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The Brief

The most important stories for you to know today
  • How devastating SoCal fires may play out
    Palme trees sway in the wind as a home burns to the ground.
    A home burns during the Palisades Fire on Wednesday. The area, which has suffered devastating property loss, was already considered high risk for insurers.

    Topline:

    The current fires are on track to become one of the most costly disasters in California history. That could threaten the stability of California's insurance market and make housing costs go up even more.

    Where things stand: It’s too early to assess the extent of the destruction, but the fires are likely to be one of the most damaging events in state history. JP Morgan issued a preliminary estimate of $10 billion.

    Why it matters: Insurance is already pricey in California. Make it much worse and it could become too expensive for many people to own a home here.

    Keep reading... for more on what we know, and don't know, about the likely implications.

    The Los Angeles County firestorm continues to rage, taking at least five lives, causing injuries and destroying thousands of buildings. Many homes in some of the most affected areas are covered by the California FAIR plan, the state’s insurer of last resort.

    The fires could further destabilize an already rickety insurance market.

    Where things stand

    The timing of the disaster threatens to undermine the fledgling progress state officials have made in attracting insurance companies back to the California market. In the past year, officials have overhauled insurance regulations, working to increase coverage availability to consumers in high-risk areas while responding to long-standing industry requests.

    “We’re just going to be in a challenging situation. I think it’s not clear yet how challenging it will be,” said Michael Wara, energy and climate expert at Stanford University.

    It’s too early to assess the extent of the destruction, but the fires are likely to be one of the most damaging events in state history. JP Morgan issued a preliminary estimate of $10 billion.

    Whatever the final tally, the fires are sure to be a major hit to large insurers like State Farm, Allstate and Farmers, and to the California FAIR Plan.

    High value areas hit by fire

    “The fires have hit one of the highest value areas,” said Ben Collier, professor of risk management and insurance at Temple University.

    The FAIR Plan lists Pacific Palisades as one of the areas where it is most financially exposed, responsible for up to $5.9 billion. Last year, Victoria Roach, the FAIR Plan president, said the plan has about $200 million in surplus and $2.5 billion in reinsurance.

    The state recently clarified what would happen if the FAIR Plan does not have enough money to pay out claims. Other insurance companies will have to pick up the bill — and will be allowed to pass some of the costs onto customers.

    The state protects consumers from any changes to their insurance policy for one year following a disaster.

    A person in a black hoodie and mask hoses down a burnt structure.
    Joshua Martinez waters a neighbor's property in Altadena.
    (
    Erin Stone
    /
    LAist
    )

    Insurance Commissioner Ricardo Lara said in a statement that his department is committed to ensuring consumers “receive the services you contracted for with your insurance company,” adding that companies are pledging their commitment to the state.

    “We will hold them accountable for the promises they have made,” Lara said.

    While it’s too early to tell if the fires will eclipse the available FAIR Plan funds, if they did “then the next round of claims would be paid by a combination of insurance companies and from other policyholders of private insurance companies,” Collier said.

    It can already be hard to get insurance in the state, he said, “and this is likely to make the situation notably worse.”

    Fact checking internet rumors

    Within hours of these fires breaking out, internet rumors began to circulate that these fires would bankrupt insurance companies, including the FAIR Plan. That is unlikely to happen, experts said, because insurance carriers have planned for this contingency.

    In a statement emailed to KQED, a FAIR Plan spokesperson said they are aware of what they called “misinformation being posted online,” but added that it is “too early to provide loss estimates as claims are just beginning to be submitted and processed.”

    “The FAIR Plan has payment mechanisms in place, including reinsurance, to ensure all covered claims are paid,” the statement said. “The FAIR Plan remains vigilant in working with its customers in these challenging times.”

    A massive overhaul is already in progress

    State’s insurance regulators have been implementing a massive overhaul of insurance rules designed to ease the crisis in the insurance markets and to allow companies to charge what they think aligns with the risk exposure. In response, some companies are loosening up, offering more coverage to attract customers. The fires could back track that progress.

    The past year has been accompanied by eye-popping rate increases, particularly areas with wildfire-risk. But Wara said the worst is likely ahead of us.

    “The rate increases we’ve had, which have been extreme, especially for the people in the high-risk areas, such as the Sierra or Pacific Palisades, but that is a preview at this point of what is to come,” Wara said.

    Insurance companies in a catastrophe are like a bank during a bank run. And as long as you have enough money in the vault to survive the bank run, you’re OK.
    — Michael Wara, energy and climate expert at Stanford University

    Customers and insurance companies are likely to feel the pain. Companies often use reinsurance — insurance for insurers — to guarantee they’ll have enough money to payout claims.

    “Insurance companies in a catastrophe are like a bank during a bank run,” Wara said. “And as long as you have enough money in the vault to survive the bank run, you’re OK. But reinsurance means you can keep less money in your own vault because someone else’s vault is available to you.”

    However, seeing this destruction could prompt reinsurance companies to pull back further from California, which would mean insurance companies either have to raise that capital themselves or further reduce their exposure in the state.

    What's next

    While the state regulates insurance companies, it does not get to exert the same level of control over reinsurers. Nor does the federal government.

    Insurance is already pricey in California. Make it much worse and it could become too expensive for many people to own a home here.

    “There are places in Florida where insurance costs $50,000 a year,” Wara said. “If that were to happen in California in the wildland urban interface, we would be in a very different kind of challenge.”

    What has been, until now, an insurance problem could balloon into a homeownership problem, where middle- and working-class people can’t own homes because mortgage, insurance and property taxes simply become too much.

    “And [then] you have to sell your house,” Wara said. “And you find that your home value has gone down a lot because the cost of owning your home, including taxes and insurance, is a lot higher than it used to be. And that’s where we might be heading. I hope not.”

    But the chances that we are moving in that direction went up as soon as the fires broke out.

    Listen to our Big Burn podcast

    Listen 39:42
    Get ready now. Listen to our The Big Burn podcast
    Jacob Margolis, LAist's science reporter, examines the new normal of big fires in California.

    Fire resources and tips

    If you have to evacuate

    If you have more time to get ready:

    Things to consider:

    Navigating fire conditions

    How to help yourself and others

    Understanding how it got this bad

  • Work to begin Monday
    A peeling chemical tank is seen next to two other intact tanks at the GKN aerospace facility in Garden grove. An RV can be seen on the right hand side peeking into the picture. An even larger tank is behind the two other tanks.
    The chemical tank at the GKN Garden Grove aerospace facility.

    Topline:

    On Monday clean up begins for two tanks of neutralized methyl methacrylate at the center of last month’s chemical incident in Garden Grove.

    The backstory: About 50,000 Orange County residents were evacuated for several days after one of the tanks overheated on May 21, generating fears of an explosion or a leak through the Memorial Day weekend.

    What's next: The cleanup will be done in phases. This phase wraps Thursday, July 2.

    Go deeper: FBI executes search warrant at site of Garden Grove chemical meltdown scare

    A hazardous materials team will begin working Monday to remove neutralized methyl methacrylate from two of three tanks at the GKN aerospace facility in Garden Grove.

    Some 50,000 Orange County residents were evacuated for several days last month after one of the tanks overheated on May 21, causing fears of an explosion or a leak through the Memorial Day weekend.

    The clean-up will be done in phases, until Thursday, “with multiple layers of safety protocols and oversight measures in place,” according to a press release from the Orange County Health Care Agency.

    Garden Grove chemical cleanup

    Updates on the cleanup activities will be posted publicly here, including air monitoring data.

    Containers that support temperature control and secure transportation will be used in the operation.

    Cleanup was initially scheduled to begin June 4, but was postponed after officials said "needed resources" were unavailable.

    Orange County District Attorney Todd Spitzer launched an investigation into the incident last month. The FBI and Environmental Protection Agency also seized evidence at the facility earlier this month.

    Methyl methacrylate produces a fruit-like odor, Orange County Health Care Agency said residents may notice the scent during the operation. The agency said levels will remain below thresholds that could pose health risks.

    Officials say environmental protection will be in place throughout the week. Air will be continuously monitored through both mobile and fixed equipment at the fence line of the facility and in the community. Air and odor monitoring based on wind conditions will also be done. Work will occur only during the daylight hours until Thursday.

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  • Budget cuts limit education access
    a number of men in blue shirts sit at desks with papers and books in front of them, many of them holding pencils
    Incarcerated people study to take the G.E.D. exam at San Quentin State Prison on July 26, 2023.

    Topline:

    California prisons are limiting access to programs for incarcerated people as the system manages it overtime budget. The state spends about $18 billion a year on corrections.

    Why now: The rollback began earlier this month and will end June 30, according to documents obtained by CalMatters. Corrections spokesperson Terri Hardy described the limitations as a “cost-saving measure.” The department’s overall budget has remained about flat since 2022 around $18 billion a year despite recent cuts that include five prison closures.

    The backstory: Lawmakers at budget hearings earlier this year pressed Corrections Secretary Jeff Macomber to tighten spending as the department asked for additional $91 million in ongoing funding to cover unbudgeted personnel costs. The department last month also proposed an additional $100 million in workers compensation.

    Read on ... for more on how these cuts will affect programs in the prisons.

    The California Department of Corrections and Rehabilitation is restricting access to rehabilitative programming for incarcerated people as it clamps down on overtime spending before the end of its financial year.

    Hundreds of rehabilitative programs operate throughout California prisons, including restorative justice, violence prevention, higher education, creative arts expression and entrepreneurial training.

    The rollback began earlier this month and will end June 30, according to documents obtained by CalMatters. Corrections spokesperson Terri Hardy described the limitations as a “cost-saving measure.” The department did not respond to a detailed list of questions, including which prisons and programs have been affected.

    The department’s overall budget has remained about flat since 2022, around $18 billion a year despite recent cuts that include five prison closures.

    Lawmakers at budget hearings earlier this year pressed Corrections Secretary Jeff Macomber to tighten spending as the department asked for additional $91 million in ongoing funding to cover unbudgeted personnel costs. The department last month also proposed an additional $100 million in workers compensation.

    The California Correctional Peace Officers Association, the union that represents state prison guards, did not respond to CalMatters’ requests for an interview.

    Tony Tafoya, who’s been incarcerated since 2012, said he’s never seen anything like this happen before. Tafoya said the scale-back has had the biggest impact on college classes. He’s currently enrolled in Mount Tamalpais College at San Quentin but said his math class has missed out on 12 days of instruction.

    “I feel like I’m falling behind,” he said. “There’s a lot of healing that comes from going to school. It provides humanity. It makes me feel like I’m actually seen as a person. I feel like that’s what’s being missed out on.”

    Programs at Pleasant Valley State Prison in Coalinga have also been interrupted, including a civic education pilot program. The program, run by the organization Initiate Justice, includes just over a dozen incarcerated people who helped draft legislation to improve social emotional learning in the K-12 school system. Assembly Bill 1851, authored by Democratic Assemblymember Mike Gipson from Gardena, is sailing through the Legislature and scheduled for an upcoming education committee hearing Wednesday.

    Antoinette Ratcliffe, executive director of Initiate Justice, said the group “thrives off of active and live discussion, off of meaningful exploration.” The severing of that connection disrupts the learning experience and practical application of the programming, she said.

    “We have made it a goal across the Legislature to make rehabilitative programming a priority, so to continue to see disruptions like this feels counter to what we agreed upon as a state,” she said. “It feels like a let down.”

    Other advocates have echoed those sentiments. Danica Rodarmel, a criminal justice reform lobbyist, said any disruption in people’s ability to access programming impacts their mental health and well being. The completion of a program or certificate, she said, is often a determining factor in people’s ability to be granted parole.

    “Limiting people’s ability to engage in pro-social activities is contradictory to the goals of maintaining safe prisons both for the people who are incarcerated but also for the people who work there,” she said.

  • Would those most at risk trust potential vaccine?
    a person in an american flag t-shirt holds up a piece of paper with red targets printed on it and which has been shot full of holes
    Matthew Mealer holds up his targets at the Busch Shooting Range in Weldon Spring, Mo., in May. Mealer said he's generally skeptical of new vaccines but might consider one for Lyme disease if it proves safe and effective.
    Topline:
    Pharmaceutical companies Pfizer and Valneva announced this spring that they plan to seek regulatory approval for a vaccine to protect against Lyme disease. But it's unclear whether this latest stab at a Lyme disease vaccine will get a warmer reception if it's approved, especially in the post-COVID era of vaccine skepticism.

    Why it matters: About 476,000 people in the U.S. may be diagnosed and treated for Lyme disease each year, the CDC says. Left untreated, Lyme disease can cause a variety of symptoms, from fevers, chills and headaches to arthritis, shooting pains and inflammation of the brain and spinal cord.

    Read on ... to see what rural hunters in Missouri think about the possibility of a vaccine and for their stories of how the disease has affected them personally.

    It's tick season, possibly the worst in a decade.

    More and more Americans are being exposed to these parasites as climate change expands the range where they can survive. That means more people are also exposed to the bevy of health conditions they can cause, such as Rocky Mountain spotted fever, the alpha-gal-triggered red meat allergy and, most common of all, Lyme disease.

    For Lyme disease, there may be some additional protection on the horizon. Pharmaceutical companies Pfizer and Valneva announced this spring that they plan to seek regulatory approval for a vaccine to protect against Lyme disease. A previous vaccine for Lyme became available in the late 1990s but was pulled only three years later due to lawsuits, public fear of side effects and a lack of interest.

    It's unclear whether this latest stab at a Lyme disease vaccine will get a warmer reception if it's approved, especially in the post-COVID era of vaccine skepticism.

    For a sense of how it might go over with rural populations at high risk of Lyme, KFF Health News spoke with a group of hunters.

    Few people spend more time in the woods exposed to ticks. At the same time, as a collective, hunters  skew conservative, rural and male, according to a survey from the Theodore Roosevelt Conservation Partnership. And these are identities associated with increased hesitancy about or resistance to vaccines, according to Ashley Kirzinger, associate director for Public Opinion and Survey Research at KFF, a health information nonprofit that includes KFF Health News.

    Targets for ticks

    Left untreated, Lyme can cause a variety of symptoms, from fevers, chills and headaches to arthritis, shooting pains and inflammation of the brain and spinal cord, according to the Centers for Disease Control and Prevention.

    About 476,000 people in the U.S. may be diagnosed and treated for Lyme disease each year, the CDC says. That's at least in part because the range of places where cases have been reported has "expanded significantly" since 1995.

    So would hunters get the Lyme vaccine if it became available?

    "Given my proclivity for the outdoors, absolutely," said Jess Manganelli, one of seven hunters (and one hiker) who spoke with KFF Health News on a recent Saturday at the Busch Shooting Range in Weldon Spring, Mo., just outside of St. Louis.

    Of the eight, Manganelli, who had been hunting turkeys the weekend before, was the most positive about the vaccine. Six others said they would consider it but would want more information about its safety and effectiveness, as well as their risk for contracting the disease.

    But Manganelli was the only one who believed she may have previously contracted Lyme disease, although she was never formally diagnosed with it. Two years ago, she experienced muscle weakness, tiredness, fatigue, swelling and headaches after a tick bite, but when she went to urgent care, she was told they didn't test for Lyme.

    Nearly all the hunters knew someone who had had Lyme disease — an old roommate, a family member, friends, a former student. Lyme can be difficult to diagnose and to treat and is often misdiagnosed at first. Many of the hunters witnessed their acquaintances navigating those challenges and struggling with sometimes debilitating symptoms.

    An illness with lingering effects

    That familiarity among the hunters in Missouri was unsurprising to author and conservationist Steven Rinella, host of the hunting show MeatEater.

    "I'm a turkey hunter. In talking about turkey hunting, you talk about ticks as much as you talk about turkeys," Rinella said. "Just the nature of turkey hunting puts you into exposure. You're sitting for long periods of time, trying to use vegetation for concealment."

    In fact, both Rinella and his older son contracted Lyme disease 13 years ago during a bluegill fishing trip in the Hudson Valley in New York. His son developed Bell's palsy, a sudden paralysis on one side of the face, but recovered quickly after a course of oral antibiotics. Steven Rinella's symptoms, on the other hand, lingered for months, leaving him unable to walk down stairs without a handrail or to ride a bike. He ended up receiving intravenous antibiotic treatments for a month.

    "I thought my life had changed," Rinella said, "but I recovered, as far as I know."

    That experience is one reason Rinella said he would absolutely consider getting a Lyme vaccine if it proved safe and provided considerable protection against the disease. Unlike with some other diseases, prior infection does not provide permanent immunity, so a person who has had Lyme could still benefit from a vaccine.

    Knowledge of similar challenges influenced the thinking of the hunters in Missouri as well.

    Jeremy Hollingshead said he may be less inclined to take a vaccine owing to his former roommate's experience with Lyme disease, which is not to say the experience was pleasant. In fact, Hollingshead said he thinks his old pal is still dealing with lingering effects of it 10 years later. But Hollingshead has spent his whole life in the woods, and of hundreds of people he knows who have done the same, he knows of only one of them contracting Lyme.

    "I know it was a bad outcome for him," Hollingshead said, but he thinks the odds of getting Lyme himself seem pretty slim.

    Meanwhile, Julian Barnes said seeing a relative struggle with Lyme makes him more open to a potential vaccine. It took a long time for doctors to come to that diagnosis, and finding a good treatment has been equally difficult.

    "I would say I am vaccine-hesitant, generally speaking," Barnes said. "But Lyme, I've seen the way it affects people in my life. ... I would definitely have to really understand the vaccine, how it works."

    An unclear path for a new vaccine

    The new, four-dose vaccine candidate technically missed one of the bars set out in trials because not enough participants contracted Lyme. Still, the companies say it's about 75% effective in reducing cases, and they plan to submit it to regulators for approval. A Pfizer spokesperson said there were no updates on their regulatory efforts when contacted by KFF Health News in June.

    Health and Human Services Secretary Robert F. Kennedy Jr. was a noted anti-vaccine activist before taking over as head the agency that oversees vaccine approvals, and he's remade it in ways that have prompted some vaccine makers to pull back on development.

    But he's also been an advocate on Lyme disease. In May, he announced an initiative to combat Lyme disease. And during his Senate confirmation hearings, he said his family had been deeply affected by Lyme disease and that nobody would work harder than he would to find a vaccine or treatment.

    If the vaccine is ultimately approved by the FDA, an endorsement from Kennedy would go a long way, according to KFF's Kirzinger, particularly among supporters of his Make America Healthy Again movement, who tend to be more vaccine-skeptical.

    "They trust him as much as they trust their own doctors to tell them what to do with their health and for health information," Kirzinger said. "If he comes out as a strong proponent of this vaccine and says, 'Look what my administration did, and we made this available,' I would imagine there would be less vaccine resistance among that group."

    Only one of the hunters who spoke with KFF Health News said they definitely would not be interested in a Lyme vaccine if it became available.

    "I kind of hand it off to God and the body he gave me. I'm pretty durable," JP Cummings said. But even though he's not interested in it for himself, he's curious to see what his fellow hunters do as more information comes out.

    "Hunters care about the wildlife; hunters care about health," Cummings said. "They love the wildlife, they love their deer, and they love their fellow hunters."

    KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF.

  • Steep price increase likely to blame
    The federal government released data on how many people dropped coverage in the 29 states that use the HealthCare.gov marketplace for ACA insurance.

    Topline:

    Five million fewer people are currently enrolled in ACA marketplace plans compared to the record high reached last year. More than 1 million fewer people picked a plan for 2026, and then 4 million more either disenrolled or failed to pay their premiums and, therefore, dropped coverage.

    Why now: Prices in the market skyrocketed after President Donald Trump and Republicans in Congress failed to extend extra financial help for enrollees last year. The Department of Health and Human Services published a report about the data on its website Friday.

    What's next: People dropping their coverage tend to be healthier people. If too many healthy people drop out of the markets, there's a danger that the markets could enter a "death spiral."

    Read on ... for more on the latest insurance market trends.

    Far more people than previously known have dropped Affordable Care Act health insurance for 2026, according to data released Friday.

    Five million fewer people are currently enrolled in ACA marketplace plans compared to the record high reached last year. More than 1 million fewer people picked a plan for 2026, and then 4 million more either disenrolled or failed to pay their premiums and, therefore, dropped coverage.

    Prices in the market skyrocketed after President Donald Trump and Republicans in Congress failed to extend extra financial help for enrollees last year. The Department of Health and Human Services published a report about the data on its website Friday.

    The report says 19.2 million people are currently enrolled in ACA insurance now.

    At its high, 24.2 million people were in the ACA marketplace in 2025, according to government figures.

    The steep drop in enrollment reflects what insurers, administrators and other health policy experts expected earlier this year. After initial sign ups were lower than last year, they predicted the picture would get worse as time went on and people found they could not afford to pay their premiums.

    "The main takeaway is that enrollment is down 13% from last year," explains Cynthia Cox, director of KFF's Program on the ACA. "While the Trump administration attributes this drop in enrollment to their attempts to address fraud, this coverage loss happened at the same time millions of people faced double- or even triple-digit increases in their premium payments with the expiration of enhanced tax credits."

    The idea that the growth in enrollment was due to massive fraud is a theory advanced by the Paragon Health Institute, a conservative think tank influential in the Trump administration.

    Many health policy experts are skeptical. They say the increase in enrollment during the pandemic is not suspicious. It was a predictable consequence of Congress's investment of billions of federal dollars in making premiums more affordable — the enhanced premium tax credits.

    "The marketplace doubled in size during the period when there were enhanced subsidies because the coverage was much more affordable and much more appealing to people," Cox says.

    This year's drop in enrollment is also predictable, given that premium costs doubled, on average, from 2025 to 2026. The costs went up after Republican lawmakers let the enhanced premium tax credits expire; Democrats shut down the government in October 2025 trying to negotiate an extension of the credits that would have kept prices low.

    "When their costs went up, many of them dropped their coverage," Cox says.

    She adds that while fraud is a real problem in the ACA marketplaces, as it is in all insurance markets, she thinks it does not account for all of the drop in enrollment.

    Stacey Pogue, senior research fellow at the Georgetown Center on Health Insurance Reforms, agrees.

    "I don't see data that point to that conclusion that a 5 million-person drop can be explained by allegations of fraud," she says. "There's lots of evidence pointing to people making decisions based on what they can pay each month."

    The higher health insurance costs are tough for consumers in an economy still plagued by overall inflation. As congress let the prices go up, people made tough decisions about family budgets, where to work, whom to marry and more.

    It's also a problem for insurance companies, several of which have announced they will not be participating in ACA markets next year, including Cigna.

    "If there are fewer customers, then that makes the market less appealing to insurance companies," Cox says.

    That's especially true because the people dropping their coverage tend to be healthier people. If too many healthy people drop out of the markets, there's a danger that the markets could enter a "death spiral."

    Cox says she's not worried about a death spiral at this point.

    "I think there are still enough people buying ACA marketplace coverage and that's going to keep these markets working," she says. "At this point, we don't see any parts of the country that are at risk of having no insurance company. If that were to happen, that would be what a death spiral might look like."

    Even so, the premiums for these plans are on track to keep rising, which could continue to pummel consumers navigating high health care costs. Enrollment in the marketplaces may continue to shrink too. According to a recent analysis from Pogue at Georgetown, early insurance rate filings for 2027 show that rates will be going up again next year.