Thursday, September 26, 2013

Premiums Unveiled For Health Overhaul Plans

With new health insurance markets launching next week, the Obama administration is unveiling premiums and plan choices for 36 states where the federal government is taking the lead to cover uninsured residents.

Before tax credits that work like an upfront discount for most consumers, sticker-price premiums for a mid-range benchmark plan will average $328 a month nationally for an individual, comparable to payments for a new car.

The overview of premiums and plan choices, released Wednesday by Health and Human Services Secretary Kathleen Sebelius, comes as the White House swings into full campaign mode to promote the benefits of the Affordable Care Act to a skeptical public.

Sebelius stressed the positive in a preview call with reporters. Consumers will be able to choose from an average of 53 plan options when the new markets open Oct. 1 for people who don’t have health care on the job.

“For millions of Americans, these new options will finally make health insurance work within their budgets,” she said.

A report by her department estimated that about 95 percent of consumers will have two or more insurers to choose from. And the administration says premiums will generally be lower than what congressional budget experts estimated when the legislation was being debated. About one-fourth of the insurers participating are new to the individual coverage market, a sign that could be good for competition.

But averages can be misleading. When it comes to the new health care law, individuals can get dramatically different results based on their particular circumstances.

Where you live, the plan you pick, family size, age, tax credits based on your income, and even tobacco use will all impact the bottom line. All those variables could make the system hard to navigate.

For example, the average individual premium for a benchmark policy known as the “second-lowest cost silver plan” ranges from a low of $192 in Minnesota to a high of $516 in Wyoming. That’s the sticker price, before tax credits.

In the three states with the highest uninsured population, the benchmark plan will average $373 in California, $305 in Texas, and $328 in Florida. Differences between states can be due to the number of insurers competing and other factors.

“One surprise is Texas,” said Larry Levitt of the Kaiser Family Foundation. “That is a state that has put up roadblocks to implementation, but the premiums there are below average.”

The second-lowest-cost silver plan is important because tax credits are keyed to its cost in local areas.

But consumers don’t have to take silver. They can pick from four levels of coverage, from bronze to platinum. All the plans cover the same benefits and cap annual out-of-pocket expenses at $6,350 for an individual, $12,700 for families.

The big difference is cost sharing through annual deductibles and copayments. Bronze covers 60 percent of expected costs; silver, 70 percent, on up to platinum at 90 percent. Bronze plans have the lowest premiums and the highest cost sharing.

The administration report found that factoring in tax credits, a 27-year-old making $25,000 a year would see the premium for the benchmark silver plan drop to $145 in nearly every state. But if that hypothetical young adult used the tax credit to buy the cheapest bronze plan, he or she could cut the monthly premium to $74 in the Dallas-Fort Worth area, $102 in Orlando, and $119 in Pittsburgh.

For a family of four making $50,000, the tax credit would cut the monthly premium for the benchmark silver plan to $282. But if the family used its tax credit to buy the cheapest bronze plan, the premium would be $26 a month in Dallas-Fort Worth, $126 in Orlando, and $209 in Pittsburgh.

In the Washington, D.C., metro area, the hypothetical family could find a zero-premium bronze plan, while the lowest an individual could get after applying their tax credit would be $66.

Such differences are sure to leave many people scratching their heads. Officials said they’re due to complicated interactions between the tax credits and insurance company pricing strategies in dynamic markets.

Another outside analyst said the administration analysis of premiums is consistent with what the 14 states running their own insurance markets have reported.

But Dan Mendelson, president of the market analysis firm Avalere Health, said the focus on premiums is too narrow. “The analysis doesn’t account for cost sharing,” Mendelson said. “This is a limitation.” To get an idea of the true cost of coverage, consumers have to add up premiums and their expected out-of-pocket costs.

“Consumers are going to need to shop,” Mendelson added. “Sometimes a silver offering doesn’t cost much more than a bronze.”

He added two other caveats: Be ready for significant cost sharing, and check carefully that your doctors and nearby hospitals are in the plan’s network.

Starting Jan. 1, virtually all Americans will be required to carry health insurance or face fines. At the same time, the health care law will prohibit insurance companies from turning away people in poor health, or charging them more. And it will limit what insurers can charge their oldest customers.

Experts say the plans under the health care law are not comparable to what’s currently sold on the individual health insurance markets, because the coverage is broader and the financial protection for policyholders is more robust.

Obama is directly engaging in the promotional campaign for the health care law. Tuesday, he and former President Bill Clinton talked health care during a session sponsored by Clinton’s foundation. And Obama is planning a speech on the law on Thursday.

In response to the administration’s premium and plan-choice information, a spokesman for Senate Republican leader Mitch McConnell, R-Ky., said that premiums that are “lower than projected” are not the same as “lower than they are now.”

“The White House is making every effort possible to spin the bad news that seems to come every day, but the American people know that even this rosy scenario is not what they were promised when Democrats were ramming this bill through Congress on a party-line vote,” McConnell spokesman Don Stewart said in a statement.

Copyright © 2013 The Associated Press

Tuesday, September 24, 2013

Warren Buffett Launches Real Estate Franchise

Warren Buffett’s new real estate franchise is officially open for business.

Buffett's company, Berkshire Hathaway, has launched its Berkshire Hathaway HomeServices California Properties division with about 3,200 agents in more than 62 offices across Southern California and the Central Coast. San Diego-based Prudential California Realty became the first brokerage to relaunch under the HomeServices franchise.

Twenty-six brokerages affiliated with the Prudential Real Estate brand have agreed to transition to Berkshire Hathaway by the fourth quarter. Two more are set to debut this month: Prudential Connecticut Realty on Sept. 26 and Prudential Florida on Oct. 1. The franchise plans to expand across the U.S. and eventually overseas, says Earl Lee of HSF Affiliates, the Irvine, Calif., company that operates the Berkshire Hathaway HomeServices, Prudential, and Real Living networks.

For Buffett, the second-wealthiest person in the country and a top investor, this is his first time entering the real estate franchise business.

“[Berkshire Hathaway] will add to our image and our ability to do business and the way we deal with our clients,” BHHS California Properties President and CEO David Cabot told Inman News. “To have Warren Buffett lend his name to the real estate world is significant. It lends credibility to the real estate world.”

Source: “Berkshire Hathaway to Shake Up Real Estate Franchise Landscape,” The Los Angeles Times (Sept. 20, 2013) and “Berkshire Hathaway HomeServices Franchise Open for Business,” Inman News (Sept. 23, 2013)

Saturday, September 21, 2013

Developers See Major Improvements for Sarasota, Florida

A rebounding economy has developers in Sarasota, Florida rolling out new projects and city officials touting infrastructure improvements at a greater pace than any time since the market's crash six years ago.

Combined, the investments could dramatically reshape Sarasota's urban core — with new condominiums, hotel towers, more landscaped sidewalks and traffic roundabouts along U.S. 41 from the bayfront to University Parkway.

The list of ambitious new proposals follows a near-halt of commercial development during the Great Recession. With housing making a comeback, and visiting tourists opening up their wallets in record numbers, officials now believe the timing is again right to discuss redevelopment plans that, in some cases, date back more than a decade.

Read more at: Sarasota Herald-Tribune

Effective Networking for Small Business Owners

How many times have you been to a business luncheon and been approached by someone trying to give you a business card?

Going to a luncheon with the goal of giving your business card to as many people as possible is not a viable marketing technique, said Sharon Hill, an author, certified etiquette trainer and president of Sharon Hill International, a motivational and educational speaking business in Chapel Hill, N.C. Instead, she said in her edited comments below, you should seek to meet business prospects, market your business and enjoy the luncheon.

  • Most business luncheons have networking time preceding the meal. During this time, work the room, strive to greet those you know and focus on meeting new people.
  • Be curious. Introduce yourself with a smile.
  • Ask the people you’ve just met open-ended questions about themselves or their company. Use dialogue such as, “Hello, my name is Mary Smith. I see from your nametag that you work for Acme International. How does it feel to work for a company that provides such innovative products?”
  • Do not talk about your company unless you are asked. The goal is to get people to talk about themselves. After five to seven minutes, shake hands with the person to end the conversation. Ask for their business card only if you are interested in future conversation.
  • If there is assigned seating, you might be sitting next to people you don’t know. This gives you the opportunity to continue networking during the luncheon. Be sure to speak to the people on both sides of you. Don’t just focus on one person.
  • If there is a struggle for conversation, start by asking people about themselves. Ideally, you should be talking 20 percent of the time and listening 80 percent of the time.
  • After the luncheon, reach out to your new contacts and offer to take them to lunch or coffee. Mention some of the personal points you remember from your previous conversation.

© 2013 The News & Observer (Raleigh, N.C.)

Thursday, September 19, 2013

Tips on Negotiating for a Successful Outcome

Whether you are red or blue, you are sure to bite your nails over the upcoming budget/debt ceiling battle. Both parties show little tolerance for compromise. Similarly, it was apparent compromise that led to a peaceful direction for the Syrian crisis.

How do business leaders navigate the rough waters of spirited debate and know when it is right to hold firm and when it is right to give in a bit?

It's certainly not an exact science. Kevin Daum from Inc. talks about his approach to put his ego in his wallet where it belongs and determine both a minimal positive outcome and a most desirable potential. If the negotiation is within that margin you can move forward. Anything less and there is a disengagement, both physically and emotionally. Once the decision is made, there is no sense in going back to punish one's self if you were wrong. There will always be more opportunities to come.

Other additional negotiation insights are:

  • Create Common Objectives
  • Make an Informed Stand
  • Be Willing to Walk Away
  • Never Compromise on Your Core Values

Source: inc.com

Tuesday, September 17, 2013

Florida CFO Rolls Out Healthcare Webpage for Small Businesses

In his weekly news email, Florida Chief Financial Officer Jeff Atwater announced a webpage aimed at the state’s small businesses that answers many questions about the Affordable Care Act (ACA) scheduled to roll out Oct. 1 with an effective date of Jan. 1, 2014.

Atwater also offered a warning: “As we near the launch of the Affordable Care Act on October 1, it is important for consumers to be aware of the potential for scams.”

Atwater says his department has already received reports of callers posing as a government agency. They say the person called has “been selected as one of the first Americans to receive the new health insurance cards as part of the Affordable Care Act” and ask for personal information.

“The Federal Trade Commission reports nearly 83,000 complaints of ‘imposter’ scams occurred in 2012 alone,” Atwater says. “Additional reports state that some scammers have gone as far as creating entire false enrollment websites and setting up bogus toll-free numbers.”

Under ACA rules, Americans can’t compare plans or sign up before Oct. 1. If a caller offers different information, he’s probably running a scam.

Small business impact

Atwater says a new webpage published by the Florida’s Division of Consumer Services offers information for consumers and small businesses confused by the upcoming healthcare changes.

In addition to a Q&A section the website has a signup link for webinars slated to help the state’s small business owners understand the requirements and benefits of healthcare coverage.

The webpage is on the myfloridacfo.com website.

The webpage also offers email addresses, phone numbers and links to other healthcare websites.

© 2013 Florida Realtors®

Will Fed Announce Bond Tapering This Week?

The Federal Reserve is expected to announce a tapering of its bond purchase program Wednesday, which could have a big impact on mortgage rates.

The Fed has been purchasing $85 billion per month in long-term U.S. Treasuries and mortgage-backed bonds in a move known as "quantitative easing." The bond-purchase program has helped to keep mortgage rates at or near record lows in recent years.

On Wednesday, the Fed is to provide clear indication of when it will start scaling back on its bond purchases and by how much.

Nearly 90 percent of 44 economists recently surveyed by USA Today expect the Fed to be cautious at first with its tapering, likely reducing asset purchases by $15 billion or less.

“When the Fed starts to taper, it will only be taking its foot off the accelerator; it will not be stepping on the brake,” says Gary Thayer, chief macro strategist at Wells Fargo Advisors.

However, if the Fed cuts back by more—say, by $20 billion to $25 billion—markets would probably drop on fears of higher borrowing costs. "Stocks could suffer that 10 percent correction on fears housing would get hit, consumers would retrench and the growth outlook would turn negative," says Jeff Kleintop, chief market strategist at LPL Financial.

Mortgage rates have been steadily increasing since May when the Fed indicated it would likely taper its bond purchasing program in September. Long-term mortgage rates have risen by more than a full percentage point since May. As of Thursday, 30-year fixed-rate mortgages averaged 4.57 percent, Freddie Mac reports. A year ago at this time, 30-year rates averaged near all-time lows of 3.55 percent.

Source: “As Fed 'taper' looms, so do market surprises?” USA Today (Sept. 15, 2013) and “Investors Brace for Clarity on Fed’s Taper,” CNNMoney (Sept. 15, 2013)

Monday, September 16, 2013

Florida Ranks High as a Good State For Business


Florida ranked No. 1 for Renewed Consideration Post-Recession by Area Development Magazine.

Gov. Rick Scott touted the award, noting that the state received another one earlier this year – a Silver Shovel Award from Area Development.

Area Development Magazine is a national trade publication that recognizes economic development around the country. The editors surveyed a select group of location experts who work directly with a national client base. They were asked to pick their top five state choices in 14 site selection categories.

Florida was also ranked among the best states in these categories:

  • No. 2 for Access to Capital & Project Funding
  • No. 3 for Most Diverse Labor Pool
  • No. 5 for Overall Business Climate
  • No. 5 for Corporate Tax Environment
  • No. 5 for Leading Work Force Development Programs

© 2013 Florida Realtors®

Wednesday, September 11, 2013

Economists Maintain Positive View for 3% Growth in 2014


Business forecasters maintained their rosy view of the U.S. economy in 2014, predicting 3 percent growth by the second quarter of next year, low inflation and improving employment.

The top economists surveyed by the National Association of Business Economics (NABE) between Aug. 8 and Aug. 20 also said there’s an 80 percent likelihood that the pickup in growth will prompt the Federal Reserve to trim its monthly $85 billion purchases of mortgage bonds and Treasury bills next year.

The NABE’s 43 respondents said in a report released Monday that there’s a 45 percent chance the Fed will begin its so-called “tapering” as early as this year.

But economists trimmed their expectations for the second half of 2013 since the last survey, in May.

The economists predicted that real gross domestic product would grow at a 2.3 percent annualized rate in the third quarter through September, down from 2.5 percent seen earlier; and 2.6 percent in the fourth quarter, down from 2.8 percent seen earlier. They were less optimistic about consumer spending, industrial production and private investment in nonresidential structures, equipment and software.

The economists’ slightly more pessimistic views were likely affected by the government initially reporting in July that second-quarter GDP grew 1.7 percent. On Aug. 29, the Commerce Department revised the figure sharply higher for the April-June quarter, to 2.5 percent.

“It’s fair to assume that they reduced their outlook for GDP because they had seen weaker business investment across the board,” said Ken Simonson, chief economist of the Associated General Contractors of America and an NABE analyst who helped compile the report. “The big takeaway is that the forecast now, like in May, is for gradually improving conditions, getting up to … growth of 3 percent in 2014 and holding there.” The last time the economy grew more than 3 percent over one year, on average, was in 2005.

NABE economists predicted that the consumer price index will grow just 1.3 percent in 2013 and 1.7 percent in 2014 when excluding volatile food and energy prices. The unemployment rate is seen falling to 7 percent next year from 7.5 percent this year, with the economy adding on average 199,000 non-farm jobs a month next year.

The dollar is seen holding steady against the European currency at $1.30 per euro next year, compared to an expected $1.31 in 2013.

Copyright © 2013 The Associated Press.

Saturday, September 7, 2013

Breakfast-Lunch Restaurant For Sale in Sarasota, Florida

Price $125,000
Contact Ian Harding, kw Business, (941) 725-1468, Email: ian.harding@kw.com, Web: http://MyBizOnTheGulf.com

Business Description

A completely functioning restaurant that is open currently only for breakfast and lunch, allowing owner to enjoy the Florida lifestyle. It's located in a heavily trafficked strip center anchored by Publix and in a demographically ideal section of Sarasota. The current lease is for 10 years with two five-year options to renew. All-in rent is $7200 per month. The store is now open seven days a week. Seats: 115; Employees: 8-9; Hours: 7am-3pm 7 days; Parking: huge strip center parking lot. Fully equipped including a walk-in and freezer.

Breakfast-Lunch Restaurant For Sale in Sarasota, Florida

Price $159,000
Contact Ian Harding, kw Business, (941) 725-1468, Email: ian.harding@kw.com, Web: http://MyBizOnTheGulf.com

Business Description

Delightful 1836 sq ft cafe with seating for approx. 75 customers, for sale in the heart of downtown Sarasota. The restaurant is currently operating with a 5-day work week and opens during the peak hours for breakfast and lunch. Surrounded by many offices in large buildings, making this an ideal spot for breakfasts and lunches for the local business people. Great potential for growth with beer and wine license, delivery, catering and extended hours.

Detailed Information

Facilities: In operation since 1996, fully equipped, lease 5 years, office building, parking garage for 600 cars.

Competition: Surrounded by many offices in large buildings, open Monday to Friday, weekends off!

Growth/Expansion: Extended hours, Delivery, Catering.

Financing: Seller Financing with Down Payment.

Support/Training: Seller will train for 2 weeks at no cost to Buyer.

Reason Selling: Health.

Wednesday, September 4, 2013

Warren Buffett Bullish on Mortgage Giant


Warren Buffett’s Berkshire Hathaway Inc. is increasing its stake in Wells Fargo. The billionaire investor increased his company’s stake in the nation’s largest U.S. home lender, adding 9.7 million shares of Wells Fargo stock in the three months that ended June 30 and spending $277 million.

Buffett says it was an opportunity to buy stocks “on sale.” Wells Fargo’s stock has fallen 21 percent since Dec. 31. Berkshire holds more than $8 billion stake in Wells Fargo stock, Bloomberg reports.

Berkshire is the largest shareholder in Wells Fargo. Buffett’s shares have generated returns of about 29 percent over the last year, according to the site Seeking Alpha.

Banks have been under tighter regulation since the financial crisis but they can “still be plenty profitable,” Buffett says.

Buffett’s moves are closely watched by the investment world. Buffett has been investing in stocks and takeovers while still-low interest rates limit returns on fixed income.

Source: “Buffett Increases Wells Fargo Stake, Buys Stocks ‘On Sale,’” Bloomberg (Aug. 16, 2013) and “If Buffett Has A Large Position In Wells Fargo, You Should Also Buy It,” Seeking Alpha (Sept. 2, 2013)

Development Along I-75 Corridor

The recent opening of the Publix-anchored Plaza Venezia shopping center near Venice is expected to be the catalyst for a development boom in the area flanking the Interstate 75 and Laurel Road interchange.

New homes, new stores, new jobs and new north-south thoroughfares are all on the way, creating the most active area in central Sarasota County for development.

Tenants are being found for vacant retail spaces, with plans for construction of at least 200,000 square feet more of stores and a possible medical complex also in the works.

More than 1,200 additional homes are either already approved or in the planning stages, with their buyers largely being higher-income families who will patronize those new shops.

Floridians’ Confidence in Economy Unchanged in August


Florida’s consumer confidence level was unchanged in August, matching July’s revised reading of 77, according to a University of Florida (UF) survey.

Three of the five categories in the August survey declined, while two increased. Respondents’ perceptions of whether they are in better financial shape now than they were a year ago fell one point to 62, but they expect better times ahead: Their expectations of improved personal finances a year from now rose six points to 81.

Meanwhile, confidence in the U.S. economy over the coming year dipped three points to 76; however, their trust in its performance over the next five years went up three points to 78.

Finally, Floridians’ belief of whether now is a good time to buy a big-ticket item, such as a television, dropped six points to 86.

Read more at Florida Realtors