We've Fallen, and Would Like to Get Up

When some dimwits in congress meet, and they pass legislation in the amount of 2700-pages, and they don't read what they are passing....you can imagine consequences of various amounts.

Somewhere in the text that the boys passed back in the spring....there's a new rule concerning your old pre-tax health savings account.  For those of you who've never messed with this.....your boss does a favor and creates this agreement with you where you can deduct money out of your account each pay-day.  This money flows into an account where you can use the money to pay for medical expenses and drugs.  You get a full tax-break on these expenses.

Typically, this works great if you have a spouse or kids with significant issues.

Our boys did something amazing with the 2700-pages of text.  They invented a rule that says if you use any penny of the money you slide into this health account....you have to have a doctor's note.  Even if you buy aspirin.  Even if you buy Tylenol.  Even if you buy Pepto-Besmol.   Even if you buy antacids.  The rule covers 15,000 other over-the-counter drugs.

Insulin?  It's exempted from this.

I read through several articles concerning the topic, and just started laughing.  This will end up being talked about over the next month and held as another example why the health-care law has issues.  Fixing this?  I'm betting it's not until the end of January that this topic is brought up by the House.  Maybe by March...it might be fixed.

The real question I have....who wrote this into the bill and why?  It'd be nice to know which House or Senate member or his/her aide wrote this piece.  I'm sure no one wants to raise their hand.  My guess is a aide wrote it and never spoke a word to his boss.  His boss....some dimwit who hasn't read a single bill he has voted on is twelve years....he just grins for the cameras, then votes.  This is American democracy working in 2010.  Frankly, its sad to the extent we've fallen.    And it's sad to admit that we have do something extraordinary, to get up.

Retiring Soon?

Business Insider has a great article today....the top ten city pension plans in America that are doomed for failure (and rather quickly in some cases).  These aren't even state pensions....which should trouble people even more.  These plans start failing around 2019.  

There are several causes to this episode.  The weak financial market has stumbled and will likely continue along this trend for the next twelve months.  The amount of expectation of each city retiree adds to this....as some folks are pulling in an easy $100k on retirement (something most of us can only dream of).  Then you add  mismanagement and incompetence on top of that.

I will predict by the end of this decade....some folks approach congress with this grand idea of taking Social Security, all of these city and state pension plans, and our 401K plans....and to join them in some grand national plan.  The idea will be to make us think we are getting a great deal....but the real hidden idea is that cities will begin failing by 2020, and a massive disgust will envelop the political spectrum.

My advice...if you do work for a major city and your city pension deal is the only thing you have beyond Social Security....you'd best start asking questions of your union and your city management crowd.  You might be shocked at the mess they aren't talking about.