Volume 17, No. 1, Winter 2009
By Sheila Curtis
Let’s start our 2009 update with Medicare’s Drug Program (Part D). Many of the plans raised their premiums and changed their formularies (the list of drugs they cover). The annual election period ended December 31), but if you fall into one of the following categories below you will be able to change plans:
Prescription Advantage, the state program that supplements the Part D Drug Plans or other creditable drug coverage, has cut back benefits due to the Commonwealth’s budget problems. Prescription Advantage will continue to help with the premiums for those who are eligible, but they will no longer help cap the co-pays until the member reaches the gap or “donut hole.” You reach the gap when the total cost of medications (what you pay and what the plan pays) reaches $2,700. Once the gap is reached, the member must provide Prescription Advantage’s defined co-pays.
This is also the time of year when you can change or join a Medicare Advantage Plan (Medicare HMO, PPO or PFFS). This period runs from January 1- March 31 each year. However, it can only be a lateral change:
Last but not least, there are time frames for signing up for Medicare Part A and B. You have a 7-month window when you first become eligible for Medicare (3 months before and 3 months after the month of turning 65).
If you or your spouse are actively working and have health insurance through that employer, you can delay picking up Medicare. Please talk with your employer or Social Security first before making any decisions. If you or your spouse is not actively working and you miss your 7-month window, you may have to wait until the open enrollment period, which is January 1-March 31 each year. If you sign up during this time, Medicare will become effective July 1 and you may have to pay a penalty.
I know this is a lot of information to absorb, so if you have any questions or need assistance please call your local Senior Center to make an appointment with a SHINE (Serving the Health Information Needs of Elders) counselor or call the regional office at 1-800-334-9999.
Happy New Year!
(Ms. Curtis is Regional Director of SHINE, a division of the Massachusetts Executive Office of Elder Affairs.)
By Russell E. Haddleton
As more and more Americans have been called upon to serve on active duty with the military in recent years, the question of veteran’s benefits and pensions has become an increasing issue for these former servicepeople…and their families.
Many are not aware of the benefits which may be available to veterans or the widows or widowers of veterans even if the serviceperson was not injured during his or her military service. And this includes aging veterans of previous conflicts who are now senior citizens.
The Veteran's Administration offers what is known as non-service-connected disability benefits that may include a low-income pension, housebound benefits, and aid and attendance. Aid and attendance provides funds, up to $1,842 monthly, for additional care to assist with activities of daily living, in the home, in an assisted living facility, or in a skilled nursing facility.
To be entitled to receive aid and attendance, you or your spouse must have served at least 90 consecutive days in the military, one day of this time during a war period. You or your spouse must have received other than a dishonorable discharge, and must be in need of the assistance of another individual, in your home, in an assisted living facility, or in a nursing facility. You or your spouse must meet the income and asset qualifications, as determined by the Veteran's Administration.
The widow or widower of a deceased veteran may also be entitled to receive benefits.
If you have a medical problem which may result in a stay in nursing home, or which requires expensive home health assistance, it may be possible to secure benefits from the VA.
In planning for entitlement to VA benefits, as in the case of Medicaid planning, time is critical. In the case of VA benefits, planning may be easier than in the case of Medicaid qualification.
(Mr. Haddleton is the principal of Haddleton & Associates of Hyannis, 508-771-3121.)By G. Robert King II, CFP®, AIF®
As I write this piece it is the beginning of a new year and, for many of us, a time when all of us are worried about our country's economic future.
Considering that financial anxiety can have a profound impact on your pre-retirement and post-retirement happiness, it's not surprising that a recent study published by the American Psychological Association found that negative news about the economy is causing significant stress for eight out of 10 people. That’s a 14 percent increase from a similar study this past April.
Here are a few tips on how to stay positive during a bear market and minimize stress during these challenging times.
Focus on the long-term: When the markets are fluctuating, it's hard to concentrate on long-term objectives. But remember that your investments are structured to meet the needs of your personal situation—factoring in your long-term goals, your tolerance for risk, and your time horizon. Investments for long-term goals are typically invested more aggressively, which means they’re generally more volatile. You likely won't need to liquidate these assets in the immediate future, so there is time for them to recover from their losses and potentially grow even more.
It's normal to feel like the markets will rise forever during bullish periods or drop until they're worthless during bear times. Although nobody can predict an exact time line, all post-World War II recessions have lasted an average of 10 months, while the longest two lasted 16 months. (The National Bureau of Economic Research says to start dating this recession from December, 2007.)
Take care of yourself: Anxiety is bad for your health. Statistics show that stress-related physical and emotional ailments were on the rise in 2008. The economy is certainly not worth risking your health.
Concentrate on the positive: It may be best to steer clear of news stories that shout tales of doom and gloom. Although our economic situation is quite serious, keep in mind that some media outlets have a tendency to sensationalize stories to attract a larger audience. Try finding positive distractions, such as volunteering. Nonprofits often struggle in bearish climates when fundraising dollars tend to decline.
Get help: Financial planning firms [ahem, like mine] recognize economic downturns can cause emotional strain. Whether you're worried about the economy, the markets, or your personal situation, share these concerns. Often small changes in your financial plan will ease your stress and have big impact in your financial life.
(Mr. King is a Certified Financial Planner in Hyannis, 508-790-7100 or info@capitalportfolios.net.)
By Marsha A. Ostrer
As the years pass, few think that one day they will become their parents’ caregivers.
But that’s when questions often arise:
The answers are rarely simple and family dynamics often complicate matters even further. Big sisters, little brothers, black sheep, mom’s favorite. You know the drill.
Often financial questions also lurk just below the surface. Getting stuck in an old quarrel can sabotage sensible decision-making.
Too often, families wait until a crisis occurs to discuss care, safety or quality of life concerns causing increased stresses and tensions.
Elder Mediation (EM) has emerged as a specialized professional mediation process to help resolve these family conflicts and assist in wise decision-making. And not just for elders. The process also has been used successfully by divorcing parents, businesses and others looking for an efficient and cost-effective way to resolve difficult disputes.
EM gives seniorsa voice in the decision-making process as well as providing families with a forum to communicate with compassion and candor about difficult issues. It provides a detached perspective to help families develop communication strategies to successfully work together in the future. Studies show an 85-90 percent compliance rate by families with EM resolutions.
Here are some tips to get you started:
(Ms. Ostrer, an attorney, founded Ostrer and Associates International, Family Mediation of Cape Cod of Chatham in 1982, 508-430-1610. They offer EM services throughout Barnstable and Plymouth Counties.)