Obamacare Contains Several New Taxes That Could Affect You

We would like to pass along this article found in a monthly e-newsletter we receive. The newsletter is published by Kahn, Litwin,Renza & Co., Ltd. (KLR). Their firm of certified public accountants is located locally at 97 John Clarke Road,Middletown, RI 02842 and can be reached at 888-KLR-8557.

KLR is one of New England’s premier accounting and business consulting firms. With 165 team members and offices in Boston, Newport, Providence and Waltham, KLR provides a wide range of services to both individuals and businesses.

Obamacare Contains Several New Taxes That Could AffectYou

byWilliam Morgan, J.D., LL.M.

July 23, 2012

Afterthe Supreme Court ruled to uphold the Patient Protection and Affordable CareAct of 2010 (“ACA”) as constitutional, the focus now turns to what that meansfor everyone. This article summarizes the effects of ACA’s tax provisions onindividuals and businesses in the near future. The ACA tax changes, coupled withthe expiration of the Bush-era tax rates at the end of 2012, increase rates forupper-income individuals in 2013 and beyond. Here is a summary of the ACA’s taxchanges that will be implemented, now that the Supreme Court ruled the ACA isconstitutional.

For Individuals: Starting in 2013

For2013, the ACA introduces two (2) different Medicare taxes that increase taxesfor higher-income individuals.

• New 0.9% Medicare Surtax - First, for joint filers with wages above $250,000 and single filers whose wages exceed $200,000 there will be an additional Medicare tax of 0.9% on the excess wages exceeding $250,000 joint/$200,000 single filer thresholds. The levy also applies to individuals with self-employment income above the thresholds.
• New 3.8% Medicare Surtax- Second, and for the first time ever, a Medicare surtax of 3.8% will apply to investment income. This 3.8% tax will apply to either (i) unearned income, or (ii) the amount by which adjusted gross income exceeds the $250,000 (joint filer)/$200,000 (single filer) thresholds, whichever is less. What is unearned income? The ACA defines it as interest, dividends, capital gains, annuities, royalties and passive income from rents and businesses where you don’t actively participate. Unearned income does not include tax-exempt interest, withdrawals from retirement plans, life-insurance proceeds payable at death, veterans’ benefits and income from businesses where you do actively participate, such as S corporations or partnerships. The 3.8% tax doesn’t affect someone without investment income. If your entire income is from investments, it doesn’t apply either, as long as your total investment income is under the $250,000/$200,000 thresholds.
• Flexible Spending Account Contributions Capped at $2,500 - Beginning in 2013, the ACA limits the amount you can set aside pre-tax to pay for medical expenses to $2,500. So for those who have been setting aside more than $2,500 for medical expenses, you must reduce that to $2,500. This results in more of your income being subject to income taxes.
• Raised Threshold to Deduct Unreimbursed Medical Expenses- In 2013 the threshold to deduct unreimbursed medical expenses will raise from 7.5% to 10% of adjusted gross income. So if your adjusted gross income is $100,000, you will only be able to deduct medical expenses over $10,000, where before you could deduct expenses over $7,500.

For Businesses: Starting in 2013

• Tax Credits for Small Businesses - The ACA also has a small businesses tax credit, which is effective immediately. This credit is targeted to help small businesses that employ 25 people or less with average incomes of $50,000 or less. For tax years 2010 to 2013, the maximum credit is 35%, as long as the employer contributes at least 50% of the total health insurance premium or 50% of a benchmark premium. Starting in 2014, a maximum credit of 50% is available for two years to employers who buy health insurance coverage through a state exchange and contribute at least 50% of the total premium.
• Medicare Part D Deduction- Starting in 2013, the ACA eliminates, in coordination with Medicare Part D, the tax deduction for employer-provided prescription drug coverage.
• Medical Device Excise Tax - Beginning in 2013, the ACA imposes a 2.5% tax on the sale of certain medical devices, payable by the device’s manufacturer, producer or importer.

ForIndividuals: Starting in 2014 and Beyond

• Individual Mandate- Effective in 2014, most U.S. citizens and legal residents failing to maintain minimum health coverage on themselves and their dependents will face a tax penalty. The basic penalty for an individual is $95 in 2014, $325 in 2015, and $695 in 2016 and later years, with some exceptions for the poor and certain others.

ForBusinesses: Starting in 2014 and Beyond

• Employer Mandate- The ACA imposes tax penalties on certain employers that don’t provide their employees health coverage starting in 2014. Employers with 50 or more full-time-equivalent workers who do not offer coverage and have at least one full-time employee who receives a premium tax credit are subject to an annual fee of $2,000 per full time employee (not including the first 30 FTEs).
• Tax on “Cadillac” Plans- Starting in 2018, there will be a 40% nonrefundable excise tax on ‘Cadillac’ plans, levied on plans with annual premiums in excess of $10,200 for individual coverage and $27,500 for family coverage (excluding stand-alone dental and vision plans). The thresholds are higher ($11,850 and $30,950, respectively) for retirees and employees in certain high-risk professions.

KLR’s tax professionals have specialized training and experience in the Boston market place in all matters of Federal, State and Local Tax Issues. They have expertise in tax strategies for individuals and families, estate gift & trust services, voluntarydisclosure issues, transfer pricing, M&A assistance, cost segregationstudies and research & development tax credits.

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 The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

A Medicare Trap

A Medicare Trap

My associate attorney Kristy Garside and I presented material on Social Security, dividing pensions, Social Security Disability, Medicaid and Medicare at a Rhode Island Bar Association seminar last week. The seminar was delivered to about 50 attorneys and was titled “When Your Older Clients Divorce.” The Medicare portion of our presentation utilized written material by Robin G. Smith of Robin G. Smith Consulting, an elder-advice professional. We emphasized a “Medicare Trap” from her material.

Medicare Part B covers doctor visits, lab tests, diagnostic imaging, and outpatient procedures, and can be thought of simply as a classic 80/20 health insurance plan. Neither Part A or part B covers prescription drugs. Having BOTH Parts A and B is necessary to get either Supplemental insurance (Medigap), or to enroll in a Medicare Advantage plan (Part C). The problem “trap” is regarding those over 65 who are still working and covered by their employers insurance (and their spouses): The worker and spouse can elect to decline Part B (thus avoiding paying the premium) without incurring a late sign-up penalty. However, if the employee retires or otherwise loses employer coverage, he and his over 65 year old spouse MUST sign up for Medicare Part B within 63 days of leaving the job, even if the employer had offered COBRA benefits. Failure to do so will incur a Medicare penalty for late sign-up that is both financially onerous and permanent. Medicare counts the time from the day the employee left the job, and does not take COBRA payments into account at all. In addition, the spouse might not be able to sign up at all until long after the date the coverage ended. When a couple divorces, the divorce settlement often requires coverage until the non- working ex-spouse reaches age 65. The ex- spouse must sign up for Part B to avoid a Medicare penalty. If the divorcing parties are over 65, and have been covered by the other’s employer’s insurance, the spouse must sign up for Part B upon the divorce.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce lawyers, attorneys, mediators, and arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Medicare to End 'Improve or You're Out' Standard for Coverage of Skilled Services

In a major change in Medicare policy, the Obama administration has provisionally agreed to end Medicare’s longstanding practice of requiring that beneficiaries with chronic conditions and disabilities show a likelihood of improvement in order to receive coverage of skilled care and therapy services. The policy shift will affect beneficiaries with conditions like multiple sclerosis, Alzheimer’s disease, Parkinson’s disease, ALS (Lou Gehrig’s disease), diabetes, hypertension, arthritis, heart disease, and stroke. (See companion article, "Who Will Benefit From the New Medicare Policy Change?".)

For about 30 years, home health agencies and nursing homes that contract with Medicare have routinely terminated the Medicare coverage of a beneficiary who has stopped improving, even though nothing in the Medicare statute or its regulations says improvement is required for continued skilled care.  Advocates charged that Medicare contractors have instead used a covert "rule of thumb" known as the “Improvement Standard" to illegally deny coverage to such patients. Once beneficiaries failed to show progress, contractors claimed they could deliver only "custodial care," which Medicare does not cover.

In January 2011, the Center for Medicare Advocacy and Vermont Legal Aid filed a class action lawsuit, Jimmo v. Sebelius, against the Obama administration in federal court aimed at ending the government’s use of the improvement standard.  After the court refused the government’s request to dismiss the case, and the administration lost in similar individual cases in Pennsylvania and Vermont, it decided to settle. 

As part of the proposed settlement, which the federal judge must still formally approve, Medicare will revise its manual that contractors follow to clarify that Medicare coverage of skilled nursing and therapy services “does not turn on the presence or absence of an individual’s potential for improvement” but rather depends on whether or not the beneficiary needs skilled care, even if it would simply maintain the beneficiary's current condition or slow further deterioration.

In addition, under the settlement Medicare beneficiaries who received a final denial of Medicare coverage after January 18, 2011 (the date the lawsuit was filed) are entitled to a review of their claim denial. 

“The Jimmo settlement provides hope for thousands of older and disabled people with chronic and long-term conditions who will now have a fair opportunity to get access to Medicare and necessary health care,” Judith Stein, Executive Director of the Center for Medicare Advocacy, told ElderLawAnswers.   

In an article about the accord, the New York Times notes that Medicare’s coverage of skilled care for beneficiaries with chronic conditions “could also provide relief for families and caregivers who often find themselves stretched financially and personally by the need to provide care.”

Although the Times quotes a trustee of the Medicare program that the change will cost Medicare more money, it could also save some money because physical therapy and home health care may help keep beneficiaries out of more expensive institutions like nursing homes and hospitals.   

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Medicare Suit Settled

The following article was taken from Robin G. Smith Consulting

Medicare settles suit - this could be huge

There are several confusing, and ultimately, for patients, expensive Medicare policies concerning what Medicare will and will not cover in nursing homes. Last month, Medicare settled a lawsuit challenging the current policy that a patient in a SNF had to be “improving” to be eligible for the full 100 days of Medicare payment. Now, if the person would decline without SNF care, Medicare will pay. This still leaves the dreaded ”inpatient vs observation”  rule, which hospitals are abusing, and for which patients are paying dearly. There is a class action suit pending on that, too.

The “Direct Primary Care” model has started to rate news articles, as large employers, as well as states, pay primary care clinics directly to care for their employees. United Air­lines teamed with Walgreens to build a clinic at O’Hare air­port in Chicago. Montana has built a primary care clinic for state employees, which has been very well received. Wal­mart has negotiated bundled payments for expensive surger­ies for its employees. Sears and Darden restaurants are offer­ing a voucher to their employees to shop for healthcare. And estimates are that 7% or more of doctors are going to a “Concierge” care model. (By the way, I offer a prepaid pri­mary care plan that is very strong in RI, and the Boston area.
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.



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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in RI for wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits. They practice Pension and Retirement law as well with a focus on Qualified Domestic Relations Orders (QDRO), Military Pension Orders, Civil Service Orders, as well as Consultation on Pension issues. They also are Newport RI Divorce lawyers, attorneys, mediators, and arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and Military family law.

They offer Elderlaw Mediation for disputes and intergenerational issues as well as probate court resolution. They also do Superior Court Mediation and Arbitration as well as Pension Mediation. Mediation and Arbitration is also offered by the firm for divorce mediation, separation, and all family law issues pre and post divorce.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Medicare's Open Enrollment Season Is Coming

It is that time of year again -- time to reassess whether your Medicare plan is working for you. 

Medicare's open enrollment period runs from October 15 to December 7.

During this period, you may enroll in a Medicare Part D plan or, if you currently have a plan, you may change plans. In addition, you can switch out of a Medicare Advantage (managed care) plan and return to traditional Medicare (Parts A and B), enroll in a Medicare Advantage plan from traditional Medicare, or change Medicare Advantage plans.  If you are in traditional Medicare, are happy there and don’t have or want a prescription drug plan, you don’t need to do anything. 

Beneficiaries can go to www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227) to make changes in their Medicare prescription drug and health plan coverage.

During the open enrollment period, you should review your current plan by looking at the costs and coverage for next year to determine if it is still the right plan for you. It is especially important to shop around for the best drug plan. The Washington Post is reporting that prescription drug plan premiums are expected to go up significantly. According to an analysis by Avalere Health, seven of the current top 10 prescription drug plans will have double-digit increases in premiums.

Remember that fraud perpetrators will inevitably use the Open Enrollment Period to try to gain access to individuals' personal financial information.  Medicare beneficiaries should never give their personal information out to anyone making unsolicited phone calls selling Medicare-related products or services or showing up on their doorstep uninvited.  If you think you've been a victim of fraud or identity theft, contact Medicare.  For more information on Medicare fraud, click here or here. 

In addition, you can now get the same information found in the handbook "Medicare & You" online.

Find out what’s new for the year, how Medicare works with your other insurance, get Medicare costs, and find out what Medicare covers. The handbook information on the Web is updated regularly, so it will always find the most up-to-date Medicare information.
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 The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.   

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Home Care Agencies Hiring Unqualified Caregivers, Study Finds

Unqualified Caregivers

A new survey has shed light on the hiring practices of private home care agencies, and the news is not good.  In many cases, agencies are sending to the homes of vulnerable elderly patients workers with little or no experience or knowledge, no training, and inadequate background checks.

The study, which was carried out by researchers at Northwestern University, surveyed 180 private home care agencies in Illinois, California, Florida, Colorado, Arizona, Wisconsin, and Indiana.  (The study did not include agencies that are certified by Medicare and are subject to federal regulations.)

The researchers posed as people calling the agency to obtain assistance for a family member, and they queried the agencies about their hiring and oversight of their caregivers.  The results may surprise families who assume that agencies follow strict hiring guidelines.

For instance, none of the agencies assessed their caregivers' ability to understand medical terminology, and only 15 percent provided their caregivers with any training prior to sending them out to clients.  Although slightly more than half (55.8 percent) of the agencies surveyed ran criminal background checks on their caregivers, none conducted checks outside of their own states, meaning that caregivers with criminal records in other states could still be employed.  According to a summary of the study in the Senior Journal, more than one agency told the researchers that they used screening tests that don't exist, such as the “National Scantron Test for Inappropriate Behavior” and the “Assessment of Christian Morality Test.”

"People have a false sense of security when they hire a caregiver from an agency," the study’s lead author Lee Lindquist, M.D., said in a statement. "There are good agencies out there, but there are plenty of bad ones and consumers need to be aware that they may not be getting the safe, qualified caregiver they expect. It's dangerous for the elderly patient who may be cognitively impaired."
"Some of the paid caregivers are so unqualified it's scary and really puts the senior at risk" for elder abuse, Lindquist said.

Only a third drug-tested their workers.  "Considering that seniors often take pain medications, including narcotics, this is risky," Lindquist said. "Some of the paid caregivers may be illicit drug users and could easily use or steal the seniors' drugs to support their own habits."

Read more HERE
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 The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.   

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

MEDICAID DIVESTMENT PENALTY DIVISOR UPDATE

Medicaid Divestment Penalty Update

One of the most important pieces of advice that we give to those clients who come to us for Medicaid planning is to be extremely cautious when making gifts or transfers for less than fair market value.

When a nursing home resident applies for Medicaid assistance, one of the first questions he or she is asked is whether any gifts or transfers were made within the past five years.  This is the infamous “look-back” period which can result in a penalty imposed upon the applicant.

For example:  Mr. Smith is a resident of a nursing home and is otherwise eligible for Medicaid assistance.  However, three years ago, he gave his daughter $100,000.00 as a gift.  The state uses the current divisor of $8,492.00 (up from $7,777.00 previously) to determine how many months Mr. Smith will have to wait before he can receive Medicaid.  $100,000 divided by $8,492.00 equals 11.8.

For the next 11.8 months, Mr. Smith will be ineligible for Medicaid assistance to pay for his nursing home care.  The penalty will create a huge problem for Mr. Smith and his family if the family has no other means of paying for nursing home care.

Before you or your parents make any gifts or transfers for less than fair market value, consider how these gifts may impact Medicaid assistance in the future. 

Please call our office if you have questions about the Medicaid application process or how the rules might affect you.


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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Social Security's Benefits for Spouses

Social Security Benefits for Spouses

Read more HERE

Social Security doesn't just pay retirement benefits to retired workers; in some circumstances, it also provides benefits to a worker's spouse or ex-spouse and to a deceased worker's surviving spouse.

Here are the ins and outs of spouse and survivor benefits.

Spousal Benefits

Spouses are entitled to benefits if the marriage lasted at least 10 years. A spouse is entitled to an amount equal to one-half of the worker's full retirement benefit. To receive this benefit, you must be at your full retirement age or caring for a child who is under 16 years old. In addition, your spouse must have filed for Social Security retirement benefits even if he or she isn't receiving them.

If you could receive more from Social Security based on your own earnings record than through the spousal benefit, the Social Security Administration will automatically provide you with the larger benefit. If you have reached your full retirement age, you may also elect to receive spousal benefits and delay taking your benefits, allowing your own delayed retirement credits to accrue, and switch to your own benefit at a later date. However, you cannot elect to receive spousal benefits below your retirement age and later switch to your own benefits.

If you begin collecting your spousal benefit before your full retirement age, your spousal benefit will be permanently reduced. But if your spouse retires early, but you wait until your full retirement age, you will still receive benefits based on one-half of his or her full retirement benefit.

Divorced spouses

An ex-spouse is also entitled to receive one half of the worker's full retirement benefit as long as the marriage lasted at least 10 years. Unlike a current spouse, a divorced spouse can begin receiving benefits even before the worker has applied for benefits. The worker must be at least 62 years old and the divorce must have been final for at least two years.

Survivor Benefits

If you are a surviving spouse at full retirement age, you are entitled to the worker's full retirement benefits. If the worker delayed retirement, the survivor's benefit will be higher. Survivors are entitled to benefits even if they are divorced as long as they had been married for at least 10 years. If you file for benefits before you are over age 60, but below full retirement age, you will receive a reduced percentage of the worker's benefits. Surviving spouses who are younger than 60 receive benefits only in limited circumstances, such as cases of disability or caring for a disabled child.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Medicare Part D Alternative

Medicare Part D Alternative

I came across this note that might be of interest to our clients and friends who have or could qualify for Medicare Part D. The Medicare options are confusing, little known, and difficult to navigate. Robin Smith can help!

The blurb below is from Robin's monthly newsletter at Robin G Smith Consulting. Insurance Advice and Advocacy for Seniors. Call them at 888-363-3914 Or Email her at robin.g.smith@att.net

As announced last month, I now offer a “credible coverage” alternative to a stand alone Prescription Drug (Part D) plan. If you know a senior who is spending over $5K/year out of pocket DE­SPITE having a Part D plan, I might be able to save them several thousand dollars a year. What kind of client spends that much? A patient with a chronic disease (MS, ALS, certain cancers, etc.) may be spending many thousands, even in the catastrophic coverage phase. I may have an alternative, so have them call me for a cost comparison.
- Robin


Please call our office for more information about Robin, or if we can help you, your family members or friends with long term care planning, estate planning, or other elder law and care issues. 401-841-5700.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

New Bottom Limit of the Minimum Monthly Maintenance Needs Allowance

Minimum Monthly Maintenance Needs Allowance

Announced by the Department of Health and Human Services 

If a nursing home recipient of Medicaid assistance is married, he or she is called the Institutionalized Spouse (IS) and his or her spouse is the Community Spouse (CS). The income of the CS is not deemed available to the IS at any time for the IS’s care. Although the CS is able to keep all of his or her own income, if the CS has no income or insufficient income, then other rules apply. In such a case, the CS is entitled to receive a Minimum Monthly Maintenance Allowance which is comprised of a basic monthly allowance and a monthly excess shelter allowance.

The Department of Health and Human Services recently announced new poverty income guidelines for 2012. The new guidelines mean that the lower limit of the Minimum Monthly Maintenance Needs Allowance will rise to $1891.25, effective no later than July 1, 2012. The current amount is $1838.75.

Please call our office if you have questions about the Medicaid application process or how the rules might affect you.
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

New Medicare and Medicaid Allowances for 2012

New Medicare and medicaid Allowances for 2012

ElderLaw Answers reported today that the Centers for Medicare & Medicaid Services has announced that the community spouse resource allowance (CSRA) and the maximum monthly maintenance needs allowance will rise in 2012,.  The Medicaid home equity limits will go up as well. These allowances have remained flat for two years.

The new minimum CSRA is $22,728 and the new maximum is $113,640. The new maximum monthly maintenance needs allowance is $2,841. The minimum monthly maintenance needs allowance remains $1,828.75 until July 1, 2012.

In addition, the minimum and maximum home equity limits used by Medicaid will increase to $525,000 and $786,000, respectively.

The new figures are effective January 1, 2012, and reflect an increase in the Consumer Price Index (CPI) of 3.7 percent from September 2010 to September 2011.

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 The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Contact Your Legislature about the "Improving Access to Medicare Act"

This information was passed along by Kathy Heery, RN, MSN, Geriatric Care Manager, as a member of the Kent County Senior Provider Network:

Published 20-Apr-2011 by Brian Stever in Latest News

New legislation will allow a resident that is held in "observation" to
have this time counted toward their required Medicare 3 day stay.

The Improving Access to Medicare Act would allow beneficiaries kept in a hospital for "observation" to qualify for Medicare Part A coverage of a
subsequent stay in a skilled nursing facility (SNF). The bill would count
any time spent in observation toward the 3-day stay requirement.
Increasing numbers of beneficiaries are disqualified from Part A coverage
of their SNF stay because they were held for observation rather than
admitted as an inpatient.

Please Contact Congress and ask your legislators to support this important legislation so it can move to the floors of the U.S. Senate and House of Representatives.

Please follow the link to tell your legislators how important that this
legislation is.

http://capwiz.com/leadingage/issues/alert/?alertid=42264501


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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Medicare Assistance

Medicare Assistance

Health care and health care reform continue to be hot topics of conversation with particular attention being paid to the high costs of care. Individuals who are 65 years of age or older, or who have reached the 25th month of a permanent and total disability, are eligible for Medicare, the federal health insurance program. Payment for Medicare insurance is usually deducted from a person's social security.

Many people do not realize, however, that limited assistance is available for low income Medicare beneficiaries. This limited coverage helps eligible individuals pay for some or all of their out-of-pocket Medicare expenses, including Medicare premiums, deductibles and co-pays. Eligibility depends on income and resource limits.

As of April 2010, the basic resource limit for an individual is $6,600 and $9,910 for a couple. The income limits are based on the Federal Poverty Guidelines and vary according to the specific assistance program.

While many of our clients are concerned with planning for the future in terms of Medicaid (state assistance for nursing home or in-home care), it is important to remember the availability of the assistance for Medicare - another way to help in difficult economic times.
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.