Flexible working Hours for Every Employee
Sed non mauris vitae erat consequat auctor eu in elit. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Mauris in erat justo. Nullam ac urna eu felispibus condimentum sit amet a augue. Sed non neque elit. Sed ut imperdiet nisi. Proin condimentum fermentum am pharetra, erat sed fermentum.
Shifting Drugs from Medicare Part B to Part D
A few months ago President Trump announced a plan to lower prescription drug costs under Medicare by moving coverage of certain expensive drugs from Medicare Part B to Part D. Part B is the medical benefit that was part of the original Medicare law passed by Congress in 1965. Part D is the drug coverage plan that was added to Medicare in 2003. The President believes costs can be reduced because under Part D the government contracts with private insurance companies to manage benefits and negotiate discounted rates with drug companies. Drugs under Part B are administered by infusions or injections that are either done in doctors’ offices or in hospital outpatient facilities. There is no negotiation of the cost of drugs covered under Part B. The idea is that if the drug costs are reduced thru negotiation under Part D then seniors save money and the government saves money. Everybody wins. There are, however, potential problems. One is that there is generally a higher out of pocket cost for drugs under Part D than there is under Part B. Part B beneficiaries usually are required to pay 20% of the Medicare approved charge but a good Medigap policy
A Pension Hole the Size of Japan’s Economy (Part 2)
In last week’s post I wrote about the growing public pension crisis in our country. A recent Wall Street Journal article highlighted the efforts by different states to try to start solving the problem which will only grow worse in coming years. Some pension recipients have either agreed to cuts to try to avoid deeper reductions forced upon them while other recipients have had their benefits involuntarily reduced. Some states’ efforts have been struck down in the courts so far. The numbers, however, are staggering and more attempts will surely come. So, who will be affected and is there anything you can do now? Most retirees in their 80’s and 90’s are not likely to be affected by any changes. First of all, many of the oldest pension recipients will pass away before changes are implemented. Secondly, lawmakers will try to inflict as little pain as possible on their constituents. The oldest retirees have no ability to make up for the loss of income. Having counted on their pension income for years, it would be impossible for them to replace it. Many would also be facing significant long term care and health care
A Pension Hole the Size of Japan’s Economy
The title of the article in the Wall Street Journal a few weeks ago was intended to turn heads. (See https://www.wsj.com/articles/the-pension-hole-for-u-s-cities-and-states-is-the-size-of-japans-economy-1532972501?mod=hp_lead_pos7) There has been an increasing amount of coverage in the media about the pension crisis in the country, specifically the underfunding of public employee pensions. According to the WSJ article public employee pension plans are underfunded by an estimated $5 trillion, an amount equal to the size of Japan’s economy. We know here in New Jersey we have a growing problem. According to some estimates our government pension system could run out of money in 12 years. The legislature and governor have talked about fixing it but there isn’t any easy solution and so far no real measures have been taken. What will happen if there isn’t enough money to meet all pension obligations? Will pensions be cut? Can they be? In some states that has already happened or is being tried. The city of Central Falls, Rhode Island filed for bankruptcy in 2011. The city’s police and firefighters agreed to pension cuts of 55% because they were fearful that they could lose more benefits if they didn’t. The city is doing somewhat better fiscally now, but the