Student Loan Hoopla

I'm so happy to see that President Obama enjoys using the world Hoopla. It's one of my favorites. I'm even more happy he used the word in context of a discussion about student loans. Many recent graduates find themselves crushed by the burden of their student loans--loans that allowed them to seek advanced education and training yet now prohibit them from enjoying life. Several years back, in fact, I read an analysis by an economist that suggested that if graduates weren't being crushed by their student loans the impact of their discretionary income would significantly drive the US economy through their purchase of homes, washing machines, cars, etc. 

Yesterday Obama said that lost in the hoopla of health insurance reform, significant changes to the student loan industry are not being noticed. 

Notable talking points of the Health Care and Education Reconciliation Act:

• Double funding for Pell Grants since President Obama took office, to ensure that all eligible students receive an award, and that grants keep pace with the rising cost of college
• Invest in community colleges to help an additional 5 million Americans earn degrees and certificates over the next decade
• Increase support for historically black colleges and universities and minority serving-institutions, which have been particularly hard hit by some of the challenges facing all universities, and account for nearly sixty percent of the 4.7 million minority undergraduates in our country.
• Ease loan repayment by capping student loan payments at 10 percent of a graduate's discretionary income, with any remaining balance forgiven after 20 years. And those who go into public service after graduation can have their loans forgiven after 10 years.
• End government subsidies given to financial institutions that make student loans, switching to direct loans. This saves nearly $68 billion for college affordability.

Whopper Face

There are some advertisements I would not want to see. This would be one of them. The idea of a Whopper wrapper with my face on it filling up a landfill somewhere is less than appealing. Of course, that might be one very effective way to increase recycling, or at least make it easier to locate people who litter and prosecute them.

Irreverent Psychologist in the News

Apparently, I have developed a rather large following in Sweden. The clip has a lengthy intro, so be sure to watch all of it.

Friday News Roundup

When and How Health Care Reform Will Affect You?


The American Medial News provided a helpful time line listing when the various provisions of the new health care reform law will go into effect. Do dig deeper, following the link above. To dig even deeper, follow this link or this link. If you still want to know even more, check out this article in the Christian Science Monitor. They  have a nine part series of articles called Health care reform bill 101.


This is a complicated discussion and there is a lot to learn. The facts about this law don't lend themselves well to 140 twitter characters or a sound bite on CNN, MSNBC, or Fox News.


Immediately

• Offers tax credits to small businesses that offer health coverage.
• Starts to close the Medicare drug benefit's coverage gap to eliminate it by 2020.
• Authorizes the creation of a 15-member Medicare Independent Payment Advisory Board to extend Medicare's solvency, lower health care costs and improve health outcomes.
• Extends the Medicare Physician Quality Reporting Initiative through 2014, establishing a physician appeals process and penalizing nonreporting doctors starting in 2015.
• Authorizes the Food and Drug Administration to create a pathway for approval of biosimilar versions of biologic drugs.
• Extends the Medicare work geographic practice cost index floor through 2010.
• Provides funding for the practice expense geographic practice cost index floor for 2010 and 2011.

90 days after enactment (June 2010)

• Creates a temporary high-risk pool for Americans who are uninsured due to a preexisting condition.

6 months after enactment (September 2010)

• Prohibits health plans from canceling coverage for people who get sick and placing lifetime caps on benefits.
• Tightens restrictions on annual coverage limits.
• Extends health insurance eligibility for dependents to age 26.

By the end of 2010

• Begins greater investments in primary care physician training and community health centers.
• Prohibits physician-owned hospitals without a Medicare provider agreement from participating in the program.

2011

• Eliminates co-pays and deductibles for Medicare preventive care.
• Requires individual and small group health plans to spend at least 80% of premiums on health care; increases the floor to 85% for large group plans.
• Creates a long-term-care insurance program for adults with disabilities.
• Provides a 10% Medicare pay bonus from 2011 to 2015 for certain primary care and major surgical procedures in health professional shortage areas.

2014

• Prohibits health plans from denying coverage to anyone with a preexisting condition.
• Expands Medicaid eligibility nationwide to 133% of the federal poverty level.
• Directs the Dept. of Health and Human Services to create health insurance exchanges in states that have none.
• Establishes government subsidies for people earning between 133% and 400% of poverty to buy coverage through exchanges.
• Requires individuals to have a minimum level of coverage or pay penalties.
• Requires all but small employers whose workers enroll in exchange plans to help pay for the coverage.
• Begins reducing federal funding to safety net hospitals for the care of low-income people.

2015

• Allows recommendations of the Medicare Independent Payment Advisory Board to start taking effect unless overridden by supermajorities in both houses of Congress.

Photo of the Day: Blue Sky Edition

Quote of the Day

"If you persevere, stick with it, work at it, you have a real opportunity to achieve something. Sure, there will be storms along the way. And you might not reach your goal right away. But if you do your best and keep a true compass, you'll get there." -- Ted Kennedy

What Health Care Reform Means to You

Over the coming hours, days, weeks, and months there will no doubt be a great deal of discussion about the heath care reform legislation that was passed the the U.S. House of Representatives late last night. Here are the important points: (source)


If You Are Uninsured:

• This shouldn't affect those of us here in Massachusetts as by law, we are all already required to have health insurance. 
• Starting in 2014, those without insurance will face a penalty of $95 or 1 percent of income, whichever is greater. That penalty will rise over time, reaching $695 or 2 percent of income, whichever is greater. If you earn less that the income-tax filing threshold, you will not owe anything. If you cannot purchase a policy that is less than 8 percent of your income, you also will not owe anything. 
• More lower-income individuals under the age of 65 will be covered by Medicaid. A family of four that makes under $29, 327 would be covered.
• There will be state-run insurance exchanges. If your income is more than 133 percent of the poverty level but less than 400 percent (e.g., $29, 32 to $88,200 for a family of four) you will be eligible for health insurance subsidies through this program.
• Your premium for thee exchanges would be capped at a percentage of your income ranging from 3 percent to as much as 9.5 percent.
• If you lose lose your job, quit your job, or decide to start your own business you will be able to move between employer-related insurance to insurance from the exchange.

Those with Insurance:

• Your coverage is unlikely to change, though there will be benefits for you.
• No one will be able to be denied coverage based on pre-existing conditions on all policies after 2014.
• If you have Medicare, the "donut hole" will be eliminated by 2020. Starting immediately, those who hit the "donut hole" will get a $250 rebate. Starting in 2011, they will receive a 50% discount on brand named drugs.
• Dependent children can be covered by their parent's insurance until they reach 26 years old, regardless of their school status.
• Insurance plans that have total premiums of more than $10,200 for singles and $27,500 for families would be subject to a 40 percent tax on the excess premium. The taxes would be levied on the insurer, though that price is likely to be passed on to the consumer.