All posts by Barbara Nevins Taylor

Myths about the Older Worker

by Ronald Louis Peterson

 My career as an award-winning broadcast journalist and public relations counselor ended with a corporate downsizing the year I turned 57, which coincided with the start of the Great Recession. Since then, I’ve had a few interviews in my field but there was always someone who was a “better fit.” So, I reinvented myself as a new car salesman for eight months until that position was eliminated when the auto industry tanked.

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I reinvented myself again to start a pharmacist recruitment company. But despite 60-hour work weeks for a year, that didn’t work out either because the healthcare recruitment business was another casualty of the economic downturn.

Next, I landed a part-time position as an English composition instructor at a local community college, with the hope that it would lead to a fulltime position. But because there was a long waiting line to fill those jobs and because I was paid minimum wage, I left to work with a former colleague until he closed his small public relations firm.

After assessing the job market at 63, I turned to writing novels with the hope of making money one day. So, I’m following my passion because there are still too many myths about older workers that prevent me from landing another paying job in my field.

Myth: Employers don’t discriminate against older workers

  • According to a 2013 AARP survey, 64 percent of older workers between 45 and 74 say they have seen or experienced age discrimination in the workplace and 93 percent say it is very or somewhat common.

 

  • According to a 2012 Investors Group survey of small business owners in Canada, 79 percent said it was not likely that they would fill their open positions with someone older than 65.

 

  • According to a 2012 survey by Adecco of hiring managers at 500 U.S. companies, 72 percent think mature workers need more technological know-how and 33 percent think mature workers resist taking direction from younger managers.

 

Myth: Most workers 65 and older are less productive than younger workers

According to a 2012 Investors Group survey of small business owners in Canada:

  • 85 percent said that workers 65 years and older are just as productive as younger workers.
  • 79 percent think that senior workers have the required level of energy and ambition for their jobs.

 

Myth: Workers don’t want or need to work until they’re 65

According to a 2013 Gallup survey:

  • 37 percent of non-retired Americans say they expect to retire after age 65.
  • 26 percent at age 65.
  • 26 percent before age 65.

 

Gallup found that the big change is an increase in the number of people who expect to work past age 65. It rose to 37 percent in 2013 from:

  • 22 percent in 2003.
  • 14 percent percent in 1995.

 

However, older workers are apparently being forced to retire before reaching 65 since the average age of U.S. retirees today is 61. 

 

Myth: Older workers are not go getters

According to a 2013 Kauffman Index of Entrepreneurial Activity, an aging population and increasing rate of entrepreneurship among older workers has led to a rising share of new entrepreneurs in the 55 to 64 age group. And that’s an increase from:

  •  23.3 percent in 2012.
  •  14.3 percent in 1996.

 

Myth: Older workers have a poor work ethic

According to a 2009 Pew survey of people aged 16 and older, 74 percent believe that older adults have the best work ethic. Even young people think their parents’ and grandparents’ generations have a better work ethic:

  • 68 percent for those under 30.
  • 73 percent for those 50 and older.
  • This sentiment rises to 80 percent among 30 to 49-year-olds.

Myth: It is cost effective to replace experienced workers

A 2005 analysis of Towers Perrin data indicates that replacing an experienced worker of any age can cost 50 percent or more of the individual’s annual salary in turnover-related costs. 

Where does this leave me?

Where does this leave me? As I pursue my passion for creative writing, I’m thankful that my wife has a job and that she’s six years younger than me. And, while I regret that I did not “retire” from my public relations-marketing communications profession on my terms, I’m now working at becoming a great novelist–my real “dream” job.

 

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Hours to Avoid Healthcare.Gov

If you want to sign up for Obamacare, it is once again possible to do that on Healthcare.gov. The federal health insurance website is working after being down on Wednesday for the second time this week. But, we learned today that there are definitely hours to avoid Healthcare.gov.

Hours to Avoid Healthcare.gov

The site is down from 1 a.m. to 5 a.m. And will continue to go dark during those hours for maintenance and upgrades until the end of November. So if you’re a nightbird, you’re out of luck.

Of course, you still can sign up on the state healthcare exchange websites if your state is participating. You can also call and apply on the phone. There is a 24/7 hotline: 1-800-318-2596. Yet the failure of the site to function perfectly and the disruption to the application process is dispiriting.

Millions need affordable health insurance and Obamacare is a good way to get it. In addition, the government is spending $630 million on tech work for Healthcare.gov and it seems the huge sum should have gotten everything at least close to right in the first place.

However Julie Bataille, the spokesperson for the Centers for Medicare and Medicaid Services, is touting the new tech help that the administration recruited.

Here’s what she said about two key players, Michael Dickerson and Greg Gershman:

“Michael is a Site Reliability Engineer on leave from Google. He has expertise in diving into any layer of the tech stack, from the metal to the application code to the people that write it, in order to deliver some of the world’s most reliable online services.

“Michael is onsite working with QSSI, the general contractor, leveraging his experience stabilizing large, high throughput applications to improve Healthcare.gov‘s reliability and performance.

“Greg is a developer and entrepreneur with experience running agile development teams and creating better user experiences when interacting with government.

“Greg is working with CGI, focusing on optimizing the site to improve Healthcare.gov‘s performance, and helping the development process be more agile so Healthcare.gov can release improvements more rapidly.

“Besides these two, there are dozens of software engineers, developers, designers and analysts who are methodically working around the clock on performance and functionality of Healthcare.gov.

“And, lastly, as the general contractor, QSSI is making sure there is a coordinated approach to the punch list, and that the experts are being used as efficiently and productively as possible.”

Kathleen Sebelius On Obamacare



Clearing up the Facts
By Kathleen Sebelius, Secretary of Health and Human Services

There has been a lot of confusion about some recent notices to consumers from insurance companies that sell coverage in the individual insurance market, and I’d like to clear up the facts.

Today, more than 3 out of every 4 Americans get insurance from an employer, Medicare, Medicaid, or the Veterans Benefits Administration.  Americans who purchase insurance on their own, however, generally buy coverage in the individual insurance market.
Before the Affordable Care Act, coverage in the individual market often was unaffordable, had high co-pays or deductibles, or lacked basic benefits like maternity care, mental health services, and prescription drug coverage.  These plans also had high turnover rates, and often were not renewed at the end of a plan year.  One study showed that more than half of enrollees in the individual market left their plan within a year.
The health care law is creating new protections for people in the individual market, as well as strengthening employer-based coverage.  In the Health Insurance Marketplace, consumers will no longer be charged more because of gender or a pre-existing condition, recommended preventive services will be covered with no additional out of pocket cost, there will be caps on out of pocket costs, and plans will have to offer a basic package of 10 categories of essential health benefits.
Some insurance companies that sell products in the individual market are making changes to their plans.  Plans that were in place before the Affordable Care Act passed, and that essentially have not changed – that is benefits have not been cut or additional costs imposed on consumers – are exempt or “grandfathered” out of these basic requirements that ensure quality coverage.  Those grandfathered plans can stay the same.  Nothing has changed this fact, and that coverage can continue into 2014, so long as both the insurance company and the consumer agree that it will continue.
Some of less than 5 percent of Americans who currently get insurance on the individual insurance market have recently received notices from their insurance companies suggesting their plans may no longer exist.  These Americans have a choice – they can choose a plan being offered by their insurer, or they can shop for coverage in the Marketplace.  As insurers have made clear – they aren’t dropping consumers; they’re improving their coverage options, often offering plans that are more affordable.

Today, consumers have a choice of an average of 53 qualified health plans in the states where the federal government runs the Marketplace, including those in which it does so in partnership with states.  Nearly all consumers live in states with average premiums below earlier estimates.  Moreover, half of the people in the individual market today qualify for lower costs on monthly premiums when signing up for coverage through the Marketplace.

While the product is good, there is no denying the online experience on HealthCare.gov must be improved.   We will not stop improving the site until every American that wants it has access to quality, affordable coverage.

Importantly, while the team is improving the site, we have opened up new pathways for consumers to apply for coverage through the Marketplace.  There are four basic ways to apply for coverage.  Sign up by December 15 for coverage that starts January 1, 2014.  Enrollment stays open until March 31.

 

Another Outage on Healthcare.gov


If you’re struggling to apply for Obamacare, be aware there was another outage on the Healthcare.gov website.  One of the most important parts of the federal health insurance website went down during the evening on Tuesday, October 29th and it’s making it impossible to complete an application on the federal website.

The latest problem popped up as Health and Human Services Secretary Kathleen Sebelius faced tough questions from anti-Obamacare members of the House Energy and Commerce Committee. She apologized, and said, “Hold me responsible this debacle.”  She said she was “as frustrated and angry as anyone with the flawed launch of HealthCare.gov.”

Sebelius blamed the latest problem on Telemark, the contractor that’s owned by Verizon.  Apparently there was a “switch failure” on the data hub, the same portion of the site that went down on Sunday.

In a conference call with reporters on Wednesday afternoon, Julie Bataille, the spokeswoman for the Centers for Medicare and Medicaid Services, said some repairs were made on the data hub and as of 5 a.m. Wednesday, it was working partially but slowly.  This is a critical part of the online system because it’s the section of the site that provides information about eligibility and qualifications for subsidies. The latest fix allows states to use the system to process applications that are made on their marketplace websites. But the outage continues to affect the federal website Healthcare.gov. So this is yet another frustrating roadblock for you if try to use the site because you can’t get very far with your application.

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Bataille was asked if it wouldn’t be a good idea to redesign the overall website to make it simpler and easier to use. But she deflected the question and repeated the Obama administration’s assertions that tech specialists working on the site should have significant improvements in place by the end of November.

She said, “We are confident that consumers who are seeking coverage beginning January 1, 2014, will be able to enroll by December 15th. She also reminded everyone that the open enrollment period goes on until March 15th, 2014.

 

 

 

Latest Crackdown on HCG Weight Loss Supplement

You may have seen the Facebook or pop-ads for a dietary supplement that uses a hormone from human placenta that claims to help you  lose a pound a day. It may sound great. But the Federal Trade Commission (FTC) charges the claims are untrue and  wants to put the marketer out of business. 

The FTC sued Kevin Wright and his HCG companies for falsely promoting weight loss. The products they sell contain, or are said to contain, HCG. But the FTC says,”HCG, or human chorionic gonadotropin, is a hormone produced by the human placenta that, for decades, has been falsely promoted by various marketers for weight loss.”
Investigators claim Wright and his companies HCG Platinum and Right Way Nutrition, LLC, “… promise consumers that HCG Platinum liquid drops will cause rapid and substantial weight loss, and they claim consumers will likely lose as much weight as the endorsers in their advertisements.”

In its complaint, filed in Arizona Federal District Court, the FTC says ads for the products, “..direct consumers to place the HCG concoctions under their tongues before meals and stick to a very low calorie diet of 500 to 800 calories per day.” A thirty-day supply of one of the formulations costs between $60 to $149.  This apparently has been a very good business for Arizona-based Wright and his companies. The FTC says they’ve sold more than $13 million of HCG Platinum since 2010.

The FTC considers the money “ill-gotten gains” and wants a judge to order the defendants to give up the money.

Wright was warned  in November 2011, when the FTC sent letters alerting him and six others that the agency considered  HCG products mislabeled drugs. It reminded them that it’s illegal to, “…make weight-loss claims that are not supported by competent and reliable scientific evidence.”

Warning for Consumers: 

The FTC says there’s also a warning in this for consumer who are lured by the ads and false claims of supplement marketers that promise quick weight loss.

 

 

Medicare Rates Stay The Same

Here’s good news on the Medicare front. Monthly premiums for Medicare Part B won’t go up in 2014, according to the Centers for Medicare and Medicaid Services. The baseline premium is $104.90 for most people and that remains the same. But what you pay is generally tied to your income, so that people with higher incomes pay more, and those premiums also will remain the same.

 

 

Here’s the schedule of what you will pay monthly for Part B

  • $85,000 and $107,000 -$146.90
  • $107,000 to $160,000 –  $209.80
  • $160,000 to  $214,000 – $272.70
  • Above $214,000              –  $335.70

This is the third year that the premium hasn’t gone up and CMS Administrator Marilyn Tavenner says,“We continue to work hard to keep Medicare beneficiaries’ costs low by rewarding providers for producing better value for their patients and fighting fraud and abuse.”

 

Prescription Drug Savings

In addition, the Obama administration is touting the savings generated by provisions in the Affordable Care Act, or Obamacare, that help Medicare reduce drug costs. If your prescription medication costs more than Medicare will pay, you reach what they call the “coverage gap,” or “donut hole.” The Affordable Care act allocates money to help offset the burden on your wallet. It gives you a 50 percent discount at the pharmacy counter for both brand-name and generic drugs when you go over the threshold.

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The maximum out-of-pocket expense was $4,750 in 2013 and will be $4,550 in 2014. That’s still an awful lot of money. Yet, we’re told that so far in 2013, Medicare recipients saved an average of $834 each. That comes to a total of $2.3 billion for 2.8 million people. These savings are expected to continue until the “donut hole” is closed in 2020 and this is all courtesy of the Affordable Care Act.

Medicare Recipients Don’t Need to Sign up for Obamacare

There’s also a reminder from CMS: “People with Medicare don’t need to sign up for the new Health Insurance Marketplace, as they are already covered by Medicare.  The Marketplace won’t affect Medicare choices, and no matter how an individual gets Medicare, whether through original Medicare or a Medicare Advantage Plan, they still have the same benefits and security they have now.”

 

Open Enrollment-Making Medicare Decisions

 

 

 

More Trouble for Healthcare.gov

We’re rooting for Obamacare to work. But there’s more trouble for Healthcare.gov. The site’s data hub went down on Sunday and this time it wasn’t the fault of the government or those running the site. Terremark, a private contractor that runs the data hub had network failure that a affected a number of clients including HealthCare.gov.  Terremark is a division of Verizon and late Sunday Jacob Aaron a spokesman for the Department of Health and Human Services said,  “Secretary Sebelius spoke with the CEO of Verizon this afternoon to discuss the situation and they committed to fixing the problem as soon as possible.”

The data hub is a critical part of the site because that’s what allows people to find out their eligibility for coverage and subsidies. People were able to apply for Obamacare,  but they couldn’t sign up because they could not complete the process. The outage also affected state health exchange websites, which depend on the data hub to determine subsidy and Medicaid eligibility.

 

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Fixes Continue at Healthcare.gov

The Obama administration hired a general contractor to oversee fixes on Healthcare.gov to make the site useable for the millions who need it. To be clear, the site does function and has processed more than 700,000 applications so far. But it isn’t easy to use and it’s discouraging and frustrating to many who need affordable health care.

Jeff Zients, a technology consultant brought in to figure out what’s wrong, apparently thinks it’s fixable. Health and Human Services spokeswoman Julie Bataille says, “At the request of the President and Secretary Sebelius, Jeff worked over the last week with a team of expert engineers and technology managers from leading technology companies around the country to assess the overall state of the HealthCare.gov site.

In Jeff’s own words, “The topline result of this assessment is that the HealthCare.gov site IS fixable. It will take a lot of work, and there are a lot of problems that need to be addressed, but let me be clear: HealthCare.gov is fixable.”

The assessment identified key problems including speed, response time, reliability issues and bugs that prevent the software from working the way it’s supposed to. There is a sense of urgency and we’re told that tech people will work around the clock to improve the website. It’s predicted that it will be easier to use by the end of November.

That’s a bit of a problem, since you have until December 15th to sign up for Obamacare.  And so President Obama and administration officials are encouraging people to use Healthcare.gov to sign up even if it’s slow, clunky and frustrating. Remember Healthcare.gov is one of four ways to sign up.

  • Apply online. Visit HealthCare.gov to get started.
  • Apply by phone. Call 1-800-318-2596 to apply for a health insurance plan and enroll over the phone. (TTY: 1-855-889-4325)
  • Apply in person. Visit a trained counselor in your community to get information and apply in person. Find help in your area at LocalHelp.HealthCare.gov.
  • Apply by mail. Complete a paper application and mail it in.  You can download the paper application form and instructions from HealthCare.gov.

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Obama Pushes For Immigration Reform


President Obama is moving forward and continues to make his case for immigration reform. He renewed his call for congress to pass immigration reform this year.

Here’s a transcript of the President’s White House speech.

THE PRESIDENT:  Thank you very much.  Please have a seat, everybody.  Good morning, and welcome to the White House.  Today I’m here with leaders from business, from labor, from faith communities who are united around one goal — finishing the job of fixing a broken immigration system.

This is not just an idea whose time has come; this is an idea whose time has been around for years now.  Leaders like all of you have worked together with Republicans and Democrats in this town in good faith for years to try to get this done.  And this is the moment when we should be able to finally get the job done.

Now, it’s no secret that the American people haven’t seen much out of Washington that they like these days.  The shutdown and the threat of the first default in more than 200 years inflicted real pain on our businesses and on families across the country.  And it was a completely unnecessary, self-inflicted wound with real costs to real people, and it can never happen again.

Even with the shutdown over, and the threat of default eliminated, Democrats and Republicans still have some really big disagreements — there are some just fundamentally different views about how we should move forward on certain issues.  On the other hand, as I said the day after the shutdown ended, that’s no reason that we shouldn’t be able to work together on the things that we do agree on.

We should be able to work together on a responsible budget that invests in the things that we need to grow our economy and create jobs even while we maintain fiscal discipline.  We should be able to pass a farm bill that helps rural communities grow and protects vulnerable Americans in hard times.

And we should pass immigration reform.  (Applause.)  We should pass immigration reform.  It’s good for our economy.  It’s good for our national security.  It’s good for our people.  And we should do it this year.

Everybody knows that our current immigration system is broken.  Across the political spectrum, people understand that.  We’ve known it for years.  It’s not smart to invite some of the brightest minds from around the world to study here and then not let them start businesses here — we send them back to their home countries to start businesses and create jobs and invent new products someplace else.

It’s not fair to businesses and middle-class families who play by the rules when we allow companies that are trying to undercut the rules work in the shadow economy, to hire folks at lower wages or no benefits, no overtime, so that somehow they get a competitive edge from breaking the rules.  That doesn’t make sense.

It doesn’t make sense to have 11 million people who are in this country illegally without any incentive or any way for them to come out of the shadows, get right with the law, meet their responsibilities and permit their families then to move ahead.  It’s not smart.  It’s not fair.  It doesn’t make sense.  We have kicked this particular can down the road for too long.

Now, the good news is, this year the Senate has already passed an immigration reform bill by a wide, bipartisan majority that addressed all of these issues.  It’s a bill that would continue to strengthen our borders.  It would level the playing field by holding unscrupulous employers accountable if they knowingly hire undocumented workers.

It would modernize our legal immigration system, so that even as we train American workers for the jobs of the future, we’re also attracting highly-skilled entrepreneurs from beyond our borders to join with us to create jobs here in the United States.

It would make sure that everybody plays by the same rules by providing a pathway to earned citizenship for those who are here illegally — one that includes passing a background check, learning English, paying taxes, paying a penalty, getting in line behind everyone who is trying to come here the right way.

So it had all the component parts.  It didn’t have everything that I wanted; it didn’t have everything that anybody wanted; but it addressed the core challenges of how we create a immigration system that is fair, that’s just, that is true to our traditions as a nation of laws and a nation of immigrants.  And that’s passed the Senate by a bipartisan majority.  (Applause.)

So here’s what we also know — that the bill would grow the economy and shrink our deficits.  Independent economists have shown that if the Senate bill became law, over the next two decades our economy would grow by $1.4 trillion more than it would if we don’t pass the law.  It would reduce our deficits by nearly a trillion dollars.

So this isn’t just the right thing to do; it’s the smart thing to do.  Securing our borders; modernizing our legal immigration system; providing a pathway to earned, legalized citizenship; growing our economy; strengthening our middle class; reducing our deficits — that’s what common-sense immigration reform will do.

Now, obviously, just because something is smart and fair, and good for the economy and fiscally responsible and supported by business and labor — (laughter) — and the evangelical community and many Democrats and many Republicans, that does not mean that it will actually get done.  (Laughter.)  This is Washington, after all.

So everything tends to be viewed through a political prism and everybody has been looking at the politics of this.  And I know that there are some folks in this town who are primed to think, “Well, if Obama is for it, then I’m against it.”  But I’d remind everybody that my Republican predecessor was also for it when he proposed reforms like this almost a decade ago, and I joined with 23 Senate Republicans back then to support that reform.  I’d remind you that this reform won more than a dozen Republican votes in the Senate in June.

I’m not running for office again.  I just believe this is the right thing to do.  (Applause.)  I just believe this is the right thing to do.  And I also believe that good policy is good politics in this instance.  And if folks are really that consumed with the politics of fixing our broken immigration system, they should take a closer look at the polls because the American people support this.  It’s not something they reject — they support it.  Everybody wins here if we work together to get this done.  In fact, if there’s a good reason not to pass this common-sense reform, I haven’t heard it.

So anyone still standing in the way of this bipartisan reform should at least have to explain why.  A clear majority of the American people think it’s the right thing to do.

Now, how do we move forward?  Democratic leaders have introduced a bill in the House that is similar to the bipartisan Senate bill.  So now it’s up to Republicans in the House to decide whether reform becomes a reality or not.

I do know — and this is good news — that many of them agree that we need to fix our broken immigration system across these areas that we’ve just discussed.  And what I’ve said to them, and I’ll repeat today, is if House Republicans have new and different, additional ideas for how we should move forward, then we want to hear them.  I’ll be listening.  I know that Democrats and Republicans in the Senate, those who voted for immigration reform already, are eager to hear those additional ideas.  But what we can’t do is just sweep the problem under the rug one more time, leave it for somebody else to solve sometime in the future.

Rather than create problems, let’s prove to the American people that Washington can actually solve some problems.  This reform comes as close to anything we’ve got to a law that will benefit everybody now and far into the future.  So let’s see if we can get this done.  And let’s see if we can get it done this year.  (Applause.)

We’ve got the time to do it.  Republicans in the House, including the Speaker, have said we should act.  So let’s not wait.  It doesn’t get easier to just put it off.  Let’s do it now.  Let’s not delay.  Let’s get this done, and let’s do it in a bipartisan fashion.

To those of you who are here today, I want to just say one last thing and that is — thank you.  I want to thank you for your persistence.  I want to thank you for your activism.  I want to thank you for your passion and your heart when it comes to this issue.  And I want to tell you, you’ve got to keep it up.  Keep putting the pressure on all of us to get this done.  There are going to be moments — and there are always moments like this in big efforts at reform — where you meet resistance, and the press will declare something dead, it’s not going to happen, but that can be overcome.

And I have to say, Joe, as I look out at this room, these don’t look like people who are easily deterred.  (Laughter.)

THE VICE PRESIDENT:  I don’t think so.

THE PRESIDENT:  They don’t look like folks who are going to give up.  (Applause.)  You look fired up to make the next push.  And whether you’re a Republican or a Democrat or an independent, I want you to keep working, and I’m going to be right next to you, to make sure we get immigration reform done.  It is time.  Let’s go get it done.

Thank you very much, everybody.  (Applause.)

 

Obamacare Sign Ups Continue as Blame Game Begins

House Energy and Commerce Committee Hearing

The sorry tale of the problems with Healthcare.gov continues even as hundreds of thousands actually break through the technical barriers. So here’s the good news first, and you might take this as an encouraging sign if you are considering signing up.  700,000 applications for Obamacare were completed and are in the pipeline according to the Centers for Medicare and Medicaid Services Communications Director Julie Bataille.

In addition 1.6 million successfully got through to the call center — 1-800-318-2596 — where you can get help with applications and information. There is now apparently less than a minute’s wait for assistance.

On a conference call with reporters, Bataille admitted that the operating system for Healthcare.gov wasn’t adequately tested. She also admitted that  un-named administrators made a “business decision” to put the website together in-house rather than allowing outside contractors to integrate the parts that they were creating for the system.

Who is to blame, Bataille wouldn’t say and deflected direct questions. She also failed to answer questions about whether Health and Human Services  Secretary Kathleen Sebelius was aware of the problems with the site before it launched on October 1st.

In the meantime, on Capitol Hill contractors appeared before a house subcommittee and explained that their companies did small parts of the big website job. 55 contractors participated in the program and were involved with a number of federal agencies including Homeland Security and the IRS.

A Good Opportunity

While the finger pointing continues, we still think that Obamacare is a great way to buy affordable health insurance. Tech experts are working on Healthcare.gov. And even though the administration is using the weird phrase”Tech Surge” to describe the influx of smart tech people who’ve been brought in to straighten things out, the glitches and bugs are getting fixed and it’s easier to log on and complete an application without the error messages and white screens popping up.

You may also be able to apply in your state, and that might make things easier.

 

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Public College Tuition Hikes Ease

Someone is listening to the cry for more reasonable college tuition. Maybe a lot of someones. The College Board’s latest Trend in Student Aid report found tuition hikes at public colleges were lower than they have been since 1975-76. Tuition and fees increased 2.9 percent for  in-state students in 2012-13 to 2013-14.

Students at private schools also found their bills slightly less painful than they might have been. Their tuition increased by 3.8% at four-year schools and  3.5 percent at two-year schools. These are the smallest increases at private schools since 2007 and 2008.

There is a big but here,  and it’s not necessarily good news. Both public and private college students will find that federal and state governments are less generous than they had been. Grant aid is not keeping up with even the modest increases in costs. That means you and your family will have to pay a bigger share of the bill.

What are people borrowing?

The average undergraduate federal loan was $6,760 and the average graduate student loan was $17,230 in 2012-13.

Researchers say that about 60% of students who earned bachelor’s degrees in 2011-12 from either a public or private college graduated with debt and the average was $26,500. Yet some have taken advantage of the flexible repayment plans that don’t eat up everything they earn. In 2013, 1.6 million federal Direct Loan borrowers were in repayment plans that limit their payments to a specified percentage of their incomes.

College Board President David Coleman is pushing politicians and academic leaders to get a handle on costs. He says, “A college education is an unparalleled investment, but there is no college opportunity without college affordability.”

The College Board is attempting to work with politicians in Washington to improve the financial aid system. It’s also focusing on helping students make better choices when they apply for college. The organization sent personalized packets called “Realize Your College Potential” to 28,000 low-income, high-achieving high school seniors. The information they received matches colleges with their academic credentials and highlights what financial aid might be available to them. These packets also include application fee waivers for as many as eight colleges.

It plans to send the same kind of information, with fee waivers for four colleges, to an additional 70,000 college-ready, low-income students. Another 200,000 college-ready students will receive electronic college planning information.

Consumer Reports Rebuts Claims It Turned Against Obamacare

Consumer Reports (CR) rebuts claims that it has turn against the Affordable Care Act because of problems on Healthcare.gov. It says, “Obamacare opponents have misrepresented Consumer Reports’ position.”  The group responded after  Conservative bloggers and media outlets picked up a quote from a caution offered by Consumer Reports’ health care writer Nancy Metcalf.

Metcalf writes a daily blog that offers tips about signing up for Obamacare and she’s listed the problems people have hadwith Healthcare.gov.  She did suggest that consumers wait to sign up on the federal registry until the technical problems on the site are resolved. She wrote, “Stay away from Healthcare.gov for at least another month if you can. Hopefully that will be long enough for its software vendors to clean up the mess they’ve made. The coverage available through the marketplaces won’t begin until Jan. 1, 2014, at the earliest, and you have until Dec. 15 to enroll if you need insurance that starts promptly.”

But she did not urge people to stay away or boycott Obamacare. In fact, Consumer Reports thinks that Obamacare is a good and valuable way for most Americans to purchase affordable health insurance. Metcalf, posted this response to those who twisted her advice to consumers:

Pundits opposed to the new health care law and some media outlets have tried to suggest that our coverage of the troubled HealthCare.gov site means that Consumer Reports has turned against the Affordable Care Act.

Not true. Consistent with our mission to inform and protect consumers, particularly in this complicated health care market, our advice remains the same: The best place to buy coverage on your own is through the Health Insurance Marketplace in your state. That guarantees you will get comprehensive coverage, and it’s the only way you can lower the cost of your premiums and possibly even your deductibles and copayments.”

WHAT YOU CAN DO

If you live in one of the 16 states that have their own healthcare exchanges you are in luck. There are some problems, but most of the state websites allow you to sign up without difficulty. Consumers in states including Kentucky, Delaware, California, Maryland, Minnesota and New York are reporting that they are able to sign up successfully.

Again, you do have until December 15th to sign up for health insurance that begins January 1, 2014.

OUR ADVICE

It’s worth it. Don’t give up.

 

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More Tech Help for Obamacare


by Barbara Nevins Taylor

 

More tech help is on the way for the beleaguered Obamacare website Healthcare.gov., and it’s about time. While nearly half a million people applied for health insurance under Obamacare in the past few weeks and the site had over 19 million unique visits, the process was filled with drama and frustration. Many who rushed to take advantage of the great opportunity to get affordable health carecouldn’t do basic things like create accounts or log on.

It’s an embarrassment that the Department of Health and Human Services acknowledges in a statement from spokeswoman Joanne Peters,”The initial consumer experience of HealthCare.gov has not lived up to the expectations of the American people. We are committed to doing better.”

So we’re happy to hear that HHS reached beyond its team to get tech help from outside the government. It says it’s adding “the best and the brightest” to  fix the errors and improve the user experience.

They are also dumping some of the quick fixes they made in response to the huge number trying to get on the site. The virtual “waiting room” was confusing and didn’t help anyone. Tech people are working at night to get rid of the glitches and debug the system. HHS says maintenance will continue in the off-hours to trouble shoot problems.

And here’s your opportunity to shout back. They actually want you to honestly tell them about your experience on the site, or so they say. We’re told HHS wants negative and positive feedback. So go for it. You can make your comments at  https://www.healthcare.gov/connect.

On a positive note, the New York Times reported about a the Kentucky Healthcare exchange called Kynect, which according to the report is functioning really well. Kentucky Governor Steven Beshear is on board in a big way urging Kentuckians to take advantage of the program and get the health insurance they need for themselves and their families. Kentucky is the only Southern state operating it’s own healthcare exchange.

 

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