All Posts in "Personal Finance/Consumers"

Wanted: Volunteer tax preparers

Tax filing season is months away, but the local AARP Foundation TaxAide program is already seeking volunteers to help provide free tax preparation service. 

Started by a small group of volunteers in 1968, TaxAide is now the nation’s largest free, volunteer-based tax assistance and preparation program. The service isn’t limited to any specific age or income range, but it’s focused on seniors with low to moderate income.   

In the United States during the 2024 filing season, over 27,700 volunteers at 3,600 TaxAide sites helped more than 1.6 million taxpayers file accurate returns. Those returns recovered tax refunds totaling $1.2 million-plus.

In Pierce County, 2,244 returns were filed by volunteers at eight sites located in Tacoma, Puyallup, Milton, Sumner, and Buckley, according to Linda Reiter, the local district coordinator for TaxAide. 

“Many people find tax time stressful, and I love that we make it easy to file a return for free.  With more volunteers, we can do even more,” Reiter said.

Information about how to volunteer in Pierce County is available from Point Defiance-Ruston Senior Center at 253-756-0601 or by e-mail at kgray@franketobeyjones.com.

Not all volunteers prepare tax returns.  Some serve as greeters who help keep the tax preparation sites running smoothly; others provide technical or administrative support, recruit more volunteers, or translate. Every position is important to the program, said Reiter, who has been an AARP volunteer for 13 years. She noted volunteers come from a variety of backgrounds, ranging from college students to retirees.  All levels of experience are welcome.   

Training is provided, but for tax preparers, being comfortable with computers is a plus.  Volunteer training is held in December and January for the upcoming tax filing season. The amount of training depends on the position. 

Tax preparation sites will open the first week of February next year and close at the end of the filing season, typically April 15.  Depending on the position and the time a volunteer can offer, the time commitment during training and the tax filing season ranges from a few hours to as many as 40 hours per week.

The Senior Scene by — October 1, 2024 in Personal Finance/Consumers
Changes coming to Medicare Part D

By Kenneth Thorp
Congress recently made a number of changes to Medicare’s “Part D” prescription drug benefit. The changes were part of President Biden’s signature legislation, the Inflation Reduction Act. The legislation was intended to make it easier for seniors to afford their medicines. 

Some of the changes will indeed help seniors. But other changes could inadvertently raise seniors’ costs, reduce their access to medicines, and stifle the development of new treatments. 

With open enrollment season just around the corner — it’ll run from Oct. 15 to Dec. 7 this year — every senior should know about the Inflation Reduction Act and how it has impacted Medicare.
First, the good news. Seniors using insulin now have their costs capped at $35 each month. This has already made a huge difference for those living with diabetes.

Starting next year, seniors’ yearly out-of-pocket Part D drug costs will be capped at $2,000. Seniors will also have the option to spread these costs out over the entire year through a new program called the Medicare Prescription Payment Plan. Both of these changes can help seniors who rely on multiple brand-name medicines and are on fixed incomes. But very few enrollees are aware of this new program. Medicare could do more to alert seniors to this new feature, especially since seniors interested in this benefit will need to opt in. During open-enrollment season, seniors should consider contacting their Part D insurers if they’d benefit from spreading out their pharmacy costs.

Because of the Inflation Reduction Act, Medicare can now set prices on some covered drugs for the first time ever. Unfortunately, this policy has had some unintended effects on the development of new medicines. Thus far, it has already resulted in the discontinuation of at least 36 research programs and 22 experimental drugs. 

The Inflation Reduction Act has also resulted in higher premiums for seniors. This year, standalone Part D plans were on track to cost 21 percent more than they did last year, on average. As a result, many seniors switched to lower cost options. The number of plans available has also dropped, down about 25 percent since 2020. 

Because of the law, many insurers have also shifted some medications to non-preferred or specialty tiers that require higher out-of-pocket costs, restricting beneficiaries’ access to previously covered drugs. Some insurers have also created rules that make it harder to get the drugs your doctor recommends, like making patients first try cheaper options.

It’s important that seniors learn about these changes — and the impact they’re having on their access to medicines — before Medicare’s open enrollment begins in October. 

Kenneth E. Thorpe is chairman of the Department of Health Policy and Management at the Rollins School of Public Health at Emory University. He is chairman of the Partnership to Fight Chronic Disease.

The Senior Scene by — September 25, 2024 in Personal Finance/Consumers

SAVVY SENIOR

By Jim Miller

Dear Savvy Senior,

I’m planning to enroll in original Medicare and have been told I probably need to get a Medicare supplemental policy, too. Can you offer any tips on selecting one?

Almost 65

Dear Almost,

Getting a supplemental policy (also known as Medigap insurance) is a smart idea because it will help pay for things that aren’t covered by Medicare, like co-payments, co-insurance, and the Part A deductible. Here are some tips to help you choose an appropriate plan.

In all but three states (Massachusetts, Minnesota, and Wisconsin), Medigap plans, which are sold by private health insurers, are available to new enrollees in eight standardized plans. These plans are labeled with the letters A, B, D, G, K, L, M and N, with two more, C and F, that are only available to those eligible for Medicare before 2020.

Plan G is the most popular policy among new enrollees because it covers the most comprehensive range of benefits. Monthly premiums for Plan G typically range between $100 and $300, depending on your age and the state you reside in. If that’s more than you’re willing to pay, there are also high-deductible plans that have lower premiums but impose higher out-of-pocket costs.

For more information on the different types of plans and coverage details, go to Medicare.gov/publications and type in “choosing a medigap policy” in the Keyword box, and download their 2022 guide. Or call 1-800-MEDICARE and ask them to mail you a copy.

To pick a Medigap policy that works best for you, consider your health, family medical history, and your budget. The differences among plans can be small and rather confusing. To help you choose, visit Medicare.gov/medigap-supplemental-insurance-plans and type in your ZIP code. This will give you a list of the plans available in your area, their price ranges and the names, and contact information for companies that sell them. To get specific pricing information, you’ll need to contact the carriers directly or call your State Health Insurance Assistance Program. See ShipHelp.org or call 877-839-2675 for contact information. 

Since all Medigap policies with the same letter must cover the exact same benefits (it’s required by law), you should shop for the cheapest policy. You’ll get the best price if you sign up within six months after enrolling in Medicare Part B. During this open-enrollment period, an insurer can’t refuse to sell you a policy or charge you more because of your health.

You also need to be aware of the pricing methods, which will affect your costs. Medigap policies are usually sold as either, “community-rated” where everyone in an area is charged the same premium regardless of age; “issue-age-rated,” based on your age when you buy the policy, but will only increase due to inflation, not age; and “attained-age-rated,” with low premiums that increase as you age. Community-rate and issue-age-rated policies are the best options because they will save you money in the long run.

You can buy the plan directly from an insurance company, or you can work with a reputable insurance broker.

Also:

  • You also need to know that Medigap policies don’t cover prescription drugs, so if you don’t have drug coverage, you’ll need to buy a separate Medicare Part D drug plan, too. See Medicare.gov/plan-compare to compare plans. Also note that Medigap plans don’t cover vision, dental care, hearing aids, or long-term care.
  • Instead of getting original Medicare, plus a Medigap policy and a separate Part D drug plan, you could sign up for a Medicare Advantage plan (medicare.gov/plan-compare) that provides all-in-one coverage. These plans, which are sold by insurance companies, are generally available through HMOs and PPOs that require you to get your care within a network of doctors.

Jim Miller is a contributor to the NBC-TV“Today”show and author of “The Savvy Senior” book. Send questions for him to Savvy Senior, P.O. Box 5443, Norman, OK 73070, or savvysenior.org.

The Senior Scene by — September 18, 2024 in Personal Finance/Consumers

A new poll of U.S. adults on their financial well-being reveals contrasts between what they feel now and about the future.

According to the survey commissioned by the National Endowment for Financial Education (NEFE), 68 percent of respondents say the current quality of their financial life is what they expected or better, while 69 percent are at least somewhat concerned that their money will last through their later years.

Among other feedback, released in April, from the 1,222 adults nationwide who were polled by mail, phone and face-to-face interviewers: 

  • 53 percent felt they will never have the things they want in life because of money.
  • 62 percent are, to one degree or another, “just getting by” financially, and 33 percent rarely have money left over at the end of a month.
  • When asked about having money left over at the end of the month, 39% of respondents say that they do, 27 percent say they sometimes do and 33 percent say they rarely do. 

The poll was conducted by AmericSpeak, a program of the National Opinion Research Center at the University of Chicago.

NEFE) is an independent financial-education advocate and researcher. Additional information is available at  www.nefe.org.

The Senior Scene by — September 3, 2024 in Personal Finance/Consumers