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Medicare drug plans are getting better next year

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Medicare drug plans are getting better next year

When Pam McClure learned she’d save nearly $4,000 on her prescription drugs next year, she said, “it sounded too good to be true.” She and her husband are both retired and live on a “very strict” budget in central North Dakota.

By the end of this year, she will have spent almost $6,000 for her medications, including a drug to control her diabetes.

McClure, 70, is one of about 3.2 million people with Medicare prescription drug insurance whose out-of-pocket medication costs will be capped at $2,000 in 2025, thanks to the Biden administration’s 2022 Inflation Reduction Act, according to an Avalere Health/AARP study.

“It’s wonderful — oh, my gosh. We would actually be able to live,” McClure said. “I might be able to afford fresh fruit in the wintertime.”

The act, a climate and healthcare law that President Biden and Vice President Kamala Harris promote on the campaign trail as one of their administration’s greatest accomplishments, radically redesigned Medicare’s drug benefit, called Part D, which serves about 53 million people 65 and older or with disabilities.

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The administration estimates that about 18.7 million people will save about $7.4 billion next year alone from the cap on out-of-pocket spending and less publicized changes.

The annual enrollment period for Medicare beneficiaries to renew or switch drug coverage or to choose a Medicare Advantage plan began Oct. 15 and runs through Dec. 7. Medicare Advantage is the commercial alternative to traditional government-run Medicare and covers medical care and often prescription drugs. Medicare’s stand-alone drug plans, which cover medicines typically taken at home, also are administered by private insurance companies.

“We always encourage beneficiaries to really look at the plans and choose the best option for them,” Chiquita Brooks-LaSure, who heads the Centers for Medicare and Medicaid Services, or CMS, told KFF Health News. “And this year in particular it’s important to do that because the benefit has changed so much.”

Improvements to Medicare drug coverage required by the Inflation Reduction Act
are the most sweeping changes since Congress added the benefit in 2003, but most voters don’t know about them, KFF surveys have found.

And some beneficiaries may be surprised by a downside: premium increases for some plans.

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CMS said Sept. 27 that nationwide, the average Medicare drug plan premium fell about $1.63 a month — about 4% — from last year.

“People enrolled in a Medicare Part D plan will continue to see stable premiums and will have ample choices of affordable Part D plans,” CMS said in a statement.

However, an analysis by KFF, a health information nonprofit that includes KFF Health News, found that “many insurers are increasing premiums” and that large insurers, including UnitedHealthcare and Aetna, also reduced the number of plans they offer.

Many Part D insurers’ initial 2025 premium proposals were even higher.

To cushion the price shock, the Biden administration created what it calls a demonstration program to pay insurers $15 extra a month per beneficiary if they agreed to limit premium increases to no more than $35.

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“In the absence of this demonstration, premium increases would certainly have been larger,” Juliette Cubanski, deputy director of the Program on Medicare Policy at KFF, wrote in her Oct. 3 analysis.

Nearly every Part D insurer agreed to the arrangement. Republicans have criticized it, questioning CMS’ authority to make the extra payments and calling them a political ploy in an election year. CMS officials say the government has taken similar measures when implementing other Medicare changes, including under President George W. Bush, a Republican.

Whatever the reason, premiums are going up dramatically for some plans.

In California, for example, Wellcare’s popular Value Script plan went from 40 cents a month to $17.40. The Value Script plan in New York went from $3.70 a month to $38.70, a more than tenfold jump.

Cubanski identified eight plans in California that raised their premiums exactly $35 a month. KFF Health News found that premiums went up for at least 70% of drug plans offered in California, Texas and New York and for about half of the plans in Florida and Pennsylvania — the five states with the most Medicare beneficiaries.

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Spokespeople for Wellcare and its parent company, Centene Corp., did not respond to requests for comment. In a statement this month, Sarah Baiocchi, Centene’s senior vice president of clinical and specialty services, said Wellcare would offer the Value Script plan with no premium in 43 states.

In addition to the $2,000 drug spending limit, the Inflation Reduction Act caps Medicare copayments for most insulin products at no more than $35 a month and allows Medicare to negotiate prices of some of the most expensive drugs directly with pharmaceutical companies.

It will also eliminate one of the drug benefit’s most frustrating features, a gap known as the “donut hole,” which suspends coverage just as people face growing drug costs, forcing them to pay the plan’s full price for drugs out-of-pocket until they reach a spending threshold that changes from year to year.

The law also expands eligibility for “extra help” subsidies for about 17 million low-income people in Medicare drug plans and increases the amount of the subsidy. Drug companies will be required to chip in to help pay for it.

Starting Jan. 1, the redesigned drug benefit will operate more like other private insurance policies.

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Coverage begins after patients pay a deductible, which will be no more than $590 next year. Some plans offer a smaller fee or no deductible, or exclude certain drugs, usually inexpensive generics, from the deductible.

After beneficiaries spend $2,000 on deductibles and copayments, the rest of their Part D drugs are free.

That’s because the Inflation Reduction Act raises the share of the bill picked up by insurers and pharmaceutical companies.

The law also attempts to tamp down future drug price increases by limiting increases to the consumer price inflation rate, which was 3.4% in 2023. If prices rise faster than inflation, drugmakers have to pay Medicare the difference.

“Before the redesign, Part D incentivized drug price increases,” said Gina Upchurch, a pharmacist and the executive director of Senior PharmAssist, a Durham, N.C., nonprofit that counsels Medicare beneficiaries. “The way it is designed now places more financial obligations on the plans and manufacturers, pressuring them to help control prices.”

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Another provision of the law allows beneficiaries to pay for drugs on an installment plan, instead of having to pay a hefty bill over a short period of time. Insurers are supposed to do the math and send policyholders a monthly bill, which will be adjusted if drugs are added or dropped.

Along with big changes brought by the law, Medicare beneficiaries should prepare for the inevitable surprises that come when insurers revise their plans for a new year. In addition to raising premiums, insurers can drop covered drugs and eliminate pharmacies, doctors, or other services from the provider networks that beneficiaries must use.

Missing the opportunity to switch plans means coverage will renew automatically, even if it costs more or no longer covers needed drugs or preferred pharmacies. Most beneficiaries are locked into Medicare drug and Advantage plans for the year unless CMS gives them a “special enrollment period.”

“We do have a system that is run through private health plans,” CMS chief Brooks-LaSure said. But she noted that beneficiaries “have the ability to change their plans.”

But many don’t take the time to compare dozens of plans that can cover different drugs at different prices from different pharmacies — even when the effort could save them money. In 2021, only 18% of Medicare Advantage drug plan enrollees and 31% of stand-alone drug plan members checked their plan’s benefits and costs against competitors’, KFF researchers found.

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This article was produced by KFF Health News, which publishes California Healthline, an editorially independent service of the California Health Care Foundation.

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China’s Clean Energy Push is Powering Flying Taxis, Food Delivery Drones and Bullet Trains

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China’s Clean Energy Push is Powering Flying Taxis, Food Delivery Drones and Bullet Trains

As an American reporter living in Beijing, I’ve watched both China and the rest of the world flirt with cutting-edge technologies involving robots, drones and self-driving vehicles.

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But China has now raced far beyond the flirtation stage. It’s rolling out fleets of autonomous delivery trucks, experimenting with flying cars and installing parking lot robots that can swap out your E.V.’s dying battery in just minutes. There are drones that deliver lunch by lowering it from the sky on a cable.

If all that sounds futuristic and perhaps bizarre, it also shows China’s ambition to dominate clean energy technologies of all kinds, not just solar panels or battery-powered cars, then sell them to the rest of the world. China has incurred huge debts to put trillions of dollars into efforts like these, along with the full force of its state-planned economy.

These ideas, while ambitious, don’t always work smoothly, as I learned after taking a bullet train to Hefei, a city the size of Chicago, to see what it’s like to live in this vision of tomorrow. Hefei is one of many cities where technologies like these are getting prototyped in real time.

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I checked them all out. The battery-swapping robots, the self-driving delivery trucks, the lunches from the sky. Starting with flying taxis, no pilot on board.

Battery-swapping robots for cars

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Of course, far more people get around by car. And navigating Hefei’s city streets shows how China has radically transformed the driving experience.

Electric vehicles (including models with a tiny gasoline engine for extra range) have accounted for more than half of new-car sales in China every month since March. A subcompact can cost as little as $9,000.

They are quite advanced. New models can charge in as little as five minutes. China has installed 18.6 million public charging stations, making them abundant even in rural areas and all but eliminating the range anxiety holding back E.V. sales in the United States.

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Essentially, China has turned cars into sophisticated rolling smartphones. Some have built-in karaoke apps so you can entertain yourself while your car does the driving.

You still need to charge, though.

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Lunch from the sky

China’s goal with ideas like these is to power more of its economy on clean electricity, instead of costly imported fossil fuels. Beijing has spent vast sums of money, much of it borrowed, on efforts to combine its prowess in manufacturing, artificial intelligence and clean energy to develop entirely new products to sell to the rest of the world.

Drone delivery has a serious side. Hospitals in Hefei now use drones to move emergency supplies, including blood, swiftly around the city. Retailers have visions of fewer packages stuck in traffic.

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But does the world need drone-delivered fast food? And how fast would it really be? As afternoon approached, we decided to put flying lunches to the test.

We decided to eat in a city park where a billboard advertised drone delivery of pork cutlets, duck wings and milk tea from local restaurants, or hamburgers from Burger King. Someone had scrawled in Chinese characters on the sign, “Don’t order, it won’t deliver.” A park worker offered us free advice: Get someone to deliver it on a scooter.

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Undeterred, we used a drone-delivery app to order a fried pork cutlet and a small omelet on fried rice. Then, rather than wait in the park, we went to the restaurant to see how the system worked.

Very rapid transit

China’s bullet trains are famous for a reason. Many can go nearly 220 miles per hour — so fast that when you blast past a highway in one of these trains, cars look like they’re barely moving.

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In less than two decades China has built a high-speed rail network some 30,000 miles long, two-thirds the length of the U.S. Interstate highway system. As many as 100 trains a day connect China’s biggest cities.

Building anything this enormous creates pollution in its initial construction, of course, using lots of concrete and steel. Construction was expensive and the system has racked up nearly $900 billion in debt, partly because it’s politically hard to raise ticket prices.

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But the trains themselves are far less polluting than cars, trucks or planes. And they make day trips fast and easy. So we decided to hop over to Wuhan, more than 200 miles away.

Taxis that drive themselves

We rolled into Wuhan looking forward to catching a robot taxi. While a few U.S. cities have experimented with driverless cars, China leads in the number on the road and where they can operate.

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Wuhan is one of a dozen or more Chinese cities with driverless taxis. Hundreds now roam most of the city, serving the airport and other major sites.

But train stations are a special problem. In big cities, some stations are so popular that the streets nearby are gridlocked for blocks in every direction.

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That was the case in Wuhan. Autonomous cars have not been approved in the chronically gridlocked streets next to the train stations, which meant that, to meet our robot taxi at its pickup spot, we either needed to walk 20 minutes or hop on a subway. (We walked.)

Of course if you want your own personal self-driving car, dozens of automakers in China sell models with some autonomous features. However, you are required to keep your hands on the wheel and eyes on the road. Just this month, regulators told automakers to do more testing before offering hands-free driving on mass production cars.

We wanted the full robot chauffeur experience.

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Robot trucks don’t need windows

After a meal at one of Wuhan’s famous crawfish restaurants, we headed back to Hefei.

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We had enjoyed Hefei’s airborne lunches, but there’s a lot more autonomous delivery in that city than just food. China still has many intercity truck drivers, but is starting to replace them with robot trucks for the last mile to stores and homes.

The trucks look strangely faceless. With no driver compartment in front, they resemble steel boxes on wheels.

The smaller ones in Hefei carry 300 to 500 packages. The trucks go to neighborhood street corners where packages are distributed to apartments by delivery people on electric scooters or a committee of local residents. Larger trucks serve stores.

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Robot delivery trucks now operate even in rural areas. I recently spotted one deep in the countryside as it waited for 13 water buffalo to cross a road.

Subways get a makeover

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Cities across the country are rapidly building subways. So many, in fact, that China has become the world’s main manufacturer of automated tunnel-boring machines.

It has also pioneered the manufacture of prefab subway stations. They’re lowered in sections into holes in the ground. Building a new station can take as little as two months.

Nearly 50 cities in China have subway networks, compared with about a dozen in the U.S., and they tend to be popular and heavily used.

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As in many Chinese cities, people in Hefei live in clusters of high-rises, and many live or work close to stations. The trains cut down on traffic jams and air pollution.

And like so many things, new ones are usually driverless.

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The changes are spreading across the country.

Many Chinese cities have not only replaced diesel buses with electric ones but are also experimenting with hydrogen-powered buses. And driverless buses. And driverless garbage trucks. And driverless vending machines.

One such vending machine was operating in the Hefei park where we ordered our drone lunches. According to a nearby hot dog vendor, the brightly lit four-wheeler drove into the park every morning, though always accompanied by a person on a bike who made sure nothing went wrong.

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A robotic snack machine that needs a chaperone — how practical is that? But the fact that they are rolling around the streets of Hefei at all says something about China’s willingness to test the boundaries of transportation technologies.

Some ideas may not work out, and others might suit China but not travel well. For example, Beijing can essentially order arrow-straight rail lines to be built almost to the heart of urban areas with little concern for what’s in the way. Other countries can’t replicate that. Chinese-built bullet trains in Nigeria and Indonesia, which travel from one city’s suburbs to the next, haven’t proven nearly as popular.

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Still, China shows a willingness to take risks that other countries may not. In San Francisco the death of a bodega cat, killed by a self-driving taxi, has hurt the industry’s image. But in China, fleets of similar cars are operating widely and censors delete reports of accidents. The cars are improving their software and gaining experience.

As for me, after several days putting Hefei’s idea of the future to the test, it was time to head for my next reporting assignment, in Nanjing. By bullet train, of course.

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After the L.A. fires, heart attacks and strange blood test results spiked

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After the L.A. fires, heart attacks and strange blood test results spiked

In the first 90 days after the Palisades and Eaton fires erupted in January, the caseload at Cedars-Sinai Medical Center’s emergency room looked different from the norm.

There were 46% more visits for heart attacks than typically occured during the same time period over the previous seven years. Visits for respiratory illnesses increased 24%. And unusual blood test results increased 118%.

These findings were reported in a new study published Wednesday in the Journal of the American College of Cardiology. The study, part of a research project documenting the fires’ long-term health effects, joins several recent papers documenting the disasters’ physical toll.

While other U.S. wildfires have consumed more acres or cost more lives, the Palisades and Eaton fires were uniquely dangerous to human health because they burned an unusual mix of materials: the trees, brush and organic material of a typical wildfire, along with a toxic stew of cars, batteries, plastics, electronics and other man-made materials.

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There’s no precedent for a situation that exposed this many people to this kind of smoke, the paper’s authors said.

“Los Angeles has seen wildfires before, it will see wildfires again, but the Eaton fire and the Palisades fire were unique, both in their size, their scale and the sheer volume of material that burned,” said Dr. Joseph Ebinger, a Cedars-Sinai cardiologist and the paper’s first author.

The team did not find a significant increase in the overall number of visits to the medical center’s emergency room between Jan. 7, the day the fires began, and April 7. The department recorded fewer in-person visits for mental health emergencies and chronic conditions during that time compared to the same time period in earlier years, said Dr. Susan Cheng, director of public health research at Cedars-Sinai and the study’s senior author.

The increase in visits for acute cardiovascular problems and other serious sudden illnesses made up the difference.

The study team also looked at results from blood tests drawn from patients visiting the ER for serious physical symptoms without immediate explanation — dizziness without dehydration, for example, or chest pains not caused by heart attacks.

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Their blood tests returned unusual results at a rate more than double that seen in previous years. These atypical numbers cut across the spectrum of the blood panel, Cheng said. “It could be electrolyte disorder, change in protein levels, change in markers of kidney or liver function.”

The rate of unusual test results held steady through the three-month period, leading the team to conclude that exposure to the fires’ smoke “has led to some kind of biochemical metabolic stress in the body that likely affected not just one but many organ systems,” Cheng said. “That’s what led to a range of different types of symptoms affecting different people.”

Joan Casey, an environmental epidemiologist at the University of Washington who was not part of the Cedars-Sinai team, noted that the study found health effects lasting over a longer period than similar studies have.

Three months “is a substantial length of time to observe elevated visits, as most studies focused on acute care utilization following wildfire smoke exposure find increased visit counts over about a weeklong period,” Casey said. Her own research found a 27% increase in outpatient respiratory visits among Kaiser Permanente Southern California members living within 12.4 miles of the burn zones in the week following the fires.

“The L.A. fires were such a severe event, including not only smoke, but also evacuation and substantial stress in the population, that effects may have lingered longer,” Casey said.

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Thirty-one people are known to have died as a direct result of injuries sustained in the fires. But researchers believe that when taking into account deaths from health conditions worsened by the smoke, the true toll is significantly higher.

A research letter published earlier this year in the Journal of the American Medical Assn. calculated that there were 440 excess deaths in L.A. County between Jan. 5 and Feb. 1. That paper looked at deaths caused by a variety of factors, from exposure to air pollution to disrupted healthcare as a result of closures and evacuations.

On Tuesday, a team from Stanford University published itsprojection that exposure to the fires’ smoke, specifically, led to 14 deaths otherwise unaccounted for.

Wildfire is a major source of fine particulate pollution, bits measuring 2.5 microns or less in diameter that are small enough to cross the barriers that separate blood from the brain and the lungs’ outer branches.

Compared with other sources, wildfire smoke contains a higher proportion of ultrafine particles miniscule enough to penetrate the brain after inhalation, Casey told The Times earlier this year. The smoke has been linked to a range of health problems, including dementia, cancer and cardiovascular failure.

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In the last decade, increasing numbers of wildfires in Western states have released enough fine particulate pollution to reverse years’ worth of improvements under the Clean Air Act and other antipollution measures.

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On a $1 houseboat, one of the Palisades fire’s ‘great underdogs’ fights to stay afloat

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On a  houseboat, one of the Palisades fire’s ‘great underdogs’ fights to stay afloat

Rashi Kaslow sat on the deck of a boat he bought from a friend for just $1 before the fire. After the blaze destroyed his uninsured home in the Palisades Bowl mobile home park — which the owners, to this day, still have not cleared of fire debris — the boat docked in Marina del Rey became his home.

“You either rise from the ashes or you get consumed by them,” he said between tokes from a joint as he watched the sunset with his chihuahua tucked into his tan Patagonia jacket.

“Some people take their own lives,“ he said, musing on the ripple effect of disasters. “After Katrina, a friend of my mom unfortunately did that. … Some people just fall into the bottle.”

The flames burn not only your house, but also your most sacred memories. Among the few items Kaslow managed to save were journals belonging to his late mother, who, in the 1970s, helped start the annual New Orleans Jazz Fest, which is still going strong today.

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A disaster like the Palisades fire burns your entire way of life, your community, your sense of self.

The fire put a strain too big to bear on Kaslow’s relationship with his long-term girlfriend. The emotional trauma he experienced forced him to take a break from boat rigging, a dangerous profession he’s practiced for 10 years that requires sharp mental focus as you scale ship masts to wrangle a web of ropes, wires and blocks.

Some days, he feels kind of all right. Others, it’s like he’s drowning in grief. “You try to get back on that horse and do this recovery thing — the recovery dance,” Kaslow said, “which is boring, to say the least.”

Living on a houseboat comes with its own rituals; these largely keep Kaslow occupied. He goes to the boathouse for his ablutions, walks his chihuahua around the marina and rides an electric skateboard into the nearby neighborhoods for a change of scenery.

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‘You either rise from the ashes or you get consumed by them.’

— Rashi Kaslow

He’s not yet sure where he’ll end up. Maybe someday the owners of the Palisades Bowl will let him rebuild, but Kaslow is too much of a pragmatist to get his hopes up. Maybe he’ll eventually scrape together enough money to leave the city he’s called home for more than two decades and finally buy a regular old house — not a mobile home, not a boat.

As 2025 slogged on, Kaslow repeatedly watched leaders do little to help. The Los Angeles Fire Department had failed to put out the Lachman fire. Gov. Gavin Newsom’s state park had failed to monitor the burn scar for hotspots. The Los Angeles Department Water and Power had failed to fill the Santa Ynez Reservoir, meant to protect the Pacific Palisades. Police failed to protect his burned lot from looters. Mayor Karen Bass failed to force the owners of the Palisades Bowl to clear the lot of debris.

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Kaslow imagines welcoming Bass and Newsom onto his boat — his life now — and sailing out into the sunset. “There should be some accountability,” he said. “I just want to look them in the eyes and ask them, ‘What the f— really happened?’”

Rashi Kaslow holding a ceramic vase he recovered from the ruble of his home, destroyed by the Palisades fire.

Kaslow holds a ceramic vase he recovered from the rubble of his home.

It’s a sentiment shared by many from the Bowl, who Kaslow has dubbed the fire’s “great underdogs.” They’re among the Palisadians who’ve been essentially barred from recovering — be it due to financial constraints, uncooperative landowners or health conditions that make the lingering contamination, with little help from insurance companies to remediate, simply too big a risk.

“I don’t want to be a victim for the rest of my life,” Kaslow said. “I don’t want to let this destroy me anymore than it already has.”

As November’s beaver supermoon rose above the marina, pulling the tide up with it, he felt a glimmer of optimism — a foreign feeling, like reconnecting with an old friend.

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Kaslow had received a bit of money from one of the various resident lawsuits against the Palisades Bowl’s owners, as well as a modest housing grant from Neighborhood Housing Services, a local nonprofit, that covered the rent for his spot in the marina.

But a week later, Neighborhood Housing Services ran out of money, and a federal loan that could finally help him to move on from simply trying to stay afloat to charting his future remains far off on the horizon.

Regardless, Kaslow cannot help but feel grateful, despite all he’s lost. He thinks of his elderly neighbors whose entire lives were upended in their final years. Or the kids of nearby Pali High, who pushed their way through the COVID-19 pandemic only to have their school burn in the blaze.

He thinks of the countless people quietly going through their own personal tragedies, without the media attention or outpouring from the greater community or support from the government: A messy divorce that leaves a young mother isolated; a kitchen fire in suburban America that levels a home; an interstate car crash that kills someone’s child.

“You start to appreciate things more, I think, when your whole life is shaken up,” Kaslow said, looking out at the moonlight glimmering across the marina. “That is a blessing.”

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