The Consequences Of Credit Card Company Created Bankruptcy}

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Submitted by: National Association Of Responsible Lending And Investment

Chances are that back when you first began using credit cards, the credit card companies were never shy about offering you more cards and larger credit lines. They acted this way because they wanted you to live beyond your means and take on more debt than you could reasonably pay off on a monthly basis. These companies do not make money when customers charge low amounts and pay off their balances in full; they make money when customers carry high balances and pay hefty interest rates. Then, once these same consumers are maxed out and finding it difficult to make even the minimum payment, what do the credit card companies do? They raise their interest rates even higher!

Based on these business practices, it should be no surprise that the credit card companies actively sponsored recent legislation making it harder than ever to declare bankruptcyeven for those who need it most.

Legally, there are two types of bankruptcy available to individuals: Chapter 7 and Chapter 13. Most people think of bankruptcy in terms of Chapter 7, which means almost all current debts are canceled, and after they file, they owe nothing. They also get to keep all of their current belongings. The credit card companies are obviously against Chapter 7, because it means they will never see any more money from those customers.

The more common type of bankruptcy (and the one preferred by creditors) is Chapter 13. A person filing for Chapter 13 bankruptcy has their debts, income, and assets carefully looked over by a court representative. The court then decides how much, if any, of the debt they still have the ability to pay, and then sets up a strict payment plan (often, money is taken directly from paychecks). Any and all personal assets, from a car to furniture and clothing, can be ordered by the court representative to be sold to pay off your debts.

While the credit card companies would prefer bankruptcy did not exist, they greatly prefer it when people file for Chapter 13, because the companies have a chance at receiving even more money. New legislation passed in 2005 made it harder than ever to qualify for Chapter 7, which means even more consumers may be forced to sell their vehicle or their family home to satisfy debtsdebts that in many cases were actually paid off years ago, with only the years of high interest payments left.

The Real Consequences of Bankruptcy

After filing for bankruptcy, you no longer have your old debts, but you also no longer have any of your old lines of credit. For someone who has been living beyond their financial means for a long time, this new situation can be a painful and difficult shock.

If you filed for Chapter 13, you will start with a five-year repayment plan, as ordered by the court. You will not have access to old credit lines, and have very limited (if any) access to new credit. Shockingly, your bankruptcy does not actually start to count down until the end of this five-year period.

Bankruptcy goes on your credit report, and remains there for up to ten years. (With Chapter 13, the ten years start after your five-year repayment ends, adding up to as many as 15 years in total.) Immediately after filing, your credit score will go down, and for at least the first year getting any new line of credit may be impossible. Over time, your credit score will slowly improve, and you may be eligible for some credit offers. Be wary of opening any new accounts, remembering your earlier debt problems. Remember, you can only declare bankruptcy once every seven years, so no matter what new circumstances come up (medical expenses, death, etc.), you are completely liable for any new debts for at least seven years forward.

Your first credit offers post-bankruptcy will likely be for small credit lines (a few hundred dollars), with high interest rates and usually an annual fee. To get back on track to good credit, open one of these cards only if you are ready for the responsibility. Pay on time, and don’t exceed your limit. As time goes on, you will be offered cards with larger credit lines, lower rates, and less or no fees.

About the Author: Individuals everywhere, looking to get out of debt and begin investing can turn to the debt aide organization National Association of Responsible Lending and Investment at

NARCLI.org

. You may reach debt relief and investment experts via email to Question@NARCLI.org.

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Enron executives Kenneth Lay and Jeffrey Skilling found guilty

Thursday, May 25, 2006

A jury in Houston found Former Enron Corp. CEOs Kenneth L. Lay and Jeffrey K. Skilling guilty of 6 kinds of white-collar crime on May 25. Lay was convicted of all ten counts against him, while Skilling was convicted of only nineteen of the charged twenty-eight counts. The variety of charges on which both men were convicted was astonishing; conspiracy, wire fraud, false statements to banks and auditors, and others. Both men now face many years in prison.

Outside the courtroom, Skilling continued to proclaim his innocence. “Obviously, I’m disappointed, but that’s the way the system works,” Skilling said after the verdict. He is expected to appeal. Lay did not immediately speak to reporters outside the courtroom.

The verdict was reached on the sixth day of deliberations after a four-month-long trial and brings to a close the first of the wave of accounting scandals earlier in the decade. The verdict also represents another major victory for the government, which has successfully prosecuted a number of high-profile executives involved in accounting scandals, as well as obtained sixteen guilty pleas from former Enron executives.

Sentencing has been set for September 11, 2006. U.S. District Judge Sim Lake ordered Lay to post a $5 million bond and surrender his passport before leaving the courtroom.

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Canadian Cabinet Minister resigns over Harper’s Quebec motion

Monday, November 27, 2006

Michael Chong, Minister of Intergovernmental Affairs, Minister of Sport, and MP for the riding of Wellington—Halton Hills, has resigned over Stephen Harper’s Quebec motion. The motion asks MPs if Quebec is a nation “within a united Canada”.

Chong opposed the vote saying that it was akin to ethnic nationalism, which he opposes.

“It is nothing else but the recognition of ethnic nationalism, and that is something I cannot support. It cannot be interpreted as the recognition of a territorial nationalism, or it does not refer to the geographic entity, but to a group of people,” Chong said.

“I am resigning as minister so I can abstain from the vote tonight,” Chong said at a news conference in Ottawa, the nations capital. “While I am loyal to my party and to my leader, my first loyalty is to my country. I believe in one nation undivided called Canada.”

Chong remains a Conservative member of Parliament. Later in the day, Prime Minister Stephen Harper appointed York—Simcoe, Ontario MP Peter Van Loan to the position vacated by Chong.

Harper asked Liberal race contender Stéphane Dion for guidance with the Quebec motion instead of asking the now former Intergovernmental Affairs Minister, Michael Chong.

Michael Ignatieff, the front-runner in the Liberal leadership race, has proposed a similar motion. Liberal leadership candidate, Gerard Kennedy, said he opposes the motion and finds it divisive to national unity and could advance the separatist agenda.

The vote will be held tonight in the House of Commons.

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Commercial Washroom Accessories For Factory Restroom Design

By Patricia Holland

Factory restroom design requires a variety of commercial washroom accessories. Superior grade materials are used to make a number of these fixtures. Other fixtures perform specialized tasks that contribute unique value to factory environments.

Toilet partitions are made out of a variety of materials. Architects can choose from a wide range of materials and mounting options. This allows builders to match the very best product to the particulars of restroom floor, wall, and ceiling space. Historically, phenolic core and stainless steel have been the preferred materials for partitions because of their corrosion resistance.

Washfountains rank among the most essential commercial washroom accessories in todays factory restroom design. They allow groups of factory workers to wash their hands and arms quickly and thoroughly. Some of the most popular washfountains we sell are the new Bradley Terreon models. These wash stations feature multi-user service capability, a deep bowl design, and full ADA compliance.

[youtube]http://www.youtube.com/watch?v=TTlEF6uNMiw[/youtube]

The circular bowl design allows the unit to be mounted in the center of the restroom. Workers can come in and access the bowl from all sides. Water flow is regulated by these units to avoid waste. When space permits a circular washfountain, it is highly recommended that an architect invest in these commercial washroom accessories. However, in smaller bathrooms where space is limited, multi-user gang sinks that mount on the walls and even in corners allow for the most efficient utilization of available square footage.

Commercial showers are highly recommended for factory restroom designs in plants where workers are exposed to industrial byproducts. This is not restricted to plants that manufacture hazardous materials. Some byproducts, while not toxic per se, can still cause great irritation to the skin. Some may represent a long-term health hazard as well if they build up on the body over time.

This represents a health risk to workers that an organization can be held liable for. To protect both the interest of laborers and the reputation of the company, it is wise to invest in commercial showers. Column showers and circular showers are both available through our site. We recommend adding grab bars to partition walls if workers engage in strenuous labor during the day and enter the shower stall in a state of fatigue. These commercial washroom accessories are simply an added safety precaution that again protects the interests of all parties concerned.

There are also a number of designer locker styles that are ideal for factory restroom designs. It goes without saying that having a storage locker in the restroom makes it that much easier for workers to take a shower at the end of the day. Not only can they change into a clean set of clothes once the day is done, but they can also store their cell phones, personal items, and valuables in these lockers during their shifts. Lockers are made from industrial grade particle board and are covered in a plastic laminate. This keeps contents dry. Multiple lock options can also be requested to secure stored items during the day.

A big money saver that is finding its way into more and more restrooms is the hand dryer. Superior technology has now made it possible for these new, improved commercial washroom accessories to dry hands as efficiently as paper towels. The constant expenditure on paper towel replacement and disposal can now be eliminated once and for all. Investing in paper alternatives such as hand dryers is a key element in green factory restroom design and LEED certification for the entire building.

Bathroom mirrors are often taken for granted by those who get lost in their own reflection. However, architects know how important it is to choose mirror designs that will retain reflectivity and resist corrosion for long periods of time. Stainless steel mirrors are recommended for factory restroom design in heavily polluted areas. Float glass and tilted mirror options can also be found on our site.

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Three die in Cornwall, UK caravan park of suspected carbon monoxide poisoning

Monday, February 25, 2013

Carbon monoxide poisoning is thought to have been the cause of the deaths of three people and one Jack Russell dog in a caravan park in Cornwall in South West England. Cornwall Fire and Rescue Service (CFRS) were alerted to the incident in Tremarle Home Park in the town of Camborne at 12:56 UTC on Saturday.

We have seen a big increase in the number of carbon monoxide incidents in Cornwall over recent years

Inspector David Eldridge said Devon and Cornwall Police were alerted to the caravan park incident after “a helper had been unable to get a reply from an elderly couple who lived in the caravan”. He said that upon their arrival, “We were able to see that there was a figure sat in a chair but they were unresponsive to knocks at the door.” CFRS workers called to the area “forced entry into the property and found that the three occupants were all dead”, Inspector Eldridge said. A hazardous material advisor was also present at the scene in North Roskear. The Health and Safety Executive is now investigating the incident but the deaths are not considered as being of a suspicious nature.

The three fatalities have been identified as Audrey Cook, aged 86, her husband Alfred, aged 90, and Maureen, their 46-year-old daughter. David Biggs, a member of Camborne Town Council, said the incident came as “a shock” to him; Tremarle Home Park is “a well established facility and is very well run”, according to him. Biggs described the loss of three lives as an “appalling tragedy”.

The incident came five days after Cornwall Council announced its Family Placement Service would launch a joint venture with Cornwall Fire and Rescue Service to place carbon monoxide detectors in the houses of foster carers. The programme, entitled ‘Be Gas Safe’, has seen 200 carbon monoxide detectors and 2000 leaflets to raise awareness about carbon monoxide being given to CFRS. Mark Blatchford, Group Manager of CFRS, said: “We have seen a big increase in the number of carbon monoxide incidents in Cornwall over recent years”. He described carbon monoxide detectors as being “as important as a smoke alarm as it provides a valuable early warning”.

Carbon monoxide is a poisonous, colourless, tasteless and odourless gas which is created when such carbon-based fuels as oil, gas, coal and wood are not completely incinerated. The human body’s capacity to hold oxygen in the blood can be reduced by inhalation of the gas, which in turn may cause death. The Gas Safe Register has said dizziness, headaches, queasiness, lack of ability to breathe, fainting and losing consciousness are all symptoms of a person experiencing carbon monoxide poisoning.

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England’s elderly face human rights breaches in home care system

Wednesday, November 23, 2011

A report published today by the Equality and Human Rights Commission (EHRC) finds that, in many cases, England’s home care system breaches the human rights of the elderly it is supposed to serve. The Close to home: older people and human rights in home care report is the result of a twelve-month investigation into care generally provided by local authorities.

Approximately half of those receiving home care, plus friends and family, providing evidence to the inquiry were satisfied with the quality of care provided. However, the report stresses that there are “systemic problems” arising from “a failure to apply a human rights approach to home care provision”. The report asserts that it is generally not the fault of individuals providing care, but serious problems exist as local authorities seem unaware of their obligations under the Human Rights Act and fail to commission, procure, and monitor care accordingly.

The report says articles two, three and eight of the European Convention on Human Rights are frequently being breached. These, respectively, cover an individual’s right to life, protection from inhumane and degrading treatment, and respect for dignity and personal independence. Criticisms include that care is not provided in a common-sense manner, and funding of care for the elderly is at lower levels than for younger people with similar problems and needs.

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The EHRC’s investigation highlights a range of recurring complaints and attempts to identify the underlying causes; cost is repeatedly mentioned, with use of the private-sector leading to some local authorities offering a “one size fits all” service leaving many elderly feeling they are “a task to be undertaken” and have “little or no choice” as to help received, or when care workers visit. A failure to invest in care workers is noted, with significant responsibility and the wide range of skills required being rewarded with low pay and status; this, the report states, adversely impacts staff retention and, a high turnover of care workers can put the security of care recipients at-risk.

Within the wider investigation, a commissioned independent social report by The Arndale Centre conducted in-depth interviews with a cross-section of 40 elderly individuals receiving home care. As-stressed in the report, those selected were not on the basis of good, or bad, experiences with their – mainly local authority-provided – care. It highlights a widespread feeling amongst those interviewed that they are treated “like a number”, and that aspects of the care provided lead to, or fail to resolve, feelings of social isolation.

The Manchester-based Arndale Centre report concludes that, “[t]he general picture is of a wider home care system in which older people are noteffectively involved: which they do not understand, and which does not often make the extra effort required to involve them in ways tailored to their state of health and other needs”.

nobody to talk [to] face to face. Nobody will knock on that door,[…] a life of isolation.

A recurring theme in the responses of those interviewed is the social isolation that their home care is not adequately addressing. One male interviewee in his seventies who previously used a scooter to get about said in his interview, “I haven’t been out of the house now for about four weeks. I daren’t. The last time I went out on the scooter I hit the kerb and it frightened the living daylights out of me.” Another, an 85-year-old woman who lives alone, expressed sadness at her inability to do normal things, “I would love to go to town to do some shopping. I haven’t been to town for about two years… Wander round the town and have a cup of tea… I’d love that.”

The social isolation many elderly experience was summed up neatly by another woman in her eighties in her interview: “When you go now, I will maybe not talk to anybody till tomorrow; maybe the whole of tomorrow nobody to talk [to]… face to face. Nobody will knock on that door, that is it, a life of isolation.”

The EHRC, having commissioned this report in the face of funding changes and reform of the care system, intends to press for legislative changes to ensure those receiving care at home are given the same protections under the Human Rights Act as those in residential care. In the conclusions of their report they offer to work with, and support, local authorities in understanding and delivering care that respects peoples’ rights and dignity; and, recommend better guidance as to the choices available to the elderly, and their families, be made available.

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Send Your Child To A College Preparatory School

Send Your Child to a College Preparatory School

by

aaucoin

If you want your child to get the best education and be able to compete against the competition they will encounter once they graduate from high school, you need to send your child to a college preparatory school. You may think that the level of education they receive from a regular public or charter school is suffice, however studies show that students who matriculate in a college preparatory school not only earn better grades, they are also more equipped to function in the world when they graduate.

Since your child’s education is something you have to be concerned about on an ongoing basis, the best way you can ensure that they are getting the best education possible is by taking an in depth look at the different educational facilities in your local area before you decide to enroll them. Of course you can’t just look at the different institutions and be able to make a clear and informed decision about their educational well-being. You need to know what kind of curriculum is being taught, what the goals are for the school system, how well does the school foster and develop independence and socialization, You also need to make sure that your child is going to be educated in the safest environment possible. In order for you to get some of that information, you are going to need to spend some time reading up on the accomplishments of the school. Find out what the test scores are and how they measure up against up against other schools in the area and the state. Meet with some of the staff and take an in-depth look at the credentials of those responsible for nurturing your young adult.

[youtube]http://www.youtube.com/watch?v=NDfew0YcDTo[/youtube]

Part of this task also means that you will need to get to know some of the parents of the students that attend the preparatory school you are interested in. They can provide you with information that you won’t be able to get off of the Internet or find out from the teachers. They can help to point you in the right direction so that you know without a doubt you are enrolling your child in the best college preparatory school possible.

Finding the best college preparatory school doesn’t have to be a time consuming process. You can eliminate much of your research by going down to the district office for the particular school you are interested in. You can find test scores, comparisons, information on credentials and more on any preparatory school you want.

The sooner you start your search for the best college preparatory school, the better your chances for getting your child enrolled. Enrollment to these types of schools is very competitive and the demand for seats often outpaces what is readily available for the students. If you want to give your child the best chance at receiving a quality education, take them where mind will be nurtured and developed in the best educational environment possible.

Get the best education for your child. Learnmore about

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Gordon Brown announces new powers for UK Treasury

Tuesday, October 10, 2006

Gordon Brown, Chancellor of the Exchequer, announced today that an Order in Council will be made tomorrow empowering the British Treasury to prevent the funding of those suspected of planning terror. Use will be made of forensic accounting and of methods similar to those employed by the code breakers at Bletchley Park. With the help of computing power to discover relations between bits of information, they cracked the German Enigma code during WWII. Gordon Brown ranks the impact of forensic accounting at the present time with the use of fingerprinting in the 19th century and of DNA in the late 20th Century.

Speaking to Chatham House, The Royal Institute of International Affairs, Brown defined the most dangerous sources of finance for terrorists as being charities, money service businesses and financial transactions such as bureaux de change, cheque cashers and money remitters. There will be a new licensing system requiring firms to keep more detailed records of transactions. Tougher action against non-compliance is promised. New proposals about money laundering are being prepared.

The new Order will empower the Treasury, for the first time, to use closed source evidence from classified intelligence to freeze the assets of suspects. A special advocate procedure will be put in place to ensure “fair and consistent hearing of cases”. If evidence shows it to be necessary, it is Brown’s opinion that suspects should be held, without a charge being brought, for more than the present 28 days.

The Government has been defeated once already in Parliament in an attempt, in the Terrorism Act 2006, to increase the present 28 days of detention without charge to 90 days. Public opinion was very divided on that proposal and feelings in Parliament ran high with talk of a police state and of the Government pandering to public opinion.

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‘Guantanamo’-style detention facility under construction on Australian Island

Monday, November 28, 2005

The Australian Government is currently building a “Guantanamo-style detention facility” – a $210 million, 800-bed Immigration Reception and Processing Centre – on Christmas Island, 1400km off Australia’s northwest coast. The project has residents concerned about the prospect of having imprisoned detainees and possible terrorism suspects as neighbours.

Christmas Islanders fear the remote detention facility will be Australia’s very own “Guantanamo Bay.”

The island’s Shire President, Gordon Thompson, says residents are also worried about the effects the controversial detention centre development will have on the island’s tourism industry. “We’re not building tourism based on a prison tour,” he said, also voicing fears that residents would be barred from areas on the northwest point of the island. He said locals were confused and did not know if the centre would just be used for refugees or as a Guantanamo-style prison. Another resident complained that access to popular fishing and snorkelling spots on the island would be limited.

Department of Immigration (DIMIA) said that when construction of the Christmas Island facility was finished, a review was likely to be taken to close some mainland detention centres such as Baxter in South Australia. “Its (Christmas Island) only use is as an immigration reception and processing centre,” said a DIMIA spokesperson.

Mr Thompson, who is opposed to the imprisonment of refugees, said the centre was being built on the island in an effort to avoid public scrutiny from mainland Australians. “It’s a long way from the mainland where the lawyers and trouble-makers are,” he said. “We’ll be kept away from it.”

A resident of eight years, two as shire president, Mr Thompson said he did not trust the federal Government because it ignored the concerns of the 1500-strong community. “There’s a sense the Commonwealth will do what it wants,” he said. “You’ve got to be a little suspicious of a government that lets its own people be held in Guantanamo Bay, like David Hicks. People here have that feeling that when something big is being built away from the media – it’s not fishy, it’s smelly.”

Mr Thomson said the Shire council were not notified when the current Christmas Island detention centre reopened last week to detain seven West Timorese asylum seekers.

Azmi Yon, president of the island’s Malay association, has lived for 37 years on the island and wants the federal Government to leave it alone. He said locals were confused and did not know if the new centre would just be used for refugees or as a Guantanamo-style prison. “We need something from them in black and white to say what it is,” he said. “Tell us something, don’t keep us in the dark.”

Mr Yon said the island was home to a harmonious group of Chinese, Malays and Europeans who respected each other’s cultures. “Why disturb an isolated and unique environment when you can (build the centre) somewhere else?” he said.

Mothballed Detention Centre Reopened

A group of seven asylum seekers were transported by DIMIA to Christmas Island last week. One detainee, his wife and infant children have been allowed to live in the community under new detainment laws. However, three other asylum seekers remain the sole inhabitants of the current Christmas Island detention centre – reopened for the seven from Indonesian West Timor on November 17.

Refugee advocates, Democrats and Greens senators said the recent West Timorese asylum seekers had been “shunted” to the remote facility at a massive cost, raising more doubts about the Howard Government’s promise not to detain children.

Democrats senator Andrew Bartlett, who visited a previous group of 52 Vietnamese asylum seekers in December last year, said he was especially alarmed to learn that children were still being detained despite the Government’s promise that children would only be detained as a last resort.

“We want to know exactly what the cost has been to unnecessarily fly these people over to Christmas Island and why, seeing that they managed to arrive within the accepted migration zone and should be processed here,” Senator Bartlett said. “The only possible reason this family has been transferred to such a remote location is the very deliberate intention of the Government to deny these people proper processing of their claims and to prevent them from accessing adequate legal and other support. It is also assists the Government to keep the family away from media attention or public scrutiny.”

Australian Greens Senator Kerry Nettle says the Government should suspend the construction of the Christmas Island detention centre and review the necessity of the facility. “At a time when the Government claims to be reforming its immigration detention system, it is increasing its capacity to lock people up,” Senator Nettle said. “After the recent scandals and abuses, the public want alternatives to detention, but the Government insists on building more empty prisons.”

According to Immigration Department figures provided at the November 2005 Senate Estimates:

* The current immigration detention centres – Baxter, Villawood, Maribyrnong, Perth, Port Augusta and the existing Christmas Island facility, already have a capacity to hold 1,688 people and they have contingency places for 667 more people, bringing the total capacity to 2,355.

*Port Hedland has a capacity to hold 820 people and is costing $3 million a year to be ready to reopen.

*The infamous Woomera Detention Centre holds 800 and costs $2.6 million to keep mothballed.

Senator Nettle said: “Australia’s total immigration detention capacity is already 3,975 people. The locals on Christmas Island are opposed to this facility, yet the Government is wasting $210 million on another empty prison. Is the government planning to increase the number of people in detention and deport people from the mainland to Christmas Island?”

Environmental Concerns

There has also been environmental concerns about the development. The detention centre site is adjacent to prime “Abbotts booby” habitat, in the north-west corner of the island, and is surrounded by the Christmas Island National Park.

Endangered Abbott’s Boobies nest in tall rainforest trees immediately to the north, south and south-east of the site, and their proximity puts the species at the mercy of turbulence generated by the passage of wind across the clearing.

The National Park encloses the entire range of at least 35 endemic species, more than any other Australian protected area. It is part of the network of habitats of migratory species that Australia must protect under international agreements such as the Japan-Australia Migratory Bird Agreement (JAMBA) and the China-Australia Migratory Bird Agreement (CAMBA).

The Wilderness Society have said, “There are several serious environmental concerns with the selection of this site, not least of which was the selection process itself, the Howard government’s self-exemption from environmental scrutiny normally required under the EPBC Act, and its commitment to best practice environmental measures during construction of the detention centre.”

Research has shown that Abbott’s Boobies nesting within 300 m of clearings experience significantly lower breeding success than birds nesting further away. At last count, 36% of breeding sites across the island were located within this 300 m danger zone.

The centre, under construction since January this year, is not due to be operational until late 2006.

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Certificate Of Creditable Coverage For Texas Health Insurance

By Tim Jarvis

The term “creditable coverage” and the resulting document titled Certificate of Creditable Coverage are the products of the Health Insurance Portability and Accountability Act (HIPPA) of 1996. HIPAA was originally sponsored by Sen. Edward Kennedy (D-Mass) and Sen. Nancy Kassebaum (R-Kan) and is comprised of two sections Title 1 and Title II. Title I of HIPAA protects health insurance coverage for insured members and their families when they change or lose health insurance coverage. Title II, known as the Administrative Simplification (AS) provisions, requires the establishment of national standards for electronic health care transactions.

The term “creditable coverage” is the coverage requirement in order for an individual to realize a reduction in the exclusion period placed on benefits when enrolling in a new health insurance plan. Health insurance plans may restrict benefits relating to a preexisting condition for a period of up to 12 months after enrollment in the plan. However, if the individual has maintained creditable coverage prior to enrolling in the plan and did not experience a “significant break” in coverage, the exclusion period may be reduced or eliminated. “Creditable coverage” is defined quite broadly and includes nearly all group and individual health plans, Medicare, and Medicaid. Short-term or temporary health insurance coverage typically does not meet the requirement of “creditable coverage”, although some carriers will accept short-term coverage as “creditable coverage.”

A “significant break” in coverage is defined as any 63-day period without any creditable coverage. A gap in coverage of less than 63 days does not jeopardize the “continuous coverage,” but it is important to maintain a short-term health insurance policy if there is going to be a gap between two health plans.

[youtube]http://www.youtube.com/watch?v=4DFGbrrszSI[/youtube]

The Certificate of Creditable Coverage is the accepted documentation in order to confirm an individuals prior health insurance coverage. A Certificate of Creditable Coverage indicates each individual who was covered by the health plan and the length of time each individual was continuously covered under the health plan.

A common misunderstanding regarding the purpose of a Certificate of Creditable Coverage is that the document qualifies an individual for guaranteed issue coverage with full access to benefits related to a preexisting condition. The Certificate cannot fulfill this purpose because individual health insurance plans are subject to medical underwriting which may establish eligibility requirements excluding individuals with prior health issues. The Certificate of Creditable Coverage also does not eliminate or reduce a rider assigned to coverage that deals with a specific health condition. A rider is either a permanent or temporary waiver of benefits related to a specific health condition. A rider is an alteration of an insurance contract between the insured member and the insurance carrier. The Certificate of Creditable Coverage does not nullify the rider assigned to the coverage.

Certificates of Creditable Coverage are generated by the health insurance carrier after the termination date of coverage. When you receive a Certificate of Creditable Coverage be sure to check the document for accuracy. Individuals covered by the health plan should be listed with the start date and stop date of coverage included.

To illustrate the application of the Certificate of Creditable Coverage, assume an individual enrolls in a health plan on January 1, 2010. The individual was previously insured under another plan from January 1, 2009 until February 1, 2009 and from August 1, 2009 until December 31, 2009.

To determine the value of the creditable coverage and how much prior coverage can be credited against the exclusion period in the new plan, start at the enrollment date and count backwards until you reach a significant break or gap in coverage. Counting backwards would result in five months of coverage between August 1, 2009 and December 31, 2009, which would reduce the exclusion period by the same number of months. But a gap in coverage was experienced between February 1, 2009 and August 1, 2009 of greater than 63 days. Because the gap in coverage is greater than 63 days and would meet the definition of a “significant break” in coverage, no coverage prior to it can be used to reduce the exclusion period. The covered individual could deduct five months from the exclusion period, reducing the exclusion period to seven months.

The Certificate of Creditable Coverage should not be overlooked, because it serves an important administrative function to document your prior coverage. If you have questions concerning the Certificate of Creditable Coverage contact Stateside Insurance Services or the carrier responsible for providing you with the Certificate of Creditable Coverage.

About the Author: Texas Jarvis is a licensed Texas health insurance broker with extensive knowledge of the Individual and Small Group health insurance markets in Texas.

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