There’s just one month left to make changes in your Medicare Part D plan or Medicare Advantage plan. Open enrollment for these Medicare health plans ends Dec. 31.

Procrastinating?  You are not alone, but skipping a review now of your Medicare health plans can cost you throughout 2010.

Here are 3 common excuses and why they may increase your health care costs in 2010. 

Excuse #1 – My drugs haven’t changed so why should I change Part D plans?

 While your drugs may not have changed, your plan may have. The premium on your Part D plan may have increased; the list of drugs covered (the formulary) may have changed leading to higher out of pocket costs for you; new plans may be available in your area that better fit your prescription drug needs.  

Excuse #2 – My friends aren’t changing Medicare health plans so why should I? 

Insurance coverage should reflect the way you use the health care system.  That can be very different than your neighbor’s or best friend’s experience.  Comparing information about customer service is a great benefit.  But when it comes to a health care plan, take the time to look at the specifics and calculate what the total cost is for the way you use your insurance policy.

Excuse #3 – It’s too much work to compare plans. 

Agreed, it can take some time to compare Medicare health plans and it hardly qualifies as entertaining.  But, there are tools and resources available to help you.  And the money you might be able to save can be put to other endeavors – like rescheduling a trip to see the grandkids.

There are tools and resources available to help you.

   *Carefully read the information sent to you by your current Medicare health plan.  The changes they highlight will give you a head start into figuring out whether the plan still works for you.

   * Medicare.gov has a comparison tool for Medicare Advantage and Part D plans.    

   * Contact your current insurance company to see if they have other plans that might be a better match for your needs.

   * Local senior centers often have assistance available from volunteers or local agencies.  But time slots fill up fast, so don’t wait.

   * Contact an insurance broker who offers several different companies, including your current company, and ask them to do the comparison for you.  They work with these products every day and can be very helpful.  Just make sure you have information available so they can do a good comparison (especially current prescription drugs, quantity and dosage).

 This is the one time during the year you can make changes in your Medicare Part D and Medicare Advantage plans.  So set aside the excuses and compare now so you’ll have the right plan at the right price in 2010.

 Resources: 

Medicare website: http://www.medicare.gov

 Medicare Health plan quotes from Longevity Alliance– http://www.laihealth.com

Article from Kaiser Health News and Washington Post on Part D cost Saving

Gift cards have become increasingly popular, especially for those of us who know the right place but not the right thing to buy. Or don’t see family and friends often enough to know just the right gift to buy.

But they don’t always get used and sometime fees eat away at the card value. Americans spent $88.4 billion on gift cards in 2008, but left $6.4 billion unused, according to TowerGroup, a consulting firm.

There are new consumer protection rules going into effect in August, 2010, but you are on your own for now.  If you want to make sure your gift recipient gets to use every bit of the card value, check out the rules that apply to the gift card before you buy.

 What to watch out for?  Fees.

See if the card charges a fee for inactivity or dormancy.  And, watch for a “use by” date on the cards.  It may be an expiration date.  Or it may mean that the card holder needs to replace the card for a new card after that date.

New rules will apply to cards next year, though many companies are already bringing their cards in line with the new requirements.

Here are the major changes coming in August, 2010 and give you an idea of you’re your card rules should look like today.

     *Rules would prohibit dormancy, inactivity, and service fees on gift cards unless: (1) there has been at least one year of inactivity on the certificate or card; (2) no more than one such fee is charged per month; and (3) the consumer is given clear and conspicuous disclosures about the fees.

     *Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded.

Worried about whether the card will get used without penalty?

There’s always the gift of cash!

It’s been a tough year for many of us as we watched our nest-eggs shrink and our concern for financial security grow. That kind of anxiety and search for “solutions” is just the kind of fear that some in the investment field feed on.

We’re already hearing about an uptick in mailings offering “free lunch” seminars.  That will grow in January as many make New Year’s resolutions to get their finances in better order.  Free lunch fliers and mailings will multiply.  The lunch may be good, but the advice may not be.

Keep your antenna up!  And remember the old adage –“ there is no such thing as a free lunch.”

Nearly 6 million Americans age 55 and older have attended a free lunch or dinner in the past three years, with mail as the most common method of solicitation (63 percent). Over a quarter of invitees (27 percent) have received ten or more invitations.

More than three-quarters of older Americans are concerned that financial scams will damage their retirement nest eggs or those of someone they know, according to AARP and the North American Securities Administrators Association (NASAA).

A free meal and information can sound innocent enough.  But the survey found once at the seminar, half of seminar attendees said the presenter asked them for personal information, such as their contact information or information about their finances and 46 percent reported that presenter attempted to make a follow-up appointment at their home.   Nearly 40 percent reported that the presenter tried to sell them financial products either during or after the seminar

There are better ways to get information and help.

• Get referrals from people whom you know and trust.
• Check regulatory websites for background on anyone you speak with about your investments.
• Bring along someone knowledgeable about investments if you aren’t confident in your knowledge.
• Don’t agree to anything if you don’t understand it fully and have read all of the terms and conditions.
• Know the standard under which the individual operates:  suitability — recommend investments that are suitable for your situation; fiduciary – must act in a manner that is in your best interest (not theirs); and  how they make money on what they sell you.

 If you go to a “free lunch seminar” you might want to take along this checklist from AARP to help you gauge the content and the presenter.  

NASAA has a websitefilled with information for seniors about investing and a clickable map to let you know where to file a compliant with your state regulator if you have a problem.  

The SEC also offers information, investment guidance and tools especially designed for seniors.

For many “holiday tradition” means fights, disagreements, arguments at the dinner table. 

 But, maybe things will be different this holiday.

A new study says that the “generation gap” is disappearing as the number of multi-generational families increase and values and tastes converge.  The Nickelodeon study finds that new cultural attitudes, technology and the current economic climate are drawing families together.

Here’s what they say…

 * 76% of parents of 2-21 year olds say they feel extremely close their child today, while only 25% of grandparents reported that they felt close to their own child.  Today, 49% of parents have one of their own parents living within 30 minutes from them; 10% have a parent living with them.

 * Baby-boomer grandparents are playing a central role in day-to-day family life.  61% of parents of 2-17 year olds say the grandparents assist with raising the kids.

 * Parents and kids spend time together – watching movies (77%); listening to music (41%) and playing games together (66%).

 *51% of parents of 8-21 year-olds are now talking to their kids more about the importance of saving money. 

* 41% of 13-21 year-olds are now saving more of their own money and 38% say they are using their own money to purchase things they want.

 What do you think?

 If you are approaching retirement or retired, you really want to pay attention to the trends in the cost of retiree health care.

 It’s not very good news for your wallet.  More of the cost of health care is shifting to the individual.  And the cost can make a big difference in how far your fixed income in retirement goes. A tough punch after the hit retirement savings have taken in the past year.

 A study from Towers Perrin says that only 45% of the companies surveyed subsidize retiree health care costs –a number that has been continually declining over the past ten years.  And in some cases, employers have in place caps on their premium subsidies, and as those caps are hit, the costs shift to the employee.

Pre-65 retiree health coverage (with no employer subsidy) in 2010 is $7,596 for a single retiree – family coverage hit a whopping $19,596!

With an employer subsidy the cost for a pre-65 employee is $3,984 and $10,548 for family coverage.

Post 65 retirees are generally seeing a 4% increase to $3,840 and $7,848 for a family..  The survey warns however that the low increase masks such plan changes as elimination of prescription drug coverage or other benefit reductions which end up with more out-of-pocket costs.

So what does this mean for health care planning in retirement?  Do the numbers early and often.  Don’t make assumptions that what you have today, is what you’ll have tomorrow. 

If your health care is employer subsidized now, run the numbers of what happens to your payment if you lose that subsidy. Can you afford it?  Better to be prepared than surprised.

 If you are on your own to pay, it may make financial sense to work a bit longer and save more to pay for health care in retirement.

 It is unclear what impact health care reform will have on retiree benefits, but Towers Parrin warns that it could bring significant changes for retiree medical benefits. Some provisions could encourage employers to terminate retiree health benefit plans.  On the other hand, universal access to coverage for those under 65 might give companies a reason to leave that retiree market since employees would have access to health care elsewhere.

What kind of changes are you seeing in retiree health benefits?

 Resources:

Towers Perrin Report

Medicare Health Plan Quotes from Longevity Alliance — http://www.laihealth.com

November is Long-term Care Awareness month so there are lots of new surveys: how much we don’t know or deny about our future need for long-term care; long-term care statistics; what long-term care costs; how long-term care gets paid for…and the list goes on.

There’s good reason we don’t like to think about long-term care since it marks a time of less independence and decreased independence.  Everything about our culture promotes youthfulness and activity.  So thinking about a time when there are things you can’t do for yourself – well, we naturally put it off.

But you shouldn’t and here’s why.

If you know anyone who has faced –or you yourself-have faced –finding long-term care for a family member or friend, the reality is all to clear.  Long-term care is expensive and it can disrupt not just family routines and dreams, but financial independence for you and your loved ones.

And by the way, while we think about long-term care mostly as aging related, the fact is that  about 40% of long-term care is provided to people under the age of  65 — accidents and disabling health conditions can happen at any age.

It’s also evident that our not-so-healthy lifestyle may be catching up with us and expanding the need for long-term care. A new study from the David Geffen School of Medicine at the University of California-Los Angeles found that people ages 60-69 report more disabilities than in past years.  Those in their 70s showed no change in disability rates.  Only those in their 80s showed improvements in disability over time. While the research didn’t pinpoint the reason for the increases, the researchers say that is likely obesity that increases stress and strain on the body that leads to increases in disability.

So, what are the implications?  Here are three to think about.

1. First, from a health perspective, the increases in disability should be a wake-up call to live a healthier lifestyle.  Diet control and exercise should be a regular part of our life at any age.  Staying healthy helps stay independent.

 2. Caregivers – there aren’t going to be enough of them if this trend continues as baby boomers age. That means the costs of long-term care assistance, whether at home or in a facility, will increase simply because of supply and demand.  That also means the potential to place a burden on your family for your care increases if you don’t have the financial resources to pay for it.

3. You should have a plan for long-term care and a way to pay for it. For some people long-term care insurance is the right solution.  For others, relying on families and friends and the government may be the only solution. One of the best things you can do for yourself is to get familiar with the realities of long-term care:  what Medicare does and does not pay for (mostly does not); what the cost of care is in your area today; and who you’ll want to help you through these decisions when the time comes. You owe it to yourself and your family to have a plan in place and have talked with family members about your long-term care wishes.

The five most common reasons for a long-term care insurance claim, according to the Association for Long-term Care Insurance, are Alzheimer’s Disease, stroke, arthritis, circulatory issues or injury.

You probably know someone who can tell you exactly what it means to be faced with long-term care needs and make decisions in a crisis (usually not a very pretty story) and you may know others who have the all the right documents in place and have provided guidance on their preferences when the time comes. Talk to them.

Here’s an article from the Huffington Post that captures one family’s story and another from the Orange County Register.

So, this holiday season do your family a favor.  

Get a plan in place for long-term care.  Learn more about long-term care insurance if you think that might be the right choice for you.  Have a discussion with someone in your family about what you want when the time comes for long-term care.  If you have a financial adviser, talk with them about a financial plan for long-term care. If you’re really serious about not wanting to burden your children, this is one of the greatest gifts you can give them.

 Share your long-term care story and advice.

Resources:

Government long-term care information   

Cost of Long-term care by state from MetLife

 Long-term Care Quote – insurance quotes from a variety of companies

If you’ve been thinking about a change in your Medicare health plan, now is the time.  No more delaying. 

 That’s because this is the only time of year when you can make changes to certain types of Medicare coverage.  Miss it and you’ll have your current plan for another year. That could cost you plenty if your plan rates or co-pays have increased.  

So if you are planning on switching Part D plans or change Medicare Advantage coverage,  don’t put it off another day. You only have until Dec. 31. 

Still not convinced on why to make the decision now?  Here are three reasons:

1. The insurance agents that you speak with about plans have more time to take care of you now and help you compare plans.  The closer the deadline for applications comes, the more squeezed for time they become.

2. Give yourself some time to compare plans and make the decision.  Waiting until the last minute you might skip over some important points in the plan you decide to switch to.  Very few of us really make good decision when we’re under pressure.  Give yourself a break and get the paperwork done soon. the plans are the plans — they won’t be changing in the remaining weeks of the year.

3.  You’ll have the paperwork you need if you need to use the plan in early January.  The last thing you want is to be haggling with the pharmacy trying to get the medication you need because you don’t have the new policy information yet.

Have any reasons to add?

There are no special dollars off coupons comping,and the price isn’t going to change between now and the end of the year.  So take the pressure off yourself and make the decision by mid-December at the latest.   Then sit back and get ready to celebrate the New Year.

 Resources:

Medicare Part D comparison tool  

Medicare Advantage Comparison Tool

 Medicare Health Plan Quotes from Longevity Alliance  http://www.laihealth.com

Medicare and You 2010

You local senior center or Area Office on Aging may have assistance available for face to face meetings.  If that’s what you need, it really is important to get in soon and get help from the volunteers.

Hey, baby boomers and seniors, Uncle Sam has a pretty nice gift for you if  you want to move.  If you’ve lived in your home at least five consecutive years  and are considering downsizing or moving to a new location, now might be the time.  

The first-time home buyer tax credit has been expanded to include homeowners who have owned and lived in a home as their principal residence for at least 5 of the last 8 years. A tax credit is a dollar-for-dollar reduction in the taxes you owe, so it’s a nice incentive.

The tax credit is for up to $6500 on a replacement home purchased between Nov. 6, 2009 and April 30, 2010.

The phase-out range for unmarried individuals and married people who file separately is between modified adjusted gross income (MAGI) of $125,000 and $145,000. The phase-out range for married joint filers is now between MAGI of $225,000 and $245,000.

The National Association of Home Builders has a website on the federal housing tax credit with information, limitations of the credit and frequently asked questions.

Here is the official announcement from the IRS.

We also recomemend you seek advice of tax counsel to make sure you qualify.

Everyday we read about the results of research studies that give us a new clue into a medical condition or disease or some aspect of aging or development.  

Have you ever wondered how to find a research project to participate in?

Now there’s a new website that matches researchers with those interested in participating in research projects.  It’s called ResearchMatch .

Anyone can join ResearchMatch.  Many studies are looking for healthy people of all ages, while some are looking for people with specific health conditions. ResearchMatch can help ‘match’ you with any type of research study, ranging from surveys to clinical trials, always giving you the choice to decide what studies may interest you.

There are over 52 institutions that participate in the ResearchMatch network.

NIH (National Institutes of Health) said in announcing the new website that, “”NIH data indicates that 85 percent of trials don’t finish on time due to low patient participation, and 30 percent of trial sites fail to enroll even a single patient. We aim to help combat these challenges with ResearchMatch.”

With less than a week left before the open enrollment period for Medicare Part D and Medicare Advantage plans begins, what do you need to know now?  Here are three tips:

 1.  Don’t wait for resolution of health care reform. Act now for 2010 plans.

While the House has passed a health care reform bill, there is much to be done before the Senate begins its work.  And, most of the changes being discussed, if they are passed into law, will take a while to implement and generally won’t go into effect until 2013. 

The Medicare health plans – Medicare Advantage and Medicare Part D Prescription Drug plans are set for 2010. The plans choices and the prices have been approved and you can make your selections based on the rates quoted to you during this open enrollment period for 2010.

2.  Don’t wait until the last days of open enrollment.

The annual enrollment period is Nov. 15 through Dec. 31.  Companies can begin to accept applications Nov. 15 (a Sunday – so for most companies Monday, Nov. 16). Avoid the last minute rush. If you want to make sure your new plan will begin Jan. 1, the sooner you apply after Nov. 15 the better.

3.  Some changes can only be made during this enrollment period for Medicare Advantage and Medicare prescription drug coverage (except for a few exceptions).

 Here are the changes you can make during the open enrollment period Nov. 15 – Dec. 31, according to the Centers for Medicare and Medicaid Services (CMS).

• Change from Original Medicare to a Medicare Advantage Plan.
• Change from a Medicare Advantage Plan to another Medicare Advantage Plan.
• Switch from a Medicare Advantage Plan that doesn’t offer drug coverage to another Medicare Advantage Plan that doesn’t offer drug coverage.
• Switch from a Medicare Advantage Plan that offers drug coverage to another Medicare Advantage Plan that doesn’t offer drug coverage.
• Join a Medicare Prescription Drug Plan (Part D).
• Switch from one Medicare Prescription Drug Plan to another Medicare Prescription Drug Plan.
• Drop your Medicare Prescription Drug plan completely.

Remember, this enrollment period is for people who currently have Medicare health plans.  If you are just beginning to explore Medicare and Medicare health plans as you approach 65, you have a different set of enrollment rules.  The resources below can help.

Here are some resources to help you sort through the Medicare  health plan enrollment rules.

Understanding Medicare Enrollment Periods

 Medicare and You 2010

 Get Medicare Health Plan Quotes