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Daily Digest 10/11 - Why Colleges Are Borrowing Billions, Next NJ Governor Faces 'Ticking Time Bomb'

Wednesday, October 11, 2017, 9:59 AM

Economy

Overlooked by Obamacare: Many people paying full price for insurance 'getting slammed'

For a bronze-level plan with a health savings account, Melquist said, "we pay $15,000 a year" in premiums "and the first $6,550 (for health care expenses) for each of us comes out of our pocket. So basically you could be looking at $30,000 out-of-pocket before anything gets covered."

Vacaville faces $13.3M cost for lowered return on state pension investments

About 595 people were contributing and 110 received benefits in 2005, Hunt said. Ten years later the number of former city employees receiving benefits climbed to 594, while the number of contributors declined to 476, the councilman said.
“We can’t very well sustain that,” Hunt said.

Billions in Illinois bills not sent for payment

Although many of those IOUs have since been paid, a similar amount in unprocessed bills has replaced them in the last three months, Comptroller Susana Mendoza's office said Monday. That's in addition to $9 billion worth of checks that are at the office but being delayed because the state lacks the money to pay them.

The Ticking Time Bomb Faced by Next NJ Governor

Those numbers show New Jersey’s public pension system is actually underfunded by $168 billion. And that does not include an additional $85 billion shortfall for the medical benefits of retirees. The bottom line is a state retirement system that faces a future debt of $253 billion.

S&P grades Illinois' debt-reduction bonds a grade above junk

Gov. Bruce Rauner decided last month to issue bonds to pay down more than $16 billion in overdue bills to human services, medical providers, private businesses, schools, and more. The state's five pension systems also are underfunded by more than $130 billion.
Rauner also says the fiscal 2018 budget approved in July is out of balance by about $1.7 billion despite a $5 billion income tax increase approved by lawmakers. The income tax increase went into effect July 1 and costs the average household about $1,000 annually.

Why Colleges Are Borrowing Billions

Colleges and universities collectively owe $240 billion, the Moody’s bond-rating service reports. That debt rose 18 percent, to $145 billion, in the last five years at public universities, Moody’s says. At privates, it went up 3 percent, to $95 billion.

Puerto Rico’s $74 Billion Burden Left It Helpless When Maria Hit

It neglected the electricity system, leaving it dilapidated and prone to prolonged outages. The water utility, which was leaking untreated sewage, put a $1.4 billion construction plan on hold. At least 5,800 police and firefighting jobs were cut. Unable to cover its share, Puerto Rico lost federal funds for work on its 4,800 miles (7,700 kilometers) of roads.

US deficit spending reached $668 billion in fiscal 2017

Federal spending rose $130 billion in fiscal 2017, largely driven by a handful of agencies. Spending for Social Security rose $29 billion, and Medicare spending increased $22 billion.

ECB made €7.8bn profits from Greek bond holdings

News of the billions of euros in profits are likely to anger hardliners in the Greek government who have long urged the ECB to allow Greece into the central bank’s current QE package.
The SMP profits have been promised to Greece at various points during its seven years of financial rescues.

BOJ Governor Kuroda pledges to stick with quantitative easing

BOJ Governor Haruhiko Kuroda on Tuesday reiterated the central bank's resolve to maintain its massive stimulus programme until inflation moved sustainably above its 2 percent price target.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/10/17

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

5 Comments

Matt Holbert's picture
Matt Holbert
Status: Bronze Member (Offline)
Joined: Oct 3 2008
Posts: 82
Overlooked By Obamacare...

My wife and I fit into the group described in the first article. As an individual in 2010 I paid around $230 per month for good coverage with reasonably low deductibles. Currently, under Obamacare the premium for both of us is $900+ per month and our individual deductibles are $6000+ with an out-of-pocket limit of 13,000+. We have been informed that next year the premium will be $1300 per month. The out-of-pocket drops slightly. Yippee.

I do what I can to avoid the system but last week I was reroofing the garage and slipped over the edge and fell 7-8 feet. Although shaken up, I picked myself up and worked another 4 hours or so. After a persistent headache for 4 days, I went to an Urgent Care Center and was sent on to the ER. The process took 5 hours or so and I only interfaced with personnel for 5 minutes or so. A CT scan revealed that I had a subdural hematoma. I was referred to a neurosurgeon and scheduled for an appointment which requires another CT scan. All of this, of course, costs thousands of dollars and if surgery is required it is likely that I will end up exceeding the $13,000 out-of-pocket limit. I described the coverage and premiums to a provider employee collecting my co-pay and she was shocked. It is likely that she is not alone in not having a clue about how much people pay for Obamacare coverage.

However, I don't think that things would be much different without Obamacare. One difference is that those of us who chose/choose not to have children would not have to subsidize those who do... (That would have been one reason why my premium was lower in 2010.) However, most of everything else would be the same. Administrators would continue to get bloated salaries. According to an article several years ago, the largest provider here in Spokane has at least 20 executives making $1 million or more. Doctors would continue to live in expensive homes and send their kids to Ivy League schools.

We have to dramatically change the system. We have to create a new order. The answer can be found across the street from where I spent my five hours in the ER. The hospital was founded by an order of nuns who worked without expecting any compensation other than room and board and other intangibles -- blessings, if you will. No cars, no cell phones, no expensive educations/indoctrinations, no expensive house or houses. With the exception of a modest house, I have been willing to live much like these nuns. Unless a new order is created, I will be forced into the insane world that is exemplified by the current sickcare system. Is anyone here at PP willing to discuss a new order of this sort? I'm willing to transfer whatever assets I have into this structure subject to retaining a life estate on my home. By the way, this new order would revolutionize real estate as we know it.

mntnhousepermi's picture
mntnhousepermi
Status: Silver Member (Offline)
Joined: Feb 19 2016
Posts: 124
Look into liberty healthshare

Or one of the others. You should drop out of ObamaCare and get better coverage for less money. Yes, this is real. https://www.libertyhealthshare.org/3-program-options  If you smoke, you may need to quit smoking.

mntnhousepermi's picture
mntnhousepermi
Status: Silver Member (Offline)
Joined: Feb 19 2016
Posts: 124
Look into liberty healthshare

Or one of the others. You should drop out of ObamaCare and get better coverage for less money. Yes, this is real. https://www.libertyhealthshare.org/3-program-options  If you smoke, you may need to quit smoking.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4023
IMF warns $135 trillion debt build-up could knock strong growth

IMF warns $135 trillion debt build-up could knock strong growth into ...

City A.M.-18 hours ago
Borrowing by governments, households and companies (not including banks) in the major G20 economies exceeds $135 trillion (£102 trillion), according to IMF ...

Illinois' pensions debt grow more in one year than half of states

entire budgets

Illinois News Network-3 hours ago
At an estimated $71.4 billion in unfunded liabilities, it also carries the most debt. Director Dick Ingram said that his fund's main issue is that the older, more ...

Why is corporate America issuing debt to fill the holes in pension ...

MarketWatch-18 hours ago
“Companies can issue to reduce the pension deficit at little to no incremental cost,” wrote Hans Mikkelsen, credit strategist at BAML. “The economics of carrying ...

State pension costs are crowding out basic services

OCRegister-Oct 11, 2017
Rising pension costs throughout the state will continue to crowd out resources needed for tangible services for years to come, according to a new report by the ...

Healthcare: Government insurance premiums in Utah could rise 40 ...

KUTV 2News-11 hours ago
The Utah Department of Insurance estimated Wednesday, premiums for individual plans could rise nearly 40 percent in 2018. "People are starting to receive ...

 

Matt Holbert's picture
Matt Holbert
Status: Bronze Member (Offline)
Joined: Oct 3 2008
Posts: 82
Premium Increase Is 67%

mntnhousepermi, Thanks for the suggestion. I'll look into it.

My spouse informed me that our 2017 monthly premium amount was $781.81 rather than $900. This means that the 2018 monthly premium amount of $1307.52 is 67% greater. It's surprising that this has not made the headlines...

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