Implement the ACA in a Careful, Thoughtful Manner-the U. S. Treasury Department

See www.moranlong.com for additional insights and planning suggestions for health care and retirement. 

By: Mark J. Mazur, Assistant Secretary for Tax Policy at the U.S. Department of the Treasury, issue date 7/2/2013

​Over the past several months, the Administration has been engaging in a dialogue with businesses - many of which already provide health coverage for their workers - about the new employer and insurer reporting requirements under the Affordable Care Act (ACA).  We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively.  We recognize that the vast majority of businesses that will need to do this reporting already provide health insurance to their workers, and we want to make sure it is easy for others to do so.  We have listened to your feedback.  And we are taking action.  

The Administration is announcing that it will provide an additional year before the ACA mandatory employer and insurer reporting requirements begin.  This is designed to meet two goals.  First, it will allow us to consider ways to simplify the new reporting requirements consistent with the law.  Second, it will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.  Within the next week, we will publish formal guidance describing this transition.  Just like the Administration’s effort to turn the initial 21-page application for health insurance into a three-page application, we are working hard to adapt and to be flexible about reporting requirements as we implement the law. 

Here is some additional detail.  The ACA includes information reporting (under section 6055) by insurers, self-insuring employers, and other parties that provide health coverage.  It also requires information reporting (under section 6056) by certain employers with respect to the health coverage offered to their full-time employees.  We expect to publish proposed rules implementing these provisions this summer, after a dialogue with stakeholders - including those responsible employers that already provide their full-time work force with coverage far exceeding the minimum employer shared responsibility requirements - in an effort to minimize the reporting, consistent with effective implementation of the law.  

Once these rules have been issued, the Administration will work with employers, insurers, and other reporting entities to strongly encourage them to voluntarily implement this information reporting in 2014, in preparation for the full application of the provisions in 2015.  Real-world testing of reporting systems in 2014 will contribute to a smoother transition to full implementation in 2015. 

We recognize that this transition relief will make it impractical to determine which employers owe shared responsibility payments (under section 4980H) for 2014.  Accordingly, we are extending this transition relief to the employer shared responsibility payments.  These payments will not apply for 2014.  Any employer shared responsibility payments will not apply until 2015. 

During this 2014 transition period, we strongly encourage employers to maintain or expand health coverage.  Also, our actions today do not affect employees’ access to the premium tax credits available under the ACA (nor any other provision of the ACA).​

Do Financial Decisions Get Better With Age?

David Allison, provided by Investopedia

You hear it all of the time, "age is nothing but a number", but what does age do to your ability to make financial decisions? As droves of baby boomers approach retirement, they will be making increasingly important decisions regarding their finances. Read on to learn how aging can affect your ability to make financial decisions, some of the behavioral traits that older investors exhibit when making decisions, and some tips on how to avoid the possible financial pitfalls associated with aging.

The Age of Financial Treason?
According to the study "The Age of Reason: Financial Decisions Over the Life-Cycle with Implications for Regulation", the average person's peak financial decision making age is around 53 years old. The authors of this study surveyed the life-cycle patterns of financial mistakes using a database that measures ten different types of credit behavior. The financial mistakes noted included suboptimal use of credit card balance transfer offers, misestimating the value of one's house, and excess interest rates and fee payments. The study found that middle-aged adults make fewer financial mistakes than younger and older adults.

According to the study, our ability to make sound financial decisions increases sharply in our 20s and 30s, levels off and peaks in our 50s, then begins to fall sharply in our 70s and 80s - the so called "inverted U". The learning curve associated with gaining financial knowledge is believed to be the reason for the rise in our early years, while declining cognitive function is believed to be the reason for the drop in our later years.

Our cognitive abilities, including attention span, working memory and the ability to quickly process and integrate multiple sources of information, are all very important when making complex financial decisions. And according to the study, about half of the population between ages 80 and 89 either has dementia or a diagnosis of "cognitive impairment without dementia". The combination of declining cognitive function, years of making financial decisions, and a desire to focus on positive life experiences have resulted in a few interesting behavioral traits commonly found in older investors.

The Neuroscience Behind It All
Scientific studies like the one published in the Nature Neuroscience Journal titled "Anticipation of Monetary Gain but not Loss in Healthy Older Adults" have shown that older adults exhibit a reduced responsiveness to anticipated financial loss relative to younger adults. A portion of this subdued responsiveness may be attributed to years of experiencing the ups and downs of investing and the desire to focus on positive life experiences and not necessarily declining cognitive function. This could increase an older investor's willingness to take risk and argues against the "conservative" stereotype that most people have regarding older adults.

Other research has shown that older adults prefer not to make complex decisions themselves and that their problem-solving strategies are usually more avoidant than younger adults. This means that an older adult may be more likely to put off making important "emotionally- laden" financial decisions like estate planning, selling a concentrated investment holding or firing an inept financial advisor who also happens to be a "friend". In addition, they may be more open to seeking out professional financial advice than younger adults.

Research has also shown that, perhaps due to declines in things like cognitive control, older adults exhibit a greater familiarity bias than younger adults. Such a behavioral bias could give older adults a false sense of security when dealing with things that seem familiar. It can lead them to concentrate their investment holdings in familiar companies or assets classes, which can create a poorly diversified investment portfolio. This bias could also make them more prone to financial scams that use repetition to hook victims, like mail order fraud or the ever persistent penny stock pushing telemarketer.

The reality is that aging is inevitable. But, like most things relating to age, there are simple steps you can take to help minimize, and possibly improve, the impact aging could have on your finances.

Maintain Your Cognitive Function
The silver lining is that as you age you become wiser and declining cognitive function, not age, is what eventually robs you of your financial decision making abilities. So what can you do to maintain, or perhaps even improve, your cognitive function? According to Dr. Jeffrey Toth, a psychology professor at the University of North Carolina at Wilmington and co-author of the study "Fluency, Familiarity, Aging, and the Illusion of Truth", there are a number of ways to maintain and possibly improve your cognitive function.

"Physical exercise, mental stimulation, diet, and social interaction can all help maintain your cognitive abilities," says Dr. Toth, "and of these four, physical exercise, especially aerobic exercise, appears to be the most important, with mental stimulation a close second, especially if that stimulation is truly novel and challenging."

In addition to the positive factors listed above, Dr. Toth suggests that the avoidance of negative factors is also critical in maintaining cognitive skills. Thus, he says that "smoking, heavy drinking, a high-fat diet, and lack of sleep have all been shown to accelerate cognitive decline and thus should be done in moderation, if at all."

These suggestions have lifestyle implications for an aging "do it yourself" investor, accountant, investment advisor, banker, or anyone who wants to stay on top of their financial game well into their later years. Please keep your mind sharp for younger generations. They will need your wisdom.

Start Planning Early and Stay Organized
Start seeking out a trusted financial advisor when you are middle-aged. Make sure that the advisor will be in the business, or has a competent successor that will be in the business, when you are in your later years. Start the process of talking with family members about appointing an estate executor, keep your will updated, develop a system to keep up with your tax documents, and make plans for dividing up family heirlooms early before the negative effects of aging have a chance to set in. Precautions that will help you avoid unwanted financial solicitations should also be considered, like adding your phone number to the National Do-Not-Call Registry.

The Bottom Line
When it comes to your financial decision making abilities, after a certain point, age could become more than just a number. The good news is that you can control what the impact of that number will be. George Burns, the famous entertainer who had a productive acting career well into his 90s, once said "You can't help getting older, but you don't have to get old." Financial education, living a healthy lifestyle, and early financial planning will help you maintain your financial wits and keep the curtains open for your greatest financial acts.

Original story - Do Financial Decisions Get Better With Age?

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/09/07/investopedia6080.DTL#ixzz0zSpmh9MG

CPA DENVER Homecare vs Home Health Care ELDERLINK

HOMECARE vs HOME HEALTHCARE  ELDERLINK  http://elderlink.com/

Karen Moorehead, the President of Elderlink Home Care, Inc (303.734.0641) provided the following article describing the basic difference between Homecare vs Home Health care.  I appreciate her making the distinction in the following article:

Twenty-five  years ago, when Elderlink Home Care, Inc. first opened its Denver doors, the idea of seniors receiving care at home was still new.  Back then, when loved ones were diagnosed with illness or recovering from surgery, they were usually placed in a long-term care facility by doctors or family members.  Most people expected they would go to a nursing home or care facility if they found they were no longer able to live at home without assistance.  In-home care was new and many people were still unaware of it as an option. Elderlink was the first company in the Denver metro area created specifically to meet the non-medical homecare needs of seniors.  A lot has changed in 25 years! 

The term homecare is used to define non-medical care or custodial care, which is care that is provided by persons who are not nurses, doctors, or other licensed medical personnel; the term home health care refers to care that is provided by licensed personnel.

Study after study has shown that by far, the majority of seniors want to stay in their own homes as long as possible.  Homecare is credited with helping to reduce stress and increase life expectancy.  Living at home creates a sense of mental and physical well-being for the elderly. Through the years, many companies have come into existence to help seniors reach their goals of living at home.  

Today there are over 20,000 companies in the United States providing homecare to seniors and that number is expected to increase. Homecare can be a cost- effective alternative to nursing homes and hospitals and can help to postpone or prevent the need for other, more expensive forms of care.  Despite the graying of the population, the percentage of elderly living in nursing homes has declined, according to recent Census data. The decline reflects the improved health of seniors and more choices for care. In 2006, about 7.4% of Americans aged 75 and older lived in nursing homes, compared with 10.2% in 1990 (USA Today).   Today, home care for seniors has a new urgency, dubbed “the senior tsunami.” A wave of retiring and aging boomers will soon flood homecare providers.  By 2020, it is estimated that 12 million older Americans will need long-term care.

The number of changes people face as they age can be overwhelming. Illness, immobility, and the possibility of leaving the comfort of one’s home can contribute to depression and anxiety. When a person is ill or in recovery, nothing can match the security and comfort of home.  Homecare provides individualized assistance that is tailored to personal needs and helps maintain independence and dignity.

Access to quality homecare is vital to the health of our seniors and our community.  In metro Denver, seniors are fortunate to have many choices for their homecare needs.  One thing is for certain, the options and services available to seniors are sure to change as much in the next 25 years as they did in the previous 25 years. 

For more information on how homecare can help you or a loved one, call Karen Moorehead, President of Elderlink Home Care, Inc., 303-734-0641