California Livin' in Placer County

Is Britain's Health Care Really That Bad?

Elaine Giamona, Broker (McCoy Real Estate and Property Management, Lincoln, CA) — Mon, 21 Sep 2009 10:42:13 -0700

In an attempt to answer a comment on my blog, I found this Time Magazine article of Augusst 18, 2009. Please repost it, as it contains very excellent and concise comparisons between American and British healthcare systems. http://www.time.com/time/health/article/0,8599,1916570,00.html?xid=rss-top-aol

Arguments and shouting are all about over healthcare. This normal and healthy with a contraversial issue. I have a firm belief that once A HEALTHCARE BILL is passed, it will take a similar path as all new laws... changes will be made in the future... amendments passed... as it morphs into a form of healthcare that is the pride of our country. This is how Social Security has developed over the years. See

http://www.ssa.gov/history/history.htm

Social Security was not easy to birth. FDR was called a commie and worse. People were up in arms, literally. But they were suffering, and so from that suffering following the Great Depression, came something which now provides income for our elderly, disabled, and orphans. A wonderful, wonderful thing.

I am proud to be an American... and we must join together, educate ourselves and take positions, while realizing only an open mind can learn. No position on a rock can be held if an ocean wave approaches. The same is true with learning. It is only with open minds, and a willingness to learn that our country and its people can progress. It is the key to maintaining our freedom and democracy. Without our participation and help, the government will fall into anarchy. That is the history of all democratic societies.

Quote from Time article (link above):

Like most developed countries, Britain ranks above the U.S. in most health measurements. Its citizens have a longer life expectancy and lower infant mortality, and the country has more acute-care hospital beds per capita and fewer deaths related to surgical or medical mishaps. Britain achieves these results while spending proportionally less on health care than the U.S. - about $2,500 per person in Britain, compared with $6,000 in the U.S. For these reasons, the World Health Organization (WHO) ranked Britain 18th in a global league table of health-care systems (the U.S. was ranked 37th).

A Life-and-Death Case for Universal Coverage

Elaine Giamona, Broker (McCoy Real Estate and Property Management, Lincoln, CA) — Sat, 19 Sep 2009 23:54:35 -0700

This is a direct quote from an article in my local newspaper.

"Even before moving to England four years ago, I often went without health insurance. Self-employed people like me with pre-existing conditions – in my case, a non-functioning thyroid – do not qualify for medical insurance in America. The statistics say nearly 50 million Americans live without health coverage, but I suspect the number is much higher.

In my own circle of family and friends, more than half do not have access to basic health care. They either can't afford the premiums or have been denied insurance by all viable providers. While recent reports calculate that Americans spend 16 percent of their income on health care, my exceptionally hale and hearty parents spend closer to 30 percent of their income maintaining their health. Medicare deducts $96.40 each from their monthly Social Security checks. Their Medicare supplement costs an additional $320.46 a month.

Then there is the prescription plan at $73 a month. You would think with nearly $600 worth of medical coverage, additional out-of-pocket expenses would be minimal, but it's not so. Recently, following outpatient surgery for a torn rotator cuff, my mother had to fork over $156 for the 20 dainty pain pills prescribed by her surgeon. She'll probably have to do it again next week. Her "insurance" refuses to cover her for the post-surgery medication required.

We are so used to living without the option of seeing a doctor when we're sick, without vision-saving tests, without the aid of medication when we're in pain, without lifesaving operations, without the basic human dignity of being able to ask for help when we need it most, that the unthinkable has become the norm. In "the land of the free and the home of the brave," it is the most natural thing in the world to live without health care.

But it is wrong. Dead wrong. Our friends in Europe are incredulous that Americans not only tolerate a system that refuses to provide health care for all but willingly accept this ferocious affront to freedom. My British husband, Richard, often asks, "How can a country call itself free when citizens are denied the dignity of health care?" Good question. Does anybody have the answer?

When I moved to England in 2005, Richard and I looked forward to returning to America within five years. Two years later, he was diagnosed with a rare and deadly cancer: osteosarcoma of the jaw. We spent all of last year fighting for Richard's life. It took all our time, all our energy and enormous resources from an army of nurses, doctors and surgeons to save him. Because Richard worked for a major pharmaceutical company, we had private medical insurance – insurance we could never afford on our own – which we used in conjunction with the National Health Service, the publicly funded health care system in the United Kingdom. But it was the exemplary nurses, doctors and surgeons with the NHS who saved us again and again.

Compassionate NHS nurses came to our home several times a week. Our local NHS doctors made house calls, too. When possible, tests and therapies were done from home. An NHS prescription card, bought for about $50 a quarter, paid for the lion's share of Richard's medications. Our local hospice also provided desperately needed support. I estimate Richard's surgeries and treatments surpassed the milliondollar mark.

Under the NHS, our only co-pay was a few hundred dollars in prescription costs. Last spring, the NHS began providing cancer patients with free prescriptions. Eighteen months after being diagnosed with osteosarcoma of the jaw, Richard is blessedly free from cancer. He suffers from post-chemo peripheral neuropathy and a speech impediment after having his mouth rebuilt from tissue taken from his stomach. But he is a healthy, optimistic, happy-to-be-alive man: a walking testament to the dedicated professionals working for the NHS. Living proof that universal health care is one of the best ways to be truly alive and free.

Had this happened in America, the outcome might have been different. Early diagnosis played a crucial role in Richard's recovery. Treatment was never delayed or denied. Equally important, nobody asked for a credit card to save my husband's life.

America is the only developed country in the world to allow our health to be politicized and commoditized beyond recognition. In the United Kingdom – England, Wales, Northern Ireland and Scotland – all 61 million residents are fully covered by the NHS from birth to death. The U.K.'s budget for universal heath care is 100 billion pounds, or $160 billion. It is funded by our taxes. Any British politician who does not enthusiastically support the NHS is unelectable.

We recently celebrated my father's 80th birthday. Our plans to join him and my mother in Oregon will never be realized without comprehensive, universal health insurance. Many Americans living in Europe find themselves in the same situation. We vote and hope that one day, we might return to our homeland for more than a visit. "

Marsha Coupé, formerly lived in Sacramento, California. She is an entrepreneur living in Kent, England. Reach her at MCoupe@CoupeWoman.com.

This article was published in the Sacramento Bee, September 13, 2009

News Flash!! FHA is squeezed for money!

Elaine Giamona, Broker (McCoy Real Estate and Property Management, Lincoln, CA) — Sat, 19 Sep 2009 23:20:38 -0700

Keep abreast on September 2009 news from FHA.

Via TED CANTO, Sr. Loan Consultant (Academy Mortgage):

I found this to be very newsworthy information since many of AR members have been really focused on FHA and the First-Time Tax Credit. What a bumpy ride it's going to be. Tell me what you think! We are about to see a whole lot of lenders disappearing as a result of this. In fact, as of November 18th, FHA borrowers will no longer be able to finance their closing costs into their loans when they refinance, known as a "STREAMLINE REFINANCE" as one of the results of the current announcement. We all better wish for a recovery and fast.

The Federal Housing Administration has been hit so hard by the mortgage crisis that for the first time, the agency's cash reserves will drop below the minimum level set by Congress, FHA officials said.

The FHA guaranteed about a quarter of all U.S. home loans made this year, and the reserves are meant as a financial cushion to ensure that the agency can cover unexpected losses.

"It's very serious," FHA Commissioner David H. Stevens said in an interview. "There's nothing more serious that we're addressing right now, outside the housing crisis in general, than this issue."
...
[Stevens] said he is planning to announce Friday several measures that should help the reserves rebound quickly.
...
An independent audit due out this fall will show that the agency's reserves will drop below the 2 percent level as of Oct. 1, the start of the new fiscal year, Stevens said.
...
For one, he will propose that banks and other lenders that do business with the FHA have at least $1 million in capital they can use to repay the agency for losses if they were involved in fraud. Now, they are required only to hold $250,000. Second, he will propose that lenders also take responsibility for any losses due to fraud committed by the mortgage brokers with whom they work.
emphasis added

Here is a table of FHA lenders with a 2 year default rate of 15% or more (This consists of lenders with 100+ originations included). There are 10 lenders with "perfect" records (100% default), but they only have one or two originations each. Many of these lenders will probably go away with the new rules.

The FHA is banking on a "recovery in the housing market":

The new audit shows that even without any new measures, the reserves will rebound to the required level within two or three years largely as the result of the recovery in the housing market, Stevens said. This calculation is based on projections of future home prices, interest rates and the volume and credit quality of FHA's business.

Why oh Why, Can Someone Tell Me Why?

Elaine Giamona, Broker (McCoy Real Estate and Property Management, Lincoln, CA) — Sat, 19 Sep 2009 23:17:39 -0700

I love to start a dialogue and debate. Both are vital to our democratic ways. I define the poor as not only the indigent, or homeless, or jobless. I define the American poor as those who work 1 or 2 jobs, still can't make ends meet, have healthcare... BUT if they lose the job, or develop a dreaded "illness", heaven forbid... they will soon be indigent or bankrupt, and possibly dead... due to our current state of health care. Why or why, can someone tell me why, we are the only industrialized coutry which does not provide FREE health care to all its citizens???? (albeit funded sometimes by taxes and sometimes by government subsidies or a combo)

Thirty-nine other countries have for many years provided their citizens with the freedom from fear of getting sick. (including Italy where my brother lives, England where I have cousins and aunts, and Malta where I have many relatives). Getting seriously sick is something that will happen to all of us, ending with the ultimate sick of death. I do not follow the logic of those who say we must not do this. Governments come and go... ours will be around for a long time. We are blessed to live in America, unless you get a terminal illness and have your insurance cancelled. Our lawmakers always seem able to come up with trillions of dollars to fight wars... it will find the money to care for its people. Only if we demand it. Thanks for listening.

Elaine Giamona, Broker, Lincoln, CA

http://www.mccoyreo.com

A Kinder, Gentler FHA Appraisal...Not

Elaine Giamona, Broker (McCoy Real Estate and Property Management, Lincoln, CA) — Sat, 19 Sep 2009 22:10:24 -0700

This is a great post, Ken. Has provided me with needed info on a current deal, REO where we represent buyer of a Fannie Mae home. The previous owner took many light fixtures, microwave, leaving holes. Yet the rest of property is in excellent condition. This post prompted me to get up to speed on what FHA will require PRIOR to their asking. Very much appreciated. Go Activerain!

Via Ken Montville -- the MD Suburbs of DC (RE/MAX Advantage Realty):

For some of us who can remember the days when FHA mortgages were to be avoided like the plague it almost seems like a quaint notion that Sellers and Buyers didn't have to worry about appraisers coming in behind home inspectors to do a home inspectors job. The FHA, it seems, wants its appraisers to hunt down "health and safety" issues in addition to their regular job which is simply to ascertain value for the mortgage company or bank.

This may be all to the good in a "normal" market. When the market is a hot Seller's market, no one touches FHA because of the dreaded appraisal issues. Even if the Seller is willing to make repairs or provide a Buyer credit because of the results of a thorough home inspection, they may have to make more repairs - non-negotiable repairs - because of an appraisal. So FHA went by the wayside during the huge selling frenzy of the early 21st Century.

As a result, FHA toned down their requirements for appraisers to look under every nook and cranny to find "health and safety" issues. It seemed that FHA wanted to attract borrowers back into the fold. No more dreaded VC sheets. Only the most glaring issues would show up on the appraisal.

Fast forward to today. FHA is about the only mortgage available to moderate income (mostly first-time) home buyers. If a home buyer doesn't qualify for a VA mortgage then FHA is the way to go. Lenders really like the government backing and borrowers like the low down payment and flexible credit guidelines.

However, now the monster appraiser is back on the scene!

Even though most of the homes that are available to moderate income (mostly first-time) home buyers fall into the bank-owned or short sale category, the FHA appraiser is out there looking for chipping paint and loose handrails so that the buyer will need to jump through hoops, dance a merry jig and stand one their head clucking like a chicken in order to get to settlement. Oh! Since appraisers are so busy nowadays with the new and improved re-finance boom, they don't get their report in to the lender until the week before settlement.

Why does the buyer have to worry about this? After all the "health and safety" issues in the appraisal are supposed to protect the buyer.

It's because in the case of bank-owned homes or short sales, the seller is not going to make any repairs, let alone something an appraiser found. Home inspections are performed for "informational purposes only" and allow one decision to be made after an inspection -- move forward or void the contract. So, in 99% of the cases out there the Seller isn't going to do anything so the buyer needs to get into the house to touch up the paint or install a handrail or move a stove out of an "illegal" downstairs kitchen some previous owner installed for their mother-in-law or renters.

Then the appraiser needs to come back and "re-inspect" to make sure the house has been repaired properly. Gone are the days when the appraiser determined value. Now, in addition to jumping thorugh all the mortgage documentation and verification hoops, all the tighter, more stringent credit underwriting guidelines the buyer may need to do a little "fix-up" even before they go to settlement and move-in.

FHA is not kinder and gentler. Bank owned and short sales may not be "the deal" some people are looking for, especially if they have to do repairs before they own the house.

ActiveRain Success Stories - What Your Blog CAN Do For You

Elaine Giamona, Broker (McCoy Real Estate and Property Management, Lincoln, CA) — Mon, 14 Sep 2009 11:51:44 -0700