1616-80 Various Miami Beach r v I r
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1
03D moN Ey
SD www . herald . com
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1
MONEY MATTERS
El
P 11
■ 0 or Class of 20
advice on job al
11
For those of you graduating this
month or next, the issue isn't only
finding a job but finding a job that
will take care of you financially.
And that could prove very, very
II tough.
Here's my decidedly unsunny
graduation speech: The burden of
handling your
personal finances
INSIDE
is firmly on your HARRIET J
shoulders,grade- hbraekf
ates.
0 Five tips for For example,if
_ holiday
grads,2E you become ill, today.That's a
increasingly, you'd earn at s
your employer won't help out with If health in.
the bills. And when you get up in as wages, "fog
4,*•? i, ' -; years, increasingly, your employer would be to r
y -1. ,+, ,. will not provide you with a retire- almost,"says
ment. financial plan
Those issues will be up to you to Associates in
resolve.And the solutions aren't per- see this kind
feet, new or brilliant. But they also developing,"o
4,' don't have to be bought from anyone. pie work as in- Essentially, it will all be in your because"no co
power. an employee."
• :'" So listen up: 0 You may
0 Health Insurance is not likely to sions are fadi.
a f n' be an automatic part of even a good happen sooner
r job for long. Wilshire E
You can see that coming if you report last we
S ait, look at a study, released this month Poor's 500 co
bythe Employment PolicyFounda- that shows
_ ^. tion, one of those inimitable Wash- increased by
s`.. -- , 1 ington think tanks, that shows that Their assets,r
• �' the annual employer cost of $106 billion.(I
5 4 EI a 1, S ' employee health benefits will be near investors in t
,. 3
. .........
,1 q $11,000 by the end of this decade.
. ! ..• That's up from a $3,200 average 0 Pl
„ x r'
•
c Support, criticism
.,,
;-,„, „, ,„,, 7
„/ 'a
$� :L�,� _
_-,
for healthcare tax 1
h f,.... .
u .
a ✓O rk& ,. BY JOHN DORSCHNER ' ��«H
.,. ►'Mrti,
,J K jdorschnerQa herald.com
IL r INSURANCE C
1 - , n � . r While manyDemocratic leaders
„{ � k � � , AMERICANS,.
r \'J ''
a are divided as to how to deal with 5%
„�� t
;• America's health-insurance woes,
,` o j most Republicans are united behind a Individual
coverage
�' simple alternative: Give consumers
tax breaks that would allow them 8%
l : '� ? more control over their medical Medicaid
r
t spending.
' r'`• , "If you put buying power into the Medicare
i :41 . hands of the consumers and arm
them with information to make them
-, "'' -, ° i� ,t ''t more effective consumers,then you 15%
j” r 11.;111. , e et ll can change a lot,”says Tom Miller of Uninsured
• :, the Cato Institute, a conservative
_�� think tank iso
'0' Miller and many other conserva-
�A .. �r ' SOURCE:The Ci
tives back the idea.The Bush admin-
1 • MBZ051803 HIRA
� ; istration is suggesting a $1,000 tax
.404'1//* credit for an individual,$3,000 for a
.,,ter °' «family. Plus, under the president's I'm being
plan, lower-income people would ket,"Kay says
= receive tax rebates to pay for their Critics of t
-,Fr+ _. , insurance. it has two ma
�.._luTo which Andy Kay, a Miami- being that ta:
•
`j(` —: Dade County television production enough to hel,
specialist,says: not good enough uninsured pa
"That might take a little of the foot rope for
sting out it," Kay says, "but it's not the consume.
going to solve my problems." describes the
BY CARA BUCKLEY He says he was told by Humana The seconc
HIote s_ cbuckleyQa herald.com that this year's premiums for his fain- that newly e
ily would be $1,180 a month, with a might not be
As the clock ticks down toward Memorial Day, $1,000-per-person deductible and get better pric
co-payments that would mean he offered.
restaurants the holiday that kicks off the summer travel season
and one of the biggest tourist weekends of the would pay about$600 a month out of Republica'
year, the restaurants, clubs and hotels of South pocket for medication his family
set to cash Beach lay in tense wait. needs. PLEA
The 200,000 hip-hop aficionados who flooded
the beach last year are,by most accounts, coming -
' back.No estimates have been made of their eco-
in nn �....�� :�:� .��
.;c r\-z?�y_s/ F.,:*-.^ " T — -
While manyDemocratic leaders INSURANCE CO\
^r ' r�I «`�' l'--1,-.-:r AMERICANS,20(
------4'' 11-;;11%,. 5 are divided as to how to deal with
i'r} gir coverage
o 7 I ;is America's health insurance woes, 5%
most Republicans are united behind a Individual
.'"1 ',
, f r `i
x•
simple alternative: Give consumers
tax breaks that would allow them Pk
more control over their medical Medicaid
r} 1• f spending.
'` � 3 r ' F "If youput buying 13%
rQ.b Fifa
Y g power into the
` :, _ I,� I .. hands of the consumers and arm Medicare
• , ,.9 ;Ip I . aF.E, �� ��
s ;•, I them with information to make them
.-- riolgt°<. ,: s4. I I; • , more effective consumers, then you 15%
r.I I I. t _ p,1a can change a lot,"says Tom Miller of Uninsured
li I the Cato Institute, a conservative
dl�P°" think tank. NOTE:
1 Miller and many other conserva- 100 peg
``i*: 146
i.
etives back the idea.The Bush admin- SOURCE:The comm
• istration is suggesting a $1,000 tax MBZ051803 HIRAM HE
r .. -., credit for an individual,$3,000 for a
... family. Plus, under the president's "I'm being
9r- plan, lower-income people would ket,"Kay says.pric
receive tax rebates to pay for their Critics of the R
(._,-�� -_ insurance.
it has two
•,..`'a _ _ To which Andy Kay, a Miami- being that tax major
` r -" Dade County television production enough to help the
specialist, says: not good enough uninsured pay fo]
"That might take a little of the foot rope for a 40
sting out it," Kay says, "but it's not the consumer gr(
going to solve my problems." describes the GOP
Hothls, BY CARR BUCKLEYHe says he was told b HumanacbuckleyPherald.com Y The second pro
that this year's premiums for his fam- that newly empo
ily would be $1,180 a month, with a might not be able
restaurantsAs the clock ticks down toward Memorial Day, $1,000-per-person deductible and get better prices th
the holiday that kicks off the summer travel season
andco-payments that would mean he offered.
one of the biggest tourist weekends of the would pay about$600 a month out of Republicans co]
set to cash year, the restaurants, clubs and hotels of South pocket for medication his family
Beach lay in tense wait. needs.
The 200,000 hip-hop aficionados who flooded PLEASE SEEI
the beach last year are,by most accounts,coming
in on back. No estimates have been made of their eco-
nomic impact,but the figure is in the tens of mil-
nMhO MAKING MONEY COMING MOI
emorial This year,like last year but unlike 2001,Miami
Beach is prepared:City officials met with promot- 4..-
ers and the police all year long and hammered out v. ! `
Da plans for what they hope will be a safe,and lucra i
libillIC [tO
� ��1v five,weekend.Two hundred.'goodwill ambassa ` L !�
J dors"will be on hand to baby-sit the crowds,and + t` 'A . "
' roughly 520 police officers,a 30 percent increase -
from last year,will be keeping close watch
Weekend s '"� t :�;�
With the tourist industry still in recovery,and ,,
�"'"
air travel down due to lingering effects of the poor ? y ' y
wave of economy and the war in Iraq, many hospitality '� 4•
insiders said the weekend,raucous or not,will give �+e G
Miami Beach,a much-needed boost. J E ~`
tO u r• MiAccording to Stu Blumberg,head of the Greater _I
ami and the Beaches Hotel Association,hotels
last week were reporting occupancy levels of Know when to say bye- Urban areas seek
roughly 90 percent,several notches ahead of res bye to a stock. PAGE 3E of tourism pie.
I PLEASE SEE MEMORIAL DAY,2E
MOTLEY FOOL
ILLUSTRATION BY PHILIP B ROOK E R Why budgeting is a good thing. PAGE 3E
MARKET WATCH
When stocks and bonds both rise. PAGE 4E
EDITOR: GEORGE HAJ ghajC herald.com 305-376-3578 or 954-764-7026 ext. 3578
12E The Herald www.herald.com SUNDAY,MAY 18,2003
S
on aiexs crei-N�o. Beachreadies
for traffic increase ,
;
�
for Memorial D ` :
4 \it L
- �9A.o or insurarA. . " -
making is not worth it because r. r .+I < , * w
,MEMORIAL DAY,FROM lE
of the increased security costs ,�
ervation levels for the same and the increased problems," r , - _ 1 HEALTH INSURANCE,FROM lE At 1SS
time last year. said Mike Palma, the Cleve- < . •
"The hotels will be busy;the lander's general manager. ,41„;•,, "M'� 3 ,P. rx , they're trying not only to help
stores will be busy; the beach Palma said he spends an addi- a 1 �t ^, ,. 7-, _ the uninsured but also to slow puttir
will be busy. This is what we tional $18,000 on security, far '` t 1`�` q ' the double-digit-percentage
want," said Roman Jones, more than any other weekend. I �" 4'1 s' , '4,�� ," increases in healthcare costs power
owner of the nightclub Opium For South Beach restau- , 4s ! • that have made U.S.healthcare const
Gardens. "It's all about being rants,Memorial Day weekend ' s; a spending per capita almost
prepared." has also been bittersweet. ' 4''` ' i twice that of other industrial- the nl
Like previous years,most of Last year,Lincoln Road was f ized nations.
South Beach's clubs will take a uncharacteristically empty as / 4,G P Alio _l. Fact is, many Democrats unins
break from their house music locals,apparently wary of the - k : , I " have shied from major health-
and techno beats to bring in crowds, stayed home.Restau- \,: - ' care-reform proposals follow-
hip-hop promoters. Crobar's rants along Ocean Drive .4, e ,,,� . ': e ',¢ ing the debacle of the sweep- Florida I
schedule includes parties groused about competition `+ ing Clinton ideas of the early pay $7,2
hosted by Ludacris and Neliy. from food vendors at the 1 4` A t 1990s.Suggestions by potential with a $
Club Level has lined up Sean Umoja festival, which will be Democratic presidential candi- HMO wr
Paul,Fat Joe and R.Kelly,also run again by hip-hop pioneer ,=';''k' '"' , °"� dates have varied widely,with cost$7,6
to"host" but not perform. Luther Campbell this year. ' ,.,.1 '' all essentially patching and tin- two 40
Level's manager, Gerry kering with what exists now in two chil
Kelly,also plans to bring in 75 HOPE REIGNS ` the public and private sector. with no]
to 95 security guards, aboutBut with Ocean Drive open �.r A Some conservatives,on the "In n
three times more than normal. to traffic this year,restaurants P. A other hand,are looking toward rebate
"Level is an extremely big are expecting a better turnout. i ,,, a revolution in healthcare by enough 1
place, and we want to be pre- As with the hotel and clubs,all CARL JUSTE/HERALD FILE moving away from the employ- ily to bu
pared,"Kelly said."I think a lot hands will be on deck, wither-basedFOOT TRAFFIC:Crowds wander on Ocean Drive in Miami Beach system,usually linked Merri
of people are haunted by the each restaurant fully staffed. to managed-care plans, and Council
during Memorial Day weekend in 2002.This year,the city plans to
problems a couple of years And the workers are preparing emphasizing a need for indi- Insuran.
ago, but last year went really their game plans. leave the street open to traffic. viduals,assisted by tax credits, stateme
well.I think in the present eco- "It's like a circus,a carnival; to buy their own policies. ous" an
nomic situation of the Beach, it's hot and muggy,and people "4 shouldn
and the world in general, we are quick to fight," said Mitch a AMA SUPPORT for all in
can all be happy with the pos- Rommines, a waiter at the Y. The American Medical "The
sibility of this weekend." Clevelander."You've got to be „.M 1 /It Association backs the tax- Americ<
fast; you got to hustle. I'm xcredit concept not only as a Matthe
CUTTING THEIR LOSSES anticipating the best weekend i' ,, , means to help the uninsured stamps
The Beach's hospitality of the year. I'd like to make i•„, ,„ _, A r;- ,1 t but also as a way to help doc- thing,ar
industry is by no means uni- $240 or $300 a day.” ,, • I,, tors escape the tight controls just awl
fled in its opinion of the party- Other Beach businesses ' of managed-care plans, which SI{EPT
filled weekend, which for the share the view that Memorial , 't"r ,4 1 �' they say interferes with their
past two years has attracted a Day is a cash cow. 44 • � ability to treat patients. Criti
mostly young black crowd. Alan Lieberman,who owns , Many consumers, too, are central
Despite the greater police the six boutique hotels in the - frustrated. A 2001 survey by credits
presence, a handful of hotels South Beach Hotel Group, said , the Watson Wyatt consulting her of u
OF and restaurants are not hedg- the weekend is one of the most • group found only 43 percent of "Mos
ing their bets. important in the year. .-a :1 » : workers satisfied with their percent
4 ' 1 ' 4 - t I ` ' employer-based insurance. says."II
The Loews Miami Beach, "It's a busy weekend in the �l - '� '�' . � � �JMt4 " The Cato Institute cites the more t]
site of a tear gassing during off-season. It carries our May .- •r'
,f ill.' c•• survey in its push for changes. income
Memorial Day 2001, stopped and June, and it sets the tone � i._, �
' taking reservations after their for the summer," Lieberman s 5 { What's more,those who get decide t
projected occupancy hit 80 said. - insurance at work already Anot
percent.The Palace, a restau- r r receive a hidden tax subsidy, that ra
rant and bar on Ocean Drive,is Y
PARTY CROWD � F < °; , since such insurance, which market
closing down for four days of Lieberman markets to party ' = can run several thousands of over a;
renovations that happen to people by encouraging guests 1 i dollars per worker, does not problen
coincide with the holiday.The to share rooms, offeringfree x."`• • .w d ,1•- - count as income for tax pur- say,ast]
y `� � � . poses. Currently, those who sure—
llth Street Diner, a 24-hour drinks at happy hour and hir- � P Y�
joint whose manager last year ing deejays to spin in his hotel F<" ,. buy their own insurance get no much o
boasted that his staff was"bat- lobbies. �� . - such break. Providing them insuran
tie hardened" and ready for "The urban hip hop market _ ' ', with a tax credit"would begin "Thi
anything,is closing from 1 a.m. is a very important market, • ,,,i to bring equity,"the conserva- lem,"
to 5 a.m. Friday. Lieberman said. "It's a close n 3. v 44. % ; t7 tive Heritage Foundation health-
"This year I'm just going to market, and we can keep get a,.�r t s" wrote in a report to Congress. George
wait and see what Thursday ting those people back all sum- £ 4 ` , „ , As the Heritage Foundation credits
and Friday are like,"said Andy mer." ,11;,'"iNi"':.r ,, - 1 points out, "the employment- individ
Sawides,the diner's manager. Since the Sept. 11 terrorist �" p,.•• :, , ,, 1 , . , = based system,while successful the abs
r ' . ,t -` for certain families,has severe our het'Savvides will decide whether attacks and the onset of flight , �;w � ,� � �,'�',� r �, „ . � }� `" weaknesses" particularly "Th
the diner stays open the fright, hotels such as Lleber CARL JUSTE/HERALD FILE —
remainder of the holiday based man's have been marketing to since 40 percent of businesses ket," s
on the weekend's first two people who live within driving STEP TO IT:Ty Murphy,left,James Brown,Adrian Dance and with fewer than 200 employ- times
nights. "Last yeas we had a distance. The strategy is one Justin Gaither,members of the Omega Psi Phi fraternity,perform a ees don't even offer health based c
couple of bad incidents. used by Visit Florida, the ritual known as stepping in South Beach last Memorial Day weekend. coverage,according to a Kaiser market
There's just too much to con- state'smarketing arm. Family Foundation survey. good,
trol." The greater demand forbe fuss
Even the Clevelander, the rooms during Memorial Day between $200 and $250. Jeff manages the Palms Hotels. ROOTED IN THE 'GOS to acce
sprawling neon and glass-brick weekend enables South Beach Lehman, who manages the Both hotels are sold out. Many experts, led by Ano
party bar at Ocean Drive and hotels to secure prices that are National hotel, expected an "We're putting a few off-duty Princeton professor Paul Starr, inform
10th, flirted with shutting closer to"rack rates,"or what average daily rate of$350, on police on, but it really isn't a say medical costs started soar- Brian
down for the whole weekend. they charge during peak sea- par with New Year's Eve rates. big deal. The bottom line is ing in the 1960s when third- Centel
"You're definitely making son. Lieberman said he was "It's a great weekend for that particular demographic is party payers,private insurers Reforr
money, but the money you're able to charge top dollar of us," said Lehman, who also very important to the Beach." or government-funded Medi- examp
care began bearing the brunt of "My
costs. Patients and healthcare says,
'
Advice on toughjob
ahead for Class of providers
no longer
needed to week,
worry expenses.
o
Under the consumer plan, me to 1
1 MONEY MATTERS,FROM 1E
HELPFUL HINTS American and the Financial conservative theorists main- I know
Planning Association. tain, patients and doctors sel byi
rest of us.) Fully 86 percent of those would be able to deal directly The
Almost nine out of 10 pen- 1 Before you go job hunting,check your credit report. surveyed believed it important with each other,with minimal "An
sion plans are underfunded; The major credit bureaus are at www.equifax.com, to have a financial plan—yet interference from middlemen. a cons
it's what happens when inter- www.experian.com and www.transunion.com.Many fewer than half had one. What's more, supporters say, per si
est rates drop and so do stock- employers do that,too,so you should know what's in I say: Use this anxiety as a consumer patients, realizing and b
market returns. there.If necessary,correct any errors. motivator. Don't worry about the need to pay for their own huge
Not that all pensions will 0 If you have student loans,check out the possibility of mastering all the skills of a insurance,probably at consid- there
dry up; most won't, I believe. consolidating them.Interest rates are at record lows, financial planner;just get off to erable out-of-pocket cost, [say]
which could make payments more affordable.A good a good beginning. would be much more careful those