PHI RansomWare Just Went Up!

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1-darrellpruitt

[By Darrell K. Pruitt DDS]

Expect malware entrepreneurs to charge what the market will bear, again and again.

“OCR Releases Guidance on Ransomware: ‘Your Money or Your PHI’”. By Dianne J. Bourque for The National Law Review,” July 12, 2016

http://www.natlawreview.com/article/ocr-releases-guidance-ransomware-your-money-or-your-phi

Bourque: “A key component of the guidance provides a ransomware attack that encrypts a Covered Entity’s ePHI is presumed to be a breach. As ransomware can infect a Covered Entity’s entire system, this presumption may lead to enormous breach notification obligations.”

Bourque adds: “OCR indicates that when ePHI is encrypted as a result of a ransomware attack, a breach has occurred because the ePHI encrypted by the ransomware was acquired (i.e., unauthorized individuals took possession of the information) and is thus a ‘disclosure’ not permitted under the HIPAA Privacy Rule has occurred.”

When patients are notified of data breaches – for any reason – many will quietly change providers. According to The Ponemon Institute, loss of future income is the most costly result of lawfully reporting data breaches…. and ransomware attacks are at “epidemic” levels. I have heard dentists are paying the ransom quickly.

The disincentives to do the right thing were overwhelming providers even before the OCR’s recent ruling. Such is the ugly nature of extortion.

Assessment

Cha-ching! 

Conclusion

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Marriage – The Second Time Around

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Or … Third Time Around!

th

By Dan Timotic CFA
[Managing Principal]

Roughly four in 10 new marriages in 2013 included at least one partner who had been married before, and altogether about 42 million Americans have been married more than once [1].

A second marriage can create numerous estate planning challenges, especially when you wish to provide for both your current spouse and your children from a previous marriage. If you remarry later in life, your spouse and your adult children may not develop a close relationship, which could complicate matters when you die.

With a traditional family, estate assets are often inherited by the surviving spouse and eventually passed down to the couple’s children. Blended families, however, may require a more detailed strategy.

Start by having an honest conversation with your spouse (or fiancée) about your separate and shared finances and goals for the future.

Think Ahead

A prenuptial agreement is a written contract between prospective spouses that states how assets will be owned and distributed during the marriage, in the event of divorce, and at death. Each spouse’s financial rights and responsibilities are predetermined and clearly spelled out, and the contract can be altered or broken only with the consent of both parties.

Prenuptial agreements are not for everyone, but they could help reduce conflict between a surviving spouse, your adult children, and other family members.

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heart

[Broken Heart]

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Useful Trusts

Placing assets in a properly structured living trust makes it more difficult for someone to contest your will and also avoids probate. The assets would be available to your heirs more quickly, and your private information would be kept out of the public domain.

A qualified terminable interest property (QTIP) trust is a marital trust typically used in conjunction with a bypass trust. When you die, your spouse receives a lifelong income from the assets in the trust. After your surviving spouse dies, the remaining trust assets are distributed to your children, or other designated heirs, according to your specific instructions.

A QTIP trust might be a viable option if you’re certain that a permanent financial relationship between your spouse and adult children will not be a constant source of tension and frustration. If you are uncomfortable making your children wait until your spouse’s death to receive an inheritance, it might make more sense to eliminate the financial connection between your surviving spouse and your children.

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[Divorce Decree]

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Pick Your Approach

One common arrangement is simply to designate a specific percentage of estate assets to be distributed outright for the spouse, each child, and any other heirs. This way, everyone shares in the appreciation or depreciation of the assets.

Another method involves allocating assets to various heirs based on specific financial needs or benefits. For example, a surviving spouse might inherit the home and retirement accounts, while the children might receive other financial assets such as shares of a business, family heirlooms, or the proceeds of a life insurance policy.

The beneficiary designations on all your retirement accounts, brokerage accounts, and insurance policies should also be updated and consistent with your overall estate plan. If your children are adults, you may want to keep them informed about your decisions so that everyone knows what to expect.

Assessment

Remember – Trusts incur up-front costs, often have ongoing administrative fees, and involve complex tax rules and regulations. You should consider the counsel of an experienced estate planning professional and your legal and tax advisors before implementing a trust strategy.

Citation: Pew Research Center, 2014

Conclusion

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What to Expect for ACA Premiums?

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An Actuary Opens the Black Box

This essay looks at the factors involved in setting premiums for health plans offered on the health insurance exchanges [HIEs].

vaccine+blue

NIHCM – What to Expect for 2015 ACA Premiums: An Actuary Opens the Black Box

Assessment

So, were the actuaries correct?

Conclusion

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NIHCM – Medicaid Expansion?

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State of Play and What’s to Come

The National Institute for Health Care Management (NIHCM) Foundation is a nonprofit, nonpartisan organization dedicated to improving the health of all Americans by spurring workable and creative solutions to pressing healthcare problems.

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aspirin

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NIHCM – Medicaid Expansion: State of Play and What’s to Come

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On Schizophrenia Related ER Visits

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By http://www.MCOL.com

For 2009-2011

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ImageProxy

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 Harvard Medical School

Boston Children’s Hospital – Psychiatrist

Yale University

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NIHCM – Small Business Health Insurance Coverage

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In a Post-ACA World

In this Expert Voices essay, Sabrina Corlette examines developments in the small group market since the passage of the ACA and considers the future outlook.

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kidney

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NIHCM – Small Business Health Insurance Coverage in a Post-ACA World

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What Insurance Means to the Doctor, Patient and Employers

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And … What is Negotiable?

By Adam Russo, Esq.

[Free Market Medical Association]

Download the presentation Here

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Is the cost of a college education really worth it?

MAYBE NOT?

Rick Kahler MS CFP[By Rick Kahler MSFS CFP®]

How do you know when the cost of a college education is really worth it? A lot of factors—both financial and emotional—go into making that decision. Weighing the pros and cons can be daunting.

Example:

Let’s consider a couple of examples that will help conceptualize the process of determining if a college education makes financial sense.

First, here are some numbers for traditional students. The cost of an average four-year education at Yale is around $240,000, and the average starting salary for its graduates is $55,000. The monthly payment on a student loan for that amount would be $2,420, or $29,159 a year. That equals 53% of the starting salary. There are a lot of other variables to consider, like potential scholarships that would lower the tuition, or lowering the loan payment by stretching out the amortization period (which actually increases the overall cost). But given these facts the answer to whether this education makes financial sense is a no-brainer. No; find another school.

At the South Dakota School of Mines, by contrast, the cost of an average four-year education is around $65,000 and the average starting salary is $68,000. The monthly payment on a student loan for that amount would be $648, or $7,897 a year. That equals 12% of the starting salary. The cost of this education makes complete sense.

For traditional students, my personal rule of thumb is this: don’t pay more than one and a half times the average starting salary of a job for the education to obtain it.

For non-traditional students who are looking to switch careers, the calculation is a little more involved. You must weigh the salary you earn in your current career with the cost and net increase in the career you are considering.

Example:

Recently a reader emailed me this question: “I have a bachelor’s degree in my chosen career and am unable to find a full-time, benefitted, permanent job. When is it no longer a good financial decision to not go back to college? I can pick up a degree in a different field for $8,000. If I am 12-13 years from retirement, is it worth it?”

The average salary for a job in her career field is $20 an hour, or $42,000 a year. The problem is that she has not been able to find employment in her career field. She has only been able to find temporary jobs with earnings of $9.77 to $12.75 per hour.

So far her four-year degree has netted her around $12,500 a year. Her research shows that if she went back to school for two years she could switch to a career field more in demand in her area and earn $45,000 a year. That’s $32,500 more per year. If she invests two years and $8,000 in education, then works in her new career for 10 years, she can earn an additional $325,000 before retirement.

If she were to borrow the funds needed for her education and repay the loan at 4% for 10 years, her monthly payment would be $81, or $972 a year. That equals about 2% of her salary. Given these facts, going back to school makes clear financial sense.

Hopkins Medical School

Assessment

Of course, financial factors are not the only ones to consider in deciding whether to invest in education. Looking at the numbers is essential, but it’s equally important to find a career field that suits your talents and interests. It makes no sense to spend time and money preparing for a career you don’t want. The most rewarding college investment is one that provides worthwhile returns in emotional satisfaction as well as financial success. 

Conclusion

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Samaritan Ministries and Patient Centered Doctors

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A Free Market Medical Association Slide Show Presentation

By James Lansberry

[Free Market Medical Association]

 Patient-information-right

Download the presentation Here

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A Brief History of Medical Boards

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From 1792

Dover

[By Eric A Dover MD] 

The first medical board was established in Connecticut in 1792 by the state legislature. It consisted of a group of physicians who evaluated the competency of physicians wishing to practice in the State. Medical Boards eventually evolved and became very powerful with the addition of Medical Practice Acts containing a plethora of administrative rules. The Medical Boards stated mission was, and still is, the protection, health and safety of the public. State Boards formed a national group, the Federation of State Medical Boards (FSMB), in 1912. The FSMB was the first institution to publically list names of disciplined physicians in a monthly bulletin.

In the 1980’s and 1990’s there were a number of high profile cases involving physicians and public safety. One such case, international in scope, concerned surgeon Dr. Jayant Patel. Significant news coverage regarding his surgical outcomes and knowledge resulted in the heightened questioning of Medical Boards and whether they were actually fulfilling their mission of protecting public health and safety. The Oregon Medical Board (OMB) was scrutinized for allegedly “ignoring” 79 complaints, and at least three deaths, attributed to Dr. Patel’s surgical care from 1989 to 1998.  The OMB abdicated all responsibility for the situation with a myriad of excuses for why they had no control over this physician or the HMO he worked for.

The OMB then came to the state legislature with a “fix” to supposedly prevent any further such incidents. The OMB advocated for greater authority over physicians and greater independence from government oversight. With the din of the press and public, the Oregon Legislature gladly granted the OMB their wish. Other states followed Oregon’s example [4-6]. Not a single individual associated with the OMB, whether administrative or board member was investigated in any meaningful way for their horrendous dereliction of duty. Not one of them had their license restricted, suspended or revoked for such serious offenses.  None of them were ordered to pay out of pocket to go to “programs” for competency evaluations, psychological examinations or “courses” to help them become better board members. No one resigned, nor was anyone dismissed, from their position of power. The OMB’s inaction led to a number of deaths and numerous patients with chronic post-surgical medical disorders, yet all individuals involved with the OMB were protected from malpractice lawsuits.

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md-defeated-

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With cases such as Dr. Patel’s featured prominently in the mainstream media, Medical Boards nationwide came under intense public pressure and scrutiny as it became clear they were not fulfilling their mission of protecting the public’s health and safety. The public saw physicians as a privileged class, protected by their colleagues and Medical Boards. They were correct to a degree.  Public safety groups like Public Citizen, who had been taking Medical Boards, hospitals and large clinics to task for years regarding what they felt was a lack of physician oversight and discipline, began ranking state medical boards based on how many disciplinary actions they handed out each year.

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In their 2011 report, Public Citizen’s Health Research Group Ranking of the Rate of State Medical Boards’ Serious Disciplinary Actions, 2009-2011, the authors made the erroneous assumption that the greater the number of physician “disciplines” (actions) per 1000 physicians, the better job that State’s Medical Board was doing.   Therefore, at 6.79 actions per 1000 physicians, Wyoming was doing the “best” job and at 1.33 actions per 1000 physicians, South Carolina was doing the “worst” job.

Medical Boards vary remarkably from state to state. There are only two constants among them. First, each state has a Medical Board. Second, the Board makes all final decisions concerning licensees. Otherwise, there’s no consistency when it comes to what’s sandwiched in between.

Assessment

The Medical Board’s authority is grounded in the States Medical Practice Act, which gives them the authority to enforce laws for licensing, monitoring and disciplining physicians in the state. Every state has its own unique laws and processes, but every medical practice act covers the basics regarding oversight of physicians practicing medicine in the State.  The U.S. Federation of State Medical Boards (FSMB) periodically issues guidelines on the essential elements of a medical practice act.  

ABOUT

Dr. Eric Dover is a board certified family practice and primary care physician in Portland, Oregon. He is a graduate of the University of California at Los Angeles [UCLA] School of Medicine.

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 Harvard Medical School

Boston Children’s Hospital – Psychiatrist

Yale University

***

The Effect of the ACA on Self-Funded Plans & Free Market Medical Providers

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By Maria Robles Meyers, Esq.

[Free Market Medical Association]

Obama Care
Download the presentation Here

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Find Your Doctor’s Payments

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FBF300BA-321A-49FD-9289-0DE0AD63DCE5

 CMS’ Open Payments Program Posts 2015 Financial Data

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 The Centers for Medicare & Medicaid Services (CMS) has published the 2015 Open Payments (sometimes called the “Sunshine Act”) data, along with newly submitted and updated payment records for 2013 and 2014, at https://openpaymentsdata.cms.gov.
The Open Payments program requires that transfers of value by drug, device, biological, and medical supply manufacturers to physicians and teaching hospitals be published on a public website.
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physician investors

Portrait of two surgeons in a operating room viewing paper charts.

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Assessment
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In program year 2015, healthcare industry manufacturers reported $7.52 billion in payments and ownership and investment interests to physicians and teaching hospitals. This amount is comprised of 11.90 million total records attributable to 618,931 physicians and 1,116 teaching hospitals. To find out what any doctor received in 2015, click here.
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Conclusion
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On Warren Buffett’s Letters-to-Partners

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Investment Theory #1:

b696a884043ecbafbdeedcb29d9ee5bb

By David Shahrestani

Warren Buffett’s 1957 Letter to Partners In 1956, Warren Buffett concluded his work for Benjamin Graham and returned to Omaha, where he started an investment partnership. This partnership was…

Investment Theory #1: Buffett’s Letters

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Risk Management for Doctors and their Advisors

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By Staff reporters

Our New Book Release

http://www.CertifiedMedicalPlanner.org

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92f91681-0f52-4bec-86db-3f9ab724560a

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Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

 Harvard Medical School

Boston Children’s Hospital – Psychiatrist

Yale University

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Top Five Technology Enabled Features for Health Plans

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By http://www.MCOL.com

Sought by Consumers

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ImageProxy

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Fixing Social Security

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Brian J. Knabe MD

By Brian J. Knabe; MD CMP© CFP®

http://www.SavantCapital.com

cmp-logo16

http://www.CertifiedMedicalPlanner.org

These days, as Congress debates the debt ceiling issue in our current political atmosphere, Social Security is suddenly front page news again.

Social Security

The first thing to understand is that there IS a solvency problem with Social Security.

Alice Munnell, Director for the Center for Retirement Research at Boston College University points out that, according to the Congressional Budget Office, the Office of Management and the Budget and the Government Accountability Office, the benefits promised to future retirees exceed the scheduled taxes that are projected to be taken in.

In fact, last year, Social Security began paying out more in benefits than it received in payroll taxes–years earlier than projected, due to the 2008 Great Recession.

The second thing to understand is that Social Security is not going away; too many people today and in the future depend on it for a crucial part of their retirement income.  Munnell notes that Social Security accounts for 87% of non-earned income for the poorest third of households over age 65, 70% for the middle third and 37% for the highest third.

The Question

So the question becomes: how can Congress bring Social Security back into revenue balance.

To help illustrate some of the trade-offs, the American Academy of Actuaries web site includes a game that allows all of us to fix Social Security–you can make your own adjustments here: http://www.actuary.org/content/try-your-hand-social-security-reform and discover a variety of ways to balance the books, some more painful than others.

Options:

You could, for example, move up by one year the day when people have to wait until age 67 to claim maximum benefits, and after that index the retirement age to maintain today’s ratio between expected retirement years and work years.  This, alone, would solve 20% of the funding problem, and some would argue that it should have been done years ago.

As an alternative, you could reduce the annual cost of living adjustments in Social Security payments by half a percentage point.  This would reduce the projected deficiency by 40%.  Of course, it would also erode the purchasing power of elderly people who count on Social Security for a significant part of their income.

We could reduce benefits by 5% for future retirees, which would solve 31% of the problem.

Or we could reduce the benefit formula for the top half of earners, who theoretically are less dependent on Social Security in retirement.  That would solve 43% of the projected Social Security deficit.  It would also mean that people who are able to fund a comfortable retirement will get much less out of the system than they put into it.

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Mature Woman

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On the other side of the ledger, we could incrementally increase the revenues going into the Social Security system.  For instance, if we raised the payroll tax rate from the current 6.2% to 6.7% for employees and employers, 48% of the shortfall would go away.  As an alternative, we could tax Social Security benefits like we do IRA and pension benefits, which would make up 14% of the projected shortfall.

Sans Fiscal Health 

As you can see, none of these proposals, by itself, will bring Social Security back to fiscal health.  If you’re looking for an out-of-the-box solution to add to the mix, consider an article in the Christian Science Monitor, where former U.S. Secretary of Labor Robert Reich notes that a big (and largely undiscussed) problem with Social Security is the shifting balance of workers paying into the system to retirees collecting from it.

Forty years ago, he says, there were five workers for every retiree; today, there are three.  In 20 years, perhaps less, the ratio will be 2:1–that is, every two workers in America will have to pay whatever is required to support one retiree’s Social Security benefits.

How would you fix this problem? 

Reich proposes that we allow more immigrants into the U.S.–that immigration reform and entitlement reform are linked. As the deficit debate goes forward, you’ll hear a lot more about how to “fix” Social Security.

Assessment

Consider this a cheat sheet on the options that various parties will eventually put on the table.

Sources: Alice Munnell:  http://blogs.smartmoney.com/encore/2011/07/11/saving-social-security-raising-taxes-vs-cutting-benefits/?mod=wsj_share_twitter

Robert Reich: http://www.csmonitor.com/Business/Robert-Reich/2010/0411/Immigration-Could-it-solve-Social-Security-Medicare-woes

Conclusion

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How to Die Like a Doctor!

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Brian J. Knabe MD

By Brian J. Knabe; MD CMP© CFP®

http://www.SavantCapital.com

cmp-logo16

http://www.CertifiedMedicalPlanner.org

If you want to fix the problem of rising costs in the U.S. healthcare system, or at least reduce the looming Medicare/Medicaid entitlement burden, there’s a surprisingly easy solution.

Washington

In Washington policy circles, it has been estimated that more than 80% of all the dollars spent on healthcare in the U.S. are incurred in the last nine days of a person’s life. Many times, the money is spent keeping a person alive in a vegetative state, prolonging an incurable illness or painful conditions where there is little to no chance of recovery. The money is not just wasted; it may actually be used to prolong suffering when recovery is not an option. It doesn’t have to be this way.

Forbes

In an ongoing blog on the Forbes website, emergency room physician and financial planner Carolyn McClanahan MD tells us that doctors are among the best at avoiding this dismal fate at the end of their lives by taking a few simple recautions.

Dying like a doctor, she says, starts with understanding that we all get sick and die. Most people know this, but don’t realize it deep down, which is why individuals who experience near-death experiences–making death a more prominent part of their awareness–often choose to live more vital and productive lives thereafter, determined to make every second count.

As McClanahan says,

“When we live with no regrets, death isn’t scary.”

Doctors also see first-hand situations in which an unconscious person goes through a battery of procedures that keeps them alive until Friday, when they otherwise would have died the previous Tuesday.

McClanahan recommends that laypersons get a closer look at the transition from life to death by volunteering at your local hospice. Finally, doctors understand the power of documentation. They make sure they have a living will that describes how they want to be treated when faced with a serious accident or illness. They’ll have an advance directive which provides written instructions regarding their medical care preferences. In an earlier blog post, McClanahan stated that it is best to focus on outcome rather than actions.

Her favorite example is the routine question: “Do you want CPR?” –which, she says, seldom works at the end of life, will crush the bones in your chest and will become just another charge on the “superbill” the hospital sends the insurance company after your death.

The Flip

If instead you turn the question around, and make it: “What type of lifestyle is acceptable to you?” –then you might answer, “As long as I can use my brain, even if I can’t move, I want to be kept going.” That means you would be okay being a quadriplegic, but don’t want to be kept alive in a persistent vegetative state. Both of these documents will be entrusted to members of the family, or placed in a safe place that is accessible to your loved ones. They’ll go alongside a medical power of attorney, which empowers a friend or relative to make financial decisions when you are unable to.

Doctors also know to designate a health care agent who understands their wishes and will act accordingly when the hospital medical team presses for permission to keep them alive when there is little chance of recovery.

McClanahan tells the story of her own father, who was diagnosed with lung cancer. The doctors recommended chemotherapy and radiation. When he decided to forego this painful treatment, the doctors were indignant, and predicted he would be dead within six months. He lived three more years, and the hospice was a blessing at the end. He was one of the few non-physician Americans who had the knowledge and the documentation to die with dignity.

Assessment

Like a doctor. 

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On Rx Patient Non-Adherence

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A Picture of Poor Health and Opportunity for Retail Pharmacy and Pharmacy Benefits Managers [PBMs] 

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drugs

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Are you Being “Admitted” to the Hospital?

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OR … just “Observed”?

Brian J. Knabe MD

By Brian J. Knabe, MD, CMP©, CFP®

Savant Capital Management

cmp-logo16

http://www.CertifiedMedicalPlanner.org

Much attention has been given in recent months to the unintended consequences of healthcare rules and laws.  Most of this has centered on the Affordable Care Act—employers discontinuing health plans for their employees, individuals being dropped from their privately purchased insurance, and other ill effects.  One subject that has not received much press, but which may affect many seniors, is changing rules for Medicare.

Medicare

Patients usually assume when they spend a night or more in a hospital that they have been “admitted.”  However, this is often not the case.  Medicare regulations and statutes require physicians and hospitals to predict at the time of initial hospitalization how long a patient will stay in the hospital.

A short stay—for a night or two– is classified as “observation,” while a longer stay can be classified as an “admission.”  While the difference between these may not be a primary concern for a sick patient wanting to receive necessary evaluation and treatment, it can make a significant difference for your pocketbook.

Observation status

Observation status is considered “outpatient” treatment, and as such can expose Medicare patients to unexpected expenses.  As outpatients, visits under observation status are not covered under Medicare Part A, which pays for hospital charges above a $1,184 deductible.  These outpatient services are billed under Medicare Part B, which requires patients to pay 20% of the cost and imposes no cap on their total out-of-pocket expenditures.

Moreover, observation patients must pay out of pocket for the medication they receive in the hospital.  Those with Medicare Part D prescription-drug plans can file claims for reimbursement, but they may receive little or no refund if their Part D plan doesn’t cover those specific medications.

SNF

Another unexpected consequence of hospital observation is subsequent nursing home coverage.  A stay in a Skilled Nursing Facility (SNF) is often covered by Medicare, as long as certain criteria are met.  One of those criteria is whether the SNF stay was preceded by a “qualifying hospital stay.”  An admission to a hospital might meet this criterion, but an observation stay will not, even if it extended for a number of days.  When a patient who meets Medicare’s admission requirement moves to a SNF, the program covers 100 percent of the first 20 days.  Patients are responsible for $152 daily co-pays for the next 80 days, if necessary.  On the other hand, patients leaving the hospital for a SNF after an observation stay pay the full cost out of pocket.

WSJ

According to a recent Wall Street Journal article, from 2004 to 2011 the number of observation services administered per Medicare beneficiary rose by almost 34%, while admissions per beneficiary declined 7.8%.  Why does this difference between admission and observation matter to hospitals?  It comes down to payment.  Hospitals are reimbursed less for outpatient services.  However, if it is determined after a hospitalization that a patient should have been kept under observation rather than admitted, Medicare will often deny payment to the hospital for the entire bill.  So hospitals are motivated to get it right, at least according to Medicare regulations.

hospital bills

What  to Do?

So, what can you do to protect yourself as a patient?  At the time of hospitalization, ask your physician whether you are being admitted or kept under observation.  Ask to speak to a case manager about the proper status of the hospital stay.  Ask your doctors if they suspect that rehabilitation services will be needed after the hospitalization, and if so, request their help in getting the decision to “observe” reversed prior to hospital discharge.

Assessment

For additional help, see the “Self Help Packet for Medicare Observation Status” at www.medicareadvocacy.org.

See more at: https://www.savantcapital.com/blog/are-you-being-admitted-to-the-hospital-or-just-observed/#sthash.EOOiPWOA.dpuf 

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Brexit Re-Deux?

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Rick Kahler MS CFP[By Rick Kahler MSFS CFP®]

British voters shocked the world last week with their 52% to 48% decision to leave the European Union. The uncertainty of how this complex divorce will play out over the coming decade sent global markets reeling.

In fact, London’s Financial Times Stock Exchange 100 lost 4.4% of its value in one day, and the British pound sterling was down 14% against the yen and 10% against the dollar. The financial news media went berserk.

Britain has two years after notifying the EU of its intention to leave to negotiate its exit with policy makers, so we can expect the markets to remain volatile for some time.

Why all the fuss?

The thinking is that British companies will lose access to the European market for duty-free trade and financial services. Some think London will no longer be able to function as Europe’s financial center as it has done, since companies have long seen Britain as the gateway to free trade with the 28 nations in the EU. Eventually, Britain could lose American investment and manufacturing jobs that would move across the channel to mainland Europe. However, this is all speculation. Nobody knows exactly how the Brexit will play out long-term.

One reason it’s unwise to assume the worst is because the Brexit vote is not legally binding on the government. Since British Prime Minister David Cameron resigned his post and called for a new election by October, it’s possible the new government might decide to delay withdrawing from the EU. Or Parliament could instruct the new prime minister not to notify the EU that Britain is withdrawing until the government has had a chance to study further the implications. There could even be a second referendum to undo the first.

Given all these uncertainties, what was and continues to be my advice to investors?

It’s Quite Simple – Do nothing!

The current market disruptions represent an emotional roller coaster, a short-term panic reaction to what is likely to be a very long-term, well-constructed exit from the EU. British companies were certainly not 4% less valuable the day after the vote than the day before, and the pound sterling is not suddenly a second-rate currency. The US, China, and Japan are not part of the EU. Global economies function fine and they will continue to function without Britain in the EU, just as they functioned well before the EU was created in 1989.

The emotions of traders and speculators are driving the short-term market responses to a long-term event that will be worked out by reasonable people who will have their nation’s economic best interests at heart. Long-term investors who sold because of the Brexit will undoubtedly realize they were suckered and manipulated once again by panic masquerading as an assessment of real damage to the companies they’ve invested in.

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Good News

The good news is that long-term investors who are diversified have only a minority of their portfolios in equities. While the Brexit was not good in the short run for Britain’s currency and global equity markets, it was a positive for investment vehicles. Gold, bonds, and managed futures all profited nicely upon the news of the Brexit. The strategy of global diversification worked—again. And, if equity markets decline sufficiently, long-term investors will be able to rebalance their portfolios by selling a portion of what has appreciated and buying equities. That is called “selling high and buying low.”

Second Thoughts?

Assessment

However much short-term disruption there may be, Britain and the EU will find a way to move through this unexpected event without too much damage. Like every other recent short-term financial calamity, Brexit will become just another blip on the long-term charts.

Conclusion

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Reputation Economics [Book Review]

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JS

[By Jaan Sidorov MD]

An Interesting Book

Reputation Economics by Joshua Klein builds on the observation that humans ultimately prefer to trade goods with persons they genuinely trust. The invention of money as a medium of exchange may have solved a lot of inconveniences, but it also distanced the seller and the buyer.

He suggests that our Information Age is ironically ushering in a return of barter, where many goods and services can be directly exchanged between parties who create a track record of their trustworthiness online.

Interestingly, your personal identity doesn’t need to be part of that reputation. And if barter isn’t available, enter cryptocurrency like Bitcoin, which preserves anonymity but commands trust.

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What is Population Health?

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DEM white shirtBy David Edward Marcinko MBBS DPM MBA MEd

http://www.DavidEdwardMarcinko.com

What is population health?

In its most fundamental sense, population health seeks to improve or manage the health of a specific population. It is a systematic, holistic approach that aims to prevent disease by keeping people healthy and improving the quality of care.

HDS

http://www.HealthDictionarySeries.org

In fact, according to my colleague David B. Nash MD MBA, Founding Dean and Endowed Chair at the Jefferson College of Population Health, population health programs and interventions work to:

  • Connect prevention, wellness and behavioral health with traditional health care delivery
  • Focus on improving the quality and safety of care, improving access to healthcare services and helping to prevent/manage chronic diseases in the service of a specific population
  • Advance policies and solutions to address socio-economic and cultural factors (social determinants of health) that have an impact on health outcomes
  • Leverage technology and information systems to design social and community interventions and new models of health care delivery that facilitate care coordination and access

WHITE-PAPER: Population and Public Health

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Managed Care Insurance Profits?

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By Kel Kelly

2007 – 2017 Almost a decade ago?Flag_of_the_Red_Cross

***Figure1_11

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The Precision Medicine Initiative

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A New Era of Medicine

[By Staff Reporters]

When The White House announced their Precision Medicine Initiative last year, they referred to precision medicine as “a new era of medicine,” signaling a shift in focus from a “one-size-fits-all-approach” to individualized care based on the specific characteristics that distinguish one patient from another.

While there continues to be immense excitement about its game-changing impact in terms of early diagnoses and targeting specific treatment options, the advancements in technology, which underlie this approach, may not always yield the best medical results.

Assessment

But, in some cases, low cost approaches, based on sound clinical judgment, are still the better option.

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Screen-Shot-2016-06-22-at-9_03_35-AM

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Conclusion

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Robert James Cimasi; MHA ASA CVA CMP® Named “Pioneer of the Profession”

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[By staff reporters]

A Friend of the ME-P

cimasi

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HCC CEO Bob Cimasi Recognized as a “Pioneer of the Profession” under NACVA’s “Industry Titans” Awards

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Health Capital Consultants CEO Robert James Cimasi MHA ASA FRICS MCBA CVA CM&AA, CMP® has been named a “Pioneer of the Profession” by the National Association of Certified Valuators and Analysts (NACVA) and Consultants Training Institute as part of their Silver Anniversary recognition luncheon of valuation “Industry Titans,” held on June 10th. 2016, during the 25th Annual Conference in San Diego.  
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Mr. Cimasi joins valuation profession luminaries, including: Dr. Shannon P. Pratt, Chris Mercer, James R. Hitchner, Roger J. Grabowski, Richard Wise, Jay E. Fishman, Nancy Fannon, Honorable Judge David Laro, Howard Lewis, and Mel H. Abraham, along with fourteen others, in receiving this honor.
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Congratulations to Bob Cimasi and his fellow “Pioneer of the Profession” honorees from the HCC Team and ME-P Topics Staff.
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9fbcc25b-1ba3-4873-8818-9ec96a73ac51

Well Done!

CONGRATULATIONS – BOB

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The Future of Health Insurance?

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Preparing for Dr. Big Brother

Bert Mesko

[By Bert Mesko MD PhD]

While futuristic technologies are becoming available in healthcare, patients often can’t access them and the cost of providing care continues to skyrocket.

However, innovations such as artificial intelligence (AI) and health sensors are set to reshape how healthcare insurance works and by doing so bring much needed reforms to healthcare as a whole.

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Insurance

http://medicalfuturist.com/2016/04/13/the-future-of-health-insurance-preparing-for-dr-big-brother/

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Facing the Facts on Federal Entitlements

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A Case for Reform

[By National Institute for Health Care Management]

The National Institute for Health Care Management (NIHCM) Foundation is a nonprofit, nonpartisan organization dedicated to improving the health of all Americans by spurring workable and creative solutions to pressing healthcare problems.

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federal spending

NIHCM – Facing the Facts on Federal Entitlements: A Case for Reform

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  [Foreword Dr. Hashem MD PhD] *** [Foreword Dr. Silva MD MBA]

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Brexit: What to Do About It?

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The BRITISH-EXIT 2016?

Michael Zhuang                              

By Michael Zhuang

Shortly, there will be a referendum in Great Britain to determine if the UK should stay in EU or should leave for good. A mere month ago, the stay vote still won by a comfortable margin. Just showing how political wind can shift, the odds are now 50/50 that the leave vote might win.

Here are some consequences I believe a leave vote would entail:

1. Copycat referendums in other EU states, and within a few years, EU might not exist.

2. London’s reputation as world financial capital on par with New York may be diminished.

3. Disruptions to trades and investments, since UK’s relationship with Europe and the rest of the world, will have to be renegotiated.

4. Pound Sterling, London stocks, and property prices might go south. Potential capital flights from the UK.

5. More volatility in global stock markets.

As an investor, what should you do about it?

Well, all of the above can be called informed speculations. They are not actionable intelligence. In other words, when it comes to investment, we should never base our decisions on speculation about future events.

There is a mountain of academic evidence that the more investors react to events, the less the returns they get from stock markets. If you don’t believe me, go read “Trading is Hazardous to Your Wealth”, by Berkeley professor Terry Odean, published in Journal of Finance in April 2000.

I know it’s the reverse of a popular belief, but I will follow this mantra “Don’t just do something, sit there!”

If it should come to pass that the market drops significantly following the Brexit vote, then we rebalance and pick up shares cheap! Who doesn’t like a big discount?

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PS: As I was finishing up this article, news broke that a pro-stay MP was shot and killed by a pro-leave fanatic. The murder has the potential of shifting the political wind again!

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***

Defending online privacy in healthcare

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An InfoGraphic

Bert Mesko

[By Bertalan Mesko MD PhD]

An overwhelming majority of healthcare organizations have been victims of cyber-attacks. As digital health spreads from wearable devices on our body to implantables inside it, cyber threats can become painfully real.

What can we do to protect against them today?

Assessment

Let’s see some other dangers facing our health information, and a few easy tips you can use to boost your privacy levels quickly. Arxan recently surveyed trends and dangers threatening the privacy of healthcare data.

Conclusion

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Why Health Care Costs Exploded After World War II

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By Michel Accad MD

[Editor’s Note: This Q & A Reprint from Michel Accad, MD]

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Hearse

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 Why Health Care Costs Exploded After World War II

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On Childhood Obesity Trends

By http://www.MCOL.com

The Trend is NOT Your Friend

Obesity, according to Wikipedia, is a medical condition in which excess body fat has accumulated to the extent that it may have a negative effect on health.[1] People are generally considered obese when their body mass index (BMI), a measurement obtained by dividing a person’s weight by the square of the person’s height, is over 30 kg/m2, with the range 25–30 kg/m2 defined as overweight.[1] Some East Asian countries use lower values.[2] Obesity increases the likelihood of various diseases, particularly heart disease, type 2 diabetes, obstructive sleep apnea, certain types of cancer, and osteoarthritis.[3]

Obesity is most commonly caused by a combination of excessive food intake, lack of physical activity, and genetic susceptibility.[1][4] A few cases are caused primarily by genes, endocrine disorders, medications, or mental illness.[5] Evidence to support the view that obese people eat little yet gain weight due to a slow metabolism is not generally supported.[6] On average, obese people have a greater energy expenditure than their thin counterparts due to the energy required to maintain an increased body mass.[6][7]

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Obesity is mostly preventable through a combination of social changes and personal choices.[1] Changes to diet and exercising are the main treatments.[3] Diet quality can be improved by reducing the consumption of energy-dense foods, such as those high in fat and sugars, and by increasing the intake of dietary fiber.[1] Medications may be taken, along with a suitable diet, to reduce appetite or decrease fat absorption.[8] If diet, exercise, and medication are not effective, a gastric balloon or surgery may be performed to reduce stomach volume or bowel length, leading to feeling full earlier or a reduced ability to absorb nutrients from food.[9][10]

Obesity is a leading preventable cause of death worldwide, with increasing rates in adults and children.[1][11] In 2014, 600 million adults (13%) and 42 million children under the age of five were obese.[1] Obesity is more common in women than men.[1] Authorities view it as one of the most serious public health problems of the 21st century.[12] Obesity is stigmatized in much of the modern world (particularly in the Western world), though it was seen as a symbol of wealth and fertility at other times in history and still is in some parts of the world.[3][13]

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Assessment

In 2013, the American Medical Association classified obesity as a disease.[14][15]

Conclusion

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American Mortality Trends

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For 2000 – 2015

By http://www.MCOL.com

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ImageProxy

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The Myth of Free-Market Healthcare

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By Kel Kelly [A Reprint]

While most people believe that our healthcare industry is one comprised of free markets, it is anything but.

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Surgery

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 The Myth of Free-Market Healthcare 

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R.I.P Tom Perkins

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[By Staf Reporters]

A Venture Capitalist

Thomas James Perkins  died last week (January 7, 1932 – June 7, 2016). He was an American businessman, capitalist and was one of the founders of venture capital firm Kleiner Perkins Caufield & Byers.

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TP

https://en.wikipedia.org/wiki/Thomas_Perkins_(businessman)

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CEO Compensation is Down

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NO, IT’S UP – YOU BETTER JUDGE FOR YOURSELF        

ArtBy Arthur Chalekian GEPC

[Financial Consultant]

The New York Times reported the 200 most-highly-paid CEOs in the United States collectively experienced a pay cut last year!

CEOs’ average compensation – all CEOs compensation added together and then divided by 200 – fell by 15 percent from 2014 to 2015.

Of course, you know what they say about lies and statistics

Equilar, the company responsible for the study, reported CEO pay grew modestly in 2015. They looked at median CEO pay – the number in the middle. It was $16.6 million for fiscal 2015. That’s up 5 percent from the previous year.

No matter how you interpret the results, not one CEO earned more than $100 million. CEOs in the technology industry had the highest median pay while those in basic materials (which includes oil and gas companies) had the lowest, according to Equilar.

Many people have argued company performance should inform CEO pay, but there wasn’t much evidence this was the case. Although there may have been a basis for CEO pay changes, there was no clear correlation to shareholder returns or company revenues.

For instance:

  • A 702 percent increase in pay was awarded when total shareholder return was down 5 percent, and company revenues were down 1 percent.
  • A 286 percent increase in pay was awarded when total shareholder return was up 16 percent, and company revenues were up 9 percent.
  • A 48 percent reduction in pay occurred when total shareholder return was up 25 percent, and company revenues were up 4 percent.

Assessment

The portion of 2015 corporate budgets allotted to pay hikes for employees increased by 2.8 percent, on average, according to Mercer. The report said, “… the highest-performing employees received average base pay increases of 4.8 percent in 2015 compared to 2.7 percent for average performers and 0.2 percent for the lowest performers …”

Conclusion

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American Society of Appraisers 2016-17 Election Results

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NEW ASA OFFICERS

[By Jennifer M. Aguilar]

Marketing and Communications Assistant

American Society of Appraisers

11107 Sunset Hills, Suite 310, Reston, VA 20190

Direct (703) 733-2120 | Fax (703) 742-8471 | jaguilar@appraisers.org

Hello ME-P Readers and Subscribers,

The  ASA is pleased to announce the results of ASA’s 2016-17 elections for the new International Officers, Board of Governors and Discipline Committee Officers and Members At-Large. Those elected will officially take office on July 1, 2016.

To learn more please see this PR attachment: ASA Election Results

Thank you in advance for sharing this information.

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Cost Drivers of Healthcare

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A Survey

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$100-K Hearst Health Prize Call for Submissions

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$100-K Hearst Health Prize Call for Submissions! 

We are excited to announce that we are now accepting applications for the 2017 Hearst Health Prize for Excellence in Population Health. The winner will receive a $100,000 cash prize in recognition of outstanding achievement in managing or improving population health.

The Hearst Health Prize, in partnership with the Jefferson College of Population Health (JCPH), was created to help identify and promote promising new ideas in the field that will help to improve health outcomes. The goal is to discover, support and showcase the work of an individual, group, or institution that has successfully implemented a population health program or intervention that has made a measurable difference.

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The deadline to apply is August 26, 2016. To apply or learn more about the Hearst Health Prize, click here.

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Auto Rental Insurance Warnings!

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Rick Kahler MS CFPBy Rick Kahler MS CFP®

Doctors and many other travelers, including me, rarely purchase the insurance offered by the car rental company. The daily charge of $20-$40 is expensive, and the coverage often unnecessarily duplicates that provided by your credit cards and personal auto policy.

No Assumptions!

Before you assume you don’t need the rental insurance, though, it’s wise to take a closer look at where you’ll be traveling and whether your existing coverage will take care of all potential costs. There are times that taking the insurance can alleviate some nasty surprises.

The insurance can be a good idea if you rent a car outside of the US. As I’ve discovered first-hand, being in a country where roads double as paths for livestock, or one where people drive on the “wrong” side of the road, can increase your risk of minor accidents. While in some countries my US policy will cover damage, I don’t enjoy the prospect of spending countless frustrating hours as an intermediary between the foreign rental company and my US insurance carrier. I am happy to pay for the insurance and avoid heated arguments with the rental company over whether any damage was pre-existing, much less the hassle of negotiating repair bills.

It is important, though, to buy insurance carefully. On a recent trip to South Africa I rented a car and purchased the insurance online. When I returned the car, the agent said I had scratched the paint. Not wanting to waste time arguing, I pointed out I had purchased their insurance, thinking that was the end of the discussion. It wasn’t. The insurance offered on the site where I rented the car was a third party policy, not one offered by the car rental company. That meant the car rental company would charge me for the alleged damage. Then it was up to me to slug it out with the third party insurer. This left me taking pictures of the alleged damage, filling out damage reports, and arguing with the rental company agent. By the time I checked in for my flight home, I was tense and stressed: exactly what I intended to avoid by purchasing the insurance.

Beware loss-of-use Charges

Another instance where taking the rental company’s insurance can be beneficial is to avoid loss-of-use charges if you damage a rental vehicle. This is a fee the rental company charges to cover the income it loses while a vehicle is in the repair shop. Companies used to absorb this cost, but in recent years they have begun to charge consumers for it. The catch is that the coverage you have through your regular auto insurance or your credit card may not pay loss-of-use charges.

A few states (Alaska, Connecticut, Louisiana, Minnesota, New York, North Dakota, Rhode Island and Texas) mandate that insurers automatically pay loss-of-use claims. If you don’t live in one of these states, it’s a good idea to verify whether your credit card will cover these fees.

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DEM's Jag XJ-V8-L

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Visa and MasterCard Card?

According to AutoSlash.com, a website focused on helping consumers save money on car rentals, Visa does cover loss-of-use charges. However, it uses “fleet utilization logs” from the car rental company to verify the claim. Obtaining those records can take time and be a hassle.

MasterCard may cover some loss-of-use charges, but check the restrictions. American Express offers a separate car rental protection policy; the premium is likely to be cheaper than the premium charged by a car rental company.

Assessment

Never buying car rental insurance isn’t necessarily a wiser choice than always buying it. As the consumer, it’s up to you to do enough research to decide whether the insurance is a product you need.

Conclusion

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The Mayo Clinic and the Free Market

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Source: Michel Accad MD

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pill mill

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The Mayo Clinic and the Free Market

About

Dr. Michel Accad is a practicing cardiologist who blogs for a medical audience at alertandoriented.com

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Product Details

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Government Medicine is Killing Us!

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By Bob Murphy

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skeleton

Bob Murphy: Government Medicine is Killing Us

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About

Bob Murphy is our re-posting guest today as he wraps up a three-part series on the anti-market healthcare system in the US.

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***

The Most Costly Medical Conditions

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Top Five [5] for 2013

By http://www.MCOL.com

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Conclusion

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Retiree Health Insurance Trends

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By http://www.MCOL.com

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Penthouse Interviews Murray Rothbard

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Source: A Re-Post by MICHEL ACCAD, MD

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Penthouse Interviews Murray Rothbard

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  [Foreword Dr. Hashem MD PhD] *** [Foreword Dr. Silva MD MBA]

***

A Health Un-Insurance Snapshot

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Snapshot for 2016

By http://www.MCOL.com

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The Physician Certification Business?

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Let’s Get Government Out of the Physician Certification Business

Accad

By  MD

Are all certification outfits created the same?

Should the government impose free market features?

Any pro-market health economists out there?

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diploma

Should the government impose its own standards for certification for physicians?

The short answer is “no.”

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Let’s Get Government Out of the Physician Certification Business

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For Investors – Discovering Truth Takes Time

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Discovering Truth Takes Time

vitaly
By Vitaliy Katsenelson, CFA Institutional Investor Magazine
The Roman philosopher, playwright, statesman and occasional satirist Lucius Annaeus Seneca wasn’t talking about the stock market when he wrote that “time discovers truth,” but he could have been.

In the long run a stock price will reflect a company’s (true) intrinsic value. In the short run the pricing is basically random.

Here are two real-life examples:

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For Investors, Discovering Truth Takes Time

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Conclusion

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My Interview Request from The American College of Financial Services

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By Gary Arnesto

RE: Interview Request from The American College of Financial Services

Dr. Marcinko,‏

I work for the content marketing company Media Shower, and I’m writing on behalf of The American College of Financial Services, a school that offers education in the financial planning field, specifically to help students achieve professional designations such as: Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Chartered Life Underwriter (CLU), RICP (Retirement Income Certified Professional), and Financial Services Certified Professional (FSCP).

We’re starting a new Expert Interview series with important people in the financial professional industry, and we’d love to do an email interview with you to run on The American College blog!

We’ll send you a few interview questions, and we’ll turn your responses into a great article for our audience with a link back to The American College. All we ask for in return is a link posted on your site that promotes the interview to your audience.

You can see our website here: http://www.theamericancollege.edu/

If you’d like to discuss the program with someone at the company directly, feel free to contact Xand Griffin at: xgriffin@stratusinteractive.com.

Please let me know if you’d be interested in doing the email interview with us, and we’ll get moving on it right away!

Thank you,

Gary Arnesto

Assessment and RSVP

Many thanks for the invitation Gary, and yes I accept. My opinions may not always be correct; but I am never equivocal.

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DEM tie

David Edward Marcinko MBBS DPM MBA CMP®

http://www.CertifiedMedicalPlanner.org

cmp-logo16

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A Free Market Repudiation of Evidence-Based Medicine

Michel AccadIn a recent article entitled “A Hayekian Defense of Evidence-Based Medicine” Andrew Foy makes a thoughtful attempt to rebut my article on “The Devolution of Evidence-Based Medicine.”  I am grateful for his interest in my work and for the the kind compliment that he extended in his article.  Having also become familiar with his fine writing, I return it with all sincerity.  I am also grateful to the THCB staff for allowing me to respond to Andrew’s article.

Andrew views EBM as a positive development away from the era of anecdotal, and often misleading medical practices:  “Arguing for a return to small data and physician judgment based on personal experience is, in my opinion, the worst thing we could be promoting.”  Andrew’s main concern is that my views may amount to “throwing the baby with the bath water.”

On those counts, I must plead guilty as charged.  I have been trying to sink that baby for a number of years now, attacking it from a variety of angles.  I have made a special plea in favor of small data and I have even questioned the intellectual sanity of EBM.  On the question of the coexistence between EBM and clinical judgment, I have been decidedly intolerant, relegating EBM to second class citizen status.  In other words, I’m an unapologetic EBM-denialist which, as I found out yesterday on Twitter, puts me in the same category as climate change skeptics.

My main concern today, however, is to address the relationship between EBM and the free-market, and to reject Andrew’s point that EBM is somehow compatible with it.  First, though, let me say that in no way do I deny the notion that American medicine has, for decades, harbored practices of highly doubtful benefit to benefit to patients, and that many such practices may, in fact, have been dangerous or harmful.  I am fully on board with any effort to eradicate “eminence-based medicine.”

But before we reach out for an EBM solution to that problem, perhaps we should first wonder about causes.  What keeps the errors of eminence-based medicine persisting for so long?  Why do patients and doctors remain so wedded to a course of therapy as to blithely engage in unbeneficial or even harmful care?

If I read Andrew correctly, he seems to believe that these errors persist because outcome uncertainties are inherent to clinical care, hence the need for EBM. But that cannot be the fundamental reason.  Why would patients continue to pursue a treatment for which they have neither objective nor subjective tangible benefit?  Why wouldn’t they refuse to go along?  After all, many of them do exercise their ability to be non-compliant in the case of treatments deemed beneficial to them according to the truths of EBM!

Outcome uncertainty, then cannot be the reason why futile or harmful treatments persist, and if outcome uncertainty is not the reason, reducing it by way of EBM may not be the answer either.

What eludes Andrews is that eminence-based medicine is not simply the result of individual doctors exercising judgment with limited knowledge. Rather, eminence-based medicine happens when doctors apply their own pet theories and disregard the needs and wants of the patient at hand.

By missing that point, Andrew misses that eminence-based medicine is precisely minimized by the free-market and, on the contrary, encouraged by government intervention.  The history of American medicine provides ample examples to make that point.

In the late nineteenth century, healthcare in the United States was uniquely unregulated.  Yet, contrary to common belief or fabricated myths, care was improving by leaps and bounds, getting at once better, cheaper—and more scientific.  It is during that time that some of the finest medical institutions emerged, including the Mayo Clinic and the Johns Hopkins Hospital.  Sure, there were snake oil salesmen, but these were by-and-large being driven out of business by a growing community of serious, well-trained, and effective physicians.  And competition among these practitioners kept them humble and at the service of patients.

All of this changed in the 1910’s when, following the Flexner reforms, state licensing laws were enacted.  It is in the heels of these laws that medical paternalism emerged.

As an illustration, consider this passage excerpted from an official report published soon after the enactment of licensing laws:

The physician is the outstanding practitioner of medicine.  The need and the value of his service sets him above all others.  He alone, of all types of medical practitioners in the United States, is permitted by law to diagnose and treat all diseases and conditions and to use (with certain minor exceptions) any form of diagnostic or therapeutic technique which he considers necessary, desirable, and within his professional skill.  (Report of the Committee on the Cost of Medical Care, 1928, p. 195)

From that point onward, medical abuses of privilege became much more widespread than they had been.

Furthermore, as Kenneth Ludmerer has pointed out, this elevation of the physician to the status of demi-God by government fiat went hand-in-hand with the rise of the academic ivory tower, since academic medical schools were producing the “cream of the crop” among doctors.  Academic ivory towers, naturally, become common sources of practices founded on eminence.

Of course, licensing laws and the emergence of the ivory towers are not the only factors to consider.  Other government interventions soon followed to bring about systems of third-party payment for medical care—health insurance.  Without these government interventions, and without the existence of licensing laws, it is unlikely that health insurance would have emerged from the free market.  By unmooring medical decisions from any financial constraints, health insurance contributes immensely to the perpetuation of eminence-based practice.

It is this regulatory context, then, that is at the root of eminence-based medicine, and not the uncertainties of clinical care which, in a profound way, are inherent to the medical encounter.

Andrew believes that EBM discovery is akin to price setting on the free market.  I strongly disagree with that analogy.  As Andrew himself has noted, prices set in the free market convey consumer values and are the end results of myriad decisions made on the basis of dispersed knowledge.

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The-Psychology-of-Analytics-When-Working-is-Not-Working

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EBM results, on the other hand, are statistical relationships between interventions and outcomes which are carefully selected by investigators in highly contrived experimental settings.  In these settings, the choices and preferences of doctors and patients are ignored or neutered by design in order to isolate the relationship of interest.  Any value obtained as a result of an EBM experiment is primarily imputable to the investigators or sponsors, and only secondarily (and statistically) of benefit to patients.

EBM is no free market phenomenon.  EBM is an academic invention incubated in Canada, a country with a single-payer healthcare system!  As I described in my article, this invention has spun out of control and has turned EBM into a weapon wielded with equal vigor by the pharmaceutical industry, by regulators, and by those who aim to equalize the historical excesses of eminence-based medicine through the dubious doctrine of “Less-Is-More.”  None of these movements, it seems, are motivated by a desire to advance a genuine human science that is meaningful to individual patients.  In fact, to the extent that is a pet theory which standardizes care for entire populations, EBM is eminence-based medicine on steroids.

But if EBM is by no means a product of the free market, can the free market address our need to improve therapeutic predictions or will it set us back to a clinical stone age?

So long as narrowing clinical outcome expectations is truly desired by doctors and patients—and there is no reason to doubt that it is—then the free market is demonstrably the optimal environment that can allow human ingenuity to devise clever ways and methods to achieve that goal.  But what shape or form would those methods take and how closely would they resemble what we now take to be evidence-based science, I have no idea.  If I believed I held that knowledge, I would be repudiating Hayek.

Assessment

EBM Systems Engineering Vision MARCINKO

An FA Hayekian Defense of Evidence Based Medicine

About

Michel Accad is a cardiologist who practices in San Francisco.  He blogs at Alert and Oriented and can be followed on Twitter @michelaccad

Conclusion

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Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

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Top Ten States for Hospital Safety

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Hospital Safety

By http://www.MCOL.com

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safety

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Conclusion

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Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

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Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

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