Baby Boomers Financially Unprepared

Potential Medical Disability Survey
Staff Reporters
According to findings from a recent Harris Interactive survey conducted on behalf of America’s Health Insurance Plans (AHIP) between April 25 - 29, 2008, baby boomers are financially unprepared if they themselves, or the primary wage earner in their household, suffered a medical disability and was unable to work for [...]

How to Interview a Portfolio Manager?

Selection Criteria Critical for Physicians
By Dr. David Edward Marcinko; FACFAS, MBA, CMP™
Publisher-in-Chief and former reformed Certified Financial Planner™
Recently in the Atlanta area, two high-profile financial advisors and portfolio investment managers have been charged with client embezzlement, malfeasance, and more!
The first was Kirk Wright, a Harvard-educated fund manager who was convicted last week in a fraud scheme [...]

What is a QDRO?

Physician Divorce Situation
Hello,
I am an internist who is in the midst of a divorce situation. My attorney is talking about something called a QDRO with respect to my retirement plan.
Question: What is a QDRO?
Thanks
Dr. Joseph Burton Rellim
Springfield, Ohio

Reverse Mortgages

How They Work – When Best Used
Staff Writers
A reverse mortgage is a loan that pays the mortgagor (doctor-client) cash and at the same time does not require a payment. Instead, the loan accrues interest until the loan term is complete. The only security the mortgagee (lender) has is the home itself. It has no legal [...]

The Secular Trust

An Irrevocable Vehicle
By LaVerne L. Dotson; JD, CPA
A secular trust is typically an irrevocable trust designed so that creditors of a hospital employer, including bankruptcy creditors, cannot attach its funds.
Taxes
Consequently, the employer’s contributions to an irrevocable trust, often means the trust’s earnings are taxable income to the employee.
Benefits
Benefits are normally payable to the [...]

Hospital Stock-Purchase Plans

What They Are - How They Work
By LaVerne L. Dotson; JD, CPA
A hospital employee stock-purchase plan qualified under Code § 423 allows eligible employees to purchase stock of an employer under special tax rules and favorable prices.
Intent and Purpose
An employee stock-purchase plan is intended to benefit virtually all employees, not just exceptional ones or limited [...]

The Rabbi Trust

Hospital Employee Perks
LaVerne L. Dotson; JD, CPA
To help provide security for an important or especially valued employee, and at the same time defer taxation, a hospital employer may establish a so-called Rabbi trust to hold certain assets set aside to meet its obligations under a deferred compensation arrangement.
Restrictions
Such a trust simply restricts the use [...]

Hospital Phantom Stock Plans

A Securities Granting Alternative
LaVerne L. Dotson; JD, CPA
As an alternative to granting an interest in stock or awarding stock options, a hospital or healthcare employer may establish a so-called phantom stock or shadow stock plan to its employees.
“Unit” Accounts
Under these arrangements the employee is treated as if he or she had received a certain number [...]

Genworth Financial Reports on LTC

LTC Survey Results
Staff Reporters
A new study by Genworth Financial Inc., suggests that costs for nursing homes, assisted living facilities and some in-home care services have increased for a fifth consecutive year, and could rise further if a shortage of long-term care workers isn’t resolved.
Results
The survey found that the average annual cost for a private [...]

Healthcare Workplace Advice Survey

Employees Want Financial Planners and Benefit Advisors at the Workplace 
Staff Writers

Survey Results: [Table] 

 

2004

2005

2006

2007

Financial Planners (401K) at Work

43%

43%

38%

49%

Benefits Advisors at Work

N/A

36%

33%

47%

Financial Planners (All Needs) at Work

38%

37%

30%

44%

Source: The 6th Annual MetLife Study of Employee Benefit Trends:
Findings from the National Survey of Employers and Employees: Metlife, April 2008
http://www.whymetlife.com/trends/

Assessment: Is this contemporary trend also true for hospitals, medical [...]

Securities and Hospital Employees

Receiving Employer Securities
By LaVerne L. Dotson; JD, CPA
There are a number of different methods, other than qualified retirement plans [403(b) and 401(k)], by which hospital stock may be transferred to hospitalists, or other medical employees.
Stock Bonus Plans
The first and simplest method is a stock bonus, whereby the employer makes an outright grant of [...]

Hospital Employee Benefits

Tax-Deferred Benefits
By LaVerne L. Dotson; JD, CPA
As all readers of the Executive-Post know, there are three categories of benefits that hospitals, healthcare systems, clinics and related medical employers typically provide to their employees, nurses, hospitalists, etc:

Those that are totally income tax-free; some are still taxable for FICA (Social Security and Medicare).

Those that are [...]

Hospital Employee Auto Benefits

Autos not Taxed at Full Economic Value
By Dr. David Edward Marcinko; MBA, CMP™
Publisher-in-Chief
As readers of the Executive-Post are aware, there are three categories of benefits that clinics and hospital employers typically provide to their employees, nurses, hospitalists, etc:

Those that are totally income tax-free; some are still taxable for FICA (Social Security and Medicare).

Those [...]

Physicians-as-Employees Benefits

Tax Free Benefits
By Dr. David Edward Marcinko; MBA, CMP™
Publisher-in-Chief
There are three categories of benefits that hospitals typically provide to their physician [hospitalists], medical, nursing or technical employees; or clinics, office and medical practices provide to their employed staff:

Those that are totally income tax-free; some are still taxable for FICA (Social Security and Medicare).

Those [...]

Section 83(B) Elections

Considerations for Hospital Employees
Staff Writers 
Internal Revenue Code § 83(b) allows a hospital or other employee who receives employer stock on a tax-deferred basis to be taxed immediately in the year the stock is transferred, regardless of the presence of a substantial risk of forfeiture.
If the employee makes such an election, any subsequent appreciation is [...]

Social HMOs for the Elderly

Extended Health Coverage for Unconventional Expenses
By Dr. David Edward Marcinko; MBA, CMP™ 
Publisher-in-Chief
 
A social HMO offers extended coverage for some of the unconventional expenses associated with senior healthcare, such as transportation and in-home day care not covered by traditional MCOs.  
AAHP Definition 
According to the American Association of Health Plans (AAHP), social HMOs provide coordinated services by uniting [...]

Hospital Employee Stock Ownership Plans

A Qualified Retirement Plan
By Dr. David Edward Marcinko; MBA, CMP™
Publisher-in-Chief 
 
The growth over the past few decades of plans that give hospital and other corporate employees a stake in the ownership of their company has been a significant development in the area of employee compensation and corporate finance.  
Though there are many forms of hospital employee [...]

Hospital Cafeteria Plans

“Use it -or- Lose it” … Features
By Dr. David Edward Marcinko; MBA, CMP™
Publisher-in-Chief 
 
Under a hospital employee cafeteria plan, each eligible physician, nurse, technologist or employee may choose to receive cash or taxable benefits -or- an equivalent of qualified, non-taxable fringe benefits.
Not Taxable to Employees 
The amounts contributed by the employer are not taxable to the employee. [...]

Hospital Cafeteria Plan Elections

Benefit Considerations for Healthcare Workers
By Dr. David Edward Marcinko; MBA, CMP™
Publisher-in-Chief 
 
Under a hospital employee cafeteria plan, each eligible physician, nurse, technologist or employee may choose to receive cash or taxable benefits -or- an equivalent of qualified, non-taxable and fringe benefits.  
And, any hospital employee given the opportunity to participate in a cafeteria plan should consider the [...]

Questions Doctors Must Answer Before Retiring

Getting off the “Must-Work” Treadmill
By Dr. David Edward Marcinko; MBA, Certified Medical Planner™
Publisher-in-Chief 

“Other than facing up to the thought of never writing another prescription or studying another X-ray, perhaps the greatest challenge for a physician approaching retirement is making reliable assumptions about the future. Since the quality of life in retirement will be determined by [...]

Retirement Planning Terms and Definitions for Physicians

A “Need-to-Know” Glossary for all Medical Professionals
Staff Writers
 

5- And 10- year averaging: A special tax treatment for qualified plan lump sums. 
Annuity: A distribution of a retirement plan in equal amounts over a physician’s lifetime.
Deferred compensation plan: A nonqualified compensation plan, often tied to a physician-executive bonus plan, allowing for payments in the future, such as retirement.
Defined benefit [...]

Offshore Employee Medical Benefits

A Global Healthcare Model
Staff Writers
 
American businesses are now extending their cost-cutting initiatives to include offshore employee medical benefits and facilities like the Bumrungrad Hospital in Bangkok, Thailand (cosmetic surgery), the Apollo Hospital in New Delhi, India (cardiac and orthopedic surgery) are premier examples for surgical care. 
Both are internationally recognized institutions that resemble five-star hotels equipped [...]

401-k and 403-b Retirement Plans

The Time to Change Allocations
By Clifton McIntire; CIMA, CFP®
By Lisa McIntire; CIMA, CFP® 
 
401k and 403b plans offer great opportunity to change asset allocations.   
For example, Karen Markland, a Certified Registered Nurse Anesthetist at Carolina’s Medical Center, found it was relatively easy to shift from bonds to stocks some years ago. No taxes or commissions were [...]

SNFs

Skilled Nursing Facilities in the News
Staff Writers
The Carlyle Group is taking steps to head off critics of its $6.3 billion acquisition of long-term care player Manor Care.
Responding to pressure from unions representing Manor Care’s workers, Carlyle sent letters to state regulators pledging that it would hire enough staff, train them well and make proper infrastructure [...]