GeriLaw | Robert Fleming, Tucson elder law attorney, and colleagues

Medicare Part B Premiums Remain the Same in 2009

The Medicare Part B premium for most beneficiaries will remain at $96.40 per month for 2009.  This is the first time since 2000 that the premium is not increasing, and this is only the fifth time since 1976 that the premium has been frozen.  Individuals earning more than $85,000 and couples earning more than $170,000 will still pay premiums based on their income, with the premiums ranging from $134.90 to $303.30 per month.  The deductible for Part B will also remain steady at $135.

Normally, premiums go up each year because costs and demand for care projected for the coming year are expected to rise.  These costs will likely rise next year, but these costs will likely be offset because of an adequate reserve in the Medicare Part B trust fund.  The reserve gained $9.3 billion this year after officials realized that money for hospice costs had been inadvertently drawn from Medicare Part B instead from Medicare Part A.  Healthcare costs usually rise more quickly than inflation, so the premium freeze may not last past 2009.

Medicare Part B covers a portion of the cost for visits to physicians, other outpatient care, durable medical equipment (like wheelchairs and oxygen machines), some home health services, certain outpatient therapies, and drugs that cannot be administered by patients at home and are thus administered by physicians in their offices.  Medicare Part A covers hospital and limited nursing home care.  Most beneficiaries do not pay a monthly charge for that coverage, but next year they will pay a $1,068 deductible when admitted to a hospital; this is a $44 increase from the current deductible.  Medicare projects that it will spend $245.5 billion on hospital, skilled nursing, hospice and some home health services, and $194.3 billion on Part B services.

Low-income Medicare beneficiaries can receive assistance with the Medicare Part B premium costs, as well as the deductibles and co-payments.  These beneficiaries are called “dual eligibles” because they are eligible for Medicare, and they are also eligible for Medicaid due to their low income.  For Qualified Medicare Beneficiaries (QMBs), Medicaid will pay the Medicare Part B premium, deductibles, and co-payments.  For Specified Low-Income Medicare Beneficiaries (SLMBs), Medicaid will pay the Part B premium.  These dual eligible beneficiaries can also receive assistance with the Medicare Part D prescription drug benefit costs.

Andrew H. Hook
Oast & Hook
www.oasthook.com

Home Inventory Provides Peace of Mind

As the scenes of the aftermath of Hurricane Ike remind us, we are in the most active part of hurricane season.  Although we have been relatively fortunate with respect to hurricanes and tropical storms since Hurricane Isabel struck five years ago, we need to be prepared.  In addition to bad weather, there are a number of events that can damage your home or belongings.  If you need to file a claim with your homeowners or flood insurance company or with the Federal Emergency Management Agency (FEMA), then you should have an up-to-date inventory of the contents of your home.

Preparing a home inventory can be a daunting task.  You can use pen and paper, take photographs of your possessions, or prepare a spreadsheet on your computer.  There are also commercial software programs that can help you with the inventory process.  One example is Quicken Home Inventory Manager.  This software and others like it normally allow you to click on pre-selected choices to build your list, according to the rooms of your house.  In addition to the usual rooms in the house, these areas can include laundry and utility rooms, and patio decks.  This software includes categories of items such as office equipment, hobbies and crafts.  You can also add your own locations and categories of items.  You may also be able to drag-and drop images into your inventory list, including photographs and receipts.  In addition, you can back up the information to a flash drive, or back it up online for an additional fee.  You can print a copy of your inventory and store it in a safe place.  Backing up your data is critical because you do not want to spend the time and effort to build the inventory only to discover that you cannot find it or access it in an emergency.

Andrew Hook
Oast & Hook
www.oasthook.com

Deadline Nears for Free Credit Monitoring Services

Recent articles in the Daily Press highlighted credit report issues.  As a result of a class-action settlement, credit bureau TransUnion will provide free credit-monitoring services to millions of consumers.  The company did not admit wrongdoing in the lawsuit alleging violation of the Fair Credit Reporting Act.  Consumers have until September 24th to register for benefits under the settlement.  As of August 22nd, about 380,000 people had registered for the credit monitoring services, cash payment, or both, out of 150 million potentially eligible consumers.

Any consumer who had an open credit account or open line of credit from a credit grantor is eligible, if the credit account was opened between January 1, 1987, and May 28, 2008.  Credit types might include car loans, bank or retail store credit cards, finance company loans, mortgages, or student loans.

To register for this settlement, consumers should go to www.ListClassAction.com or call 866-416-3470.  Married consumers should both register if eligible.  You will be asked to choose from one of the following options:

• A cash payment, if funds are available for distribution.

• Six months of credit monitoring and a potential cash payment.  The six months of credit monitoring services normally retails for $59.95.  It includes the ability to lock your credit report so third parties will not be allowed to access your credit report without your consent (unless allowed by law).  It also allows unlimited daily access to your TransUnion credit report and credit score.

• Nine months of enhanced monitoring service (no cash payment).  The enhanced service retails for $115.50 and includes all of the services in the six-month option.  In addition, you will receive insurance scores and a mortgage simulator service.

Consumers selecting credit monitoring services will have six months after the court grants final approval of the settlement, and all appeals have been resolved to activate the monitoring benefit.  Any cash payout will not be available until at least two years after the court finalizes the settlement.

This is an opportunity for consumers to try out a credit monitoring service; it will give you the opportunity to monitor your TransUnion credit report.  Such monitoring services have their limitations; for example, you are contacted about a potential real or identity theft after the fact.  Credit monitoring is fraud detection, not fraud prevention. 

As identity theft increases, all consumers should review their credit reports for errors, credit card accounts that they never had, or late payments that were not late.  You can order a free report from each of the three major credit bureaus (Equifax, TransUnion and Experian) through www.annualcreditreport.com.  This website is the only one that was set up under government rules to provide completely free reports.  One bureau might have correct information, while another may have errors.  If you find an error, then credit bureaus are required by law to investigate all consumer disputes, fix errors, and inform consumers of the outcome within 30 days.  You should use the official dispute form provided by the bureaus on their websites, and add a short letter stating that you “are disputing the following inaccuracies.”  Include the reason the information is inaccurate, and copies of relevant documentation.  You should send the form and letter by certified mail, return receipt requested, and send a copy to the credit card company of other firm that had erroneous information in your credit report.  If you think you want to use a credit counseling service (They are not in the business of credit repair.), the most reputable firms can be found through the National Foundation for Credit Counseling at 800-388-2227 or www.NFCC.org.

Andrew H. Hook
Oast & Hook
www.oasthook.com

IT’S AN ELECTION YEAR – TIME TO UPDATE YOUR ESTATE PLAN

A recent Wall Street Journal article provides an interesting perspective during this election year. As we think about our choices in this Presidential election year, you should also take the time to make other important choices for your legal and financial future. It’s easy to procrastinate on making important decisions because they are time consuming or tedious. If you do procrastinate and then a crisis arises, it may be too late to fix the problem. The crisis may be a health emergency, or, during this time of the year, it may be a hurricane. Hurricane Gustav and the Gulf Coast states’ preparation and execution of the emergency preparedness plans remind us of the importance of prior planning.

You should commit to reviewing and updating your estate and financial plan between the political conventions and Election Day every four years, if not more often. Think of it as the equivalent of changing the batteries in your smoke detector when we go off or on daylight saving time. Here are some of the planning issues you should review and resolve:

Update your will or trust. It may seem obvious, but often people delay this task even as their life changes dramatically. If you have had children (or grandchildren) since your last will or trust was written, then it’s time to update. If your financial situation has changed, or if you or your spouse have had serious health issues, then you should review this part of your plan.

Check your beneficiary designations. The forms for your retirement accounts, pension plans, annuities and insurance policies make it clear how you want these assets to pass at your death. Please keep in mind that your last will and testament will not control the disposition of these assets if you designate beneficiaries. If you have online access to these accounts, you may be able to check the designations and update them online.

Review your general durable power of attorney and advance medical directive. If you don’t have these tools as part of your plan, then now is the time to get them in place. They are your opportunity to designate the right people to make your financial and medical decisions for you if you are unable to make them for yourself. The alternative in Virginia is court-ordered guardianship and conservatorship; the process is costly and cumbersome. If you have these tools in place, then you should ensure that the people you have designated as your agents are still willing and able to serve in those positions, and that the tools reflect current state law. Even young adults should make their wishes clear, especially in an advance medical directive, which includes the living will.

Review your life insurance and financial plan. The life insurance review should be part of your overall financial review. You may have purchased life insurance as a means to replace income to take care of your children or spouse; your children may be grown and you may have other assets that will be sufficient to take care of your spouse. On the other hand, if you do have a young family or have taken on a large mortgage, then you may need to increase your life insurance; life insurance is less expensive when you are young and healthy.

Review your other insurance policies. Ensure that your homeowner’s policy sufficiently covers potential losses. If you have acquired some expensive items like art or jewelry, then you may need separate coverage. You may be able to save some money on premiums by raising your deductibles on your homeowner’s or automobile insurance. You should also review your flood insurance limits if you live in an area that requires it. For extra liability protection, you should investigate an umbrella insurance policy. If you do not already have long-term care insurance, then you should consider it as part of your overall plan.

Think about the big picture. Take the time to reassess your long-term goals and plans. If you do this, then you can adjust your estate and financial plan to meet your goals.

Andrew Hook
Oast & Hook
www.oasthook.com