Omaha Insurance Solutions - December 2020

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My family is not dissimilar. Eric and Rachelle are not churchgoers. Consequently, the children are not being formally raised in the Christian tradition. That, of course, is disheartening. I’m sure many of you have family members who likewise do not practice the faith tradition in which they were raised. Since I’ve married into the family, directly addressing the issue is off-limits for the most part. My father was pretty much a blunt instrument when it came to matters of the faith. His mother before him had the same stern Irish hand. It is not easy when they are not your blood children and grandchildren and even more so when in-laws are involved. So I pray, try to be a good example, and when they ask where I’m going on Sunday morning, I try to explain briefly. Even with the challenges of being a grandparent, I look forward to Christmas in ways I never have before. I couldn’t be more grateful for how my holidays have transformed over the years. Thank you so much for reading and for your loyal support during this crazy year.

Decorating sugar cookies became a standard family tradition, and Samantha was born. She is as sweet as the sugar cookies. Sam would never throw underwear at us. This year will be a challenge. Eric got another promotion a year ago, and they are now down in Bentonville, Arkansas. With COVID-19, we’re not sure what we will be doing. They also have Eric’s side of the family, who are in Texas. It will kill us not to spend Christmas with them. The fourth and newest member of the crew is Jake. Finally, a boy! He is a year and a half old. Jake likes football and other guy-related stuff even though the girls keep dressing him in pink and putting tiaras on his head. Jake rightly cries when they do that. As for gifts, he is probably too young for a shotgun or a 9 mm glock, but I’ll make sure he gets some Cornhusker stuff and at least one football. His poor, misguided father, unfortunately, is a University of Texas and Cowboys fan. I pray for him that he may see the light. Christmas also brings with it some disappointment. When I was in the parish, people would come out of the woodwork on Christmas Day. The church was beyond packed. We tried to do everything to make seasonal Catholics welcome and encourage them to practice their faith more actively, but attendance would quickly fall off after Christmas.

From everyone at Omaha Insurance Solutions, we hope you have a very Merry Christmas and Happy Hanukkah!

–Christopher J. Grimmond

How Did Medicare Become So Complicated? THE INCEPTION OF MEDICARE, PART II Both Medicare and the health care

determined a schedule of fees for different services and hospitals or providers who accepted Medicare were paid a set fee for their service. While Medicare pays much of the cost, it does not cover the full cost of all services. Certain deductibles and coinsurance provisions were established and are still used today. This has prompted insurance companies to design insurance products to fill in coverage gaps. Thus, Medigap policies and Medicare supplements were born. The Health Maintenance Organization (HMO) Act of 1973 In the 1970s, health care started to evolve. Health maintenance organizations (HMO) were developed to keep health costs down. HMOs manage and coordinate care between a network of medical professionals and institutions. Patients who join an HMO pay a monthly fee, and all their health care procedures occur

within the HMO network. This approach soon became known as managed care, which emphasizes coordinating an individual’s health care services in order to maximize benefits and minimize costs. In 1973, Congress authorized Medicare to pay HMOs a monthly, per-person fee to provide care to Medicare beneficiaries. Out of those funds, an HMO was to provide health coverage to Medicare recipients. The Tax Equity and Fiscal Responsibility Act of 1982 strengthened that relationship. Since then, Medicare has entered into business with private companies to provide health care. As a result of this major shift, doctors and hospitals began billing insurance companies directly instead of Medicare. In future editions of this newsletter, you’ll see how this changes— and complicates — Medicare as we know it today.

industry have changed and gotten more complicated over the years. Here’s a look at some of those changes: The Original Plan: Parts A and B Medicare was originally divided into Part A for the hospital and Part B for doctor and outpatient procedures. Part A is designed like Social Security as a “pay ahead” program. It’s funded by payroll taxes, which are collected in the Hospital Insurance (HI) trust fund, which citizens pay into during their working years. Part B is a voluntary program. Those who elect to participate in Part B pay a monthly premium, though most of the cost comes out of general tax revenues. Medicare Based on Fee for Service (FFS) The original payment structure for Medicare was fee for service — Medicare

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