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Obama, Healthcare Reform, and the Poor

Friday, May 21st, 2010

Obama’s plan for healthcare reform is making waves. On both sides of the political ticket, there are many who think it is a good idea, although each side has their own reasons why and what they think would work. Still, even if those in congress think this new healthcare plan is a good thing, regardless of their reasons, maybe they government should really ask the people who live in this country what they think of the plan. Some are all for it, some do not like it a bit, some are middle of the road, some are indifferent, and there is a small group that is a little bit scared. This group does not fully understand the new bill. They have simply heard that they will have to pay for health insurance or face penalties under the law. They know that health insurance costs a fortune and for the poor, even cutting the cost of health insurance does not ease the burden of the idea of trying to afford more than one’s limited budget allows.

The Poor Can Breathe a Sigh of Relief

When you’re poor, low-income, living on a fixed income, you typically get a routine going with the bills and that is that. You know you’re going to be broke when all is said and done, but you are used to, got the hang of things every month and at least you have what you have. For the poor, we are happy with just that. However, let someone throw in an unexpected or inconvenient expense, and that’s when the stress begins. Money does not grow on trees. You can not make a turnip bleed. Whatever cliche you want to use, the bottom line is poor is poor is poor, especially in today’s economy. We live with what we have and finding more is not very easy.

When it comes to the Obama Healthcare Plan, the poor can breathe a huge sigh of relief, and they do not have to wait until 2014 to do so. They can understand right now that there are provisions within this law that will both help them and protect them.

The Details

Healthcare reform is going to bring about some big changes in medical insurance. There will be state and federal “markets,” open to all citizens for purchasing the insurance coverage they need. For those who can not possibly afford a policy, government subsidy will be available. The new plan will bring new and strict regulations with it and will make it easier and cheaper for Americans to obtain health insurance and for those with pre-existing conditions not to face denials and exclusions.

If you lose you job or your income is cut, you can apply for the subsidy and for financial hardship that will keep you from facing the tough penalties for not being insured. If your income is low enough that you can not even file an annual tax return, the government says you won’t be subject to the mandate. In that case, you will likely keep your state medical assistance or Medicare. If the cheapest plan available is still more than 8% of your income, no problem, the government is not going to hold you to it. The subsidy will be there to protect you in this case as well.

These subsidies allow you to purchase affordable insurance so you will have medical coverage without having to pay the expense out of your own limited funds. This applies even if you’re employer offers insurance, but you just can not afford it (poverty level and  income guidelines apply).

Penalties

For those who could still face the mandates and associated penalties, the good news is that these penalties will be adjusted based on the cost of living. The penalties will not exceed 2.5 percent of your individual or total household income.

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ACLI Responds to Obama Administration’s Inquiry as to the Usefulness of Annuities for Retirement

Monday, May 10th, 2010

The Obama Administration wants to know just how useful annuities can be in beefing up the savings and income for those retiring and planning for retirement. The ACLI (American Council of Life Insurers) has issued recommendations to the Obama Administration for retirement policies. They are pushing for guaranteed income as part of employer-based retirement options and that limited tax incentives be used to encourage the use of annuities.

Annuities are the Key

Pensions are becoming a thing of the past, and with the limited contributions allowed in IRAs, 401(k) options, etc., and the limitations of social security benefits, an annuity can be the key to saving for retirement and ensuring future income and benefits. The ACLI says they do not think that mandating fixed annuities is the best idea; they are more interested in seeing that this is simply an offer that is always on the table for those who want to invest in an annuity. Annuities offer tax-deferred savings with no cap on contributions, padding future retirement savings and income.

The Future of Annuities

In February of this year (2010), the U.S. Departments of Labor and the Treasury began asking for public input on the subject of annuities as a part of retirement plan offerings. They were interested in looking into the benefits and costs of distributing and guaranteed continued income for life after retirement as well as lump sum payments and what kind of information and options need to be available to those in the workforce so that they can make the decision that is right for them.

The ACLI has released information from a study conducted among the general public. The study involves workers views on retirement options and whether or not they would like for their employers to offer information on products for guaranteed income, such as annuities. This study found that 90% of respondents in this study were definitely interested in having this option to choose from.

Annuities are already popular, though not something everyone knows much about. Perhaps with the downfall of pensions and the limitations we are seeing with other retirement options, annuities will become the next big thing for all American workers.

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Scammers Taking Advantage of New Healthcare Bill

Friday, April 9th, 2010

As always, where there is a mandate or cause that makes the American people vulnerable, there are some snakes lurking in the shadows, waiting to slither in and take advantage of that vulnerability.

Such is the case with the new healthcare bill coming into effect thanks to the Obama Administration. While this new healthcare plan has both its good points and bad points, the last thing any of us need on top of that is some shady salesman knocking on the door, offering a deal that sounds too good to pass up and finding ourselves up the creek in the long run.

The Scoop

President Obama’s healthcare plan, one in effect, will require all Americans to carry some form of medical insurance, whether it be through government help or through employer or private pay. While it may seem somewhat inconvenient for some, this law guaranties medical coverage for all Americans, which has been sadly lacking for years, and will ring some major changes in insurance itself, such as the inclusion of preexisting conditions. Unfortunately, the elderly and the currently uninsured are the most vulnerable at this point and have become the targeted prey of lowly insurance scammers.

These con artists are already at work, creating bogus insurance plans to fool the most vulnerable people out of their money. These scams are popping up in the form of insurance plans that are said to be created as a result of the new healthcare. They sound enticing, with all the right wording and offers, but are sadly lacking and will leave the consumer empty handed.

Be on the Lookout

The government is already issuing alerts waring consumers to beware of scams that are popping up. It’s hard to always tell a scam from the real thing, but remember, if it sounds too good to be true, it most likely is. The new healthcare law might be bringing some changes to insurance policies, however, it doe not facilitate a need for complete rewrites of policies. Be on the lookout for those claiming the plan is a result of, or necessary because, the new law. Also listen for plans claiming limited enrollment periods. Reputable insurance does not have a buy it now or else provision. As for benefits, there will be improvements with the new law, but they’re not likely to be huge changes from what we have now, at least not enough to change the polices.

Don’t be afraid to talk to these schisters. Be aware and take note of what they are saying. Do not get reeled in though, and if you do suspect a scam, be sure to feign enough interest to get information to contact the person and then report them to your state’s attorney general. These people can not be allowed to get away with using the healthcare law for their ill-gotten gains!

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Is it still Possible to Find Affordable Life Insurance after 50?

Wednesday, March 17th, 2010

This answer is most undeniably “yes!”

Let’s face it: the best policies for the best prices are reserved for younger individuals. In fact, you’d be crazy not to purchase a life insurance in your early 20s: this is the best time to buy!

However, not all of us are in the best financial state to purchase life insurance during this time, and many of us find our life situation changing dramatically as we get older. It is because of this that many middle-aged Americans are searching for comprehensive - yet affordable - life insurance policies.

Longer Life Expectancies Keeping Insurance Rates Low

Prices for life insurance are still quite attractive, even during middle age, as people are living longer; and that means better pricing. In other words, as life expectancies rise, life insurance rates lower.

Today’s older Americans are much different that their parents or grandparents, as they are most likely working and incurring debt. They are also much more likely to have minor children. As a result, the need for quality life insurance for individuals, even well into their 50s and 60s, is much greater.

The Competitive Life Insurance Business

Keep in mind that the life insurance business is a competitive one, and there seems to be an endless supply of life insurance carriers that provide life insurance to individuals of nearly an age. In other words, take advantage of that competition to get the best deal on life insurance.

Because of the increase in life expectancies, and because many middle aged individuals are still quite active, many life insurance companies have taken notice and have therefore developed a nice array of affordable term life insurance plans. Many of the newer term life insurance plans do not even require an extensive physical or medical evaluation.

Looking to the Internet

A great source for life insurance policies for older Americans is the Internet. Many of the companies online offer easy, online applications and quotes, thereby great simplifying the process of shopping for term life insurance.

Let’s assume that term policies for older individuals will be limited; in other words, you wouldn’t be able to find a 30-year term policy for someone who is 70, but there are still many shorter-term policies available at affordable rates.

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Practical Homeowners Insurance Tips to Remember

Tuesday, February 9th, 2010

One of the first things you must do when shopping for a home is to shop around for the best homeowner’s insurance rates. Many individuals, excited about the whole home buying process, tend to neglect the important of a comprehensive, affordable homeowner’s insurance policy. However, a homeowner’s insurance policy can be your saving grace should your home become damaged or completely destroyed.

With that said, there are a number of practical tips that all homeowners should remember when it comes to homeowner’s insurance:

  • Always check the company and research the agent’s qualifications before purchasing homeowner’s insurance. Make sure that you understand your agent’s qualifications, and that you have a good rapport with him or her.

  • If homeowner’s insurance rates are too steep for your budget, consider raising your deductible to lower your rates. Also keep in mind, however, that a larger deductible will equate to more out-of-pocket expenses should you need to file a claim.

  • Remind your homeowner’s insurance agent about items that can lower your premiums, including fire extinguishers, deadbolts, smoke detectors and home security systems.

  • Consider updating your home to better withstand weather conditions (and prevent homeowner’s insurance claims); this may include stronger roofing materials, better windows and a newer electrical panel.

  • Ask your homeowners insurance company if they provide automatic payment systems or web payment systems; these will make the process of paying your homeowners insurance easier, and may allow you to receive rate discounts from your homeowner’s insurance company.

  • Make sure you have adequate coverage, including replacement cost value. Make sure your valuables, such as antiques and jewelry, are also covered (these may require a separate policy).

  • Consider video taping your home for home inventory purposes. Walk from room to room, properly recording all furniture, electronics and personal items and store the videotape in a separate, safe location, such as a safety deposit box.

  • Consider purchasing separate insurance, depending on where you live. For example, you may want to purchase flood insurance if you live in a low-lying area, as standard homeowner’s insurance policies typically don’t cover flood claims.

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Home Owners Insurance Deciphered

Tuesday, December 22nd, 2009

Home owners insurance can be a bit confusing for new homeowners. We all hear the horror stories: home owners not taking out enough coverage or the right kind of coverage and then not being protected when their house burns to the ground. It pays to educate yourself about home owners insurance so you won’t be one of those homeowners stressing out about their coverage on their most important asset. To understand how homeowners insurance works, you must first understand the primary components of a homeowner’s insurance policy:

Structure - This part of your homeowner’s policy protects the obvious: your home’s structure. The structure aspect of your policy is there to provide coverage in the event of fire, smoke, lightening, theft and extreme weather. There are some types of weather conditions, such as floods, that are not covered under a standard homeowner’s insurance policy, so read your inclusions and exclusions carefully to make sure your coverage is comprehensive.

    When choosing the coverage amounts for your homeowner’s insurance policy, make sure to take into consideration the fact that you are covering your home’s entire value - i.e. the cost of replacing your home if it were a complete loss. Your policy should not simply cover the remaining mortgage balance, as this would certainly leave you short if you needed to rebuild or completely renovate.

    Personal Property - The personal property section of your homeowner’s insurance policy covers your possessions and personal property in the event of damage or theft. It is important to make a detailed inventory of your home’s possessions, including any jewelry, artwork or antiques. Make a written list, as well as a video tape of your home’s possessions, and store it in a safe place, away from your home. Doing so will make the process of claiming losses easier. Reviewing your personal inventory is also a good way of determining if your policy is adequate and if you require additional insurance on any valuable items.

    Liability - the liability section of your homeowner’s insurance policy is incredibly important, as it provides compensation for liability claims and medical expenses. In other words, it protects you should someone become injured on your property.

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      Insurance News: Florida Home Insurance Rate Hikes

      Wednesday, November 11th, 2009

      Although a recession typically forces the average American to reduce his or her spending in order to balance tighter budgetary constraints, some insurance companies have decided to increase the cost of coverage for various policy holders, making the current economic recession even more difficult to manage.  Specifically, some individuals living in Florida’s Lee County will reportedly be paying an estimated 10 percent more for their home insurance coverage.  As residents are outraged by the increase, some leaders are hoping to stand up and fight the unjust rate hikes.

      Insurance Issues among Floridians

      As states across the nation have reported higher home insurance costs and increases in recent years, many lawmakers are striving to require a state’s official approval and consent before proposed insurance hikes are passed onto policy holders; yet, despite this hope, many Florida home owners may not be able to catch a break from state officials any time soon.

      Unfortunately for many, state officials approved recent proposed insurance increases.  As a result, any Florida home owner with a specific sate-enforced policy will be forced to pay hundreds of dollars more for their annual coverage benefits.   This state-approved increase will result in an average insurance higher cost of 5.4 percent more for Florida home owners, as the impact of these rate hikes have specific implications for select area residents.  For example, one of the areas to be most significantly impacted by the rate hikes is Flordia’s Lee County, as approximately 7,000 Lee residents will be forced to pay up to 10 percent more for coverage.  Ultimately, the state’s decision to increase rates may impact nearly 1 million home owners across the entire state.

      While many insurance companies have been forced to raise rates as their business investments have declined due to recession-related issues, many Floridians are specifically outraged by this most recent insurance increase because the home owners impacted by the hike are those who have invested in Florida’s public insurance option.

      “Citizens Property Insurance Corporation,” the public option for individuals without private home insurance coverage, was initially created to help home owners of varying financial backgrounds to receive necessary ownership coverage and benefits.  While many policy holders are frustrated and upset, select insurance leaders assert that this increase will be applied to home owners over the course of several years, making the impact of these higher costs less of a struggle in the immediate future.

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      Insurance News: The Economic Impact of the Insurance Industry Bailout

      Wednesday, November 4th, 2009

      As many major companies have experienced remarkable financial losses in recent years, the United States’ Treasury Department has been forced to sift through the various companies’ needs and deficits to determine which institutions are in the greatest need of government assistance.  Specifically, the Treasury has been examining the specific needs of various life insurance companies, as many life insurance agencies have reportedly submitted applications for government bailout assistance.

      Insurance and Government Assistance

      TARP, the Troubled Asset Relief Program, has provided bailout funds for an array of banks as well as the larger auto companies.  Recently, the Treasury has been prompted to take a discerning look at the struggling life insurance providers, as leaders of the Treasury are seeking to quickly decide which corporations are the most viable.  According to the most recent reports regarding potential insurance company bailouts, the Treasury has not yet established the baseline criteria for evaluating each insurance company application.  Currently, as over 10 major life insurance providers have submitted applications for governmental assistance, both policy holders and potential new customers are eager to see whether or not the companies will be saved or left to sift through their deficits without federal aid.

      Unfortunately, because life insurance companies are considered to be more vulnerable to recessions and economic declines than other insurance providers, life insurance companies are nearly the only sector of the insurance industry that have requested a need for bailout assistance.  Adding more symptoms to the corporations’ illnesses, most of the life insurance companies with deteriorating financial stability have been subjected to lower ratings; once a company’s rating declines below AA status, their potential for signing new clients and business undoubtedly declines as well.

      While some feel that the life insurance industry’s outlooks are rather bleak, many experts assert that, if the Treasury is able to act quickly, funds from federal bailout stores can help rejuvenate the struggling insurance giants.  Treasury leaders hope to have clear criteria for insurance companies’ financial circumstance established within the coming days and weeks.

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      Are Health Insurance Costs on the Rise for American Families?

      Thursday, October 8th, 2009

      According to the latest reports from Congress, President Obama’s health care reform proposal will require all Americans to carry up to date health insurance policies.  While the insurance can be obtained from an employer, through a private company, or from the soon-to-be created government-run program, many middle class Americans are worried about how these new demands will impact their overall costs.  Specifically, as lower income families will be provided with reduced cost benefits, as well as potential tax credits towards health care, individuals earning slightly above the low income range are growing apprehensive about whether or not the changes to health care will actually benefit their loved one’s well being.

      The Reform in Progress: How the Middle Class May Be Impacted

      While the health insurance reform is still a working progress, as changes are being made and revisions are added each day, investigators have found out basic information about where the reform currently stands.  In examining the current rough draft of the proposal, critics are specifically concerned about the potential challenges that reform could pose on the average middle class families:

      • An average family of 4 with an annual income of at least $63,000 per year is considered to be middle class
      • Some estimate that this average family would pay over an estimated $7,000 to purchase private health insurance
      • The estimated $7,000 does not take into account doctor co-pays and medical care costs
      • The estimated $7,000 does not take into account rare but not uncommon expensive medical procedures (such as surgery, emergency care, etc)

      In examining these estimates, some members of Congress predict that the current health care reform plans would force middle class families to spend an average of 20 percent of their annual incomes on health insurance / health costs within the next 5 to 6 years!  Yet, in light of recent debates and concerns, experts are striving to remind all citizens, regardless of their “class,” that the reform is being carefully evaluated and altered continuously; optimistically, these potential detriments to the reform will be taken into account and altered before any bill is passed into law.

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      Who Really Benefits From Health Insurance Reform?

      Tuesday, September 29th, 2009

      As US Senate leaders have been debating and discussing the proposed changes to the country’s health insurance system, a new health care bill may soon finally be signed into legislation.  While many Americans are eagerly awaiting health care insurance reform, others are worried that the changes in policy will lead to a loss in their own current insurance coverage and protection.  To find out who benefits-the insured or the uninsured-take a look at the latest health insurance reform reports.

      United States Health Insurance Reform

      The Un-Insured

      Without a doubt, the millions of individuals across the country who are living without health insurance coverage will be the most likely to gain the greatest benefits from health insurance reform.  According to reports, individuals who are un-insured will be provided with insurance options and changes such as:

      • Access to more affordable insurance policies for workers without employer provided coverage.
        • Lower cost packages for individuals below the age of 26, as individuals 25 and younger are less likely to carry insurance. Packages for Americans 26 and younger will be cheaper with fewer coverage benefits
      • Options to purchase health insurance from state-run exchange programs
      • With state-run plans, individuals can opt for customized insurance packages, some of which will even offer minimal coverage levels at reduced costs (for reduced benefits)
      • Tax credits provided to the lowest income earners to help struggling families purchase their own insurance coverage (from a private provider or from the state)
        • For example, as Senate reports reveal, a family of 4 below an annual income of $22,000 would be protected from paying more than 2 percent of its annual income towards insurance premium costs / insurance related costs
        • The protection on insurance cost limits for families increases exponentially, depending on a family’s size and annual earnings; however, the Senate declares that a family of 4 with an income of a maximum of $88,000 annually would be protected from spending no more than 12 percent of their income on health insurance related costs

      The Insured

      While individuals without health insurance will certainly be able to gain protection and advantages from the proposed health reform plans, many individuals who currently carry insurance policies are worried about how these plans will impact their own tax costs, insurance rates, and coverage details.  Generally, experts assert that individuals with insurance can rest assured, as the proposed changes to the health insurance system should not force serious changes to those who are currently insured.  Specifically, reports reveal:

      • Individuals with insurance will be able to, in the majority of cases, simply keep their current plans (especially if coverage is already provided by one’s employer)
      • Insured individuals may become more protected, as reform is striving to protect workers from being dropped by insurance companies when a policy holder becomes ill or needs high-cost treatments / medical care
      • Insurance companies would be restricted in determining individual health histories to factor an insurance policy’s costs (ie: a history of diabetes could not significantly boost an individual’s health insurance costs)

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