Archive for January 31st, 2011

For Governors, Medicaid Looks Ripe for Slashing

The New York Times, January 29th, 2011

Hamstrung by federal prohibitions against lowering Medicaid eligibility, governors from both parties are exercising their remaining options in proposing bone-deep cuts to the program during the fourth consecutive year of brutal economic conditions.

 Because states confront budget gaps estimated at $125 billion, few essential services – schools, roads, parks – are likely to escape the ax. But the election of tough-minded governors, the evaporation of federal aid, the relentless growth of Medicaid rolls and the exhaustion of alternatives have made the program, which primarily covers low-income children and disabled adults, an outsize target.

 In Arizona, which last year ended Medicaid payments for some organ transplants, Gov. Jan Brewer, a Republican, is asking the Obama administration to waive a provision of the new health care law so that the state can remove 280,000 adults from the program’s rolls. In California, the newly elected governor, Jerry Brown, a Democrat, proposes cutting Medicaid by $1.7 billion, in part by limiting the beneficiaries to 10 doctor visits a year and six prescriptions a month.

 In the budget he will unveil on Tuesday, Gov. Andrew M. Cuomo of New York is expected to propose cutting even more – at least $2 billion from projected state spending on Medicaid, which totaled about $14 billion this year.

And Gov. Nathan Deal, the new Republican leader of Georgia, proposed this month to end Medicaid coverage of dental, vision and podiatry treatments for adults. South Carolina is considering going a step further by also eliminating hospice care.

The governors are taking little joy in their proposals. And many of them, particularly the Republicans, are complaining about provisions of last year’s health care overhaul, and of the stimulus package before it, that require the states to maintain eligibility levels in order to keep their federal Medicaid dollars.

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For Many Entrepreneurs, Life Begins at 50

MSN news, January 30th, 2010

There’s
a lot of chatter these days about how eagerly Gen Y is embracing
entrepreneurship. But you don’t hear nearly as much about the other
demographic that’s also pursuing business ownership, driven more by
purpose than passion.

 

There’s
been a surge of people aged 50-plus starting businesses, and it’s
happening for a number of reasons. But today’s driving factor, according
to the Staying Ahead of the Curve 2007 survey from AARP, appears to be “financial need.”

 

Americans
over 55 were particularly hard hit by this past recession. Not only did
their jobless rate hit record levels, but their average length of
joblessness, according to the U.S. Bureau of Labor Statistics, was over
35 weeks, compared to 30 weeks for workers ages 25 to 34. (These stats,
provided earlier this year, were the latest supplied by the bureau.)

 

According to a report titled “What’s the Matter With the U.S. Job Market?” — part of the UCLA Anderson Forecast,
an economic outlook released last December — about 5.5 million lost
jobs are not coming back. So instead of seeking jobs that don’t exist,
older Americans are starting businesses. In fact, the Kauffman
Foundation reports there’s an entrepreneurial boom among 55- to
64-year-olds, who are now nearly twice as likely to start successful
businesses as 20- to 34-year-olds.

 

Assessing the risk

But
before you jump into reinventing yourself as an entrepreneur, remember
that starting and running a business both entail risk. And the older you
are, the lower your tolerance for risk is likely to be. Obviously,
success in business is not guaranteed, and younger entrepreneurs have
more time to regain any money lost from investing in a venture gone bad.

 

Late last summer, Newsweek
reported that Vivek Wadhwa, a self-described “academic, researcher,
writer and entrepreneur,” conducted a study of over 500 successful
technology businesses and found that older startup entrepreneurs were
actually more successful than younger ones — despite common perceptions.
Wadhwa credits their expertise, customer experience and relationships,
and established network of supporters for their success. Still, you’ll want to mitigate as much of the risk as possible. You can do this in several ways:


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Working in Retirement:
  Whether as an entrepreneur or simply an employee, many seniors are turning to the working world to cement their retirements.  Consider the options, benefits, and drawbacks, at NewRetirement.com.



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