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A Medigap Update

Posted by William C. Prewitt, MS, CFP on 8 March 2010 | 0 Comments

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New changes in Medigap Insurance policies are taking effect. New policies may have lower premiums.

Lower premiums ahead? Back in 2005, Congress voted to make major changes to Medigap plans effective June 1, 2010. While these changes are a bother, they could indirectly result in reduced premiums for these policies.  As the “modernized” Medigap plans sold after June 1 will have some differences from previous plans, insurers will be allowed to reset rates. Competition may drive premiums lower.

Please note: We’re talking about new Medigap policies that will be sold after June 1. If you already have a Medigap policy or buy one before June 1, these new changes won’t affect your plan, and you don’t need to replace your existing plan unless you feel the need. Just to clarify things further, Medigap plans are Medicare supplement plans, not Medicare Advantage plans.

The changes in brief. In June, three Medigap plans are going away, another is being modified, and two new plans are being introduced. Also, a new benefit will be included in all plans.

  • Plan E, Plan H, Plan I and Plan J will no longer be sold beginning June 1. (If you have one of these plans, you can continue to renew it as long as you keep paying premiums.)(source)
  • Two new lower-cost options will be available: Plan M and Plan N. Both come with some unique cost-sharing. 
  • Plan M looks like Plan D with a couple of alterations. It covers just 50% of Medicare’s Part A deductible; 100% of Part B co-insurance is covered, plus skilled nursing facility care and emergency care in foreign countries.(source)
  • Plan N also resembles Plan D, but there are differences. Plan N will pay the full Part A deductible, but it asks you for co-payments of up to $20 for each covered healthcare provider office visit (including specialists) and up to $50 for each covered emergency room visit (you don’t pay that $50 if you end up being admitted to a hospital).(source)
  • Plans D and G will not come with preventative care and at-home recovery benefits after June 1, 2010. After June 1, Plan G coverage of Part B excess charges will be raised from 80% to 100%.(source)
  •  A hospice care benefit will be added to basic benefits of Plans A-G.(source)
How easy would it be to switch to a lower-premium plan? If you’re going to celebrate your 65th birthday in the next few months, you can enroll in a Medicare supplement plan now and switch to a lower-premium plan in June, as you’ll be in the six-month open enrollment period. If you are older than 65, of course, you’ll have to go through underwriting to switch to a lower-premium plan – but if you’re healthy, making the switch to a cheaper plan may not be difficult at all.

Could you save on prescription drugs as well? If you find yourself hard-pressed to pay for prescription drugs, see if you qualify for Medicare’s new Extra Help program, which is worth an average of about $3,900 a year to Medicare recipients.(source)

As of January 1, 2010, Medicare no longer counts money contributed by others to pay your household expenses as income. It also no longer counts your life insurance policy as an income resource. This means that more people can qualify for prescription drug savings.

Basically, a married couple living together qualifies for Extra Help if it has less than $25,010 in resources (savings and investments) and less than $21,855 in annual income. For individuals, the limits are $12,510 in resources and $16,245 in annual income. However, you still may qualify even if you have earnings from work.(source)

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Women and Money Series

Posted by Diane on 1 March 2010 | 0 Comments

Diane Blackwelder appeared on WCBD Channel 2 promoting an upcoming Money Empowerment Series through the Center for Women.  Watch the Video to learn more.  To enroll in the workshope visit the Center for Women website.

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Are You Overlooking Tax Deductions?

Posted by Diane H. Blackwelder, CFP on 22 February 2010 | 0 Comments

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Missing a tax deduction or credit you are entitled to can cost you.  Here is a list of a few tax deductions you could easily overlook:

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5 Before 11

Posted by Bill Prewitt, CFP on 17 February 2010 | 0 Comments

Here is a powerful productivity tip that is worth passing on: "5 Before 11".  The idea is to focus your day early on completing or moving a few things forward that matter most.  What are goals that you want to accomplish in the next 90 days?  What do you need to complete in the next month?  What are the high value activities you should be doing?

Before you quit work, write down 5 activities to focus on before 11 AM the next day. The act of writing them down will play in your subconscious mind overnight.  Having a mid-morning deadline focuses your mind when you start your day.  You will find that you have more momentum during the entire day with this simple tip.

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2010 - Estate Tax is Unfixed

Posted by William C. Prewitt, M.S. CFP on 8 February 2010 | 0 Comments

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Congress in its wisdom, radically altered the estate tax at the dawning of the new millennium.  Far into the future, the tax would be repealed in the year 2010 with zero estate taxes. Many believed congress would enact new legislation long before the 2010 repeal.  But alas, the year has turned, and the law still stands.  For the first time since 1916, Americans can contemplate dying without facing an estate tax.  But the story doesn't end there; in 2011, the law will sunset to the 2001 estate tax levels. 

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Are You Spending A Bundle?

Posted by Diane H. Blackwelder on 2 February 2010 | 0 Comments

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How does your spending stack up to your neighbors? Do you shell out more each month eating out? Do you give more to charity? A nifty website - Bundle.com - allows you to compare your spending with folks in your area and compare it to other cities across the country.

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Facebook Users Willingly Give Out Data

Posted by Bill Prewitt, M.S., CFP® on 6 January 2010 | 0 Comments

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Don Reisinger is a technology columnist who has written about social media. In a recent blog, he discussed the willingness of Facebook users to disclose private information. His comments bear consideration, since once your information is on the web, it lasts forever:

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AARP The Magazine Contest Winners

Posted by Diane H. Blackwelder on 29 December 2009 | 1 Comments

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Diane Blackwelder provided a financial plan for AARP The Magazine's Money Makeover contest winners, Peter and Carolyn Waters.  Watch the video and read the full story at AARP Magazine online.


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Energy Efficiency Could Be a Win-Win

Posted by Myles B. Brandt on 21 December 2009 | 0 Comments

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It's safe to say that most people could use a little break in their monthly expenses these days.  When investments go down in value, people focus on controlling what they can.  One thing you can control that can make a huge impact in your monthly expenses is energy efficiency in your home.  A small investment in improving energy efficiency can pay off big. Eco-Unit, an Energy Star Partner, offers a free evaluation of what you can do to make your house more energy efficient and can even tell you how much money you will likely save.  A few of the benefits:

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Safety Tips for Online Shopping

Posted by Diane H. Blackwelder on 9 December 2009 | 0 Comments

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Whether you shop online routinely or infrequently, it will help to follow some precautions this holiday season. The risk of identity theft rises as you offer more and more information about yourself online.

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