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Welcome to The Money Manager. This publication serves to educate the community on money management issues and the world of fiduciary services.
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 New warnings about entitlements shortfall
Medicare unable to pay full benefits by 2019, Social Security by 2041- Associated Press, March 25, 2008
WASHINGTON - Trustees for the government's two biggest benefit programs warned Tuesday that Social Security and Medicare are facing "enormous challenges," with the threat to Medicare's solvency far more severe.
The trustees, issuing a once-a-year analysis, said the resources in the Social Security trust fund will be depleted by 2041. The reserves in the Medicare trust fund that pays hospital benefits were projected to be wiped out by 2019.
Both those dates were the same as in last year's report. But the trustees warned that financial pressures will begin much sooner when the programs begin paying out more in benefits each year than they collect in payroll taxes.
The first year that payments will exceed income for Social Security will occur in 2017, just nine years from now, reflecting growing demands from the retirement of 78 million baby boomers. Medicare is projected to pay out more than it receives in income starting this year.
"The financial difficulties facing Social Security and Medicare pose enormous challenges," the trustees said in their report. "The sooner these challenges are addressed, the more varied and less disruptive their solutions can be."
Treasury Secretary Henry Paulson, one of the trustees, warned that the country was facing a fiscal train wreck unless something is done.
"Without change, rising costs will drive government spending to unprecedented levels, consume nearly all projected federal revenues and threaten America's future prosperity," Paulson said in releasing the new report. "Our nation needs a bipartisan effort to strengthen both programs for future retirees."
President Bush, who wanted to make overhauling Social Security his top domestic priority in his second term, tapped Paulson to lead that effort. However, Paulson has been unable to forge a consensus with Democrats, who took control of Congress in 2006. |
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Medicaid Eligibility - Information
Treatment of Economic Stimulus Tax Rebates
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Digital Television Converter Box Coupons
The rebates in the recently enacted economic stimulus tax rebates are not counted as income or resources under Medicaid, although the amount of time the rebates are not counted as resources is limited. The economic stimulus legislation (P.L. 110-185) provides that credits or refunds issued under the bill are not to be counted as income or resources in the month of receipt, and for the following two months, for purposes of determining eligibility for or the amount of benefits under any federal program, or under any state or local program financed in whole or in part with federal funds. Obviously that includes the Medicaid program.
The rebates are not countable as income for post-eligibility. Counting the rebates as income under post-eligibility would result in increased income to the individual, which in turn would result in Medicaid's reducing its payment to the provider. That means the amount of benefits payable on behalf of the individual would be reduced if the rebates are counted as income under post-eligibility. With regard to transfers of assets for less than fair market value, rebates given away during the three-month period in which they are not countable as income or resources would not be subject to a transfer penalty. However, if given away after the three-month exempt period expires, the rebates would be subject to penalty. The same would apply to counting a rebate as part of a person's estate for estate recovery purposes. If the rebate becomes part of a person's estate during the three-month exempt period, it would not be subject to recovery. However, if the rebate becomes part of a person's estate after the three-month exempt period expires, it would be subject to recovery.
The Department of Commerce is planning to send "coupons" worth $40 each to households for the purpose of purchasing television digital converter boxes. The coupons are to help defray the cost of purchasing the boxes, which will be needed by people who do not have digital television receivers when television signals are no long broadcast in analog format beginning in 2009. The coupons will not count as income under Medicaid. The coupon Commerce is distributing is actually a form of credit card, each worth $40. A person would take his coupon to a retailer and exchange it for a converter box. If the converter box costs more than $40, the person would pay only the difference. According to Commerce, there is nothing else a person can do with this coupon except buy a converter box. The coupon cannot be converted to cash at a bank, for example, or used to buy anything but a converter box. That means the $40 coupons would not be considered income under Medicaid. For Medicaid, income is broadly defined as anything a person receives that can be used to purchase food or shelter. Since the coupons can only be used to purchase a converter 1 2 box, the coupons do not meet the definition of income and thus would not be counted as income under Medicaid.
February 25, 2008 - Division of Eligibility, Enrollment and Outreach - Disabled and Elderly Health Programs Group - Center for Medicaid and State Operations - Centers for Medicare and Medicaid Services | |
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Elder Care System Backing Up By TRAVIS REED, Associated Press Writer
ORLANDO, Fla. (AP) -- Caring for the elderly is one of Florida's growth industries -- nearly a quarter of the state's population is over 60 and almost 10 percent is at least 75.
But caring for the poor among them is a different story -- particularly when a patient becomes unable to make his or her own decisions.
To take care of them, Florida, like many states, has a public guardianship system -- a government entity that works through the courts to appoint guardians for those without the means to pay for their own.
But it's a skeleton entity, and only about half of Florida's 67 counties are covered. And even in those, there's a waiting list -- 254 people, according to the most recent figures from the Statewide Public Guardianship Office. That was up from 225 in the office's 2007 annual report and 132 people waiting in 2006.
Even then, that might just be a fraction of the problem -- the state public guardian estimated in 2004 that 5,000 to 10,000 people who needed its services weren't getting them. That population of endangered adults is expected to rise as more Baby Boomers age and head here for retirement.
A guardian is essentially a surrogate decision-maker, appointed by a judge after someone is found incompetent to care for him or herself. To qualify for public help, a person must have limited means and no willing or able family or friends. Read on... | |
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Study: Boomers to Flood Medical System By RANDOLPH E. SCHMID AP Science Writer |
| April 14, 2008- WASHINGTON (AP) - Millions of baby boomers are about to enter a health care system for seniors that not only isn't ready for them, but may even discourage them from getting quality care.
"We face an impending crisis as the growing number of older patients, who are living longer with more complex health needs, increasingly outpaces the number of health care providers with the knowledge and skills to care for them capably," said John W. Rowe, professor of health policy and management at Columbia University.
Rowe headed an Institute of Medicine committee that released a report Monday on the health care outlook for the 78 million baby boomers about to begin turning 65.
The report from the institute, an arm of the National Academy of Sciences, said:
- There aren't enough specialists in geriatric medicine
- Insufficient training is available.
- The specialists that do exist are underpaid
- Medicare fails to provide for team care that many elderly patients need.
The study said Medicare may even hinder seniors from getting the best care because of its low reimbursement rates, a focus on treating short-term health problems rather than managing chronic conditions and lack of coverage for preventive services or for health care providers' time spent collaborating with a patient's other providers.
The American Medical Association responded that seniors' access to Medicare in coming years "is threatened by looming Medicare physician payment cuts."
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IRS Stimulus Payments:
Answers to Frequently Asked Questions
Basic Eligibility
Q. What do I need to do to get an economic stimulus payment?
A. All you need to do is file a federal income tax return for 2007. Even if you are not otherwise required to file a tax return, you must file a 2007 return in order to receive a payment this year. Although some filers, such as high-income filers, will not qualify for a stimulus payment, most will.
In most cases, you will fill out your return, reporting all your income, deductions and credits as you normally would. But even if you are not required to file, you must file a 2007 return to get a stimulus payment this year. Low-income workers, Social Security beneficiaries, certain railroad retirees and those who receive certain benefits from the Department of Veterans Affairs who normally don't file may receive a stimulus payment if they do. The IRS will provide special filing instructions for those who do not otherwise have a filing requirement. The instructions will explain which lines on the tax return the filers need to complete.
You do not need to calculate the amount of the stimulus payment. If you want to estimate the amount of your payment, use the Economic Stimulus Payment Calculator.
If you qualify, the IRS will automatically figure it and send it to you. The IRS will also send you a notice showing the amount of your payment. You do not need to call the IRS or fill out any other special forms.
Q. How do I find out if I am eligible?
A. The easiest way to find out is to use the Economic Stimulus Payment Calculator. Most people with a 2007 net income tax liability will qualify. This includes most people who get tax refunds. Net income tax liability is the amount shown on Form 1040, Line 57 plus the amount on Line 52. For 1040A filers, it is the amount on Line 35 plus the amount on Line 32. For Form 1040EZ filers, it is the amount on Line 10.
Families with children under 17 generally will qualify for an additional payment. Some people with no tax liability also will qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans' payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources.
Some higher-income taxpayers will not receive a stimulus payment or will receive a reduced payment. |
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Spotlight: The Human Service Network of Colorado
The Human Service Network of Colorado (The Network) is an organization committed to professional development of human service workers and case managers. The Network, in the process of ascertaining non-profit status, is comprised of over 600 human service employees representing housing, employment, medical, mental health, substance abuse, and government agencies.
The Network provides opportunities for human service workers to network, share best practices, exchange information and resources, and to participate in low-cost trainings targeted to their needs. The Network conducted professional research on Colorado case managers' and human service workers' needs and hosts monthly training sessions in response to these needs.
To learn more about the Network, the upcoming trainings, or to become involved, visit their website at thenetwork.cloverpad.org. | |
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"Working with someone you can trust!"
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Testimonials
BPS was a finalist for the Colorado Business Ethics Award.
See below for more information:
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Thank you for your continued support and referrals. We appreciate what each and every one of you do to contribute to the community in which we live.
Sincerely,
Courtney L. Smith, RG, PDMM
Benefit Payee Services, Inc.
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| Colorado: Indiana:
P.O. Box 101775 P.O . Box 9
Denver, CO 80250 New Albany, IN 47151
(303) 282-8882 phone (812) 944-4200 phone
(866) 339-1918 fax (866) 339-1918 fax
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Courtney's Corner...
Courtney L. Smith, RG, PDMM
Errors and Omissions:
Protection for Professionals & their Clients
As a professional fiduciary, everyday is a learning experience, and with that comes new challenges. Every client has their own unique set of circumstances and family dynamics. You never quite know what you are getting into when you take on a new client.
Because of the nature of what I do for a living, I think professional fiduciaries have one of the riskiest yet most rewarding jobs. And, as with most business owners, assessing risk and liability is always an issue.
I have been looking for E&O (Errors & Omissions) insurance for nearly six years. Errors and Omissions provides insurance coverage for lawsuits which result from the rendering of professional services. The insurance carriers I spoke to would not even quote our business because the insurance underwriters had no idea what the industry was or what risk was involved.
In October 2007, the National Guardianship Association announced that it would be offering an E&O insurance program to its members.
I am happy to announce that in March 2008, Benefit Payee Services, Inc. was accepted into this program which was specifically designed for our industry.
The professional fiduciary liability insurance program developed jointly by Dominion Insurance, NGA, and underwriters at Lloyd's of London offers coverage features important to practicing fiduciaries. Coverage afforded under the policy applies to claims arising out of acts, errors or omission in rendering or failing to render professional services as a guardian, conservator, executor, receiver or an estate, trust, or bankruptcy administrator.
Why is this important, you ask? When referring your clients to a company that you trust, it is important to know that if something unexpected happens, your clients' interests will be protected. It is for this reason that we also carry a third party employee dishonesty bond, and general liability insurance.
So, the next time you refer a client to a fiduciary, ask them what insurance policies they have in place to protect your client. I believe that this is an important investment for any professional to make, both in themselves and the people they serve.
-Courtney |
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Appeal Social Security Decisions Online
By R.. Andrew Hudson, Social Security Public Affairs Specialist
Some people know that when you apply for disability benefits from Social Security, you have the right to appeal the decision you do not agree with. But did you know that now you can file an appeal over the Internet? Doing it online can help speed the process and assist Social Security in serving you better. The Internet Appeal process is a fast, convenient, secure way to appeal a decision on your Social Security disability claim that you donʼt agree with. You can file your appeal online at www.socialsecurity.gov/disability/appeal. To use the Internet Appeal process, you need to have applied for Social Security or Supplemental Security Income disability benefits and been denied for medical reasons. Please remember to have your denial notice with you when you begin this process because you will need to refer to it. When you use the Internet Appeal process, just as when you appeal in a Social Security office, there are two steps youʼll need to take.
First, complete the Appeal Request. It will ask you questions about yourself, such as updated information on your address, your disabling condition and your work.
Second, complete the Appeal Disability Report. This section will ask you detailed questions about your medical history, such as updates in your medications, doctor and hospital visits. In this section, we want to learn all we can about your disabling condition.
After youʼve completed the two sections of the Internet Appeal, youʼll be ready to review and submit your information. Youʼll have the opportunity to print a copy of your appeal for your records. But you wonʼt have to mail a copy to us; just submit the appeal electronically. Online appeals represent one of many transactions you can now complete right over the Internet using Social Securityʼs website. You can also apply for retirement, disability or spouses benefits, request to replace your Medicare card and plan for your retirement. Visit our Online Services page at www.socialsecurity.gov/onlineservices to learn more about our online office. To learn more about appealing a Social Security decision online, or to begin an appeal now, visit the Internet Appeals page at www.socialsecurity.gov/disability/appeal. Learn more about Social Security by visiting our website at www.socialsecurity.gov. Or call Social Security at 1-800-772-1213 (TTY 1-800-325-0778). |
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As relatives age, watch for deteriorating driving skills -
By SHELLY BIRKELO, Monday, March 3, 2008
JANESVILLE - Elaine Mueske's family and a physician took away her father's last bit of independence-the keys to his car.
"It was a professional person, so he wouldn't blame one of us adult children. Still, he was upset and thought it was mean, but he never got hurt and never killed anyone,'' she said.
Mueske, 61, and her family grew concerned about her father's driving after he was driving with her mother and didn't remember their trip and how they'd gotten where they were. They also learned her father had gone off the road in the winter, Mueske said.
"There were a couple things that made us think, 'He's really not safe on the road, anymore,'" Mueske said.
"He had Alzheimer's before he died. I know he knew he wasn't capable of driving anymore and we knew he didn't think we had the authority (to take his driver's license away), but we knew some professionals, and they were willing to help,'' the Janesville woman said.
That can make all the difference, said Jennifer Enright-Ford, registered nurse consultant, for the Wisconsin Department of Transportation. Her work focuses on health-impaired drivers.
"This is so stressful for families. So it helps if the physician will be involved," Enright-Ford said.
Mueske is among a growing number of adult children dealing with elderly parents who have driving issues.
Drivers 55 and older make up 25 percent of the driving population, according to the American Association of Retired Persons.
Enright-Ford said advanced age does not automatically make a driver unsafe. Health issues, for example, can interfere with drivers of all ages, she said.
But there are signs children can watch for when concerned about a parent's driving-vehicle damage, inappropriately slow driving, anxiety about driving and other motorists honking horns.
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AARP to Host 'Fight Fraud- Shred Instead' Event
From 9:00am until noon on May 17, AARP will be hosting a shredding event in 6 cities across Colorado, including Denver East/Aurora, Denver Central, Ft. Collins, Monument/Colorado Springs, Durango and Pueblo. The Grand Junction shredding event will be held on May 13th from 3:00-4:30pm. For more information on this event, please visit AARPelderwatch.org. |
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