ENROLLING IN MEDICARE ADVANTAGE AND PRESCRIPTION DRUG PLANS

Are you turning 65 in the next year? It's time to consider your Medicaid options. At age 65, you are automatically enrolled in Medicare Part A, hospitalization coverage, which is free, and Part B, which covers lab fees, physician's fees and medical equipment. There's a premium for Part B.

If you want additional benefits, though, you will need to specifically opt into a Medicare Advantage plan (part C), and or a prescription drug plan (Part D).

Medicare Advantage. In a nutshell, Medicare Advantage, or Part C, allows you to access your Medicare benefits via a more comprehensive managed care plan. Different companies sponsor different kinds of plans, with varying premium levels and benefit levels to fit a variety of different budgets and needs. They come in the form of health maintenance organizations (HMOs) and preferred provider organizations (PPOs). Each sponsoring company has to provide at least the standard benefits available under Part A and Part B, and every Medicare Advantage carrier must be approved by Medicare to provide benefits.

(...continued)

(...continued from previous page)

In addition to the basic Medicare benefits, Medicare Advantage plans might also provide additional benefits, such as dental, vision, expanded hospitalization benefits, or more focused care for those with special medical needs, such as diabetics. Premiums vary, depending on your plan and location. You can't be turned down for Medicare Advantage, but you may have to pay extra if you don't sign up when you're first eligible.

Note: Don't get Medicare supplemental coverage if you already have a Part C plan. You don't need both kinds of coverage - just one or the other.

Some things to keep in mind:

• You can only enroll during your open enrollment period, during certain times of the year.
• Once you enroll, you stay in the plan for a year.
• Different plans cover different procedures and treatments. Look at their list of exclusions, or check with the plan before getting a treatment or service.
• Managed care plans typically come with a list of authorized providers. If you have a preferred physician or other care provider, consult your plan network to ensure your preferred provider is a member of the network.
• You may need to get a referral from a primary care physician before seeing a specialist. This is a common arrangement in HMO-type plans.

Medicare Part D. Medicare Part D is the federally subsidized prescription drug program. You aren't automatically enrolled in Part D when you turn 65; you must specifically opt in to the program and apply for benefits. In some cases, though, your Part C, or Medicare Advantage plan, will provide prescription drug coverage as part of the plan. In other cases, you may enroll in Part D by itself (a Part D "standalone" plan), or have a separate Part C and Part D plan.

Medicare Part D requires a premium. That premium varies by plan, though. The more benefits and fewer exclusions the plan offers, the higher your monthly premium is likely to be.

Enrolling. Generally, you can enroll in Medicare Part D during the seven-month period that starts three months before the month you turn 65, includes the month you turn 65, and ends three months after the month you turn 65. If you don't join during this initial enrollment period, though, you will generally have to pay higher premiums. You must also wait until the annual open enrollment period to sign up for benefits. Usually, this period runs from October 15th through December 7th.

To avoid paying penalties and higher premiums, ensure that you don't have a break in credible coverage before signing up for a new Part C or Part D plan. Additional rules and provisions apply for special situations, such as if you relocate, or your plan's contract with Medicare changes.

FIVE HELPFUL HINTS TO AVOID ALZHEIMER'S & DEMENTIA

Having a predisposition to Alzheimer's or dementia is very worrisome for adults. However, experts agree that it might be possible to slow the progression of these diseases. Reducing risk factors such as diabetes, obesity and smoking by even 25% might help. If everyone in the United States did this, it might be possible to prevent at least 1.5 million cases. There are several other ways to keep the mind sharp and reduce the risk of developing dementia or Alzheimer's.

1. Regular Activity & Exercise. People who are active maintain their cognitive abilities better than those who are not. Vigorous physical exercise is beneficial to the hippocampus, which is the brain region responsible for memory formation. As people age, their hippocampus shrinks. This shrinkage leads to memory loss. However, research shows that exercise may help reverse this process. As a rule, it is best to aim for 150 minutes of moderate exercise each week. Lifting weights may also be helpful for better cognitive function.

2. Try a Mediterranean Diet. This diet consists mostly of vegetables, nuts, fish, fruit and beans. Research shows that these foods might help reduce the risk of developing Alzheimer's by more than 30%. Omega-3 fatty acids, which are found in fish, are beneficial for maintaining heart health. They are also important for healthy brain function. Research also shows that a diet rich in leafy greens and fresh fruit might help slow the progression of dementia or Alzheimer's. Many spices also have brain-friendly attributes, so be sure to add them liberally. Vitamins are also important. One that is especially beneficial for preventing or slowing Alzheimer's is Vitamin B12. While it is always best to obtain nutrients from raw foods, multivitamins and supplements will also suffice.

3. Try Something New. Learning something new triggers the growth of brain cells. However, a daily routine will not challenge the brain enough to result in substantial cell growth. To keep the brain as sharp as possible, try learning something new every day. Study a new game, read about a mind-challenging subject or study a foreign language. There are plenty of other ways to challenge the brain, so have fun with this task.

4. Increase Social Interaction. Research shows that people who enjoy the mental and emotional stimulation of social interaction have a lower risk of developing dementia. Keeping track of a calendar, social functions and community obligations is a great way to stay sharp. Churches groups, social clubs and common interest groups are good places to start. Many people feel they have a purpose in social groups, which is another health benefit. People who have clear goals and purposes are less likely to develop cognitive disorders.

5. Reduce Stress. When people experience chronic stress, their brains flood with cortisol. This substance contributes to impaired memory. Meditation has been shown to reduce stress hormones. People who meditate and successfully reduce stress may be able to build the gray matter in their brains. There are plenty of ways to reduces stress. It is best to talk to a doctor about which options are best for an individual situation.

Adopting a healthy and active lifestyle is the key to successfully avoiding dementia or Alzheimer's. Although healthy individuals may still develop these diseases, their chances are much less likely when risk factors are reduced.

THREE WAYS TO PAY FOR LONG-TERM CARE

Many consumers are hesitant to purchase coverage because of premium hikes applied to Long-Term Care insurance and the disappearance of several trusted insurers from the market. However, the need for coverage remains. Recent research shows that the median cost of a private room in a nursing home exceeds $75,000. In addition to this, nursing home room rates are increasing by about 5% each year. Home care with 24-hour service calls is even more expensive. Not all individuals qualify for Long-Term Care coverage. There are also people who simply do not want to buy the coverage. However, there are three additional ways to protect retirement savings from being affected by the cost of long-term care in the future. If benefits are not used, the insurance is applied toward an annuity or death benefit.

1. Long Term Care Policies & Annuities. A few companies offer combined annuities with long-term care policies that allow members a three-to-one leverage of investment. For example, up to $300,000 in long-term care benefits could come from a $100,000 annuity. People who already own deferred annuities but want to change them to tax-free combinations are especially attracted to these policies. It may also be easier for such people to qualify for this type of plan over a traditional Long-Term Care policy. Distributions for money used for long-term care are not taxed under this plan. However, if money is withdrawn for other purposes, regular income taxes must be paid on earnings. Heirs may receive any unused portions of the annuity.

2. Life Insurance Combination Policies. New policies have been introduced by many companies to offer a product that combines Long-Term Care coverage and Life insurance. Members make premium payments or contribute a lump sum to enjoy guaranteed payouts for long-term care or a death benefit. These policies are best for people who are between the ages of 50 and 70 who still need Life insurance but also desire coverage for protection against the costs of long-term care. By paying the premium in a lump sum, members are protected from policy hikes. However, some policies that offer premium payments over the span of 10 years promise that there will be no increase in premium amounts. Benefits begin when members require assistance with two or more activities of daily living. These include dressing, bathing, walking, transferring, toileting and eating. If an individual becomes physically or cognitively impaired, the benefits begin. Care can be obtained in a nursing home, assisted living facility or at a residence.

3. Longevity Insurance. When members reach a certain age, this type of plan pays out. The usual age threshold is about 85 years. Longevity insurance is a good way to make sure that outliving retirement income is not a possibility. It is also a good way to protect against long-term care costs that are required at older ages. Longevity coverage may be purchased by anyone. Health status, age and medical issues are not disqualifying factors. This means that it is a good choice for individuals who do not qualify for regular Long-Term Care coverage. The disadvantage is that there is no death benefit if a member dies before age 85.