The war on the middle-class. How the average American family is being shamed by the large insurance carriers
In a recent conversation with AXA’s head of National Accounts and Business Development, a startling (at least to me) statistic popped up that the Senior Executive seemed to revel in: Household Disposable Income in the United States is at an all-time high.
In his opinion, it was a forgone conclusion due to recent data from the likes of the Organisation for Economic Co-operation and Development (OECD), that in fact the economy is great, and that investments into the markets as well as insurance and annuities purchases would remain steady.
He went on to explain the the average household is actually doing much better than ever before and had evidence to prove this theory.
According to OECD’s “Better Life Index”, it has been concluded that Americans have on average, a “household net-adjusted disposable income per capita of $39,531 USD a year”. The problem, as stated by this AXA executive, is that the average American just isn’t saving enough for his or her retirement, let alone for their financial future. But is he right?Read more
Social Security and Medicare are hand in hand
- Dan McGrath, Jester Financial, late penalty, mandatory, Medicare, Medicare Part B, Medicare Part D, Money Guide Pro, Part B, Part D, Social Security
What may be flying under the radar at many of the Social Security seminars being held across the country is that in order to even receive this benefit one must, when eligible, enroll into Medicare or else.Read more
Medicare Means Testing (IRMAA)
- ACA, Affordable Care Act, Dan McGrath, financial planning, Healthcare Costs, Income, IRMAA, Means Testing, Medicare, Medicare Modernization Act, Part B, Part D
Within Medicare if you are earning too much in retirement will be subject to higher premiums than others through its Income Related Monthly Adjustment Amount or IRMAA. What is it? As defined by Medicare: “If you have higher income, the […]Read more
And the Regulations will be Televised
- 401(k), ACA, Affordable Care Act, Congress, Dan McGrath, Fidelity Health Care, financial planning, Healthcare, Healthcare Costs, Healthview, Medicare, Modern Healthcare, Obamacare, Part B, Part D, Retirement, Social Security, the Budget
Back in 1997, our government began its quest to tackle the unsustainable increase in healthcare spending by enacting legislation which created a formula, aptly titled “the Medicare Sustainable Growth formula”, through the Balanced Budget Act of 1997 (BBA).
This formula was designed to limit the “growth in spending for physicians’ services by linking updates to target rates of spending growth. The law provides for a mechanism for enforcement of the target rate of growth. When spending increases exceed the targeted rate of growth, payments are automatically reduced across the board”. (more…)Read more
Is it misinformation or something more sinister?
- Affordable Care Act, Dan McGrath, EBRI, Fidelity, Fidelity Health Care, Fiduciary Responsibility, Health Care, Healthcare Costs, Healthcare Costs in Retirement, Healthview, Market watch, Medicare, Part B, Part D, Retirement, Taxes
Survey after survey confirms that one of the most major concerns investors have is planning for their health costs in retirement, and rightly so.
With legislative changes coming from both Congress and the President, the course of this expense that everyonemust have has taken some drastic turns in the not so distant past.
Some of the changes have altered not only the overall costs of this expense (such as being penalized for having too much income, or the threat of debts possibly being passed to the next generation if not planned for accordingly), but the biggest change in the last 25 years is that these costs are now mandatory. (more…)Read more
The Debt Crists: what it really means
- Dan McGrath, Debt, Debt Crisis, Federal Government, financial planning, Government Shutdown, Healthcare Costs, Healthview, HVS Financial, Market watch, Medicare, Postal Service, Retirement, Tax Preparing, Taxes
With Congress and the President doing the two-step Lindy when it comes to the future of our economy, there is one under-reported fact.
Even if the debt level was actually breached, there are safety valves that the Federal Government can implement in order to save itself. So in reality the past government shutdowns, as well as the projected possibility of one in the near future, may all just be for show. Or maybe this political theater is for more sinister reasons?Read more
Money for nothing and your healthcare for free…I want my subsidies
- ACA, Affordable Care Act, Dan McGrath, Filial Support Law, financial planning, Health, Health Costs, Health Insurance, Healthcare, Healthcare Costs, Long Term care, Medicaid Recovery Act, Medicare, Obamacare
“Money for nothing and your health care for free…”
Not exactly the line from the 1985 Dire Straits hit, but lately it seems to fit the mantra of many in the country, especially after the Affordable Care Act passed and everyone learned about “subsidies”.
“I want my, I want my, I want my subsidies…”
According to the ACA, and when our government decides to enforce our nation’s laws (keep in mind that the ACA passed in 2011 and was put on hold for a while), everyone must have health insurance or else. But for those who happened to be earning below certain specified amounts, they just may qualify for “money for nothing and health care for close to free”. The qualifications are outlined below: (more…)Read more
Women, Retirement and Long Term Care
- Annuities, financial planning, Life Insurance, Retirement, Reverse Mortgage, Women, Women and Investing
Have you ever wondered why nursing home residents are primarily women, and why they never seem to have visitors?
Data confirms this, as according to the Centers for Disease Control and Prevention (CDC), of the roughly 1.4 million Nursing Home residents in 2013, about 67.7 percent or roughly 960,000 were women.
The question that should be asked, is how did it gets this way? Yes, it is understandable that women tend to outlive men in general. The CDC is reporting that the average life expectancy for a person who was 65 years old in 2012 is another 19.3 years: 20.5 years for women, and 17.9 years for men.
Is merely the fact that they live longer the primary reason why women tend to make up the vast majority of residents in nursing facilities, or are there other factors at play? (more…)Read more
2015 Federal Budget calls for $62 billion from retirees to help fund the country
The 2015 Presidential Budget has been released and within it are plans to help generate revenue in many ways over the course of the next decade and one of the more aggressive methods just happens to be through Medicare. (more…)Read more
Think you will never go in nursing home? You’re probably right, but for all the wrong reasons.
- AMA, American Medical Association, Dan McGrath, financial planning, Healthcare, Healthcare Costs, Long Term care, LTC, New Mexico, Nursing Facilities, Nursing Homes, Retirement
They say invincibility is a trait of the young. It’s a mindset that changes gradually with knowledge, education, and wisdom. It’s also something a person gets over as they become less ignorant later in life. But apparently today, many supposedly older and wiser people still believe they are invincible.
Ask any financial planner worth their weight in salt about trying to help prospective clients and current clients with Long-Term Care planning, and the usual reply from a vast majority of them is along these lines: They will either never need any long-term care, or that they will never go into a nursing facility.
The problem with this invincibility mindset (besides being flawed in its most basic assumption), is when one looks at the data that surrounds this issue. Yes, the logic behind this belief of one never going into a nursing facility is most likely spot on, and the statistics support it. However, being right in this case is because of the completely wrong reasons. (more…)Read more