Farnoosh Torabi's Blog, page 39

College Admissions: Comparing Financial Aid

Millions of students across the country are in the process of deciding which college they’ll attend this fall. And, in making that decision, one of the most signifiant factors will be price.

The average in-state public college tuition for the 2012-13 academic year was $22,261, according to a 2012 report by the College Board. It’s a hefty sum and doesn’t even include the cost of room, board, books, fees, travel and living expenses – let alone the increase in tuition if a student attends a private college or one out of state. When it comes to financing an education, there a tons of options: savings, grants, scholarship and loans (private and public) and all of those options are typically outlined in the financial award letter sent from an institution to an accepted student.

If you’re one of the lucky students who must choose between a few different schools, here’s how navigate awards letters and compare costs.

Identify the Cost 

Every school’s award letter is different. To make an apples-to-apples comparion, your first step is to calculate the total cost to attend each institution  Again, this means more than the cost of tuition. You should also factor: tuition,  room and board, books/supplies, fees and transportation expenses. Not all schools will detail each of these so you may have to consult the financial aid page of the website and/or speak with a financial aid advisor at the school.

Evaluate Funding Options

Most students meet their financial obligations with a mix of funding sources. Armed with total cost of attendance, it’s time to identify every source of funding available to you at each school. Grants and scholarships are often listed together in award letters as “gift” aid because they’re funds you don’t have to pay back. Gift aid is especially important in making a comparison because it’s the funding source that will differ most from school to school, as colleges often offer scholarships and grants exclusive to their institution. Subtract your gift aid at each school from its total cost of attendance. When that’s done, you’ll be left with a clear idea of your net cost, or what you’re expected to cover through federal loans, work study, private or institutional loans.

Use Available Tools

Finally, perhaps the most difficult thing about comparing financial aid award letters is the math. To ease the burden, the good folks over at FinAid.com have a handy comparison tool that calculates everything for you in a simple side-by-side format. Or if the financial jargon all sounds Greek to you, consult the online financial aid glossary created by Kim Clark, the college financial aid reporter for MONEY magazine.

Photo Courtesy, CollegeDegrees360

Financial Skinny: Flood Insurance

When Mother Nature gets rough and you’ve got a tree sitting in your living room, it becomes clear just how important homeowner’s insurance can be. While typical policies cover many areas of damage, one serious exception is flood damage.

A new survey by Bankrate.com found that more than 80% of Americans know that a standard homeowner’s insurance policy doesn’t cover flood damage. Despite that, only 13% have flood insurance, according to the Insurance Information Institute. Scary figures when you consider that the Federal Emergency Management Agency (FEMA) calls flooding the country’s top natural hazard.

“This is a classic ‘do as I say, not as I do’ situation,” said Doug Whiteman, insurance analyst at Bankrate.com. “The vast majority of Americans know the key facts about flood insurance, but they haven’t taken the necessary steps to protect their homes.”

If the data is correct, odds are you don’t have flood insurance. To help you fix that before it’s too late, here are a few tips to owning the right policy.

Know Your Risk

FEMA’s National Flood Insurance Program classifies properties as being at either high or moderate-to-low risk of flooding. Bankrate’s survey also found that nearly half of respondent didn’t know FEMA’s classification of their property, thus their risk of flooding. Flood-hazard maps were created by the agency to help determine the cost of flood insurance for each homeowner. The lower the degree of risk, the lower the flood insurance premium. Finding your home’s risk level is actually pretty simple. In fact, it can be done with a few clicks online. Visit FEMA’s site, enter your address and the system will determine your flood risk profile and estimate your premiums.

Consider Federal Flood Insurance

Insurance through FEMA’s program depends on the home’s value and whether or not it’s in a flood plain. “The average flood insurance policy costs about $50 per month, so for roughly the cost of dinner and a movie, consumers can protect themselves against disaster,” says Whiteman. It covers the rebuilding of your home, up to $250,000, and pays the current value of personal possessions up to $100,000. Those with higher-value properties should consider purchasing excess flood insurance through a private carrier. Finally, homeowners in moderate-to-low risk areas are eligible for FEMA’s Preferred Risk Policy for as little as $129 per year.

Photo Courtesy,  U.S. Geological Survey.

Shopping Local: Pros and Cons

As a consumer, you have choices. You could hop online at Drugstore.com for laundry soap, drive to any number of chain stores or big box retailers, or walk down the street to your local mom & pop grocer. When you make purchases, your dollars cast votes for stores you like best.

Like me, you might be finding it hard to keep track of all the buzz words surrounding responsible purchasing: “Organic”, “Fair Trade”, “Hyperlocal.” (Did you hear? “Locavore” is the new “Vegan”). But still, there’s contradictions even among the catchphrases: “Fair trade” means supporting the fair pay and treatment for workers in a global economy, while “buying local” means supporting the community right here at home. Confusing much?

Whether you favor supermarkets or farmer’s markets, here are a few Pro’s and Con’s so you know what to expect when you shop local:

PROS:

It’s Good for the Community

When you buy local more money stays in the community, and it has more velocity (meaning, it circulates around faster). London think tank, the New Economics Foundation, compared when people bought produce at a supermarket versus a local farmer’s market or community supported agriculture (CSA) program. They found that when folks bought locally, about twice the money stayed in the community. Another way buying local helps foster community is the personal connections you make with the shopkeepers, farmers and small vendors who sell to you.  Local stores and farmer’s markets become hubs to meet and chat with friends and neighbors.

It Helps the Environment

Many foods in America travel an average of 1,500 to 2,500 miles from farm to table, says the Worldwatch Institute, and these “food miles” are among the fastest-growing sources of greenhouse gas emissions worldwide. Local shops more often stock local foods that do not require long plane and train journeys, helping reduce our overall global footprint. Farmer’s markets, in particular, carry fruits and vegetables and other farm-to-table products grown within a radius of 100-250 miles.

Better Customer Service 

Evidence from numerous surveys show people receive better customer service from smaller, independently-owned businesses over large retailers. These are companies that live and die by their reputation and repeat business, which means they can’t afford to lose you as a customer. As a result you often get a higher standard of service, as small business owners will fight tooth and nail for your voting dollar!

There’s Even a Holiday: 

Check out Small Business Saturday on the first Saturday after Thanksgiving. Get discounts and support local businesses.

CONS:

Higher Prices

Shopping local sometimes carries a premium.The prices at a mom and pop may be higher because their profit margins aren’t has high as large retailers’. Sometimes it’s just a few cents more, sometimes a few dollars– but occasionally the price difference is so egregious, small businesses price themselves out from the competition.  As always, it’s up to you to be a savvy shopper.

Inferior Return Policies

While many department stores will allow you to return practically anything at anytime, locally-owned businesses and retailers may not offer the same lee-way. In fact, small boutiques and retailers are notoriously terrible at offering more than a basic, 7-14 days, exchange or in-store-credit, and only-with-receipt return policy.  Check your store’s details before purchase.

It Might Not Be as Energy Efficient as You Think

Just because something is locally made or grown does not mean that it is environmentally friendly. Small local farms and manufacturers may not be able to take advantage of certain energy-efficient or green practices that larger producers can afford. Larger operations often function more effectively, making their companies more “green” over local farms or businesses. Some argue that it’s more energy-efficient to raise particular foods in particular places – such as lamb in New Zealand, or avocados in California and in that case, it could be more environmentally sound to ship foods long distances. According to a study by the Leopold Center, tomatoes grown in the ground in Spain and shipped to Sweden require less overall energy to produce and ship than tomatoes grown in a hot greenhouse in Sweden.

Best to ask questions and be an informed consumer, which is much easier to do when you have a relationship with the person on the other end of the transaction.

Photo Courtesy of:  farm8.staticflickr.com/7136/6996804766_c802e62300

Graduation Gifts For Less

They’re entering a slow economy and stagnate job market, but for the nearly two million college seniors that’ll emerge into the Real World this spring, they can at least look forward to gifts!

The right graduation gift can provide the student in your life a nice break, important tools for the workplace or, most importantly, a great reward. I searched our favorite retail resources for graduation gifts ideas at reasonable prices.

Here are my top picks.

Gift an Interview Getup

Grads need a lot of things right out of school –  namely a job. While you may not be able to gift that, you can certainly help them put their best foot forward. “Stripes, colored python prints and ruffles are all in for women this season,” says Margie Cader, spokesperson for retail site ShopItToMe.com. Spring trends for men include tasseled loafers, print ties and plaid shirts. And when it comes to interviewing for a gig, Cader says that new grads can always use work basics: blazers, suits, pencil skirts, briefcases and work bags. For a deal on these items, ShopItToMe comes in handy for comparing prices on designer items from more than 150 retailers. A quick search for messenger bags, for example, turns up 46 designer options – including a beautiful bag by Cole Haan for nearly 30% off.

Send Them Packing

Nothing says “job well done” like a free trip to a great destination. Before your grad has to jump into the real world, gift them a brief respite. Farnoosh already has great budget travel tips worth considering. Another way to save is to purchase travel deals through voucher sites like Living Social and Groupon. Living Social, for example, is offering a five-night stay for two in a one-bedroom suite at the Espanola Way Suites in Miami – all for just $560, 30% off the original price of $800. One of the best things about these travel vouchers is that you don’t have to settle on a date. Pick a deal with a wide window for use and let the new graduate pick.

Grab a Gift Card

Finally, if totally out of ideas, a gift card rarely disappoints. It’s an appropriate present for the grad who may not have any immediate needs but could use free cash from a favorite store when settling into a new job or city. To save on the price of a gift card, head over to Plastic Jungle, which lets users buy gift cards from other consumers at a discount. Right now, for example, you can get deals like 15% off Pier 1  and JC Penny gift cards. And when more than 20% of gift card balances go unspent, according to estimates, a good idea for funding your graduation gift is to cash in ones you have sitting around. Visit Giftcards.com and, again, Plastic Jungle to sell your unwanted cards. They’ll pay up to 85% of their face value.

Photo Courtesy, asenat29.

How We Got Out of $50K Worth of Debt

It’s taken 12 months for newlyweds Angela and Ted Jalad to go back to enjoying even the smallest of life’s splurges. Today they celebrate, as the California couple has erased a staggering $50,000 worth of debt in just one year’s time. Read more here.

What do you think? What are some tradeoffs you’re making to pay off debt? Connect with me on Twitter @Farnoosh and use the hashtag #finfit.

In Defense of Millennials

The Millennial Generation often gets a bad rap – deemed entitled, flakey and lackadaisical in the workplace by their elders. Despite this perception, research shows that young Americans posses many qualities that make them valuable workers.

For those that aren’t familiar with generational theory, “Millennials,” “the Millennials Generation” or “Generation Y” consists loosely of those born between the early 1980s and the year 2000.  In their book, “Millennials Rising,” researchers Williams Strauss and Neil Howe  describe millennials glowingly. They describe them as the next “hero” generation writing: “Over the next decade, the Millennial Generation will entirely recast the image of youth from downbeat and alientated to upbeat and engaged–with potentially seismic consequences for America.”

Of ourse, not everyone agrees. In an article for business site Inc.com Thursday, an entrepreneur gives five tips for working with millennials, all while describing the group as “cliquey,” “a complete disaster to manage” and with writing skills that are “beyond abysmal.”   

But, 95 million strong, Millennials are a force with which the workplace will need to reckon. And while I may be a biased member of the group, I do think they possess qualities from which all employees can learn. Consider these Gen-Y-esque workplace habits:

Embracing Technology and Innovation

Baby Boomers view themselves as hard workers. In fact, a Pew study finds that members of the generation cite it as their primary identifier from others. The majority of Millennials, on the other hand, feel distinguished by their use of technology –  not just for fun.  Seventy-eight percent say that access to the technology makes them more effective at work. Experts agree that technology and innovation will have an increasingly important role in the global economy. So while the millennial’s dependence on devices can be off-putting to some, just consider it their preparation for the demands of what President Obama called the “a high-tech economy” in his 2013 State o the Union speech.

Embracing Other Generations in the Workplace

Millennials aren’t going anywhere. In fact they’re the future of the workplace. The generation is more numerous than any since the Baby Boomers, already representing a quarter of the workforce in the US and estimated to form half of the global workforce by 2020. Despite what some older workers have to say about their generational identity, millennials don’t share the beef. A study by PricewaterhouseCoopers found that 76% of millennials questioned said they enjoy working with older senior management and 74% said they were as comfortable working with other generations as with their own. With older workers retiring later and later, it’s more important that everyone get over the generational divides to bridge a gap between the economies of yesterday and tomorrow.

Willingness to Compromise

Finally, studies have found that members of Gen Y expect to climb the ladder at work quickly. But that doesn’t necessarily mean they’re entitled- as many have suggested. Consider this: Research also finds that, compelled largely by a rough economy, millennials are willing to compromise on things most workers consider deal breakers.  The report by PwC shows that 72% of millennials say they’ve made some trade-off to get work – largely in compensation, relocation and benefits. That’s despite being on track to becoming the most educated generation in American history. In a time when the workplace is becoming more competitive and the economy is still unsteady, perhaps we can learn something from their willingness to go back to school, freelance and be otherwise flexible.

Photo Courtesy, Victor1558.

Best Cities For New Grads

So you’re ready to graduate and strike out on your own. Nice going! In terms of employment prospects, that college degree will be  a huge asset. In fact, statistics show that those with just a high school diploma are unemployed at more than double the rate of college grads. But just because you’ve got your degree doesn’t mean your in the clear. Salaries are on the rise but very slowly, with the average member of the  class of 2013 expected to earn just $44,928 annually, according to the National Association of Colleges and Employers. That while rents are steadily on the rise, and you’ll be entering a job market with nearly  other new grads. One thing is for sure: you want to make your next move your best move.

To help with your first step as a college graduate, Forbes magazine compiled its list of the top locations for recent grads. The combined data from the Bureau of Labor Statistics, the Census Bureau and Rent.com’s database pinpoints cities that offer opportunity and affordable living space.

Here are the top five:

Atlanta, Ga.

Atlanta is a southern city unlike any other. It’s the headquarters for 10 Fortune 500 companies, 24 colleges and universities and a thriving music scene. In recent years, Atlanta has become a destination for those migrating from larger northern cities in search of a simpler way of life.

◦ Mean annual income: $46,600

◦ Median price for a one-bedroom apartment: $800

◦ Unemployment rate: 8.4%

Boston, Mass.

Considering going back to school? Boston could be the city for you. With more than 100 centers of higher education, you’ll have your pick in this city known for its significant place in early American history and rich diversity. As the “Capital of New England,” it is also the economic and cultural hub of the entire region.

◦ Mean annual income: $57,500

◦ Median price for a one-bedroom apartment: $1,590

◦ Unemployment rate: 5.9%

Houston, Texas

Another city in the South makes Forbes‘ list: Houston. Distinguished by its science, health and energy industries, this Texas town is on the rise – also cracking into the magazine’s top 10 cities for job growth. And if you like the sun, Houston is a location with more than enough of it. It boasts an average 81 days out of the year with temperatures above 90 degrees.

◦ Mean annual income: $47,500

◦ Median price for a one-bedroom apartment: $800

◦ Unemployment rate: 6%

Denver, Colo.

Here’s something you may not know about the “Mile High City”: Denver has on average 300 days of sunshine a year. That’s more sunny hours than either Miami or San Diego. If you’re the outdoors type, Denver is ideal with plenty of mountains, springs and nearby Rocky Mountain National Park. Aside from great weather and picturesque landscape, the city is also known to be one of the most diverse in the West with a rich mix of cultural traditions.

◦ Mean annual income: $50,300

◦ Median price for a one-bedroom apartment: $970

◦ Unemployment rate: 7.4%

Minneapolis/St. Paul, Minn.

Finally, a city in the Midwest makes the list. Minneapolis was the first stop for TV’s Mary Taylor Moore and it could be yours, too. This “City of Lakes” is home to the Mall of America (one of the largest shopping centers in the U.S.) and has been named one of the greenest cities in the country. If that’s not enough to get your bags packed, the city also boasts free WiFi - 117 “Wireless Minneapolis” hotspots throughout the metro area.

◦ Mean annual income: $49,800

◦ Median price for a one-bedroom apartment: $900

◦ Unemployment rate: 5.1%

Photo Courtesy,  ralph and jenny.

Zrii: Personal Branding by Association

Health-enthusiast LK Avelar connected with Ayurvedic wellness company Zrii from the get-go, and has used the brand to recast his own image in a new, healthier light… call it personal re-branding by association.

Launched in 2008, Zrii is a network marketing company that offers customers a line of juices, shakes and cleanses built around Ayurveda, a system of traditional holistic medicine native to India.  Most of the company’s products contain amalaki, a so-called super fruit thought to promote – among other things – cellular rejuvenation, immune system functionality, and overall vitality.   On the way to its goal of becoming a “lifestyle brand,” Zrii has received an official endorsement from Deepak Chopra, the influential – and sometimes controversial – alternative medicine practitioner and co-founder of the Chopra Center for Wellbeing.

Avelar was introduced to Zrii during its pre-launch efforts in 2007.  It turned out to be the right opportunity at the right time for a burnt-out bartender seeking to distance himself from the stale nightlife that had become his existence.  “Like everyone else [in Los Angeles], I was chasing my Hollywood dream, trying to be an actor by day, bartender by night,” says the first generation Portuguese-American.  “Bartending was a lot of fun, it paid well, and I had made a pretty good name for myself doing it.  But…  I was spending way too much time being a bartender.  I needed to [re-]build my name.”

Through bartending, Avelar had assembled a considerable fan base among club-goers in body-conscious West Hollywood and he used his ever-growing network to his advantage.  “When I got started with Zrii, I was still bartending.  So, I developed an e-mail list and just kept adding names too it,” he says.  “I would send weekly and monthly updates… affirmations that promoted Zrii ideals like being grateful for the things you have, regardless of your circumstances.”  The e-mail list gave Avelar the head start he needed to build a sales team and a network of customers.  He hit the ground running.  “Zrii took off really fast for me,” he says.

As fast as it took off, however, Zrii began to falter.  Avelar attributes the company’s early growing pains to three factors: the down economy, a narrow product mix, and a top-heavy compensation structure that was tough on newcomers.  Slumping sales were exacerbated by high turnover, and Avelar lost most of his team.  He considered quitting himself, but he believed in the product enough to stick with it.  Instead of throwing in the towel, from 2009-2011, LK went back to bartending to supplement his income.

Zrii’s comeback started in 2011 when the company added a little depth to its product mix with Purify, an all-natural cleanse and detox system that has really excited Avelar’s customers.  The company has also experimented with new payment structures and currently offers team members eight ways to make money, including a basic commission, six different types of bonuses, and profit-sharing for top performers.  This Friday (4/19), Avelar is heading to  Orlando, FL, to take part in a re-launch event in which he expects the company to unveil yet another overhaul to its payment structure.

Today, the money Avelar makes as a Zrii Independent Executive allows him to focus on being an actor and entertainer again.  He has a part in an upcoming movie, Chasing TAIL, which he also co-produced.  Through his promotions and marketing company, LK Avelar Presents, Avelar hosts Zrii pool parties and other Zrii and non-Zrii events.  The buddy recording artist also infuses his latin-tinged dance music with lyrics that promote an abundant, “ZriiYa” way of life.  “I tell my team members to incorporate the brand into what they’re already doing.  Talk about it on Facebook, rock the colors, wear your Zrii pin and use it as a conversation starter… ,” he says.

Or maybe just sing about it.

Clear the Clutter: Improve Health & Budget

If the not-so-distant rash of TV shows about re-organizing spaces, cleaning, de-cluttering, remodeling and expansion that hit US airwaves in the mid 2000’s is any indication, America seems pretty obsessed with spacious and immaculate living rooms, master baths and glossy, magazine-spread style homes.

But according to the book Fast Forward Family: Home, work, and relationships in middle-class America, which was based on an in-depth, ten-year study by the UCLA Sloan Center on Everyday Lives of Families (CELF), the majority of homes in the U.S. are anything but.  In fact, average homes of about 1,750 square feet contain thousands of items (an average four per square foot, actually); a dizzying amount of consumer goods that could only be described by an objective observer as “clutter.”

And this mess is not stacks of magazines and crazy-cat-lady accoutrement, these are every day, “purposeful” possessions; i.e., the stuff we intended to acquire and put on display, such as furniture, art, books, lamps, toys, trinkets or music collections. When you stop to consider what these items are for, (often to show status, or imply identity), you might wonder what the effects of living such a densely accessorized life might be.

According to the CELF study, the consequences do cost you, and not just money: stress hormones measured in participants’ saliva show considerable psychological stress in association with a cluttered home, suggesting that living day-to-day with a messy environment is a bigger problem than we thought, most notably for women. Linguistic data shows that busy working moms often  talk about their houses with the words “chaotic”, “messy”, and “cramped,” coupled with the words, “usually”, “always”, and “constantly”.  These same women also showed increased signs of stress and a depressed mood as the day progressed.  Men on the other hand, reported little to nothing about the clutter or mess in their lives.

Regardless of gender, the message is clear: the high density of objects in our homes and lives — along with the intense consumerism it perpetuates — will only lead to smaller wallets, added disorganization and frustration (did you know that people spend 55 minutes per day simply looking for things?), and now even health risks.  As I’ve mentioned in a past post, the expense and energy it takes to manage and maintain all these possessions over time is considerable, particularly when you consider the effort to clean, organize, and  maintain them.

So, to help keep your life stress and clutter free, here are a few tips:

#1  Eliminate Duplication

Many households have more than one item in a category.  Ever notice how many can openers you have?  Pairs of scissors (that don’t even work well), extra pots and pans that never get used?  And what about ball point pens?  (Seriously….go count them!)  When organizing desks, closets or areas of the house, it’s helpful to put things in piles or categories so you can see where you have a surplus, and can afford to trim down.

#2  Dump Storage

A storage unit can be a huge, on-going monthly money drain and is it really, truly necessary?  If you live in a small apartment, perhaps.  But for anyone with a basement or attic, you already have a built in storage unit. And if you can’t remember exactly what you have in storage (who does?), then that’s a sure sign you probably don’t need those items anymore.

#3  In with New, Out with Old

This one may be hard to live by but it’s a sure way to keep a handle on your hoarding: for every new (non-food) purchase, particularly with clothing or chachkis, decide on an item to remove from the household via donation, recycle centers, swaps, or when all else fails, simply the trash. Check out Martha Stewart.com’s list of best places to donate or sell unwanted items.

#4   Avoid Accumulation

Avoid services or habits that bring new stuff into the household.  Monthly sample subscription boxes are a good example: for a small fee a personalized package arrives in the mail for you every month with tiny treats of beauty, food, or novelties. Though I love the kid’s crafting kits from Kiwi Crate, I prefer Sparkbox because it’s keeps kids constantly entertained with educational products, without having to buy new.  When your kids are bored of or outgrow the new toy-of-the-month, you simply return the items for a new batch, and yours go to a new home (after the toys haven been sterilized and shrink-wrapped like-new, so kids never knows the difference).

#5  Beget Borrowing

If you’re trying to cut down on, say, storage per #2 above, let friends & family “borrow” things you aren’t using anymore, whether books, furniture or sports equipment.  Not only are you helping someone else out, if you’re lucky, those items will never make it back into your home.

Photo courtesy of: s0.geograph.org.uk/geophotos/02/54/92/2549292_26cac86d.jpg

What Proposed Medicare Cuts Mean For You

The Obama administration released its budget for FY2014 Wednesday with proposals for major cuts to Medicare spending. If passed, the budget could cost many Americans significantly more for healthcare.

The budget lays out $306 billion in cuts from Medicare payments to healthcare providers and $19 billion from Medicaid. In addition, the plan attempts to save on federal healthcare spending – to the tune of $401 billion over 10 years – by increasing revenues from Medicare payments by about $57 billion, which ultimately means higher premiums for beneficiares.

Also See: New Federal Budget Targets Students

“As retirement security grows ever more elusive for Americans of all ages, Medicare and Social Security have become increasingly important for today’s retirees and their kids and grandkids,” says AARP Executive Vice President Nancy A. LeaMond in a statement. ”AARP believes it is wrong for the President to try to balance the budget by weakening the programs that provide the very foundation of retirement security for current and future generations.”

Higher Premiums For Higher Incomes

The burden of higher Medicare payments would fall primary on the shoulders of higher-income Americans, raising premiums for individuals making more than $85,000 and couples earning more than $170,000. That’s about 1 in 20 Medicare beneficiaries and while most Americans pay 25% of their premiums, higher-income beneficiaries currently pay 35%-80%, based on their income. If the new budget is passed, that will rise to 40%-90%.

Also See: How Do I Choose A Medicare Plan?

The plan would also attempt to extend a freeze on the income brackets at which beneficiares are responsible for higher, income-based premiums. With a freeze, and through inflation, by 2035 a quarter of beneficiaries would be paying higher premiums. And by then, it wouldn’t just be those we consider to be high-income earners but individuals making $47,000 and $94,000 for couples, according to the Kaiser Family Foundation. That would include 25% of beneficiares.

Closing the “Doughnut Hole”

The White House’s budget also seeks to close the Medicare “doughnut hole” five years faster than existing law mandates. The “doughnut hole” refers to a gap in Medicare’s coverage that forces some beneficiaries to cover the total cost of their prescription drugs. The Affordable Care Act mandates that the gap in coverage be closed by 2020. The new budget would close it by 2015 by increasing the discount drug makers give to beneficiaries in the “doughnut hole” from 50% currently to 75%, beginning in 2015.

Photo Courtesy,  Care Medical Tourism.