Today is Thursday, May 17, 2012


Change rules for 401ks, IRAs, HSAs and Social Security

If President Bush and other proponents of Social Security reforms really want a bill, they will come up with a compromise that gives owners of 401ks, IRAs, health savings accounts and similar retirement accounts strong financial incentives to accept lower Social Security benefits when they retire. Republicans need to defuse opponents who claim they want to destory Social Security, while Democrats need to show that they also are reformers, not the obstructionists that Republicans are saying they are. Thus, both sides might join in reforming existing personal savings accounts, which already tax shelter investments and savings. They would provide stronger financial incentives for workers to leave their money in those accounts until retirement and to accumulate true wealth and to give up part of their Social Security benefits as part of the bargain. For example: -more-

 

Some $200 million will be spent to support Social Security, malpractice and tort reforms

Business and conservative groups are budgeting some $200 million for advertising and lobbying campaigns in support of President Bush’s proposed changes in Social Security, malpractice and tort laws, while the AARP, unions, consumer groups and the Democrats will do all they can to back the reforms. A Washington Post story by Thomas B. Edsall concludes: -more-

Social Security: What pegging benefits to price inflation would do to benefits

This N.Y. Times story suggests personal savings accounts would have to return an average of better than 4.6% over the rate of inflation to make PSAs attractive to young workers.

 

Social Security: ‘The selling of retirement and how we bought it’

This Washington Post article provides a history and demographic profile of the retirement markets and industries that should interest health care planners who are watching the Social Security reform debate.

 

Editorial explains the logic of making personal savings accounts part of Social Security reform

Looks like an objective and reasonable case for personal savings accounts. The thing to remember is that between 1959 and 2004, equities and collateralized commodity futures returned an average of about 12.5% a year. Thus, the projected returns for personal savings accounts are conservative.

 

GM continues to whine about its inability to renegotiate health benefits with its unions

General Motors continued its campaign for a federal bail out of its obligations to its workers and retirees under its antiquated labor contracts that stretch back more than 60 years.

 

Bush vows to veto any legislation that cancels Medicare prescription drug benefits

President Bush defends his costly Medicare Modernization Act of 2003, saying he will veto any bill that reduces the benefits.

 

Tough driver’s license laws would reduce illegal immigration, help reduce uncompensated care

Illegal immigration contributes to soaring uncompensated care costs for hospitals, and the U.S. House has passed a tougher drilver’s license law that could curb illegal immigration and, indirectly, the cost of providing health care to illegal immigrants.

Democratic leaders threaten congressmen who support president’s Social Security proposals

Partisanship looks like a big problem for Bush as he attempts to reform Social Security.

 

Social Security: ‘Cut my benefits’ now

In one of the clearest and most sensible of the hundreds of articles and posts I’ve read on Social Security, Robert J. Samuelson says, Cut my benefits.”

Net cost of Medicare prescription drug benefits over 10 years, $720 billion; $1.2 trillion gross

Prescription drug benefits provided under the Medicare Modernization Act of ‘03 will cost $720 billion between 2006 and 20015, after offsets from the gross cost of about $1.2 trillion. “As recently as September, Medicare chief Mark B. McClellan said the new drug package would cost $534 billion over 10 years. Last night, he acknowledged that the cumulative cost of the program between 2006 and 2015 will reach $1.2 trillion, but he cited several major savings and offsets that he said will reduce the federal government’s bottom-line cost to $720 billion,” The Washington Post reported. The LA Times report is here.

Bush will propose spending $140 billion over 10 years on new health programs

President Bush will propose spending $140 billion over 10 years, or about $14 billion a year, on new health programs for children. The Washington Post’s lede graphs: -more-

Peacehealth’s costs for new hospital keep rising

Peacehealth, Eugene, OR, has spent about $95 million on a new $350 million hospital before getting all its permissions or breaking ground. Nothing’s easy.

Richard Cagen, CEO of Providence Health System gets great writeup

Providence Health System’s CEO, Richard Cagen, gets a nice writeup in the Portland Tribune.

Sec. Leavitt: Make Medicaid more flexible, child friendly; restrict pay downs by seniors

The new Sec. of DHHS, Michael Leavitt, a former governor, outlined ideas for reducing the rate of growth in Medicaid expenditures by the states and fedeal government and called for tougher restrictions on seniors who give their retirement funds to their heirs so they can go on Medicaid.