COBRA Continuation Health Coverage- What is it ?

The government passed COBRA in the year 1986. This law amends the Internal Revenue Code,Public Health Service Act and the Employee Retirement Income Security Act , in order to offer continuous group health coverage, which otherwise would have been terminated.

What does COBRA perform?

It provides the right to temporary continuation of insurance (health) coverage at group rates to former employees, spouses, retirees, former spouses and dependent children.

When is this coverage available?

It is only available when the coverage is lost due to a particular reason.

To be Continued….

For more information click here

]]> http://www.8000credit.org/935/cobra-continuation-health-coverage-faqs-part/feed/ 1 http://www.8000credit.org/768/medical-billing-errors-cost-lot/ http://www.8000credit.org/768/medical-billing-errors-cost-lot/#comments Sun, 20 Sep 2009 20:00:13 +0000 Teena http://www.8000credit.org/?p=768 Did you all know that 80% of medical bills in America contains errors. I was pretty shocked knowing this. An entire industry is existing to help people resolve issues related to errors in medical billing, under payment by insurance firms and over charges by heath care companies.

It is a wise option to request an itemized bill from the hospital and check it with the EOB provided by your insurance company. If there is anything that needs to be clarified, get it done as early as possible and do not pay your bill until your pretty sure about the correctness of the bill.

Things to be careful about:

Duplicate fee levied on procedures performed

Incorrect information regarding date of service

Increased charges for facilities in room such as towels and sheets ( Room charge is inclusive of these items)

If you think the issue is not resolvable by approaching your hospital or your insurance firm, then you could take a help of a billing advocate. However be aware of their charges before seeking their service.These errors could cost you thousands of dollars and hence be vigil and exercise caution.

Actually the main hindrance is that most of the plans suggested by the Congress tend to rely mostly on a fee-for-services kind of health care which provides almost 100% of each visit to the hospital, purchase of each service, visit of each doctor, the conducting of each test and the like. However the chiefs are of the opinion that this procedure helps to boost the long lasting treatments, unimportant tests and frequent doctor’s visits. The plan gives no incentive to either help prevent illnesses or to even maintain the health of a patient! Profits are made in trying to treat sick patients not in the attempt to recover them. The present plan too shares these defects with all the previously introduced plans.

Here we have presented a solution the problem that Safeway has helped to formulate and this has proved successful in many cases. If you make your patients accountable for finding the best facilities for the betterment of their health, Safeway has been able to reduce the per capita health care expenses by 15%. So we have been shown that it is the need of such innovative ideas and divergent thinking that is required to get both of us the kind and quality of health care facilities we need and want to avail of. Not just that, but also a health care facility we can afford at the same time! However the problem is not exactly this but something different. Both the Congress and the President are aware of all this. In fact the people who are promoting to work against this plan are those who are trusted inside the Congressional circle or at least are answerable to the Congress for explaining the feasibility of their plan.

None of the advisors are for this plan and are giving a negative response. Yet Congress is moving forward without a sign of hearing these warnings. However it is obvious we are all in need of health care facility but at the same time we must understand that Americans do not want to pay a heavy and unnecessary tax for something which is bound to blow up like a balloon. Congress must decide what they want from a nationalized health care facility so that the changes suggested by Douglas Elmendorf can be incorporated. Expediency should be allowed to go and wisdom needs to lead the way for these guys.

]]> http://www.8000credit.org/626/making-most-of-national-health-care-facilities/feed/ 0 http://www.8000credit.org/574/health-care-reform-who-pays-for-it/ http://www.8000credit.org/574/health-care-reform-who-pays-for-it/#comments Sun, 19 Jul 2009 21:02:31 +0000 Teena http://www.8000credit.org/?p=574 Lawmakers have been trying to investigate and improve the condition of pay made by the government to reform the condition  of health in the state. Janine Sahidi did a wonderful job in this case to help us know more.

As we read through her summary, it seems as if the government will begin to tax revenues that have till now not been taxed. Other than taxing, other options such as contributions made by the employer to health care facilities, ensuring the government employees will be able to avail of medical benefits and a variety of health drinks with high levels of fructose.

Since rights to health care happen to fall under the list of basic human rights, we all feel that everybody is bound to avail of such opportunities as freely as others.

Yet what is very distressing is that every new innovation introduced by the government mentions hiking taxes that were already being imposed earlier or forming new taxes that never existed before. Nobody is complaining of not cooperating but we all feel that the government too should understand our point of view regarding the same.

There are  often occasions where family members are required to pay for latest expenses. During such points of time, not only are newer avenues to earn quick money are looked for but efforts are also made to reduce the amount of expenditure on the part of the family.

We saw something phenomenal in the years 2001 to 2008. The government raised its budget from $1.9 trillion to $2.8 trillion. That was almost $1000 trillion extra. Lawyers in defense to their present case have made use of the 2008 records rather than the previous years since they wish to have a clearer and more relevant argument.

What I do not comprehend is how it is impossible to cut down on some of these expenses to aid contributing to something for which your country is desperately in need of.

It really is the moment for the government to begin looking for methods to attempt reducing the approximate $1000 increase so that a contribution from their side to the national medical plans that all citizens have equal right to can be made.

To me it seems as if the government wishes that only those who can pay the raised taxes should be the exclusive ones availing of these medical and health care privileges. However I do not seem to understand how this can be accepted by us citizens since we all know that the concept of national healthcare means that the government will also make a significant contribution to help the people who help to make the government.

I think it is now time for the present government to look in to the matter seriously and understand how the country has actually been investing its finances. We feel that a lot more can be done than to just make insignificant reductions that produce no significant result whatsoever.

We agree that the concern of national medical aids has become a responsibility for all but that does not mean that the tax payers will have to bear the brunt of such introductions.

I feel that the COBRA or the “Consolidated Omnibus Budget Reconciliation Act” has been the most nerve wrecking and complicated laws of the federal government that are effective in a workplace.

The consequences of the ARRA that is the tweaked version of COBRA are aplenty and since the time President Obama has put the law into effect, the IRS is trying to cope up with this law.

The IRS’s directions were released on 4 June 19, 2009 on it’s Website. Several topics have been covered including topics like Reporting and Documentation, Answers for Employers on COBRA and Preparations for Form.

The directions issued also address significant matters, including doubts over the reporting of subsidies provided to an individual who is eligible for assistance, by the employers on Form W-2. The IRS clarified this doubt by stating that information pertaining to the subsidies given on premiums to individuals who are eligible for COBRA, does not have to be reported, nor do multi-employer plans, insurers or employers have to report this to the IRS.

The IRS also stated that any individual who claims the payroll tax credit on the premium on COB under the Form 941, returns like the “Employer’s Quarterly Tax Returns” or any such application forms should compulsorily maintain books of payments made to individuals and documents that back up the issued credit.

The IRS also covered key matters including the determining factors during an involuntary termination; seasonal workers; military leaves and premium payments on COBRA under the HRA or Health Reimbursement Account. All this does seem to add to the confusion that already surrounds COBRA, however, IRS’s step to clarify the rules on documentation and filing seems to facilitate faster enforcement of the ARRA.

Let’s hope this brings some relief to most of the individuals who are currently unable to benefit from COBRA.

I have summed up the Positive Benefits of Marijuana and Pros and Cons of Marijuana Legalization below. Check it out and let me know if there is something that you think is relevant.

Medical Marijuana is known to provide a cure for vomiting, the feeling of nausea and appetite loss. It also helps treat spasticity as well as relieve neurogenic pain, Glaucoma and asthma.

The muscle relaxing and antispasmodic properties of marijuana are highly useful in treating injuries to spinal cord as well as multiple sclerosis. Many other studies have revealed that marijuana is also highly efficient in dealing with alcoholism, arthritis due to collagen, Rheumatoid arthritis, depression, autism, morning sickness, skin related tumors, atherosclerosis, leukemia, Huntington’s disease, gliomas as well as colorectal cancer.

Pros and Cons of Marijuana Legalization

The most active constituent of marijuana is THC, which plays a major role in preventing brain deposits, which ultimately lead to Alzheimer’s. THC is more effective than any other commercially available drug in the market since it prevents an enzyme named acetylcholinesterase from accelerating these brain deposits. It also has the capacity to block certain proteins, which are associated with memory loss in Alzheimer’s.

According to Harvard university researchers, Marijuana (Marijuana seeds) also helps in reducing lung cancer growth by about fifty percent and also restricts its spreading throughout the body. By a process known as autophagy, Marijuana limits breast cancer and helps in killing the brain cancer affected cells, thus providing an alternative to the painful chemotherapy.

Michigan Medical Marijuana Laws

There has been a lot of mixed opinion regarding the usage of marijuana as a medicinal drug. There were laws which prevented its usage for treating medical diseases. However, keeping in mind the various purposes it served, a new medical marijuana law was drafted on November 4th, 2008.

According to this law, marijuana could be used in certain special conditions, under the approval of a qualified doctor. It received a sixty-three percent vote and a majority support in all of the eighty three countries coming under Michigan. On 6thApril, the full law took shape as all supporters of medical marijuana lined up to receive the first permits, under Michigan’s newly declared law. Around 101 applications were submitted by Michigan Medical Marijuana Association.

According to the law, within 20 days of submitting the application, an ID card has to be issued by the state. This ID card will protect the patient from arrest, provided that he complies with the rules. The holder of the ID card can grow medical marijuana in an enclosed and locked environment or take the help of a caregiver. A caregiver can help only 5 patients at a given point of time.

Michigan’s medical marijuana law also extends its law protection to visiting patients, who are critically ill. They will be allowed to use marijuana for medical purposes, even in their home states.

Leaders from 11 major veterans’ organizations have thereby signed a letter to President Obama that mentions this consideration to be completely unacceptable. This would be a complete abrogation of legal responsibility and moral obligation of the government towards people who have never cared to lay their lives for the freedom of the country, the letter adds.

Many veteran group leaders have met officials from Obama administration recently to discuss about the complete VA budget. Eric Shinseki, Secretary of Veterans Affairs confirmed last week that the plan to increase charges on private health insurance of veterans is being though upon but that it is not formal proposal as yet.

At present, the entire cost for medical ailments that relates to military service is covered by VA and third-party insurers are billed for the non-service injuries. Like, if any veteran has got flu, personal insurance of the veteran bears the charges. But if the injury is service-related and needs prosthetics or hearing aids, the cost is covered by VA.

Veteran groups are anxious about the fact that shifting the costs towards private insurance would lead to:

•    Increased premium payments for veterans
•    Increased difficulties to seek and hold on to health insurance by the injured veterans
•    Discouragement of employers from appointing disabled veterans
•    Making war injury as the pre-existing condition may be.

Lately, these points have not directly been attended to by The White House as yet. However, it has been made quite clear by the president that meeting veterans’ needs is on his priority list for sure, so he has forwarded a request for an increase by 11 percent in the 2010 discretionary funding. He also mentioned that administration is working actively with veteran community in order to fix the budget details properly.

It is quite likely that this plan would face a huge opposition from Congress, if it at all turns into a formal suggestion.

Sen. Richard Burr, who is a ranking member of the Senate Veterans’ Affairs Committee, says that the main purpose of the creation of VA was to care for people who have been brave enough to fight for the country without giving a thought to their own safety. So, it is our responsibility to care for the injuries sustained by these brave men while serving the country.

Though everyone is aware about the financial crisis faced by the country but putting this burden onto the shoulders that have already sacrificed so much for the country’s welfare, is unconscionable, clears the Veterans’ letter written to the president.

At present, the federal government looks for the reimbursement of $2.5 billion from the third-party payers for the money needed for health services of veterans. This amount is expected to increase by almost 36 percent as the reimbursement collectible would soar to $3.4 billion with the new 2010 fiscal budget proposed by Obama. However, no specifications have been released, so everyone is waiting for April 2009.

Right from the time of his campaigns, Barrack Obama has been suggesting various changes in the Medicare program of the US Government. Medicare is a type of an insurance program that provides insurance to individuals above 65 years of age or others with special conditions.

Medicare Advantage plans are the various plans offered to individuals eligible for Medicare.

Medicare Advantage News

If an individual chooses one from among these plans, he will get the health care covered by Medicare in accordance to that particular plan. These plans also usually cover the cost of drugs that may be prescribed. There are 4 types of medical advantage plans. These include:

•    Medicare Health Maintenance Organizations (HMO)
•    Preferred Provider Organizations (PPO)
•    Private Fee-for Service Plans
•    Medicare Special Needs Plans

An individual can avail the benefits of Medicare Advantage Plans, only if you have Medicare Plan A and Medicare Plan B. After joining this plan, he gets health insurance card, that can be used for paying his medical bills. The benefits of these plans include lower co-payment and require you to pay the premiums for Medicare Plan B as well as an added premium for the advantage plans. You will also have to visit specific doctors for your treatment.

Obama Medicare Advantage Plans

Obama has always viewed Medicare as a threat to the economic health of the USA. Similar views are held by the Budget Director Peter Orzag. Even though there are companies that offer health insurance at premiums lower than those offered by Medicare, the Federal Government ends up spending a huge chunk of its money towards Medicare. The amount spent on individuals having Medicare Advantage Plans is even greater.

It is estimated that the government spends $1.3 for individuals with Medicare Advantage plans as compared to the $1 it spends on individuals having Medicare. Thus, if the plans made by Obama and Orzag are put into action, the Medicare Advantage Plans may be scrapped.

Medicare advantage health plans comparison

Insurers like Aetna Inc., WellPoint Inc. etc. have offered to come up with alternatives to the present Medicare plans, however the government is likely to scrap the present plans completely. Instead, President Obama intends to use the $200 billion budget spent on Medicare for other purposes. According to the current estimates, if the Medicare plans stay in action, the Medicare trust fund will be depleted by the year 2019. Thus, it is indeed necessary to come up with alternatives to the same.

The present plans proposed by the President require the Medicare companies to bid for a particular region. After this bidding, the amount the government spends on Medicare will be calculated on the basis of the average bid by the companies for that particular region. The President predicts, that the government will save $177 billion over the period of 10 years by implementing this process.

This restructuring is likely to increase the costs of premiums of Medicare by some amount as the amount being contributed by the government will be reduced. However, the additional benefits promised by the President will ensure that individuals are provided with better medical facilities.

The emphasis is basically to quickly increase the number of masses that would be covered under the health insurance as significant upfront investment is made. The senator claims that his reform proposal would allow an American family to save medical costs by $2,500 every year.

The funding for this Obama campaign is assumed to be by making possible savings within the system and by discontinuing the tax cuts by Bush for people making over $250,000 of income per year. The health care reform plan by Obama is divided into three parts:

Barack Obama Health Care Plan

1.    Everyone’s access to quality, portable and affordable health coverage.
2.    Modernizing health care system in U.S. to better quality and lower costs.
3.    Encouraging strengthening of public health.

Obama and Health Insurance

While these primary goals may seem to be very pleasing to Americans but the means that are necessary to achieve these goals are definitely not very convincing. Also, on the whole, the plan by Obama will give an enhanced control to the federal government over the decisions and dollars in the health care industry. This would be a drastic shift from the decentralized system that involves insurance regulation based on state and employer-based insurance.

Obama Medical Plan

Digital Health Records

Recently, the budget proposal for the overhaul of the health care system has been put forward by the President that calls for $634 billion fund for 10-years. Few details along with some new priorities have also been listed. A shift from the stressful and cumbersome paper-based system to electronic records in the health care industry is one agenda that will be taken up. This would require making arrangements to set up one common platform that can help medical professionals exchange records easily and in less time. Apart from saving the lives of millions of people by efficient communication, this would also reduce the millions of dollars that is invested in federal insurance programs like Medicaid and Medicare.

Obama and Cancer Research

Also, considering cancer to be the second most common reason for the deaths of most Americans along with its overreaching costs of billions of dollars, $6 billion is also allocated for research on cancer at National Institute of Health.

Obama Medicare Advantage

Over payments in the Medicare and getting rid of inefficiencies are some other important points in the pipeline. Federal insurance plan is also in the planning for disabled people and those above 65 years. This would mean estimated 45 million people that require 13 percent of the total federal spending.

The budget also suggests that using competitive bids as regards to Medicare would save over $175 billion within 10 years, though critics believe this to be quite unrealistic. So, overall, Obama health care plan consists of all the necessary components to effectively address essential shortcoming of United States ongoing health care system, i.e high-cost growth and limited coverage. If everything goes as planned, significant improvements in the Medicare industry would be a great treat to the Americans for sure.

The Federal Stimulus Bill mostly emphasizes on spending increases and tax cuts to revive a badly ailing economy. The package includes aid to states and local governments to help them avoid cuts in medical coverage and school funding. The bill also would extend unemployment benefits and give unemployed workers subsidies for health care coverage.

About 3.6 million jobs have been lost since the United States entered a recession in December 2007. The world’s largest economy contracted by 3.8% in the last quarter of 2008 and most economists predict even worse in the current quarter. So the major portion of the tax relief in the bill would go to individuals which include a $500 refundable tax. There is also emphasis for traditional job creating programs such as highway construction and mass transit projects.

Apart from that tens of billions of additional dollars would be distributed to the states, which face the prospect of deep budget cuts of their own. This money marks an attempt to ease the recession’s impact on schools and law enforcement agencies. With funding for housing and other provisions, the bill also makes a down payment on Osama’s campaign promise of creating jobs that can reduce the nation’s dependence on foreign oil.

Obama’s Stimulus Package Details and Breakdown 2009

Now let’s have a close look at the whole $ 819 billion stimulus check and see how the money is going to be distributed among various sectors. We can do by breaking it up in to the broad areas in which it is panning to help.

Direct Payments

First of all the stimulus bill’s spending are divided in to direct payments to individuals (includes unemployment compensation or tax credits) and purchases of goods and services, either directly by the government or indirectly in the form of grants to states and local governments.

Now let’s have look how the entire boll amount will be distributed among various sectors

Tax Breaks

The House would pull over around 64% of the entire package or $525 billion in to the country’s economy within 19 months through spending and tax breaks

Health, Human Resources, Education and Labor

In the Stimulus package $91.3 billion has been reserved for these sectors. But most of the funds in this portion would not be spent before September 2010. Only about half of the cash proposed to renovate elementary and secondary schools would be used in the next 19 months.

Medical Provisions

An estimated $ 89.7 billion dollar has been devoted for the medical sector in the stimulus package. Most of this money will be made available between 2009 and 2010.

Tax Credits

An estimated $ 82.1 billion has been reserved for tax credits and the major half of which will be distribute within the next two years

Transportation and HUD

$ 62.3 billion dollar has been allotted to this sector of which just one third will be allocated for highway construction by the end of fiscal 2010.The rest will not be touched now.

State Fiscal Stabilization Fund

A total of $ 79 billion in this stimulus package is reserved for  this fund which will be administered by the Education Department .The programmed will help the  state and local governments  to fund education and other services in order to ease the pressure on them.

Miscellany

Some other areas covered by the economic stimulus package are as follow:

$ 48.9 billion is allotted to the Water and Energy sector

$ 47.7 billion for unemployed workers and struggling families

Health insurance assistance for the unemployed will cost $40.8 billion

$ 26.9 billion for Agriculture, Nutrition and Rural Development

Health Information receives $ 20.2 billion

Now I am sure you will have a lot of questions for the government tax man so I am publishing the IRS help line below.

Contacting the IRS By Phone

I’ve listed the phone numbers for the IRS below.

Expect to wait on hold:

I tried calling up IRS stimulus number but not suprisingly like most other support numbers I was greeted by a nice message that told me the IRS was experiencing heavy calls volumes regarding the economic stimulus/rebate. I didn’t wait to see how long it was going to take. However from other accounts I have heard that you might as well put it on speaker and go about your regular job untill your hear somebody from the other side.