Allen Steinberg, Author at Allen Steinberg

Allen Steinberg

25.10.2018 09.34 CDT

Disclosure on health care costs can help reduce those costs. That is not always true.

Increased Health Care Disclosure: Will It Help?

The federal government has taken steps to increase the amount of information available to consumers about health care costs. Will it help?

Disclosure health care prescription drugs

In recent weeks the federal government has taken a number of steps to increase the information available to consumers. However, it is not clear whether these new disclosures represent breakthroughs in transparency or are simply window dressing.

Allen Steinberg

11.09.2018 03.20 CDT

A recent IRS private letter ruling approved an innovative approach that allows employees to balance student loan repayments with saving for retirement.

Combining Student Loan Repayments and Retirement Savings

By combining a 401(k) plan with student loan repayments, this approach may provide employers an opportunity to help employees meet student loan obligations without adding a costly new program.

401(k) college students graduate students innovative

The IRS recently approved a new plan design that allows employees to receive employer retirement contributions either by (i) making deferrals into the employer’s retirement plan, or (ii) making student loan repayments.

Allen Steinberg

17.07.2018 10.34 CDT

At the core of the Administration’s actions to dismantle the ACA are actions that pull lives out of the risk pool; undermining the integrity of the ACA’s risk pools will undermine the stability of health insurance markets. This instability may prove to be yet another set of ACA-related headaches for employers.

Risk Pooling, Risk Shifting and Risky (Health Insurance) Business

It is difficult to measure the specific effects, of each of these actions, on health insurance markets. However, there is increasing evidence that the cumulative effects of these actions are reshaping health insurance markets in the United States.

ACA AHP repeal STLD

Over the past year the Administration has taken a number of steps that serve to undermine the ACA by facilitating the movement of covered lives away from plans covered by the ACA - by increasing premiums, by discouraging carrier participation in ACA exchanges and by reducing behavioral barriers to dropping individual coverage. These actions represent traps for employers caught in the middle of this slow-motion ACA repeal.

Allen Steinberg

05.06.2018 12.08 CDT

There is significant evidence that consumers are placing their trust - and their money - with financial professionals who have financial incentives that conflict with consumers’ best interests. It does not appear that the current debates over professionals’ standards of conduct will make real progress in addressing this issue.

Dancing on the Head of a Pin

Regulators and courts may focus on the different rules for “investment advisers” and “brokers.” But, in the real world, this distinction confuses investors and undermines consumer protections.

Broker Fiduciary Investment Adviser

There are key legal differences between investment advisers and brokers. However, consumers do not understand the implications of these differences. Consumers’ confusion is exacerbated by industry advertising, with references to “financial advisers,” “wealth managers” and “financial consultants” further blurring the difference between investment advisers and brokers.

Allen Steinberg

18.05.2018 09.49 CDT

Financial firms have both the opportunity and the financial motivation to move customers from employer-sponsored plans to individual products, such as retail managed accounts and annuities. An investigation of Wells Fargo bank may disclose whether the bank succumbed to the temptation.

Et Tu, Wells Fargo?

An investigation does not mean there was any wrongdoing by Wells Fargo.

Fiduciary leakage

Wells Fargo bank is reportedly under investigation for practices in the bank’s retirement plan division. The investigation apparently focuses on practices that may have been intended to move clients from employer-sponsored plans into more expensive individual retirement accounts when they leave their jobs. If these reports are accurate it may help shine a light on industry practices that contribute to plan “leakage.”