Most of us think about identity theft as someone stealing your information and charging up credit in your name. Would you believe this is only one of five possible types of identity theft? How about some of these statistics:
•11.1 million adults were victims of identity theft in 2009
•The total fraud amount was $54 billion
•The average victim spent 21 hours and $373 out of pocket resolving the crime
•4.8% of the population was a victim of identity fraud in 2009
•13% of identity fraud crimes were committed by someone the victim knew
When I get together with my clients, I discuss the realities of what the true cost of identity theft actually amounts to. More importantly, I can show them ways not only to prevent identity theft, but also how they can restore their identity after theft has occurred.
If you have been exposed to identity theft or have concerns, I would love to counsel you on what your options are and how you can protect yourself. Feel free to complete the information on the Contact Us page or drop me a note with your name and contact info to mikev@vonfabian.com.
]]>What is long term care insurance? It is a mechanism that will help fund long term care (nursing home) expenses. The theory works like this: you purchase an LTC policy when you are healthy and young. The premium is paid over a number of years and creates a pool of money that you can tap if you need long term care that is over and above what Medicare would pay.
To qualify for care in a skilled nursing facility, your doctor must certify that you need daily skilled care like intravenous injections or physical therapy. Medicare doesn’t cover long-term care or custodial care in this setting. This accounts for 95% of the care provided in a nursing home.
Now I bet you’re saying, Mike, what about Medicaid. Medicaid will pay for custodial care. That they will. There are some things you need to consider:
1) You can only have limited assets (may vary by state so check your local Medicaid requirements.)
2) Any assets transferred to family members must have been 10 years before entering the Medicaid program.
3) If you have a spouse and/or children living in a house that is owned by you and your spouse, your spouse will be allowed to live in the house, but 1/2 of the home will have a lien by the Medicaid program to offset what they’ve paid for your care.
Any of those sound like a good deal? Let’s face it, there is no way around paying for long term care. It’s basically pay now or pay later. With states acknowledging the increasing problem with Medicaid being put on the hook for LTC costs, a product was created to help fill the gap: Partnership Long Term Care coverage.
PLTC allows you to purchase insurance to offset a part of the assets that Medicaid will have to liquidate when and if you need to go on the program. Benefit to you is that you can choose how many assets you want to retain by purchasing insurance, which can keep the total value of your home in your estate and not in the state’s coffers.
The problem is that not all states have implemented programs yet for Partnership policies. Check with your insurance agent to see if your state has implemented the program. It is hoped that with changes in health care in Washington, all states will find ways, like PLTC products, to preserve the capital they will receive for their Medicaid programs.
Whether your state is a partnership state or not, long term care insurance can be a good investment. Contact your agent today to find out more.
]]>On the surface, an HRA looks like an HSA or Health Savings Account. The both are tied to a savings account and a high deductible health insurance product. Contributions and withdrawals for approved health related expenses are tax deductible. Some key differences will immediately identify where the two plans diverge:
1) The HRA plan is not available as an individual insurance product.
2) The employee may not contribute into the savings account. All contributions are done by the employer.
3) The amounts in the savings account will be forfeited if you lose your job. You may request reimbursement for any expenses that were incurred but not tendered during the term that coverage was in place.
4) Your HRA account is not eligible to receive interest.
For more information, check out IRS HRA Information.
]]>In a recent survey taken by creditcards.com, nearly two out of three Americans (62 percent) say they or their family could face hard financial times if they experience a serious illness, a new national poll finds.
The poll, conducted for CreditCards.com by GfK Roper Public Affairs & Media, surveyed 1,004 American adults in a random telephone survey Jan. 18-20. It is part of a newly released special report, “Health Care and Credit,” in which CreditCards.com takes an in-depth look at how Americans increasingly turn to credit and fall into debt to pay for health care.
The CreditCards.com poll found:
* Nearly two-thirds of Americans (62 percent) agree that either they or their family would face a financial hardship if they experienced a serious illness. Women (66 percent) and lower income families earning less than $30,000 (73 percent) are even more likely to feel this way.
* If hit with medical bills greater than $1,000, nearly half (49 percent) of Americans say they would tap savings or checking accounts to pay their debts. Those with less income, however, were far less likely to see savings as a choice for health care debt.
* More than a third of respondents (38 percent) would resort to some form of borrowing to pay medical debts, either through an installment payment plan (10 percent), a credit card (9 percent), borrowing from friends or relatives (8 percent), a short-term loan from a bank or credit union (8 percent) or borrowing from 401(k) retirement accounts (3 percent).
* Only 3 percent say their health insurance would fully cover a sudden $1,000 medical bill.
* Ignorance is widespread on insurance deductibles: 40 percent of Americans say they know the amount; 50 percent admit not knowing and the rest weren’t sure or declined to answer.
* In addition to the poll, the special report examines how the health care industry is changing as out-of-pocket medical costs rise dramatically for many American families.
* Borrowing to pay for basic health care needs is becoming a way of life for many Americans and mounting medical debt may be threatening to bankrupt more families.
* As out-of-pocket health care costs rise for many families, credit cards, debit cards and gift cards featuring more lenient financing terms are emerging as health care payment options.
* The new generation of specialty health care credit cards have 0 percent interest rates and limited repayment periods that encourage consumers to pay the debts off quickly.
* Consumer advocates say these developments show how dire things have become in the health care system.
“This is an issue that hits home for almost every American family as they try to figure out how to pay medical bills,” said CreditCards.com’s Vice President of Strategic Marketing Jody Farmer. “Many people are putting medical expenses on credit cards.”
Source IFAWebNews.com 02/06/2008 - © 2007 New Horizon Group, Inc.
]]>What’s a health savings account? A health savings account or HSA is a high deductible plan tied to a medical spending account.
Those familiar with cafeteria plans from group insurance may be thinking this is similar to a flexible spending account. To some extent, it is. Where an FSA and an HSA are similar is that you allocate money beforehand to pay medical expenses that are subject to coinsurance, deductible or copays. There are tax advantages as well that are applicable for both.
What’s different? Well, for one, the money you put in an FSA must be used by a given date or Uncle Sam gets whatever you didn’t use. The money placed in an HSA does not have an expiration date. What that means is that you can fund your account and, if you have a good health year, the money stays in your account ready to be used when you need it. Also, many insurers place your funds in interest bearing accounts. Great news is that the money you put in is tax deductible and the interest is tax deferred! Contact a tax professional to discuss the federal HSA limits on what is tax deductible.
Some of the most notable features of an HSA are:
- Money placed in the HSA account are tax exempt.
- Interest earned on the money is tax deferred.
- You are protected for large catastrophic events.
- You decide the deductible and coinsurance options that work for you.
- You control your health care expenses.
- You don’t pay for premium for coverage that you may not use in a year. That’s a savings each and every month!
If you would like to take a look at how much you can save with an HSA option, contact us at
vonfabian.com.
If you would like to see more information about HSA’s in general, go to U.S. Treasury HSA Information
]]>The best resource to answer specific questions about Medicare programs available is your independent insurance agent. Give us a call today for a free and confidential analysis of your Medicare situation. Click the Contact Us tab on our website at vonfabian.com
]]>