Long Term Care Benefits

Something interesting that is part of the Health Reform Act.

Long-term Care Benefit Also Made Available in Health Reform

March 26, 2010 (PLANSPONSOR.com) - The health reform legislation contains a provision that will make long-term care insurance available to all Americans, who will be automatically enrolled with the choice to opt out.

Under the Community Living Assistance Services and Support (CLASS) Act, individuals will begin paying a premium immediately and, after five years, those with functional limitations have the option of receiving a cash benefit of around $50 a day that can be used for medical equipment and home renovations.

In addition, Health Leaders Media reports that the bill will implement much stricter guidelines in terms of ownership transparency of nursing home chains.
"This will allow patients and the public at large to better understand ownership and operational hierarchies that currently are difficult to identify. Making these changes in the industry will be challenging, particularly for large publically-owned chains," says Katherine McCarthy, business account manager at PointRight in Lexington, MA, according to the news report. "However, those of us in the industry are all very excited that the bill will extend the therapy caps exceptions process through 2010. At the end of this year, they will have to revisit this issue again, at which point we are all hopeful for a long-term fix that ensures patients are able to receive the care they need based on medical necessity, rather than an arbitrary cap on funding." The health reform bill also includes a provision to help close the Medicare Part D coverage gap for medications. According to the Senate’s summary of the Patient Protection and Affordable Care Act, "in order to have their drugs covered under the Medicare Part D program, drug manufacturers will provide a 50% discount to Part D beneficiaries for brand-name drugs and biologics purchased during the coverage gap beginning July 1, 2010. The initial coverage limit in the standard Part D benefit will be expanded by $500 for 2010."-Rebecca Moore

Credit CARD Act of 2009

Last week, the most sweeping credit card reforms ever passed by Congress (The Credit CARD Act of 2009), began to take effect. On one side, consumer groups are excited that credit card companies are required to communicate more frequently and plainly about changes they make to your cards. Critics, however, say that these new regulations will make credit cards more expensive, in the long run, for everyone.

NPR’s “All Things Considered” outlines a few need-to-know-points for consumers:

— Interest Rates: Card issuers cannot increase interest rates during the first year on new accounts. In most cases, retroactive rate increases are prohibited.

— Payments and Billing: The issuer has to set the payment-due deadline on the same day each month.

— Fees: Consumers cannot be charged extra fees for making payments online, by phone or by mail.

— Disclosures: Issuers must notify cardholders of significant changes to their account terms at least 45 days before the changes take effect. If the consumer objects to the changes, he or she can close the account, or "opt out."

— Young People: Consumers younger than 21 need an adult co-signer to open a credit card. In addition, the card issuers cannot entice students to sign up by offering free pizzas or other gifts within 1,000 feet of a college campus.

Also, have you ever tried paying your credit card over the phone, only to realize it will cost you 10 bucks to do so? That’s also out with these new credit regulations. (They always try to nickel and dime us, don’t they?)

What might be confusing to consumers is finding out what rules take place when. We found an interactive timeline at CreditCards.com that clearly outlines when legislation begins:

Creditcards.com Credit Bill Timeline

I urge my clients to read the communication that their credit card company sends them. If you have an issue with something you read, call them, and ask for clarification about the terms of your card.

As always, I am available for any questions anyone has concerning about this new legislation, or credit cards in general. Thanks for reading!