The Obama administration has launched a new educational campaign about the Health Insurance Marketplace. The new tools will help Americans understand their choices and select the coverage that best suits their health insurance needs when open enrollment begins on October 1, 2013. On the recently updated HealthCare.gov website, you can compare plans and get information about the Marketplace in your state. Customer service representatives are also available toll-free at 1-800-318-2596. People with hearing and/or speech disabilities may call using TTY/TDD technology at 1-855-889-4325.
Nine Days of Free Health Care Coming to Ka’ū in June
An innovative training program by the U.S. Department of Defense will bring 75 military reservists to Ka‘ū June 4-12 to provide free medical care in clinics open to the public.Tropic Care 2013 will run two clinics, at Ka‘ū High & Pāhala Elementary School and the Ocean View Community Center. Clinics will be open from 8 a.m. to 4 p.m., closing early at 12 p.m. on the final day, June 12.
Health care services that will be provided free of charge include physical exams, dentistry, optometry (exams and glasses), medication review and provision of some medication, and nutrition education. Patients will be seen on a first come, first served basis and are advised that there may be long wait times.
“This is an opportunity to bring needed medical, dental and vision services to the district of Ka‘ū,” said Aaron Ueno, Hawai‘i District Health Officer with the state Department of Health. “These services are open to the entire island and we are hoping to do this again in the future with community support.”
Tropic Care 2013 is a partnership between the U.S. Department of Defense and the state Hawai‘i District Health Office, supported by the County of Hawai‘i and the Ka‘ū Rural Health Community Association. It is an exercise of the Department of Defense’s Innovative Readiness Training program, which challenges reservists to plan and implement rapid mobilizations to distant and unfamiliar areas.
“We thank the Department of Defense and all the reservists for coming to Hawai‘i Island and reaching out to our residents,” said Karen Teshima, Executive Assistant to Mayor Billy Kenoi. “This innovative program will benefit everyone involved, and will further our goal of keeping our community safe and healthy.”
Other community partners collaborating to bring this service to Ka‘ū are: the Hawai‘i Department of Education, Ocean View Family Health Center, Hui Mālama Ola Nā ‘Ōiwi, Bay Clinic, Hawai‘i Island Cardiovascular, Hawai‘i Island Community Lung Assessment Science Studies, Ocean View Community Association, Kona Community Hospital, Hawai‘i Police Department, Hawai‘i National Guard’s Youth Challenge Academy, Ka‘ū Hospital, Pacific Quest, and the Veteran’s Administration.
For more information on Tropic Care 2013 or to request special assistance or an auxiliary aid seven days prior to the event, call (808) 974-6035 or email Martha Yamada of the Public Health Nursing Section at firstname.lastname@example.org.
To view the Hawaii County link to this information, please click here.
CONSUMER FINANCIAL PROTECTION BUREAU FINDS PAYDAY AND DEPOSIT ADVANCE LOANS CAN TRAP CONSUMERS IN DEBT
Sustained Use of Loans Raises Consumer Protection Concerns
WASHINGTON, D.C. —Today the Consumer Financial Protection Bureau (CFPB) issued a report on payday and deposit advance loans finding that for many consumers these products lead to a cycle of indebtedness. Loose lending standards, high costs, and risky loan structures may contribute to the sustained use of these products which can trap borrowers in debt.
The report found that payday loans and the deposit advance loans offered by a small but growing number of banks and other depository institutions are generally similar in structure, purpose, and the consumer protection concerns they raise. Both are typically described as a way to bridge a cash flow shortage between paychecks or other income. They offer quick and easy accessibility, especially for consumers who may not qualify for other credit. The loans generally have three features: they are small-dollar amounts; borrowers must repay them quickly; and they require that a borrower repay the full amount or give lenders access to repayment through a claim on the borrower’s deposit account.
The CFPB study is one of the most comprehensive ever undertaken on the market. It looked at a 12-month period with more than 15 million storefront payday loans and data from multiple depository institutions that offer deposit advance products.
Key Finding: Payday and deposit advance loans can become debt traps for consumers
The report found many consumers repeatedly roll over their payday and deposit advance loans or take out additional loans; often a short time after the previous one was repaid. This means that a sizable share of consumers end up in cycles of repeated borrowing and incur significant costs over time. The study also confirmed that these loans are quite expensive and not suitable for sustained use. Specifically, the study found limited underwriting and the single payment structure of the loans may contribute to trapping consumers in debt.
Loose Lending: Lenders often do not take a borrower’s ability to repay into consideration when making a loan. Instead, they may rely on ensuring they are one of the first in line to be repaid from a borrower’s income. For the consumer, this means there may not be sufficient funds after paying off the loan for expenses such as for their rent or groceries – leading them to return to the bank or payday lender for more money. ·
Payday: Eligibility to qualify for a payday loan usually requires proper identification, proof of income, and a personal checking account. No collateral is held for the loan, although the borrower does provide the lender with a personal check or authorization to debit her checking account for repayment. Credit score and financial obligations are generally not taken in to account. ·
Deposit Advance: Depository institutions have various eligibility rules for their customers, who generally already have checking accounts with them. The borrower authorizes the bank to claim repayment as soon as the next qualifying electronic deposit is received. Typically, though, a customer’s ability to repay the loan outside of other debts and ordinary living expenses is not taken into account.
Risky Loan Structures: The risk posed by the loose underwriting is compounded by some of the features of payday and deposit advance loans, particularly the rapid repayment structure. Paying back a lump sum when a consumer’s next paycheck or other deposit arrives can be difficult for an already cash-strapped consumer, leading them to take out another loan. ·
Payday: Payday loans typically must be repaid in full when the borrower’s next paycheck or other income is due. The report finds the median loan term to be just 14 days. ·
Deposit Advance: There is not a fixed due date with a deposit advance. Instead, the bank will repay itself from the next qualifying electronic deposit into the borrower’s account. The report finds that deposit advance “episodes,” which may include multiple advances, have a median duration of 12 days.
High Costs: Both payday loans and deposit advances are designed for short-term use and can have very high costs. These high costs can add up – on top of the already existing loans that a consumer is taking on. ·
Payday: Fees for storefront payday loans generally range from $10-$20 per $100 borrowed. For the typical loan of $350, for example, the median $15 fee per $100 would mean that the borrower must come up with more than $400 in just two weeks. A loan outstanding for two weeks with a $15 fee per $100 has an Annual Percentage Rate (APR) of 391 percent. ·
Deposit Advance: Fees generally are about $10 per $100 borrowed. For a deposit advance with a $10 fee per $100 borrowed on a 12-day loan, for example, the APR would be 304 percent.
Sustained Use: The loose underwriting, the rapid repayment requirement, and the high costs all may contribute to turning a short-term loan into a very expensive, long-term loan. For consumers, it is unclear whether they fully appreciate the risk that they may end up using these products much longer than the original term. Or, that they may end up paying fees that equal or exceed the amount they borrowed, leading them into a revolving door of debt. ·
Payday: For payday borrowers, nearly half have more than 10 transactions a year, while 14 percent undertook 20 or more transactions annually. Payday borrowers are indebted a median of 55 percent (or 199 days) of the year. For the majority of payday borrowers, new loans are most frequently taken on the same day a previous loan is closed, or shortly thereafter. ·
Deposit Advance: More than half of all users borrow more than $3,000 per year while 14 percent borrow more than $9,000 per year. These borrowers typically have an outstanding balance at least 9 months of the year and typically are indebted more than 40 percent of the year. And while these products are sometimes described as a way to avoid the high cost of overdraft fees, 65 percent of deposit advance users incur such fees. The heaviest deposit advance borrowers accrue the most overdraft fees.
The CFPB has authority to oversee the payday loan market. It began its supervision of payday lenders in January 2012. The CFPB also has authority to examine the deposit advance loans at the banks and credit unions it supervises, which are insured depository institutions and credit unions, and their affiliates, that have more than $10 billion in assets. Today’s report will help educate regulators and consumers about how the industry works and provide market participants with a clear statement of CFPB concerns.
While today’s study looked at storefront payday lenders, the CFPB will continue to analyze the growing online presence of such businesses. The Bureau is also looking at bank and credit union deposit account overdraft programs which provide short-term, small-dollar, immediate access credit services. The CFPB will publish initial results from this overdraft study later this spring.
To help educate consumers about payday and deposit advance loans, today the CFPB updated its Ask CFPB web tool to assist consumers with their financial questions about these products.
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.
After years of collective work by the Ho’owaiwai Network and its supporters, the Governor recently signed HB 868 into law, which eliminates the asset test for recipients of benefits under the Temporary Assistance for Needy Families (TANF) program! We are only the 7th state to do so!
In preparation for a larger press release to celebrate the efforts of the Ho’owaiwai Network, we wanted to see if any of our partner organizations is interested in contributing to the documentation of this huge, huge achievement. We are generally looking for the following:
A client or family you have worked with who will directly benefit from the passing of this legislation and is willing to share their story
Stories from your own organizations around the efforts you have put in to ensure the passing of this legislation.
Any other related story!
If you are interested, please contact Brent Kakesako, Chief Operating Officer of the Hawai’i Alliance for Community-Based Economic Development (HACBED) via email (email@example.com) or phone (808-550-2661) by Friday, May 10.
Mahalo for all of your efforts to build assets of families across Hawai’i to increase their self-sufficiency and control over their daily lives!
NRHA in The Washington Post: Osteopathic doctors may help alleviate rural doc shortage
The Washington Post Share The national shortfall of family doctors, pediatricians and other generalists is expected to reach 52,000 by 2025. And only 9 percent of physicians practice in rural areas, where 20 percent of the U.S. population lives. “That’s where osteopaths have been largely helpful — in primary care and especially for those in need,” said NRHA’s Brock Slabach. And their footprint appears to be growing. More
NRHA sets its sights on the world
Share NRHA has established the association’s International Rural Health Task Force to help lay groundwork for enhancing members’ expertise and experience. As issues in access to care parallel similar issues in other rural parts of the world, NRHA is looking to provide further leadership on rural health issues by fostering international connections in rural health and opportunities for members with international expertise and interests. More
NRHA’s Daily Yonder column: Sequestration, Medicaid and mortality
The Daily Yonder Share Medicare cuts from sequestration will cost rural communities 12,000 health care jobs. But even bigger problems await rural residents in states that don’t expand Medicaid under the Affordable Care Act. Since rural areas have a disproportionate share of elderly and poor people, Medicaid expansion would have a more significant impact in saving lives and improving economic conditions for rural, writes NRHA’s Brock Slabach. More
HRSA webinar: HIT and quality for safety net providers
Share This webinar titled “Using Clinical Decision Support in Safety Net Provider Settings” explores how safety net providers can implement and use a clinical decision support (CDS) system at 2 p.m. EST March 22. A CDS complements an electronic health record, helping to ensure all patients in a practice receive appropriate and timely preventive services and the right test, the right medication and the right treatment. Meaningful use requires that each clinician implement one CDS rule relevant to their specialty or clinical priority along with the capability to track compliance with the rule.More
Free webinar: Health literacy needs and barriers of rural patients
Share Julie Halverson, University of Wisconsin Comprehensive Cancer Center assistant researcher, will present a webinar titled “Health Literacy and Rural Residence: Identifying and Addressing Needs” at noon CST March 28. The webinar will identify health literacy needs and barriers among a sample of rural cancer patients, examine how cultural values influence help-seeking and identify resources that address health literacy needs and barriers. More
National Health Service Corps invites providers to virtual job fair
New Mexico Department of Health Share Primary care medical, dental and mental and behavioral health providers in your state are being invited to register and participate in the NHSC Virtual Job Fair from 7-10 p.m. EST March 19. It makes finding job opportunities easy and convenient for clinicians and students with busy schedules who are interested in serving at Indian Health Service centers and Tribal clinics. Primary care providers from all over the country are welcome to participate. More
ONC offers free vouchers for health IT professional examinations
Share HHS’ Office of the National Coordinator is offering free vouchers for health IT professionals to take one or more of the health IT professional exams. Exams will cover six key areas and must be taken by April 1. As of February, more 17,000 individuals in rural communities have taken part in the training offered through the program. More
Top 100 CAHs named
Share iVantage Health Analytics’ 2013 “Benchmark Performance for Critical Access Hospitals” study is an extension of the industry’s first rural hospital ratings program developed by this NRHA Corporate Partner. See which hospitals made the company’s list. More
HHS takes ‘time out’ on meaningful use stage 3 rule-making
AAFP Share HHS is effectively taking a “time out” in its rule-making process to ponder the best way to move forward with stage three of electronic health record meaningful use objectives intended to improve the quality, safety and efficiency of health care. More
Study: Patients balk at considering cost in medical decision-making
The Washington Post Share In recent years, consumers increasingly have been encouraged to factor cost into their medical decisions — by, for example, avoiding unnecessary tests, buying generic drugs and reducing visits to the emergency room. The hope is that a patient better educated and more engaged in his or her health decisions will choose options that will both promote better health and decrease costs. More
Casting call for new TV show focusing on rural health care providers
Share A New York City-based television production company is developing a new television series about rural physicians, nurses or midwives for a major cable network. The show will focus primarily on health care professionals who work with women and babies. Dynamic medical workers who spend a large portion of their time visiting their patients outside a typical office setting are sought in a casting call for this new show. More
How to track, attack a superbug
NPR Share Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention, recently held a press conference to announce the need to “sound an alarm” on the advance of CRE, a highly drug-resistant bacteria. CRE and other superbugs are found mostly in hospitals and long-term care facilities. More
Solar power brings health care to rural areas
Gadget Share At the 2013 Samsung Africa Forum, Samsung Electronics Africa launched its Solar Powered Health Centre model in Cape Town, South Africa, marking the start of a large-scale medical initiative on the continent. The mobile centers are built for use in remote rural areas, and intended to eliminate the economic and geographic barriers that prevent people across Africa from obtaining quality medical treatment. More
Apply now for scholarships through NURSE Corps
Health Resource and Services Administration Share The 2013 NURSE Corps Scholarship Program — formerly known as the Nursing Scholarship Program — application cycle is now open. Through their scholarship and loan repayment programs, NURSE Corps is empowering and enabling nurses to follow their passion for helping and healing others. The deadline to apply is 7:30 p.m. EST May 2. More
National Nutrition Month sheds light on childhood obesity
New Mexico Department of Health Share The New Mexico Department of Health has released “The Weight of Our Children: New Mexico Childhood Obesity 2012 Update” to coincide with National Nutrition Month. The fact sheet reflects data collected in an effort to understand and address the problem of childhood obesity. Data was analyzed by grade, gender and ethnicity, and results were weighted to represent the kindergarten and third grade public school populations in New Mexico. More
Health care cuts from vaccinations to research
Kaiser Health News Share Sequestration spares Medicaid and almost all of Medicare, but automatic cuts to other federal health care programs will make it more difficult for low-income Americans to get maternal and infant care, vaccinate their children and receive treatment for mental illness. More
ONC: Hospitals make strides to show meaningful use
InformationWeek Share Hospitals are making good progress acquiring and implementing basic electronic health record systems that are capable of showing meaningful use, but only a small minority has comprehensive EHRs, according to a pair of new reports from the Office of the National Coordinator of Health IT. More
A bump in the road to accountable care?
Kaiser Health News Share The pioneer accountable care organizations have long been the shining stars of the Affordable Care Act’s strategy to rein in the country’s out-of-control spending on health care. The 32 organizations are part of a Medicare pilot project called for in the health law that could revolutionize the health system by paying doctors and hospitals for quality of service rather than the volume of services. Pioneers would be offered a bonus for giving patients high-quality care at a reduced cost. If they failed to hit certain quality targets or did not manage to reduce the cost of care, they would be dinged accordingly. More
TRENDING ARTICLES Missed last week’s issue? See which articles your colleagues read most.
Heart disease and stroke are the first and fourth leading causes of death in the United States. Heart disease is responsible for 1 of every 3 deaths in the country. Million Hearts™ is a national initiative that has set an ambitious goal to prevention 1 million heart attacks and strokes by 2017. The impact will be even greater over time.
Million Hearts™ aims to prevent heart disease and stroke by:
Improving access to effective care.
Improving the quality of care for the ABCS.
Focusing clinical attention on the prevention of heart attack and stroke.
Activating the public to lead a heart-healthy lifestyle.
Improving the prescription and adherence to appropriate medications for the ABCS.
The Million Hearts™ initiative will focus, coordinate, and enhance cardiovascular disease prevention activities across the public and private sectors in an unprecedented effort to prevent 1 million heart attacks and strokes over five years and demonstrate to the American people that improving the health system can save lives. Million Hearts™ will scale-up proven clinical and community strategies to prevent heart disease and stroke across the nation.
Million Hearts™ brings together existing efforts and new programs to improve health across communities and help Americans live longer, healthier, more productive lives. The Centers for Disease Control and Prevention and Centers for Medicare and Medicaid Services are the co-leaders of Million Hearts™ within the U.S. Department of Health and Human Services, working alongside other federal agencies including the Administration for Community Living, National Institutes of Health, the Agency for Healthcare Research and Quality, and the Food and Drug Administration, the Health Resources and Services Administration, and the Substance Abuse and Mental Health Services Administration, the Office of the National Coordinator, and the U.S. Department of Veterans Affairs. Key private-sector partners include the American Heart Association, and YMCA, among many others.
In the last few years, there have been major changes in the way consumers handle their banking and other financial transactions. As a result of new laws and regulations and advancements in technology, it’s important for consumers to have as much information as possible to effectively manage their money and avoid scams. That’s why, in observance of National Consumer Protection Week (NCPW) 2013, the FDIC has compiled a list of some of the most popular articles from its quarterly newsletter, FDIC Consumer News. The list can be found at www.fdic.gov/ncpw.
“The FDIC recognizes the importance of providing consumers with useful information to help them make informed decisions about their money and to protect themselves against scams,” said Chairman Martin J. Gruenberg. “For that reason, we are highlighting some of the FDIC’s most popular recent articles for the benefit of consumers with similar concerns.”
Examples of the articles that are featured on the FDIC’s Web page for NCPW include:
How to shop for an auto loan;
Advice on borrowing money to pay for college;
How long to keep documents such as bank statements and credit card bills; and
Tips for managing a mortgage.
The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. To find current and past issues of FDIC Consumer News, visit www.fdic.gov/consumernews or request paper copies by contacting the FDIC’s Public Information Center toll-free at 1-877-275-3342, by e-mail to firstname.lastname@example.org, or by writing to the FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226.
Also in connection with NCPW 2013, which is March 3-9, www.fdic.gov/ncpw features other FDIC resources for consumers on a variety of topics. Among them are “EDIE,” the FDIC’s online calculator that assists consumers and businesses in determining their deposit insurance coverage; BankFind, the FDIC’s online directory of insured institutions, including banks that changed names or no longer exist; and Money Smart, a financial education curriculum concentrating on the development of consumers’ financial skills and positive banking relationships.
“The FDIC is proud to be a partner in this year’s National Consumer Protection Week campaign and to support efforts to help people become informed consumers,” Chairman Gruenberg added.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 7,083 banks and savings associations, and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center (877-275-3342 or 703-562-2200). PR-16-2013
The FDIC’s Greatest Hits: Some of Our Most Popular Articles for Consumers
As part of National Consumer Protection Week 2013, the FDIC provides a list of some of the most popular articles from our quarterly newsletter, FDIC Consumer News (www.fdic.gov/consumernews). Take a look at the topics that many consumers are interested in (based in large part on “hits” on the FDIC’s Web site) and read the articles for helpful information and tips.