workers. That’s likely why deductibles haven’t grown much in the past five years. But things might get worse: 1 in 4 companies surveyed by KFF said they plan to increase employees’ [premium contributions]( in the next two years.—ML   TOGETHER WITH FIDELITY [Fidelity]( (AI)nvesting, explained. AI is becoming a big player in the investing world. If you’ve got Q’s about this duo’s implications, tune in to [episode 7 of Fresh Invest]( our investing podcast with Fidelity. We explore the innovations AI could introduce to the financial space—and your portfolio. Check out Fidelity’s YouTube playlist and [listen here](. TRAVEL [United tries to fix airplane boarding]( [An illustration of an airline ticket]( Francis Scialabba United will give its window-seat passengers more time to gaze into the vast expanse, put on “Ribs” by Lorde, and pretend they’re in a movie. Starting on Oct. 26, the airline will board economy class window-seaters before middle- and aisle-seat travelers to [speed up the boarding process]( according to an internal memo. They won’t be able to cut the line completely: Groups such as active duty military and people with disabilities will board the plane first, followed by first class and business class. But, when it comes time for the hoi polloi to get on the plane, United hopes that by filling the window seats first, the total boarding time per flight could be cut by up to two minutes. Two whole minutes? It doesn’t sound like much, but an aircraft at the gate is an aircraft not making money, so putting the boarding process on 1.1x speed, spread across thousands of flights per day, can add up to a lot of time saved—and make happier passengers more likely to fly with United again. Zoom out: Plane boarding experts (they exist) say that window-seats-first is a step in the right direction, but it’s still not the most efficient way to fill a plane. This [YouTube video]( shows the better options.—NF   GRAB BAG [Key performance indicators](#) [NFL Commissioner Roger Goodell]Icon Sportswire/Getty Images Stat: The highest-paid employee in the NFL hasn’t put on shoulder pads since high school. Commissioner Roger Goodell inked a contract extension worth an [estimated $200 million]( over three years, bringing his total league earnings to about $700 million. That’s [more than double]( the career earnings of the highest-paid player, Aaron Rodgers ($342 million), according to Spotrac. Despite facing numerous controversies since he became commissioner in 2006, Goodell has grown the league into a dominant cultural force and a money-making machine: Revenue has tripled during his tenure to $20 billion per year. Quote: “I hope history is kind to us.” Pras, the rapper who founded the Fugees, is back [on tour]( with Lauryn Hill and Wyclef Jean. The reunion further cements the groundbreaking group’s legacy, but it might be their last chance to perform together for a while since Pras has been convicted but not yet sentenced for allegedly leveraging his celebrity to conspire with a shady Malaysian businessman to defraud the US government. But Pras is trying to get his conviction overturned by arguing that his lawyer [used AI]( to draft his closing statement—and the AI did a lousy job making the case for his innocence. Read: Why is so much going wrong at the same time? ([Vox]( NEWS [What else is brewing](#) - [Amazon]( has begun delivering prescription medicine by drone in Texas as it continues to try out nonhuman deliveries. - [Household wealth in the US]( surged during the pandemic, jumping 37% in the steepest climb ever seen in the Fed’s Survey of Consumer Finances, which it conducts every three years. - [Costco’s CEO]( will step down in January and be succeeded by the warehouse chain’s current president. - [The EU]( has banned the sale of loose glitter to cut down on microplastics. In Germany, people stocked up before the ban took effect this week as TV stars and influencers worried about losing the shiny craft item. - [Serena Williams]( will soon add “published author” to her lengthy list of achievements: The tennis star has a two-book deal with Random House that includes an “intimate” memoir. RECS [To do list Thursday] Picture it: A [visualization of inflation]( that shows how far $1 from 1999 goes now. Look closer: The winners of Nikon’s [microphotography contest]( went big on the small stuff. Travel tip: The [coolest neighborhoods]( in the world. Get ’em while they’re hot: [A map]( of 350 places to buy cider donuts in New England. Holiday hurrah: Wondering which channel is best to sleigh the festive season? We teamed up with [Intuit Mailchimp]( to show you why email and SMS can level up your strategies. [Take a look]( Post-pod chats: Take a behind-the-scenes look at [Fresh Invest]( our investing podcast sponsored by Fidelity. You’ll hear about what AI innovations this Fidelity pro is most excited about. [Check it out]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: Gotta say, this is a really cool crossword that you have to see for yourself [here](. Three Headlines and a Lie Three of these headlines are real and one is faker than a skeleton doing a little jig. Can you spot the odd one out? - How 1 man [winterproofed]( his apartment with 6 million cotton balls - Thieves [steal]( $2,000 in used cooking oil from Chick-fil-A over the past few months - X’s new plan to [lure]( subscribers? Partnering with Paris Hilton on a custom icon - Missouri deer painted with ‘pet’ sign [raises]( concern SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=a905682a]( ANSWER We made up the one about winterproofing with cotton balls. Word of the Day Today’s Word of the Day is: hoi polloi, meaning “the masses” (it’s from ancient Greek). Thanks to Vladimir from San Diego and several other plebeians for the suggestion. Submit another [Word of the Day here](. ✳︎ A Note From Fidelity Investing involves risk, including risk of loss. Fidelity and Morning Brew are independent entities and are not legally affiliated. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 ✤ A Note From Intuit Mailchimp Disclaimer: This is sponsored content. SMS is available as an add-on to US paid plans only. Visit [Mailchimp.com]( for details. Written by [Neal Freyman]( [Abigail Rubenstein]( [Matty Merritt]( and [Molly Liebergall]( Was this email forwarded to you? Sign up [here](. Interested in podcasts? - Check out ours [here]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2023 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011