April 30, 2022

Affordable Care Act Update

 This post is quoted directly from Boston College historian Heather Cox Richardson from Letters from an American <heathercoxrichardson@substack.com> Date: April 5, 2022 

Obama signed the ACA into law in 2010. Today, 31 million Americans have healthcare coverage thanks to it. They can’t be denied coverage because of preexisting conditions. The ACA has lowered prescription drug costs for 12 million seniors, and it has enabled young people to stay on their parents’ insurance until they’re 26. It’s eliminated lifetime limits on benefits.

Republicans have loathed the ACA since Obama signed it into law in 2010. This is a modern-day stance, by the way: it was actually Republican president Theodore Roosevelt who first proposed universal healthcare at the beginning of the twentieth century, and Republican president Dwight Eisenhower who first tried to muscle such a program into being with the help of the new department created under him: the Department of Health, Education, and Welfare, which in 1979 became the Department of Health and Human Services. Its declared mission was “improving the health, safety, and well-being of America.” In contrast to their forebears, today’s Republicans do not believe the government has such a role to play.

Last month, Senator Ron Johnson (R-WI) said the Republicans’ goal is to obstruct Biden and the Democrats until they retake power, and then immediately make good on old promises like repealing the ACA. Senator Rick Scott (R-FL), chair of the National Republican Senatorial Committee, has proposed sunsetting all laws after five years and then passing the popular ones again. Since Republicans kill all social welfare bills with the filibuster, it’s not hard to imagine that Scott has the Affordable Care Act in his sights.

Enrollment in healthcare coverage under the ACA is at a record high since Biden took office, since he helped to push enrollment by opening special enrollment periods and dramatically increasing outreach. The law is popular: a poll last month by healthcare analysts Kaiser showed that 55% of Americans like it while 42% do not.

Today, Biden signed an executive order to increase outreach and coverage still further, and to urge Congress to deal with the “family glitch” in the law that determines eligibility for subsidies based on whether the primary enrollee can afford coverage for herself, rather than for her family. Fixing this glitch would lower costs for about 1 million Americans and open up coverage for another 200,000.

Before the signing, Obama, Biden, and Vice President Kamala Harris used the ACA to talk about the difference between the two parties.

Harris noted that “the ACA is the most consequential healthcare legislation passed in generations in our country” and that it was more than just a law, it was “a statement of purpose; a statement about the nation we must be, where all people—no matter who they are, where they live, or how much they earn—can access the healthcare they need, no matter the cost.”

She called on Congress to pass legislation that would let Medicare directly negotiate prescription drug prices with pharmaceutical companies (as every other developed country does). With 60 million people enrolled in Medicare, the program would have significant bargaining power to negotiate prices.

The vice president also called on the 12 states refusing to expand Medicaid to do so, enrolling the 4 million people who are now excluded. Acknowledging those people determined to take away abortion rights, she noted that women without medical care during pregnancy are significantly more likely to die than those who do have it.

Obama then explained why the Democrats worked so hard to begin the process of getting healthcare coverage for Americans. “[W]e’re not supposed to do this just to occupy a seat or to hang on to power,” he said. “We’re supposed to do this because it’s making a difference in the lives of the people who sent us here.”

The ACA shows, he said, that “if you are driven by the core idea that, together, we can improve the lives of this generation and the next, and if you’re persistent—if you stay with it and are willing to work through the obstacles and the criticism and continually improve where you fall short, you can make America better—you can have an impact on millions of lives.”

Then Biden took the podium before signing the executive order, adding that passing the ACA was about dignity. It was about the “countless Americans lying in bed at night, staring at the ceiling, wondering, ‘My God—my God, what if I get really sick? What am I going to do? What is my family going to do? Will I lose the house?’ Discussions we had in my house with my dad when he lost his health insurance—’Who’s going to pay for it? Who’s going to take care of my family?’”

He warned that the Republicans want to get rid of the law. “[P]ay very close attention, folks,” he said. “If Republicans have their way, it means 100 million Americans with pre-existing conditions can once again be denied healthcare coverage by their insurance companies. That’s what the law was before Obamacare. In addition, tens of millions of Americans could lose their coverage, including young people who will no longer be able to stay on their parents’ insurance policy to age 26. Premiums are going to go through the roof.”

“Instead of destroying the Affordable Care Act,” he said, “let’s keep building on it.”

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Medical Bills and Debt Collection

 $88 billion of outstanding medical bills are currently in collections - affecting one in five Americans. 

My own academic research at Utah State University and that of University of Utah Economics Ph.D. Levi Pace revealed that medical bills were a major cause of personal bankruptcy filings in Utah. Similar research in other states confirm our findings.

Medical bills can be confusing and overwhelming and often come at a time when you may already be in distress. You might feel like you’re navigating a winding maze of information just to understand what you owe, to whom, and by when.

Help is available from the U.S. Consumer Financial Protection Bureau https://www.consumerfinance.gov/.

The White House also released a fact sheet on The Biden Administration’s new actions to lessen the burden of medical debt and increase consumer protection.

Medical billing, collections and credit reporting can hurt people when they are already struggling with a health crisis. The CFPB is on your side to make sure you are treated fairly.

Learn more about how the CFPB is working to stop unfair medical debt collection and coercive credit reporting practices.

 The Consumer Financial Protection Bureau has a LOTS of other helpful consumer information on its website: https://www.consumerfinance.gov/.

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Medicare Eligibility for People With Disabilities

 Many people think of Medicare as a program for people who are 65 and older. While this is true, some may not know that a younger person with a disability can also qualify for Medicare coverage. Not every disability is a qualifying one, so it’s important to understand if you meet the requirements before you take the time to apply. The following guide is for people under the age of 65 who have questions about whether or not they might be eligible for Medicare.

To help highlight this program for those under 65 with disabilities,  a comprehensive guide to understanding eligibility, coverage, and, how to navigate the enrollment process is available:
 
Some of the information available at this website:

Even if you’re under the age of 65, you can qualify for Medicare if you have certain disabilities. You may be eligible for Medicare coverage if any of the following apply to you:

  • You have amyotrophic lateral sclerosis (ALS): If you have ALS, often referred to as Lou Gehrig’s disease, you may qualify for Medicare if you receive Social Security Disability Insurance (SSDI) benefits.
  • You have end-stage renal disease (ESRD): If you have ESRD, you may qualify for Medicare if you receive regular dialysis or your doctor determines that you need a kidney transplant.
  • You’re receiving SSDI: To qualify for SSDI benefits, you must have enough work credits from contributing to Social Security. You must also meet the definition of a disability under the Social Security guidelines. The Social Security Administration (SSA) considers you to be disabled if you can’t do the work you used to do because of your medical condition, you can’t perform other work due to your medical condition, and your disability is expected to last for at least 12 months or result in your death.
  • You’re receiving disability benefits from the United States Railroad Retirement Board (RRB): If you’re under the age of 65, you may qualify for Medicare if you’ve been receiving monthly RRB disability benefits due to a total disability for at least 24 months. You must also meet the definition of a disability under the Social Security guidelines.
  • Free photos of Wheelchair
 

 

Longevity Risk: World's Oldest Person Dies at 119

 How long are you likely to live? Outliving your retirement resources is a potential risk for many Americans. Most retirement planning scenarios project a 30 year retirement span but what if you live past 100? 

According to The Wall Street Journal (4/26/22), the world's oldest verified individual, Kane Tanaka of Japan, born January 2, 1903, died April 19 at age 119! The next oldest living person is 118 year old Lucile Randon, a French nun born February 11, 1904! 

Estimating your longevity is one of the first steps in retirement planning. A variety of longevity calculators can help you estimate how long you are likely to live. 

How to Estimate Your Life Expectancy: https://money.usnews.com/money/retirement/articles/2016-03-21/how-to-estimate-your-life-expectancy

American Academy of Actuaries and Society of Actuaries, Actuaries Longevity Illustrator: https://www.longevityillustrator.org/

 Abaris How Long Will I Live? Developed by Professors at the University of Pennsylvania

https://www.myabaris.com/tools/life-expectancy-calculator-how-long-will-i-live/

Northwest Mutual Longevity calculator http://media.nmfn.com/tnetwork/lifespan/#0

Actuaries Longevity Illustrator: http://realdealretirement.com/toolsresources/lifestyle/ (The Longevity Illustrator is based on just 4 items; there are many factors that affect how long one might live.)

Remember that you have a 50% chance of living longer than the estimates provided.

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April 18, 2022

Series I (inflation adjusted) U.S. savings bonds will pay almost 10% beginning May 1, 2022

Yes, higher prices are a drag but why are you leaving your savings in 0.05% (or less) savings accounts? 

Inflation-adjusted U.S. Savings Bonds are the best way to beat inflation. Currently these bonds are paying 7.12% (through April 30); the rate will escalate to 9.6% May 1. Generally one is limited to buying a maximum of $10,000 of I-bonds each year but you get get up to $5,000 more if you purchase bonds with your income tax refund (but only if you are owed a refund). 

If you purchase I-bonds with a federal tax refund you will be issued paper bonds. All other direct purchases of I-bonds are in electronic form through a Treasury Direct account. Tax-refund I-bonds are available in $50 increments and you can decide how much to buy and have the rest of your refund deposited in your bank account. You can convert paper bonds to electronic form via the Treasury Direct website: https://www.treasurydirect.gov/. Details on I-bonds are at: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm.

Review the basics by searching this blog for I bonds. 

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