Laws and Regulations

With the price of prescription drugs on the rise, the federal government enacted Medicare Part D, a prescription drug plan for those who qualified for Medicare. The program was introduced in January 2006, and just two years later over 25 million seniors were enrolled.

They are to be congratulated for making sense of this complex initiative. Out-of-pocket expenses under the standard Medicare Part D plan are determined by a complicated formula that includes a coverage gap, popularly called the doughnut hole, that occurs before enrollees qualify for catastrophic coverage.

The cost of long term care in this country has been spiraling for years, forcing families and their advisors to become innovative about how to finance the treatment of long term disease and disability. The problem has been wind in the sails of those selling long term care insurance and other financial instruments helpful in preparing for retirement. It has also forced many people to seek counsel regarding Medicaid, the federal government’s health care program for lower income individuals, including impoverished senior citizens receiving long term care services.

Scam artists are eager to take advantage of people. But they're especially eager to find older victims who can seem like easy targets. Here are some of their tricks, and the ways you can foil the scammers.

Cowboy Tradesmen

Section 1924 of the Social Security Act; U.S. Code Reference 42 U.S.C. 1396r-5)

The Senior Citizens' Freedom to Work Act, a bill signed by president Clinton on April 7, 2000, repeals the $17,000 Social Security earnings limit on workers between the ages of 65 and 69. Seniors who continue to work past retirement age are now entitled to full Social Security benefits no matter how much money they earn.

Prior to the enactment of this law, the Social Security benefits of workers between the ages of 65 and 69 were cut by $1 for every $3 earned over the $17,000 limit.