Health Insurance Facts – Including 2010 Health Care Reform

Health Insurance Facts and FiguresIt’s amazing to read about the fact companies pay their top CEOs millions of dollars per year but that more than 40 million Americans – and more than 8 million children – can’t afford health insurance and don’t get it through their small business employer.The Affordable Care Act passed in 2010 aims to change this. Some of the new changes include that EVERYONE must have health insurance by 2014 or face penalties from the IRS. Small businesses will also receive large tax breaks and government stipends to help get their employees insured.Here are some more interesting facts about health insurance:Health care costs typically covered by insurance include doctor visits, hospital visits, surgery, advanced procedures, tests, home care, routine and advanced treatments and other services. Typically, the people who qualify for Medicare are those who are 65 years or older, as well as younger people with disabilities and people with permanent kidney failure. Medicaid is for people who are receiving federal government aid. It typically covers hospitalization, doctor’s visits and other types of services. Prescription drugs, chronic illnesses, uninsured patients, and longer life expectancy are adding to the rising cost of health care. Supplemental insurance covers treatments and services that regular health insurance doesn’t.Worker’s compensation covers health care costs for illnesses and injuries that occurred because of a person’s employment.Types of Plans:-Fee-for-Service: Fee-for-service plans allow you to choose the hospital and doctor you want, but you have to pay a monthly premium fee.-Health Maintenance Organizations: HMOs are prepaid health plans that require you to pay a co-payment when you visit a doctor. The plans concentrate on preventative care to keep costs down (the costs involved in treating someone with advanced illnesses are much higher).-Health Savings Accounts: These savings accounts help pay down high deductibles. They often carry over from year to year.-Point of Service Plans: These plans allow you to see doctors who aren’t inside your plan.-Preferred Provider Organizations: Like HMOs, there is a small co-payment for visiting doctors inside your plan. Unlike HMOs, you can see doctors who are outside your plan, but you’ll have to pay more of the bill yourself.-Self-Directed Health Plans: This is a PPO plan combined with a quarterly allowance that you can use for preventative health care. Like a health savings account, the money rolls over to the next year if you don’t use it.Health insurance figures:Millions of Americans are uninsured or under insured because of the soaring costs of health care. The U.S. paid almost $2.5 trillion in health care costs in 2008, and the average health care cost per American is $7,400 per year. Uninsured patients who also don’t pay their medical bills are driving up the cost of health care. Hospitals cover approximately $30 billion every year in unpaid medical bills. There are more than 40 million Americans who live without health insurance every year, and more than 8 million of them are children. Employers pay a premium of about $12,500 per year for insurance for a family of four. Economists predict that health care costs will rise to more than $3 trillion per year during the next decade.People who wait to see a doctor even though they are ill or injured often end up facing higher medical bills. Preventable hospital visits can end up costing those people more than $3,000 on average.

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Commercial Loans – How They Differ From Residential Loans

Are you ready to buy your first Investment property but aren’t sure what types of commercial loans are available and how they differ from residential loans?Loans for investment property such as multi-family apartments and retail and office space are also referred to as commercial loans. And the lenders requirements for these loans differ greatly from residential, so you want to make sure you understand the differences before you start looking at buying a property that will require one.The first and biggest difference is that the lenders are going to require you to put enough money down so the property debt covers. This means that you’ll have enough rental income each month to pay for all your expenses including taxes, insurance, and your mortgage, and still have some money left over. So, each month and year you’re going to have positive income and spendable cash flow. Be prepared though, because this typically means you’re going to be putting down a minimum of 20% and sometimes as much as 35-40% or more depending on the area you’re investing in.The second difference is that commercial lenders are much more focused on the real estate than the borrower. So, they are going to be more concerned about the location of the property and the quality of the tenants and income stream rather than your credit history and annual income. Commercial lenders want to make sure that the property you’re investing in will continue to generate a healthy income year after year from which you can repay the mortgage you are borrowing. After all, their main concern is getting their funds back and not ending up owning the property.Finally, commercial loans are typically fixed for 3, 5, or 10 years, and usually never longer. So, you can’t get a 15 or 30 year fixed that you often find in residential lending. After your initial fixed rate term expires, be prepared for your interest rate to adjust and float according to the Index you’re tied to, such as Prime or LIBOR. So, if you plan on holding the property longer, it’s a great time to consider doing a refinance when your rate begins to adjust.I always suggest to my clients that they speak with a loan broker to discuss their situation and goals and fully understand the options available to them. Commercial lending can be quite different from residential, so do your homework and make sure you’re prepared.Well, that’s all for now. Check back soon for more tips and real estate news.

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