Cheat Sheet Q&A:
Today’s Topic: Bailing out insurance companies under ACA
Here’s the listener note:
(Last week) you were talking about Aetna announcing it will lose money because of ACA. Section 1342 mandates taxpayer Bailouts of Insurance Companies. When the law was written they knew this would happen, it is just another step along the rocky road to "Single Payer" aka Socialized Medicine. Here is a link to his source material:
Bottom Line: So is it true that bailouts of insurance companies was built into ACA? I suppose it’s how you view the “safety net” put in place under ACA. Here’s what you should consider:
So… is it a bailout?
In other words it’s TBD if it would be a bailout. Companies are promised that they won’t be allowed to lose money offering policies through the exchanges for the first three years. If the money collected by the companies and administrators cover losses that would be sustained by insurance companies, then no, no bailout would occur. If losses exceed the reinsurance pool collected by the companies, then yes, we’d be in bailout territory. So will it occur?
With regard to characterization of socialized medicine and single payer…
If you have a topic or question you’d like me to address email me: email@example.com
Your odds of being audited in 2014:
Bottom line: 2014 will be very similar to 2013 in terms of your odds of being audited. So what does that mean to you?
However that’s a bit misleading. It will average out to 1% but you’ll actually be in one of two different classes of audit likeliness…
Don't fall for these popular tax scams:
Bottom Line: Staying on the tax theme for a moment… Beware of these common tax related scams that are occurring right now (aside from the ID theft problems):
Those are the biggies right now. If you come across any of those your radar should be tipped off.
Cost of living by city & why real-estate is still affordable here:
Bottom Line: There is a Fannie Mae, Freddie Mac report that came out yesterday asserting the property in SFL was no longer affordable for the average full-time employed person. That didn’t sound right and I decided to seek additional information. I don’t have the specific Palm BeachCounty information available right now but I do have the info for the three largest metros in Florida and they point towards real-estate still being plenty affordable for the average person. Here is the current affordability of housing based on data from HSH.com
So clearly real-estate is super affordable in Tampa and Orlando and still very affordable for the average person in Miami. I haven’t performed a deep dive on Palm BeachCounty since November but based on the data I was looking at a few months ago, PBC is still generally affordable for the average person earning the average full-time salary.
Florida islands among the best in the world:
Bottom Line: Trip Advisor is the most popular travel review website in the world. For that reason their annual Travelers choice awards are significant from a marketing standpoint. The travelers themselves are responsible to the rankings rather than some “travel expert”. In the top Islands category Florida ranks extremely well in the US and one Florida island ranks in the top 5 worldwide.
First the US list:
Top 10 Islands in the U.S.:
1. Marco Island, Florida
2. Chincoteague Island, Virginia
3. Anna Maria Island, Florida
4. San Juan Island, Washington
5. Maui, Hawaii
6. Kauai, Hawaii
7. Island of Hawaii, Hawaii
8. Nantucket, Massachusetts
9. Hilton Head, South Carolina
10. Key West, Florida
Now the worldwide list:
Top 10 Islands in the World:
1. Ambergris Caye, Belize
2. Providenciales, Turks and Caicos
3. Bora Bora, French Polynesia
4. Marco Island, Florida
5. Lewis and Harris, Scotland
6. Naxos, Greece
7. Aitutaki, Cook Islands
8. Nosy Be, Madagascar
9. Easter Island, Chile
10. Ko Tao, Thailand
So we’re well represented throughout our state. Hopefully this positive PR will serve tourism well in 2014.