Home About Archives RSS Feed

The Independent Investor: America's Road Toward Universal Health Care

By Bill Schmick
iBerkshires Columnist

The GOP's plan to repeal and replace the Affordable Care Act was introduced this week.  As one might expect, the Republican Party's long-awaited plan was met with a firestorm of protests from just about every conceivable lobbying group. That's exactly what one should expect, given that there is so much at stake.

Headlines throughout the week warned that if the plan were passed in its present form, health-care premiums could rise by 30 percent or more. Seniors could pay far more for coverage under the new plan, while between 6 million and 10 million people would lose their health insurance coverage altogether. The poor would get short shrift, while the wealthy would benefit most.

The new plan dubbed "The American Health Care Act," (if all goes as planned) will be rolled out in three phases under a budgetary process that would allow Republicans to pass the bill through a simple majority in the Senate. The problem is that although Republicans are unanimous on the need to repeal the Affordable Care Act (ACA), the party is divided in how to replace it.

Readers might recall that after the landslide Republican victory in the general election, many Americans were worried that Obamacare would be abolished altogether. The doomsday crowd is convinced that the country's health care insurance coverage will go back to the way things were prior to the ACA. I argue that it is too late for that.

Regardless of what you may think of President Obama, he and the Democratic Party set this nation on a new course. It will, in my opinion, result in universal health-care coverage for all.

"But look at what the GOP is proposing," argue the critics.

My answer is that it is early days and the legislation in its present form will not survive. The Senate (including many moderate Republicans) recognizes that there are deep flaws in Speaker Ryan's plan. But some changes are necessary; otherwise the present program will simply sink further into disrepair.

Please remember, however, that even Barak Obama, in rolling out the Affordable Care Act, conceded that the legislation was not perfect. He fully expected revisions and amendments to the original act. Unfortunately, thanks to a partisan Congress, those amendments never took place. Instead, the opposition simply demanded a repeal of Obamacare, but a funny thing happened on the way to the forum. Uninsured Americans actually saw the benefit of government-sponsored health care, regardless of its imperfections.

Remember, too, that in its present form, the House bill hands over huge benefits to those with the highest income (the one percent) at the expense of the very people who voted for our new president — older blue-collar whites. At least half of Trump's constituency came from white voters without college degrees and the House bill hurts them in multiple ways.

Under Obamacare, in 20 of the 30 states Trump won, non-college whites gained more than any other group. The number of uninsured noncollege white folk fell by 39 percent. Older whites, above the age of 45, provided 56 percent of Trump's vote. This group will be especially hard-hit if House Republicans get their way. They won't.

Four Republican Senators have already gone on record opposing the House bill's Medicaid provisions.  Now that the ball is in their court, I believe Republican lawmakers will soon discover (if they haven't already) that replacing the plan will not be that easy.

And whatever the plan that is finally passed in Washington, D.C., it too will be changed and amended for years to come. Similar to the evolution of Social Security from 1934 into the 1960s, the American version of universal health care will be a process of trial and error until we get it right. And make no mistake, we will get it right. All it requires is patience.

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires.  Bill's forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.

     

The Independent Investor: Pet Trusts Are the Way to Go

By Bill Schmick
iBerkshires Columnist

If you have been avoiding a visit to an estate planning lawyer, despite the pleading of your spouse, your kids or grandkids, consider this: your pet's future well-being could be in jeopardy without a legal safeguard.

As I wrote in my last column, new legislation is surfacing in a number of states that recognizes our concern for our pets. Even though we consider our pets part of the household, legally, your pet is not considered a human. Instead, they are considered tangible property and, generally speaking, tangible property cannot be named as a beneficiary of a trust.

Many states, however, are allowing legally enforceable documents that can guarantee a pet's continuing care. Forty-six states and the District of Columbia have passed statutes specific to pet trusts, according to the Animal Law Review. In Massachusetts, legislation was passed in 2011 to provide for pets' welfare after their owners' demise.

"The definition of tangible personal property hasn't changed," explained attorney Holly Rogers, an expert in the area, "but legislatures have recognized a compassionate exception when it comes to our pets."

The primary legal document required to safeguard your pet is a pet trust, according to Rogers:  "It can be as simple as 'I leave $20,000 to my sister, Betty, for the care of my cat, Fluffy.'"

The pet trust can be a stand-alone document, inserted into your will, or worked into your existing revocable trust. And, as we have written in the past, everyone should have a will or trust anyway. A trust is especially important if minors or adults who can't care for themselves are involved. A trust allows your beneficiaries and your pets to avoid probate which is time-consuming, public and expensive. Trusts also allow for tax-planning if you are leaving a substantial inheritance to your beneficiaries.

For those of us that want more than a simple directive, a pet trust can be drafted with any amount of complexity. Rogers who does estate planning for her Massachusetts clients, is the local "go-to" lawyer when it comes to pet planning.
 
"I have created trusts where there are multiple layers of contingencies," she says. "The trust can name trustees and caretakers both appointed within the document, in which the trustee insures that the pet is cared for and disburses money to the appointed caretaker, and provides specific provisions for the pet's care and the duties of the trustee and caretaker. Responsibilities can be broadly or narrowly defined depending upon the owner's wishes. "

How much can you expect to pay for a pet trust? It depends on who you go to and the level of complexity that you demand. Holly Rogers would be much more reasonable. She estimates a range of $250 for an amendment to add a simple pet trust to your existing will or trust to as much as $1,500 for a soup-to-nuts drafting of an estate plan for you and your family in which your pet trust is part of the package.

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires.  Bill's forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.

     

The Independent Investor: What Happens to Your Pet After Your Death?

By Bill Schmick
iBerkshires Columnist

If you are one of the 70 percent of the population that considers their pet a member of the family, you should review your estate planning documents. Otherwise, there is a good chance your pet will either end up in the pound, or worse.

This hits close to home for many of us. If my wife and I were to die, for example, who would take care of our chocolate Lab, Titus?

There are few people who we would trust to take care of him. Compounding the problem is the fact that he is 8 years old and suffers from arthritis. I discovered that simply putting some instructions in a will was neither legally binding nor particularly useful. Unless we do something different, Titus could be condemned to imprisonment and a life without love.  

You must understand that legally a dog, cat, horse or any other kind of pet is not considered a human being. They are considered your property. As such, Titus is our "property" and the law states that you can't leave property to a piece of property.

Therefore (until recently and only in some states) your pet can't be a beneficiary in a will. Your instructions within a will are not enforceable. I might state that Bri (our dog whisperer) gets Titus in the event we pass, but a will cannot instruct Bri to care for the dog, take him to the vets, etc. Don't forget, too, that your will is not enacted immediately. All wills have a waiting period, sometimes months, even longer if it is contested.  Who is going to care for your pet in the meantime?

It is also difficult in a will to disburse money to someone for your pet's care over a pet's lifetime since a will is a static (as opposed to an on-going) document. And changes to a will are at the court's discretion. Do you really want some judge, who may or may not be an animal lover, deciding your pet's fate?

You may recall the now-famous case of Leona Helmsley, who left $12 million in trust to Trouble, her white Maltese, while giving nothing to two of her four grandchildren. In 2007, a year after she died, a judge reduced the dog's wealth by $10 million. Still, $2 million was enough for Trouble to live a life of luxury, until she died at age 12 in 2011.

In some cases, pet provisions in your will may only be "honorary." Fortunately, 40 states and the District of Columbia recognize statutory pet trusts, so that pet owners who direct someone to take care of their pet and bequest funds for its care could work through such a legal document. In the states without statutory pet protections, however, these provisions are "honorary." That means the person who receives the funds decides whether or not to use them for your pet's care. There is nothing to prevent that person from dumping your pet and taking a vacation with your $5,000.

The person to whom you entrusted your pet to could be a loving, caring person, but what if the person is allergic to your pet, or already has pets of their own and conflict develops between them? The person may live or move to a rental apartment or community that excludes pets. As you now realize, there is a lot to consider here.

But there are avenues you can pursue to protect your pets. There are legally enforceable documents that can guarantee an animal's continuing care. Some statues such as the Massachusetts General Laws chapter 203E, Section 408 are relatively new. We will be discussing pet trusts in our next column with an expert attorney on the subject, Holly Rodgers.

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires.  Bill's forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.
 

     

The Independent Investor: 'Watch the Gap Please'

By Bill Schmick
iBerkshires Columnist

If you haven't realized it by now, Medicare has a lot of "gaps" in its coverage. In order to close that gap, various private insurance companies offer plans that cover a lot of out-of-pocket costs — for a price.

Bare-bones Medicare coverage can leave you with some steep medical bills. As we discussed in our last column, if you are admitted to the hospital, for example, your first bill will tally $1,216 or more, which is the deductible you pay just for being admitted. After that, you pay 20 percent of the fee for every doctor visit, lab test, MRI, X-Ray and on and on. Remember, too, that there is no yearly limit for what you may have to pay beyond your basic Medicare Part A and B coverage.

Depending on which plan you choose, a Medigap plan will pay some or all of these expenses. Some plans will pay the coinsurance for hospital stays; others could pay for the coinsurance expense for outpatient care. Other plans pay for additional costs like Part A and B deductibles, coinsurance for nursing care, and even emergency care outside of the U.S.

As you might expect, the most comprehensive plans have the highest monthly premiums, although once you pay that premium, your insurance company pays everything else. That means you pay nothing for that quarterly medical checkup, that emergency room visit, or admission to the hospital.

Here in Massachusetts, you have a guaranteed right to buy any Medigap policy sold in your area, beginning on the first day of the month after turning the age of 65. You do have to be enrolled in Medicare Part B to qualify. Those Medigap insurers cannot deny you coverage or charge you a higher premium due to existing health conditions. In most cases, Medigap will cover a pre-existing condition immediately, but some policies will delay coverage of out-of-pocket expenses for the first six months. Any doctor that accepts basic Medicare coverage will also accept your Medigap insurance.

There is another option called Medicare Advantage. These plans offer all your Medicare coverage benefits in one package plan. Hospital care, medical care and prescription drugs are covered. Some plans even cover vision and dental care plus other services. Most Medicare Advantage plans also provide financial protection. They place a limit on how much you pay out-of-pocket per year. Under this program, you share in the costs of your health care by paying co-pays or coinsurance. After you pay up to the plan's out-of-pocket limit, the Medicare Advantage plan pays 100 percent of all your medical costs. One caveat, though; it does not include your prescription drug costs.

Under Medicare Advantage plans, you will pay less if you receive care from doctors, hospitals and other providers that participate in the plan's network.  Each plan will build different networks of medical providers who provide quality care. There is a "star" quality rating that ranks these plans and naturally the higher the stars, the more customers they get.

As with Medigap, Medicare Advantage Plans provide consumers an array of choices. How do you choose? First, you check to see if your doctors are on the insurance company's plan  and which hospitals each plan offers. Make sure your physical therapists and pharmacy are also on the plan. If none or some of the above are not listed, would you be willing to switch in order to save money?

Some more questions you might ask are: does the plan you are considering provide good coverage of the health services you use now, or what you may use in the future? Does the plan cover all the existing drugs you need and what are the co-pays? Do you need or want extra benefits such as vision or dental?

Finally, figure out how much you will have to pay per month and year for the medical benefits each plan offers. That means the premium, deductible, co-pays, coinsurance and out-of-pocket expenses. Remember while making your decision, a plan with a low premium might not be the best bet if the co-pays are higher for certain services you use frequently.

Note: Several weeks of Mr. Schmick's columns in January & February disappeared into the ether on their way to iBerkshires. They are being back posted to the dates on which they should have appeared.

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires.  Bill's forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.

 

     

The Independent Investor: Medicare, Why You Need More Than Part A & B

By Bill Schmick
iBerkshires Columnist

Medicare costs jumped 3.4 percent last year. Drug prices gained a whopping 11 percent. Medicare parts A&B does not cover prescriptions and the gap between what it does cover and your out of pocket expenses could break you.

Last week, while walking Titus, our chocolate Lab, I bumped into a fellow dog walker. I'll call him Abe. Abe is retired and on a tight budget. In an effort to save money, he elected not to acquire drug prescription insurance called Medicare Part D.

"After all," he explained, I'm in my late seventies and aside from aspirin and the occasional antibiotic for the flu, I've been drug-free for as far back as I can remember." Until now — Abe has just been diagnosed with diabetes and is required to take self-injected drugs several times a week in his stomach for the illness. That works out to $39.95 a day for the rest of his life.  

It could happen to you when you least expect it and can't afford it. Medicare Part D is offered by private insurance companies that are approved by Medicare. Every plan has what is called a "formulary." A formulary is simply a list of drugs each plan will cover. The insurer will charge you a premium per month and most have an annual deductible you must meet before the insurance kicks in.

You need to do your research because what drugs and how much you pay for it will vary from plan to plan. It's called a "tier" system where some insurers don't carry a specific drug or only the generic version of it. Others may reimburse you differently, depending on what tier your drug (s) of choice falls into. If you are already taking a prescription drug(s) you need to check for the best deal you can get among insurers. There's also the infamous "doughnut hole" that you must consider.

Medicare drug coverage plays a portion of your drug costs and you pay the rest. As your drug costs add up, you may have to pay more and more of the costs (the doughnut hole) up to a certain level ($4,950 in 2017). After that, you pay only 5 percent of your drug cost for the rest of the year and then it starts all over again.

As you might expect, people with higher incomes pay an extra amount every month for Medicare Part D. If you earn $85,000 or less ($170,000 for a couple), you pay whatever basic premium your plan charges. Over that, you could pay as low as $53.50 a month to as much as $294.60 a month, depending on your income level.

In most cases, if you owe this extra amount, Social Security will deduct it from your Social Security check. To determine your 2017 Medicare premiums, Social Security will normally look at your federal income tax return you filed in 2016 (for tax year 2015). If your income has gone down since then, which usually happens when one retires; you can request a new decision from Social Security.

In our next column, we will examine two additional forms of insurance that you should consider: Medigap Insurance Plans and Medicare Advantage. Both can assist you in covering the gap between what Medicare pays for and what you do.

Note: Several weeks of Mr. Schmick's columns in January & February disappeared into the ether on their way to iBerkshires. They are being back posted to the dates on which they should have appeared.

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires.  Bill's forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.

     
Page 4 of 63 1  2  3  4  5  6  7  8  9  10  11  12  13  14 ... 63  
News Headlines
North Adams City Council OKs Free Cash Appropriations
Pittsfield American Legion Cited For Illegal Gambling
Pittsfield Taps Multiple Sources To Cover $1.3M Snow and Ice Deficit
Mount Greylock Lets Elementary Schools, Towns Drive Regionalization Talk
SteepleCats Drop Rain-Shortened Game in Sanford
Williams College Looks to Reconfigure Spring Street Parking Lot
Cats Win Wild One with Walk-Off
Housing Organization Transfers Bracewell Property to Louison House
Habitat for Humanity Asks to Develop Williamstown-Owned Parcels
NEA Chairman Sees, Hears About Pittsfield's Cultural Renaissance

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (234)
Independent Investor (318)
Archives:
June 2017 (7)
May 2017 (7)
April 2017 (7)
March 2017 (8)
February 2017 (8)
January 2017 (6)
December 2016 (2)
October 2016 (1)
September 2016 (9)
August 2016 (5)
July 2016 (7)
Tags:
Banks Jobs Bailout Greece Europe Selloff Federal Reserve Metals Europe Debt Ceiling Pullback Oil Wall Street Rally Energy Debt Stock Market Euro Recession Deficit Taxes Commodities Congress Fiscal Cliff Crisis Economy Stocks Election Stimulus Currency Markets Japan Interest Rates Housing Retirement
Popular Entries:
The Independent Investor: Don't Fight the Fed
@theMarket: QE II Supports the Markets
The Independent Investor: Understanding the Foreclosure Scandal
The Independent Investor: Does Cash Mean Currencies?
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
The Independent Investor: Will the Municipal Bond Massacre Continue?
The Independent Investor: How Will Wall Street II Play on Main Street?
Recent Entries:
The Independent Investor: A Tale of Two Charities
@theMarket: Markets in Pullback Mode
The Independent Investor: A Tale of Two Charities
@theMarket: FOMO Fuels the Markets
The Independent Investor: The Client Comes First
@theMarket: Markets Still on a Roll
The Independent Investor: Elder Care in an Age of Confusion
@theMarket: Markets Climb Higher
The Independent Investor: Ready For a 20 Percent Correction?
@theMarket: The Trump Dump