The bigger bite taken out of Minnesotans' paychecks by higher consumer costs is being seen in multiple ways - including the possibility of corporate profiteering.
A new report from the Groundwork Collaborative said corporations are taking advantage of the pandemic to drive up costs for things such as prescription drugs, groceries and diapers. The authors pointed to corporate earnings calls in which some CEOs openly boast about their price hikes.
Shirwa Adan, executive director of the Central Minnesota Community Empowerment Organization, which helps immigrants with needs such as job placement, said it's clear these individuals are feeling the squeeze.
"It's something that the community is feeling and those low-income families, maybe that are using government assistance, what you're seeing is whatever they will receive, it stays the same," he said, "but the prices have doubled across the board."
He also said he sees local residents scrambling to find higher-paying jobs to offset price increases. The report compiled information that details near-record corporate profits. And the U.S. Commerce Department noted these margins are at their highest level in 70 years.
Corporate leaders argued the spikes are largely fueled by supply-chain issues and labor shortages, but the Groundwork Collaborative suggested those arguments are a shield for decades of corporations monopolizing certain industries, creating less competition and worsening supply issues seen today.
Coleen Bui, who owns Shear Reflections, a hair salon in Worthington, said it's harder to buy products, the ones she can locate are more expensive, and her stylists have seen changes in customer activity.
"People stretch out their appointments further in between," she said. "It makes a difference on what the girls take in."
Shannon Berns, who founded Du Nord, a Minnesota-based small-business consulting firm, said clients are still in "recovery mode" from the pandemic and are now passing along price hikes for their products onto customers. She said some are raising eyebrows about the extra costs from suppliers.
"It's hard for them to understand why I just had my prices hiked 50% last month," she said, "and now you're hiking them again, by the same or more."
Minnesota's attorney general has called on state lawmakers to advance legislation on the issue, including updates to anti-competitive statues. But the report said a broader crackdown is needed, as well as more investment in supply-chain infrastructure, to make a difference.
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The cost of heading out of town this Memorial Day weekend will be higher than past years, with higher gas prices and inflation hitting travelers. However, many Montanans still will be getting out of town.
The average price of gas per gallon in Montana is $4.38, slightly below the national average of $4.60 but still a record high for the state.
Aldo Vazquez, spokesperson for AAA Montana, said people want to get away from home this weekend.
"It really isn't impacting their desire to travel much," Vazquez reported. "We are seeing an increase in travel across the board - 39 million people are going to be traveling across the country for the Memorial Day holiday. That's three million more folks than traveled last year."
Although numbers are up from last year, Vazquez noted they are not to the levels from just before the pandemic, and are more in line with 2017 numbers.
Vazquez pointed out there are some ways to save money, such as making sure your tires are fully inflated, and dodging stop-and-go traffic, which burns gas faster.
"If you can avoid those hours between 1 to about 8 p.m. and leave maybe earlier in the morning or later on at night," Vazquez advised. "Not only are you going to save a little bit more on gasoline, but you can also save a lot of that headache and stress about being stuck in traffic and get to your destination smoother."
For people traveling by air, Vazquez suggested passengers arrive at the airport early. He noted staff shortages have led to more flight cancellations than usual, a pattern ongoing since last year.
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During the first year of the global pandemic, medical consumers in Colorado received more than one million low-value healthcare services - diagnostic tests, screenings and treatments where the risk of harm outweighs any likely benefit to the patient.
Cari Frank, vice president for communications with the Center for Improving Value in HealthCare - the group behind a new report, said consumers and insurers paid $134 million for these services in 2020.
"Even in spite of COVID, when people weren't accessing health-care services the same way," said Frank, "we still saw high numbers of these low-value care services. And they cost a lot of money, both to the health plans and to the patient, and actually can cause harm to patients."
The most obvious example of low-value care is when providers prescribe opioids for acute back pain without first trying alternative medication - a remedy that comes with significant risk of addiction and even death.
Health providers across the nation, working with medical boards and other professional associations, have created a list and guidelines for low-value services through an initiative called Choosing Wisely.
Frank said getting the word out can help bring down overall health costs. She said many services now considered low-value care were considered best practices at one time.
"A lot of things are just, historically, the way the provider has treated patients," said Frank. "And it takes a while when the guidelines change, for there to be an actual adoption of the guidelines."
The average cost for low-value services is $130 - but some, including peripheral catheters for patients with late-stage kidney disease, cost more than $14,000 per incidence.
Frank noted that every patient is different, and some procedures flagged as low-value may actually be the right course for patients.
"There might be family history, or there might be medical history where they have tried some other alternative," said Frank. "So there still needs to be that kind of communication between the provider and the patient."
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The baby-formula shortage is hitting Michigan families hard, especially those who live in rural areas, are low-income or have kids with digestive or other health issues.
Because of supply problems and a massive safety recall by the Michigan Abbott factory in February, the Food and Drug Administration says it is working with manufacturers to increase their output and trying to import more formula.
Data released this week revealed out-of-stock rates jumped to 40% at the end of April. Elyssa Schmier, vice president for government relations with Moms Rising, said she has been dealing with the shortage herself in Michigan.
"Anyone who has a child with medical issues or digestive issues, a lot of them use a particular type of formula that they've found works along with their doctors," said Schmier. "And switching formula is not only incredibly hard, but could be detrimental to their child's health."
She said some moms are driving hours and even crossing state lines to find specialized formula, or buying online for prices far higher than normal. She added that for folks living in rural areas, if their regular store is out of formula, they might not have another nearby option.
Schmier said folks who are struggling to afford formula should reach out to WIC - the Women, Infants and Children special supplemental nutrition program. But she added that the shortage is hitting WIC recipients particularly hard, because they are limited to purchasing certain brands.
"They've been able to get waivers and work in some flexibility for WIC recipients," said Schmier. "But these are people who are low-income. They don't have the ability to stockpile."
Schmier said while it may be tempting to water down formula to conserve it, try to make homemade formula or use cow's milk, it's really important to consult your pediatrician.
"I know from personal experience," said Schmier. "My son didn't switch very easily. He had some digestive issues when we originally switched him. And so your health-care provider can provide you with a lot of good advice of how to slowly do that, how to safely do that."
Moms Rising is circulating a petition calling on President Joe Biden to use the Defense Production Act to get formula on the shelves as soon as possible.
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