Tag Archives: poor

The Affordable Care Act

August 26, 2013 by
Photography by Bill Sitzmann

The Patient Protection and Affordable Care Act (PPACA), better known as the Affordable Care Act (ACA), is a federal statute signed into law in 2010. The objective of the Act is to increase affordability and rate of coverage for health insurance and reduce the overall costs of health care, which will be executed through mandates, subsidies, tax credits, and other means. The ACA is divided into 10 titles with some provisions that became effective immediately, while others are phasing in over a 10-year period.

But what does this mean for most seniors?

“If you don’t have insurance between age 60 and 65, that’s a concern.” – Andrea Skolkin, OneWorld Community Health Centers, Inc.

Individuals over 65 will likely find that not much will change as far as Medicare is concerned, says Andrea Skolkin, chief executive officer for OneWorld Community Health Centers, Inc. More preventive care is covered and prescription drug coverage will improve, she says, but most facets of Medicare will carry on as before.

“People who have Medicare, other than the little bit of expansion in the ‘donut hole’ [Medicare Part D coverage gap between the initial coverage limit and the catastrophic-coverage threshold for prescription drugs], should be secure in their coverage,” she explains. “The new marketplace isn’t for people who have Medicare.”

Sixty-plus individuals who will definitely be affected by ACA are those seniors who haven’t reached the Medicare eligibility age of 65 and are without medical insurance. In January 2014, uninsured individuals will be required to buy health insurance, available through an exchange, or pay a penalty tax. Some people will certainly struggle to finance the premiums, but currently, seniors who don’t yet qualify for Medicare and can’t get covered through an employer are likely to take their chances and go without health insurance altogether, Skolkin says.

EJ Militti, financial advisor with The Militti Group at Morgan Stanley Wealth Management

EJ Militti, financial advisor with The Militti Group at Morgan Stanley Wealth Management

“If you don’t have insurance between age 60 and 65, that’s a concern,” she says. “We see a lot of it—people 55 and up—who are being ‘right-sized,’ if you will, out of their jobs and are left without anything until they are eligible for Medicare. Especially at our new clinic in West Omaha, we see a lot of uninsured adults.”

From a financial standpoint, it’s fair to say that ACA will not spell good news for everyone’s pocketbook, says EJ Militti, a financial advisor with The Militti Group at Morgan Stanley Wealth Management.

“[For] the wealthy and those who have properly saved for health care and other retirement costs, there is less to like and greater confusion about government-mandated health care. Moreover, those considered wealthy will be helping foot the bill of this epic legislation,” he says, explaining that a Medicare tax increase and additional taxes on taxable investment income have been instated, and other proposals are pending. “In my opinion, there is little doubt higher-income earners are going to be paying more in taxes. Higher-income earners need to be aware of future tax proposals on the table.”

On the other hand, Militti points out, some Americans will clearly benefit financially from the legislation.

“[For] the wealthy and those who have properly saved for health care and other retirement costs, there is less to like and greater confusion about government-mandated health care.” – EJ Militti, The Militti Group at Morgan Stanley Wealth Management

“The poor, the lower middle class, the long-term unemployed, and those with pre-existing conditions will benefit the most, and that’s by design,” Militti says. “The entire premise for government-mandated health care is to provide taxpayer-financed subsidies for those who, otherwise, cannot provide for themselves.”

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EJ Militti is a Financial Advisor with The Militti Group at Morgan Stanley Wealth Management. The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC, or its affiliates. 

Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates, and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. This material was not intended or written to be used, and it cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.

Is Our Liberty to Succeed or Fail in Jeopardy?

May 25, 2013 by

It’s an issue that affects small businesses—the push for more and more sharing with others who don’t have as much as you do. This trend can be seen in many business practices, too. For example, the sales commission question below:

“Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.” This Benjamin Franklin quote, with its many derivations, points toward a simple fact that, for one to expect a government to guarantee something, a part of one’s liberty will be the price.

The questions is: How much of your liberty will you gladly trade for an increased level of governmental protection? In other words, is it the responsibility of government to feed you, house you, educate you, care for you, etc…if you are sick, unwilling, or incapable?

Most of us feel that it is the obligation of government to provide us with some of these needs and desires. Others feel that government should do that and much more.

This is the age-old contest between those rowing the boat and those along for the ride. The sales adage says 80 percent of the sales are made by 20 percent of the sales force. In school, grades tend to follow a bell curve with a few students getting excellent marks while most are average, and a few bring up the rear. Should the sales staff getting 80 percent of the sales get the same commission as the rest of the team? Should the top students share their grades with those less fortunate, thus everyone getting a grade of C? What level of “sharing” do you consider fair?

What if you were a doctor who endured many years of school with considerable effort and expense? Economic justice would dictate that the doctor’s earnings be shared with those who were not capable, for whatever reason—even laziness—to achieve the same degree of earning capability. Would you be willing to have the government decide how much of a doctor’s income gets redistributed? If so, what incentive would current medical students (or anyone considering entering into a lengthy and expensive effort) have to continue becoming a doctor only to have their efforts taken away?

To the consternation of so many, life isn’t fair. Is it the role of government to make life fair? This exact precept was explored throughout the 20th century. The direct result of these experiments offered two class societies: the ruling elite and everyone else. Sadly, the ‘everyone else’ class was considered expendable by those ruling. China squandered the lives of over 60 million in an effort to purchase world power status. The average Chinese existed and died on a daily caloric intake smaller than that of the slaves of Auschwitz. Russia bartered the lives of their bread basket Kulaks by the millions in exchange for the materials of industrialization. No, the only way a government can enforce equality is by reducing the living standard of the ‘everyone else’ class.

As America celebrates the 4th of July, a time for quiet contemplation of the uniqueness of this American experiment is due. All throughout history, tyranny is the norm. The liberty Americans have is truly unique. The thread that holds this together is the Constitution. I contend that the freedoms across the globe are there only so long as Americans remain free. Free to succeed, free to fail, free to risk their all in the pursuit of personal happiness. If Americans lose that desire for liberty, the rest of the world will lose as well.

Any views and/or opinions present in “The Know-It-All” columns are solely those of the author and do not necessarily represent those of B2B Omaha Magazine or their parent company and/or their affiliates.

Christian Gray

April 25, 2013 by
Photography by Bill Sitzmann

As director of inCOMMON, a nonprofit organization located at 13th and William streets, Christian Gray thrives on building relationships in the Omaha community. Growing up in the affluent suburbs of Orange County, Calif., Gray was rarely exposed to the hardships many Americans face, but somehow he got the message that material wealth is not what life is about.

“When I began to juxtapose a wealthy lifestyle with the lifestyle of millions around the world, and even here locally in the United States, it began to bother me,” Gray admits. “It began to make me uneasy about what life is, and I began asking questions like ‘What is the purpose of life? Is it to be comfortable? Successful?’ I began to challenge a lot of those notions that I think were just part of the culture growing up.”

After graduating from the University of Arizona, where he met his wife, Sonya, Gray began seeking out places where he could help. His passion for helping the poor has taken him from Romania to India to South Africa and back to the U.S. During the process, he had time to really self-reflect on the bigger picture.

“I’m still trying to figure it out, but I think the purpose of life is to live wholly and richly,” he says. “That doesn’t mean you have a ton of stuff or even a ton of success. It means you’re an authentic person, and you care about other people, and you’re part of a greater global community and humanity. I think that’s the answer. I think the way we go about that all looks differently. Locations can change and reflect how we can live that out. I think that’s the purpose of life, to really be a part of enriching the global community.”20130321_bs_8688

Once settled in Omaha, Gray got to work on inCOMMON, which specializes in uniting and strengthening vulnerable neighborhoods. He spearheads many subsidiary programs, such as The Listening Project and Neighbors United.

inCOMMON incorporates Asset-based Community Development (ABCD) practices into its work. ABCD is a best-practice that dates back to the 1970s. “We try to build upon a neighborhood’s pre-existing strengths,” he explains. “We have the Listening Project, where we train volunteers to go into the community and hear from its residents and try to build solutions to their problems.”

As a result of information gathered from The Listening Project around the Park Avenue neighborhood, inCOMMON is preparing to open a community center in June called Park Avenue Commons. Located on the corner of Park Avenue and Woolworth Street, the dilapidated Acme Rug and Carpet Cleaning building is getting a new life as a part of Gray’s vision.

“When I began to juxtapose a wealthy lifestyle with the lifestyle of millions around the world, and even here locally in the United States, it began to bother me.”

“I had a growing compassion for the condition of people that are poor, and I wanted to be a part of creating better futures for our communities in that way,” Gray says. “Park Avenue Commons will provide easier access to social services, emergency and preventative services, and a place to come together as a community.”

Gray has many dedicated volunteers that share the same passion for helping the less fortunate. For example, Omaha resident Leslie Wells is gearing up for a recycling program, in which he provides bikes for the homeless to collect recyclables from downtown businesses. Gray emphasizes it’s about building those relationships in order to cultivate community development and empowerment.

“‘The single greatest cause for sustained poverty is isolation,’” he says, quoting Dr. Robert Lupton of FCS Urban Ministries. “If we look at poverty, at least in an urban context, as people living in an isolated community that are cut off from opportunities, then relationships are key because they allow people to bridge outside their limited ranges to a greater opportunity. Strong neighborhoods require that people know each other and people are cooperative with one another and working to solve problems together. The key to overcoming poverty is to have residents that know each other and work together.”