there may be several “benefit periods” in a year under Medicare Part A.
Co-payments and deductibles under Medicare Part B and computed on an annual
basis without
regard to the “benefit period” provided in Medicare Part A.
Medicare Claims Processors
–
Medicare claims processors are known as "fiscal
intermediaries" and "carriers." Medicare intermediaries process hospital
insurance (Part A) claims for institutional services, including inpatient
hospital claims, skilled-nursing facilities, home health agencies, and
hospice services. They also process hospital outpatient claims payable under
supplementary medical insurance (Part B). Examples of fiscal intermediaries
are the Blue Cross and Blue Shield Association and commercial insurance
companies.
Medicare Supplemental Insurance (Medigap)
–
Traditional Medicare coverage does not pay all
medical expenses. There are deductibles, coinsurance amounts, non-allowable
charges, and non-covered services. If an individual is covered through the
traditional Medicare program, additional health insurance is needed to fill
the gaps in coverage. Many retired persons and/or their spouses have
protection that is provided by their former employer. Others purchase
supplementary insurance policies, referred to as Medigap insurance.
Pension Plans
– This is a traditional
retirement plan offered by some employers that pays a set amount each year
during retirement. Also called a defined-benefit plan, company pensions
guarantee a specific amount of benefits to employees, calculated using a
formula that typically includes the employee's final salary, years of
service, and a fixed percentage rate.
Powers of Attorney
– Simply put, a power
of attorney is a document whereby one person (called the "principal")
authorizes someone else (called the "agent," or the "attorney-in-fact") to
act on his/her behalf. A power of attorney may be “general,” granting broad
authority to make decisions concerning investments, tax matters, and
property transactions, or it may be “specific,” granting only limited
authority to perform one of more specific duties. Every state has
legislation authorizing the creation and use of powers of attorney. In all
cases, the principal must be competent when the power of attorney is
executed.
Note: There are different kinds of powers of attorney – also called advanced
directives.
PrimePlus Services
– The ElderCare
Services brand is transitioning to PrimePlus Services to make it easier for
clients to see the connection between traditional services and the more
global approach to the services that older clients need. The new focus on
PrimePlus Services leverages existing strengths and competencies in cash
flow planning and budgeting, pre- and postretirement planning, insurance
reviews and tax planning. The new positioning allows CPAs to broaden their
focus to include pre-retirement age clients, and to benefit from the greater
revenue potential of this expanded market and from the longer term of the
potential revenue stream.
Roth IRAs
–
The Taxpayer Relief Act of 1997 introduced a new option for IRAs, the Roth
IRA. The Roth IRA offers higher income limits and more relaxed eligibility
rules than available with a traditional IRA. In addition to these
differences the Roth IRA turns the traditional IRA formula on its head.
Retirement contributions are not deductible up front, but withdrawals can be
made tax-free after age 59˝.
(cont)
