Health Care Reform 2014 and Beyond

The Hoss apologizes for the delay in his final posting on Health Care Reform.

Mrs. Hoss's business required that we convert one of the stalls in the family barn (our house) into an office. Although Mrs. Hoss does the vast majority of the work the Hoss must be around to run for supplies, prepare the occasional meal and once in a while provide some actual labour.



Now, back to the health care reform timeline and the changes to take place in 2014 and beyond.

• If you do not have acceptable coverage in 2014 you will pay a fine of $95.00. This will increase to $325 in 2015, $695 in 2016 or a maximum of 2.5% of family income). Penalties will be indexed to the Consumer Price Index after 2016. Note: There will be a cap of $2,250 per family and the charge per child is half the required amount.

• Workers who don’t qualify for tax credits and who are exempt from individual responsibility can join an exchange plan by using their employer contribution.

• A fine of $2000 per employee will be imposed on companies with 50 or more employees who do not offer coverage to employees, if at least one of their employees receives a tax credit. The is per employee after the first 30. The maximum waiting period before insurance takes effect is to 90 days. Employers with employees receiving a tax credit will pay $3,000 for each worker receiving a tax credit.

• Health insurers are prohibited from charging higher premiums due to health status, gender or other reasons. They cannot refuse coverage due to a pre existing condition or current health status. They cannot impose an annual limit on coverage.

• Small employers and individuals will be able to shop around for standardized health plans through health exchanges.

• People not eligible for or who cannot obtain acceptable coverage and whose income is above Medicaid eligibility and below 400% of the poverty level will receive credits through health exchanges.

• New funding will be provided to the States so that all nonelderly individuals Medicaid eligibility can be increased to 133 of poverty level.

• Health insurance companies whose total premiums are greater than $25 million will have to pay an annual health insurance provider fee based on the insurers' market share.

• In 2018 so called "Cadillac Plans" will pay an excise tax.

This concludes The Hoss's summary of the upcoming changes to health care. I hope you have found the information useful.

Stay on Track,

Money Magazine Hoss

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Related Posts:
Health Care Reform 2013
Health Care Reform Year One
Health Care Reform Year Two 2011

Health Care Reform Year One

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Health Care Reform is now law. So what does this mean to you? How will you benefit? Will your taxes increase/decrease? The list of health care questions seems endless to many but fear not. The Hoss has done considerable research and over the next few post will help you determine how the Health care reform package will affect you.

We will start with the changes scheduled to take place in the current year.

Early retirees 55 to 64 will benefit from a temporary reinsurance program provided to companies with early retiree health benefits.

Both lifetime and restrictive annual limits on benefits are eliminated.

The infamous "doughnut hole" in Medicare prescription drug coverage for seniors will be softened with a $250 rebate.

Young adults up until their 26th birthday will be able remain on their parents' insurance. This will be beneficial to college students and others unable to find employment.

If you become ill the insurance company cannot rescind your policy, after all that is why you have insurance.

Insurance companies are now banned from imposing exclusions on children with pre-existing conditions. Pools will be established to cover those with pre-existing health conditions until such time as the health care coverage exchanges are operational.

Coverage for Preventive services without co-pays is mandatory for new plans and all plans by 2018.

An appeals process for coverage determinations and claims will be implemented by new plans.

There will be a $1,000 increase in the adoption tax credit and assistance exclusion. The credit is refundable and extends through 2011.Indoor tanning facilities will have a 10 percent tax imposed on amounts paid for services on or after July 1.

Small businesses having less than 50 employees will get tax credits covering 35 percent of their health care premiums, increasing to 50 percent by 2014.

The Hoss hopes this summary of the benefits to take place this year as a result of health care reform helps you understand how the bill affects you in 2010.

Next Hoss Cents Free Financial Money Magazine Post: Health Care Reform Year 2, 2011
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Half of Americans under 65 to lose their health care?

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A brand new report from the Treasury Department indicates that at some point over the next ten years approximately half of Americans under age 65 will lose their health care coverage.

In his weekly White House address, President Obama assured the American people that he would not let this happen. "In the United States of America, no one should have to worry that they’ll go without health insurance – not for one year, not for one month, not for one day. And once I sign my health reform plan into law – they won’t."

President Obama took this opportunity to tell those Americans already with health insurance that nothing in his plan would require them to change their doctor or the coverage they have. Rather, his plan would make sure their insurance would be improved. "We’ll make it illegal for insurance companies to deny you coverage because of a pre-existing condition, drop your coverage when you get sick, or water it down when you need it most. They’ll no longer be able to place some arbitrary cap on the amount of coverage you can receive in a given year or over a lifetime, and we will place a limit on how much you can be charged for out-of-pocket expenses – because no one should go broke just because they get sick."

In addition, those currently without coverage will be able (under his plan) to get quality plans at affordable prices.

He reaffirmed his commitment that any plan he signs will not to add one dime to the United States deficits. He actually predicted a deficit reduction of $4 trillion over the long term. How? By successfully slowing the growth of health care cost by a mere one-tenth of one percent.

President Obama stated the time for action is now.

Money Magazine Hoss agrees with the President. Enough debating. What is currently in place is not working. It's time to try something new. In a country as abundant as America, it is a travesty, an international embarrassment, that so many are without the means to get health care.

Stay on Track,

Money Magazine Hoss

Next Hoss Cents Free Financial Money Magazine Post: September 20, 2009
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Health Care Public Vs Private

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From the Hoss's Mouth

Why does health care cost so much? Forget all you hear about the high cost of developing new equipment and drugs, over-utilization, increased salaries for health care professionals, and an aging population. Money Magazine Hoss can give you the answer for the high cost of health care in one word: GREED.

Greed by health insurance companies who are in the business for the sole purpose of generating a profit. They could care less about providing affordable health care insurance for companies and individuals.

How does Money Magazine Hoss come to this conclusion? He does so by reading private for profit insurance horror stories posted all over the Internet and by reading private insurance whistle blower testimony given before Congress.

Health insurance companies are notorious for denying valid claims, using excuses such as claimant had a pre-existing condition, claimant provided false information on their application form (even if it was an honest mistake). Testimony before Congress indicated for-profit insurance companies employ the following strategies:

• Regular meetings to identify high cost areas and how to redesign benefits to control them.

• Multiple exclusion clauses which are unknown to doctor or patient until used by the insurance company to deny a claim.

• Pre-existing condition exclusions which enable the plan to take steps to link a patient’s current diagnosis with some prior diagnosis and thus deny the claim

• Misleading advertising which only highlights the benefits of the plan with no mention of the plans restrictions.

• Denials on the grounds the treatment is not medically necessary--this is the insurance companies' ultimate cost control tool.

The above examples are by no means a complete list of all the methods used by insurance companies to reduce their costs.

For more info, see the testimony of LINDA PEENO, M.D.

Perhaps the most disturbing tactic Money Magazine Hoss has come across is when a terminally ill patient’s health care claim is denied. The health insurance company knows full well that the claimant will die before s/he can process an appeal, and thus they avoid paying for any treatment prior to death. Of course they always claim they had legitimate reasons for denying the claim.

Money Magazine Hoss resides in Canada, and we have a public health care system which, although not perfect, does take the profit incentive out of health care. The premiums are minimal and provisions are made for those with no or very little income. We do experience some delays but emergency cases are given priority.

Money Magazine Hoss supports President Obama’s public health care option, in fact he would like to see health care totally removed from for-profit companies.

Stay on Track,

Money Magazine Hoss

Next Hoss Cents Free Financial Money Magazine Post: September 06, 2009
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Related Post
Obama McCain Health Care Plans
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Collision Deductible

From the Hoss's Mouth

In today's tough economic times many insurance blogs and money magazines suggest that one way to reduce expenses is for insurers (that's you) to consider increasing the deductibles on some of their insurance policies. The most popular money magazine suggestion is to increase the collision deductible on your car insurance.

The Hoss and Mrs. Hoss have two vehicles: a 1991 Ford F-150 and a 2005 Chevy Blazer. Currently, we carry no collision insurance on the Ford F-150, and on the Chevy Blazer we have a collision policy with a $300 deductible. The logic behind these widely differing collision policies is simple. The Ford F-150 does not have a high cash value, and in the event of an accident, in all likelihood the insurance company would, rather than repair the vehicle, write it off and give us its cash value. The Blazer on the other hand does have considerable value and would probably be repaired.

Recently it was time to renew the insurance on our Chevy Blazer. The Hoss seriously pondered whether or not to increase the collision deductible to $1000 or higher. To do so would be against the advice of Mrs. Hoss, as she strongly believes items of value should be fully insured. But The Hoss thought what does she know? We could save a few dollars just by increasing the collision deductible, after all we have no fault insurance and we are both good drivers and would never cause an accident. We could go out to dinner with the money we save. The Hoss is wise.

For some unexplained reason, while in the insurance broker's office, The Hoss changed his mind and decided the best course of action would be to follow Mrs. Hoss's instincts and stay with the $300 collision deductible.





Two weeks later, The Hoss was involved in a minor fender bender causing over $1000 damage to the Blazer. Do I have to tell you that The Hoss is thankful to Mrs. Hoss for her foresight?

The moral of the story is twofold. One, increasing your insurance collision deductibles is not always the best choice. Two, listen to your wife.

Stay on track,

The Hoss


Next Hoss Cents Free Financial Money Magazine Post: March 15, 2009
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Auto Insurance

From the Hoss's Mouth

Auto insurance is the feature article in today's edition of Hoss Cents Free Financial money magazine.



We purchase auto insurance to protect ourselves against unforeseen but not unpredictable events. Auto insurance can be costly, but there are ways to provide adequate protection while paying reasonable premiums.

Before purchasing insurance you should do extensive research and choose an appropriately licensed agent or broker who takes the time to first understand your auto insurance needs then recommends appropriate policy options. In addition s/he must fully explain your policy and coverage in clear, precise language. If s/he is not willing to do this, find another agent.

In most jurisdictions there is basic (mandatory) auto insurance and optional auto insurance. The type of basic insurance required varies from jurisdiction to jurisdiction but almost always includes:

Third Party Liability: If you injure someone else or damage their property in a motor vehicle crash and are held legally responsible, third party liability coverage pays their claims on your behalf, up to the specified limit shown in your policy.

Accident Benefits: If you are injured in a crash, you receive financial help with your medical rehabilitation and/or wage loss expenses. Also, in the event of death, funeral costs and death benefits are provided. The total amount of coverage will be outlined in your policy.

The optional insurance includes but is not limited to:

Collision: Usually covers damage to your car from impact with another vehicle, person, object or the surface of the road.

Comprehensive: Comprehensive insurance covers loss or damage to your vehicle by most causes except those covered by collision insurance. For example: fire, theft and vandalism. Check your policy for a complete list.

Auto insurance is a complex matter, and The Hoss is sure that by now you understand why you must work with a fully licensed agent who can fully explain all your options. Be sure to ask your insurance agent about increasing your deductibles, getting a package deal with your house, or if you own a car that is not worth a lot of money, carrying only the basic mandatory insurance.
These are all ways to reduce your premium.

You can also reduce auto insurance premiums by having an accident-free and conviction-free track record, and by reducing the number of kilometers (miles) you drive per year.

Safe driving.


Stay on track,

The Hoss

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Insurance, Insurance, Insurance

From the Hoss's Mouth

Why do I need to spend so much money on insurance? The current economic situation has caused this question to rise in the minds of many readers of Hoss Cents Free Financial Money Magazine. With this in mind, The Hoss has decided to dedicated several issues of Hoss Cents Free Financial Money Magazine to the insurance industry.

What is insurance?

Insurance is a means to provide you and your family protection for financial loss caused by such things as fire, automobile accidents, theft, personal injury, and possibly even death. The policy holder pays a premium (regular defined amounts) in exchange for protection against a large unknown future loss.

What type of insurance do I need?

If you own property, have children, have a mortgage, or own a car you need insurance.
Similarly, if you cannot support yourself, if you are disabled, or cannot afford to pay compensation if you injure someone, you need insurance.

Most people should have the following types of insurance:

• Life Insurance: To protect your family in the event of your death.

• Auto Insurance: Protects you from damage or theft of your car and/or from liability.

• Health Insurance: To provide payment for medical expenses.

• Homeowner Insurance: Coverage which will permit you to rebuild and refurnish your home. Also protects you if someone is injured on your property.

• Disability Income Insurance: To provide income if you become disabled and are unable to work for an extensive length of time.

Hoss Cents Free Financial Money Magazine will, in future posts, provide additional details concerning each of the basic insurance needs mentioned above. Details such as the difference between term and life insurance, information on auto insurance deductibles and homeowner insurance coverage.

Stay on track,

The Hoss

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Creating a Budget

From The Hoss's Mouth

The Hoss says: Creating a budget is a necessary tool which will enable you to meet your financial goals. In order to create a successful budget you must do the following:

Hoss Cents Free Financial Money Magazine Success Tip

• Categorize how and where your money is currently being spent. Collect all your financial statements for the past six months. This includes bank statements, mortgage payments, recent utility bills, gas bills, food bills, insurance bills, credit card bills and all cash receipts. In addition, total all your sources of income. In short, any information regarding income or expenses that will help in creating a budget.

• Evaluate your income and spending to see if your current lifestyle is meeting the priorities you and your family have established to achieve financial success (see establish financial priorities).

• Compare your income versus expenses. I suspect many of you have expenses that exceed your income. Have each family member identify areas where they can reduce their expenses and increase their income. You will note you have certain fixed monthly expenses, such as your rent or mortgage, utilities and insurance payments. It is unlikely that you will be able to significantly reduce these expenses, so concentrate on your family's variable expenses. Expenses such as clothing, transportation, groceries, and entertainment. Cut these variable expenses and produce a budget that adjusts your spending habits so that you and your family will be able to reach your financial goals. The goals you wrote down as per the Hoss's instructions in the previous post of this blog. The Hoss realizes this is not an easy task. His next post will provide you with suggestions that will enable you to identify areas where costs can be reduced and help you with creating a budget.

• Each and every month, review your budget and make sure you are on track with your goals. Identify where you did well and what areas need to be adjusted to meet your target. This is extremely important if you are to achieve the targets set by you and your family. Be honest with yourself; cheating results in failure and you will fail in creating a budget.
  

The Hoss has prepared a budget pie chart which identifies expense categories common to all families, and suggests what percent of your take-home pay should be allocated to each area. The Hoss has also included some examples of the types of expenses in each budget category. The list of expenses below is by no means complete, but is provided as a guide to help you get started. Each and every family will have to construct a budget according to their needs.

Housing: mortgage, utilities, cable, insurance, taxes

Living Expenses: entertainment, miscellaneous items

Savings: emergency fund, investments, retirement

Transportation: gas, insurance, parking, bus

Debt: loans, credit cards, etc.

Food: groceries, vitamins, etc. Note from Mrs. Hoss: Booze is not a food group

Hoss Cents Free Financial Money Magazine Success Tip

The Hoss suggests you seriously consider using an accounting software program. This will enable you to simplify the process of recording your financial transactions and creating a budget. Most of these programs enable you to assign each transaction a specific category, and to compile a report detailing these transactions. This enables you to track how much you have spent on such items as fuel, insurance, car repairs, groceries, clothing, mortgage, etc. Your sources of income are also tracked. In other words, it simplifies the evaluation process outlined above. If you have a Microsoft PC, The Hoss suggests utilizing Microsoft Works, as it usually comes free with the purchase of the computer. It contains a monthly budget template which will help you set up your budget.

The Hoss says: It really is that easy folks. Track your income versus expenses, and then adjust to meet your family's financial goals and you will be successful in creating a budget.

Stay on track,
The Hoss

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Hoss Cents Free Financial Money Magazine

The free financial money magazine by the Hoss leaves the starting gate today. It is designed for those of you who have difficulty in managing your financial affairs. The Hoss will guide you through the steps each of us should take to achieve our financial goals.

Why, you ask, should I read this financial money magazine and not others? The simple answer to that is you should not limit your reading to this magazine alone. The more information you obtain, the more likely you are to achieve the financial freedom you crave.

The Hoss will provide you with his Hoss Cents tips that contain valuable bits of information, which if followed, will assist you in reaching financial success.

Who is the Hoss? He is an ordinary Joe who retired at age 49.

He did so without the benefit of a college education. He did not inherit money. He was not a pro athlete. He did not partake in criminal activity. What he did do was work hard and make sound financial decisions.

Hoss cents financial money magazine will cover topics such as how to:

• eliminate debt
• invest wisely
• utilize credit cards
• establish and set priorities
• achieve your goals with budgets
• choose a financial institution
• select an insurance company
• purchase a home
• minimize taxes

Plus many more tips of a financial nature.

Each edition will concentrate on one topic. The first publication will explain the absolute necessity of controlling debt. Welcome to the Hoss Cents Free Financial Money Magazine.

Stay on track,
The Hoss

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