Fong Law Group

Medicare Premiums to Increase Dramatically in 2022

Medicare premiums are rising sharply next year, cutting into the large Social Security cost-of-living increase. The basic monthly premium will jump 15.5 percent, or $21.60, from $148.50 to $170.10 a month.

The Centers for Medicare and Medicaid Services (CMS) announced the premium and other Medicare cost increases on November 12, 2021. The steep hike is attributed to increasing health care costs and uncertainty over Medicare’s outlay for an expensive new drug that was recently approved to treat Alzheimer’s disease. Because most recipients have their Medicare premium deducted from their Social Security check, the upswing in Medicare premiums means that the Social Security cost-of-living increase of 5.9 percent, which was the largest in 39 years, will be smaller for most people. 

While the majority of beneficiaries will pay the added amount, a "hold harmless" rule prevents Medicare recipients' premiums from increasing more than Social Security benefits. This “hold harmless” provision does not apply to Medicare beneficiaries who are enrolled in Medicare but not yet receiving Social Security, new Medicare beneficiaries, seniors earning more than $91,000 a year, and "dual eligibles" who get both Medicare and Medicaid benefits.

Meanwhile, the Part B deductible will rise $30, from $203 to $233 in 2022, while the Part A deductible will go up by $72, to $1,556. For beneficiaries receiving skilled care in a nursing home, Medicare's coinsurance for days 21-100 will increase from $185.50 to $194.50. Medicare coverage ends after day 100.   

Here are all the new Medicare payment figures:

• Part B premium: $170.10 (was $148.50)
• Part B deductible: $233 (was $203)
• Part A deductible: $1,556 (was $1,484)
• Co-payment for hospital stay days 61-90: $389/day (was $371)
• Co-payment for hospital stay days 91 and beyond: $778/day (was $742)
• Skilled nursing facility co-payment, days 21-100: $194.50/day (was $185.50)

Your "Medigap" policy may cover some of these costs. 

Premiums for higher-income beneficiaries ($91,000 and above) are as follows: 

• Individuals with annual incomes between $91,000 and $114,000 and married couples with annual incomes between $182,000 and $228,000 will pay a monthly premium of $238.10.
• Individuals with annual incomes between $114,000 and $142,000 and married couples with annual incomes between $228,000 and $2846,000 will pay a monthly premium of $340.20.
• Individuals with annual incomes between $142,000 and $170,000 and married couples with annual incomes between $284,000 and $340,000 will pay a monthly premium of $442.30.
• Individuals with annual incomes above $170,000 and less than $500,000 and married couples with annual incomes above $340,000 and less than $750,000 will pay a monthly premium of $544.30.
• Individuals with annual incomes above $500,000 and married couples with annual incomes above $750,000 will pay a monthly premium of $578.30.

Rates differ for beneficiaries who are married but file a separate tax return from their spouse. Those with incomes greater than $91,000 and less than $409,000 will pay a monthly premium of $544.30. Those with incomes greater than $409,000 will pay a monthly premium of $578.30.

The Social Security Administration uses the income reported two years ago to determine a Part B beneficiary's premium. This means that the income reported on a beneficiary's 2020 tax return is used to determine whether the beneficiary must pay a higher monthly Part B premium in 2022. Income is calculated by taking a beneficiary's adjusted gross income and adding back in some normally excluded income, such as tax-exempt interest, U.S. savings bond interest used to pay tuition, and certain income from foreign sources. This is called modified adjusted gross income (MAGI). If your MAGI decreased significantly in the past two years, you may request that information from more recent years be used to calculate the premium. You can also request to reverse a surcharge if your income changes.

Those who enroll in Medicare Advantage plans may have different cost-sharing arrangements. CMS estimates that the Medicare Advantage average monthly premium will be lower in 2022, from an average of $21 in 2021 to $19 in 2022.

For Medicare’s press release announcing the new premium, co-payment and deductible amounts for 2022, click here.

Hiring a Caregiver: Should You Employ One Yourself or Go Through an Agency?

Most seniors prefer to stay at home as long as possible rather than move into a nursing home. For many families, this means eventually hiring a caregiver to look after an aging relative. There are two main ways to hire someone: directly or through a home health agency.

Hiring directly
When you hire a caregiver directly, you need to consider all the tax and liability issues. As an employer, you are responsible for filing payroll taxes, tax forms, and verifying that the employee can legally work in the United States. If you pay $2,300 or more in wages in 2021 to any one employee, you need to withhold and pay Social Security and Medicare taxes. If you pay more than $1,500 in wages in 2021, you need to pay unemployment taxes. In addition, a private caregiver may not carry his or her own liability insurance or workers' compensation. If an accident occurs on the job, you could be responsible.

The benefit of hiring a caregiver directly is that you have more control over whom you hire and can choose someone whom you feel is right for your family. Another benefit is that hiring privately is usually cheaper than hiring through a home health agency. For more information from Caring.com on hiring a caregiver directly, click here.

The agency route
When you hire through a home health agency, the agency is the employer, so you don't need to worry about tax and liability issues. The agency takes care of screening the employees, doing background checks, and providing insurance. In addition, a licensed home care agency must provide ongoing supervision to its employees. It can help the employees deal with difficult family situations or changing needs. The agency may also be able to provide back-up if a regular caregiver is not available.

The downside of going through an agency is not having as much input into the selection of the caregiver. Another consideration is that caregivers may change or alternate, causing a disruption in care and confusion. To find a home health care agency near you, click here.

COVID Vaccination Information Added to Medicare’s Nursing Home Compare Site

Individuals who are researching nursing homes can now see staff and resident vaccination rates along with other quality and safety measure information at Medicare’s Nursing Home Compare website. 

The official Medicare website includes a nursing home rating system. Nursing Home Compare offers up to five-star ratings of nursing homes based on health inspections, staffing, and quality measures. Users can search for nursing homes by location and directly compare how they measure up. 

In order to make COVID-19 vaccination information more available to the public, the Centers for Medicare & Medicaid Services (CMS) has added staff and resident vaccination rates to the system. The compare site now shows what percentage of staff and residents are vaccinated against COVID-19 at each nursing home and lists the state and national averages, so users can see how the facility stacks up. According to the site, nationally, 84.1 percent of nursing home residents and 63.7 percent of staff are vaccinated. The information will be updated on a bi-weekly basis. 

To visit the site and compare nursing homes, click here.

Better Than No Loaf: Medicaid Planning Using "Half a Loaf" Strategies

While it is preferable to conduct long-term care planning well in advance of needing care, if you haven’t planned ahead, there are some strategies available to avoid spending all your assets. Three so-called "half a loaf" approaches allow a Medicaid applicant to give away some assets while still qualifying for Medicaid. 

In order to be eligible for Medicaid benefits a nursing home resident may have no more than $2,000 in "countable" assets (the figure may be somewhat higher in some states) in addition to the home, and the resident cannot have recently transferred assets. (A spouse living at home may keep more.)

Congress has imposed a penalty on people who transfer assets without receiving fair value in return. This penalty is a period of time during which the person transferring the assets will be ineligible for Medicaid. The penalty period does not begin until the person making the transfer has (1) moved to a nursing home, (2) spent down to the asset limit for Medicaid eligibility, (3) applied for Medicaid coverage, and (4) been approved for coverage but for the transfer. 

If a Medicaid applicant has excess assets, he or she must spend down those assets in order to qualify for Medicaid. However, Medicaid applicants who want to preserve some assets have a few options: 

• Gift and cure. The nursing home resident transfers all of his or her funds to the resident’s children (or other family members) and applies for Medicaid, receiving a long ineligibility period. After the Medicaid application has been filed, the children return half the transferred funds, thus “curing” half of the ineligibility period and giving the nursing home resident the funds he or she needs to pay for care until the remaining penalty period expires.
• Promissory note. The nursing home resident gives half of his or her funds to the resident’s children (or other family members) and lends them the other half under a promissory note that meets certain requirements in the Medicaid law. The resident uses monthly repayments of the loan, along with his or her income, to pay nursing home costs during the penalty period.
• Annuity. The nursing home resident gives half of his or her funds to the resident’s children (or other family members) and uses the remaining assets to buy an immediate annuity. In most states the purchase of an annuity is not considered a transfer that would make the purchaser ineligible for Medicaid. Income from the annuity can be used to help pay for long-term care during the Medicaid penalty period that results from the transfer. In such cases, the annuity is usually short-term, just long enough to cover the penalty period.

These strategies may not work in every state and none of them should be attempted without the help of an attorney whose practice includes Medicaid planning. 

In 2022, Social Security Beneficiaries Will See the Biggest Increase in 39 Years

The year was 1983: The U.S. invaded Granada. A gallon of gas cost 96 cents. Michael Jackson’s ‘Thriller’ video premiered. That year was also the last time that Social Security recipients saw a cost-of-living increase steeper than the one just announced for 2022. This year, Social Security benefits will rise 5.9 percent, the sharpest upsurge since 1983’s 7.4 percent jump. 

Cost-of-living increases are tied to the consumer price index, and rising inflation rates and gas prices caused by the ongoing coronavirus pandemic mean Social Security recipients will get a large boost in 2022. The 5.9 percent increase dwarfs last year’s 1.3 percent rise, and over the past decade hikes have averaged just 1.65 percent. The average monthly benefit of $1,565 in 2021 will go up by $92 a month to $1,657 a month for an individual beneficiary, or $19,884 yearly. 

The cost-of-living change also affects the maximum amount of earnings subject to the Social Security tax, which will grow from $142,800 to $147,000.

For 2022, the monthly federal Supplemental Security Income (SSI) payment standard will be $841 for an individual and $1,261 for a couple.

Part of the increase will be eaten up by higher Medicare Part B premiums, however. The standard monthly premium for Medicare Part B enrollees has not been announced yet, but it is projected to rise $10 a month to $158.30.  And the 5.9 percent Social Security increase may not be enough for seniors to keep pace with rising health care and prescription drug costs.

“You’re glad that you get a 5.9 percent increase, but it doesn’t feel like you’re getting 5.9 percent when all of your other costs are going up much higher,” said Nancy Altman, president of the advocacy group Social Security Works.

Most beneficiaries will be able to find out their specific cost-of-living adjustment online by logging on to my Social Security in December 2021. While you can still receive your increase notice by mail, you have the option to get the notice online instead.

For more on the 2022 Social Security benefit levels, click here.

Will I Lose My Home If I File Chapter 7 Bankruptcy?

You may not lose the property if you apply for Chapter 7 bankruptcy provided you don't have considerable home value and the payment is due. Most of the users who claim Chapter 7 bankruptcy are allowed to have their possessions. If you are struggling financially, though, you may choose to take a different approach to bankruptcy, like declaring Chapter 13 bankruptcy.

If you're considering Chapter 7 bankruptcy and seem to be concerned about losing your home in Monterey Park, California and surrounding areas, It is best to call a lawyer at Fong Law Group so we can assist you, and point you in the right direction for the options that are available for you.

Home and Bankruptcy

If you're behind with the payments, Chapter 7 will not assist you to retain your house. If you're behind on your payments or on the verge of losing your home, Chapter 7 won't help you. So, until you can work out a deal with the lender separate from the bankruptcy, you're likely to lose the home. When this happens, there are other options such as Chapter 13 bankruptcy; this is why it is best to call an attorney that can discuss all your options so you can keep your house.  

Will My House Be Sold by a Bankruptcy Trustee?

If you do not have equity in the home as collateral or can exclude (protect) the property utilizing the homestead claim, you can protect the house in Chapter 7 bankruptcy. The trustee designated to handle the case will not sell it since there will be no money to give to the debt holders if there is no available equity.

However, this does not indicate that you will be able to maintain the house. Whenever you declare bankruptcy, you should be current on all payments, and you should be able to keep current in the future. You fear losing the home to foreclosure if you don't during a Chapter 7. If you are behind on payments, a Chapter 13 might be the right option for you, this is why it is essential to speak with a lawyer so they can advise you. 

Does Bankruptcy Chapter 7 Assist with Foreclosure?

Although Chapter 7 bankruptcy may offer temporary protection from foreclosure, it will not assist you in keeping your house. It lacks a means for paying off debts or effectively stopping the foreclosure process.

Consider the below mentioned methods:

• Before filing for bankruptcy, try to work out a deal with the lender. If you are behind in your mortgage payments, you may be able to negotiate a settlement with your borrower, informally or via a more official mortgage work, in which the creditor offers to renegotiate the repayment schedule by restructuring or altering the loan. If you pursue this route, make sure you finish the mortgage modification process before filing chapter 7 bankruptcies. Otherwise, any continuing conversations will almost certainly be disrupted by the bankruptcy. (In Foreclosure, you will discover data on lender negotiations and home loans.) 
• Take Chapter 13 bankruptcy as an example. In this, you may save the house if you have not paid the installments and now have sufficient money to keep pace on the loan arrearage with time. The automatic stay once you file bankruptcy stops the lender from proceeding with foreclosure procedures after you file bankruptcy.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Will Bankruptcy Get Rid of Lawsuit Judgments?

Judgements are court decrees that state you owe the creditors money. If you do not pay the bills on time, the creditors may seek to take your private possessions or take your salary to settle the debt. You can contact Fong Law Group if you live in Monterey Park California and surrounding areas to go over your options to prevent or stop a judgement.

Is It Possible to File for Bankruptcy If You Have Judgments?

Because a judgment may have such a negative impact on the credit score, many individuals question if there is a method to get it cleared up. Many professionals would advise you to file for lawsuits, but does it clear all of your debts?

You will be free of all obligations or debts owed to creditors if you file for bankruptcy. However, if a judgement has been entered and a mortgage has been charged, bankruptcy would not be able to eliminate the lien.

You can get some claims on the property dismissed by asking the lawyer to file a petition with the court. However, it is preferable to cope with bankruptcy lawsuits before they become a lien on the property.

Most Bankruptcy Lawsuits will be Discharged If You File for Bankruptcy

Unpaid debts account for the most court judgments against bankruptcy creditors. The lender can sue you for the violation if you don't repay the personal loans, hospital expenses, or other secured loans. If the lender gets a judgment, they have the option of garnishing your earnings or seizing your property to pay the debt, depending on what type of debt it is.

Fortunately, declaring bankruptcy can halt the seizure and eliminate the debt repayment obligations. If a dispute is still ongoing, an automatic stay imposed by the bankruptcy may prohibit it from proceeding. Even though the case ended in a judgment, if the debt is eligible for dismissal, bankruptcy will remove the liability. However, if the judgment is for a non-dischargeable liability, bankruptcy may not be able to discharge it.

Bankruptcy Judgements

If a lender has issued you with bankruptcy lawsuits but it hasn't come to judgement yet, contact a bankruptcy lawyer as soon as possible. Bankruptcy may be able to stop the lawsuit and immediately eliminate the loan, sparing you effort and money.

Is this a Non dischargeable Bankruptcy Judgment?

Start by evaluating whether the liability is Non dischargeable while considering if bankruptcy will erase a judgment. The following are examples of non-dischargeable debts:

• Loans for students (with exceptions)
• Obligations for child benefit or spousal assistance
• Fines, royalties, court expenses, and other payments payable to government agencies
• Driving while inebriated results in mortality

Don't think you're out of the woods if the decision isn't in the Non dischargeable group. Other forms of debts, like liabilities tied to fraud, may be non-dischargeable when the collector objects.

Is it Possible to Prevent a Judgment Levy in Bankruptcy?

If the borrower's claim is still linked to the assets, like your home, getting a bankruptcy clearance will provide little relief. If the mortgage is still in place, the lender will have the option of selling the property once the bankruptcy process is completed or waiting till you sell it to claim its portion.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

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Online Survey Helps Older Adults Assess Their Financial Vulnerability

All older Americans are vulnerable to financial abuse, but there are certain circumstances that make someone more likely to be scammed. An online survey can help older adults (or their caregivers) assess their risk of being exploited based on how they make financial decisions. 

It is hard to ascertain the exact number of people affected by financial exploitation because studies show that elder abuse is underreported. However, one study found that monetary loss from financial elder abuse could be close to $3 billion a year. 

Experts have found that there are certain risk factors that can help indicate when someone is more likely to fall prey to a financial scam.  Peter Lichtenberg, director of the Institute of Gerontology at Wayne State University, found that older adults’ physical and mental health, along with their family and friend network, help predict their financial vulnerability. 

Lichtenberg has created a website (www.olderadultnestegg.com) with resources for professionals, older adults, and family members to assess whether someone is at-risk. He provides trainings for caregivers on how to determine if a loved one is experiencing cognitive decline and how to spot financial mismanagement. The website also includes a financial vulnerability survey that assesses a person’s risk of exploitation by asking 17 targeted questions. At the end of the survey, participants get a low, moderate, or high risk assessment. There are also resources to direct older adults and caregivers on how to get help. 

To take the survey and see the resources, click here.  

Online Survey Helps Older Adults Assess Their Financial Vulnerability

All older Americans are vulnerable to financial abuse, but there are certain circumstances that make someone more likely to be scammed. An online survey can help older adults (or their caregivers) assess their risk of being exploited based on how they make financial decisions. 

It is hard to ascertain the exact number of people affected by financial exploitation because studies show that elder abuse is underreported. However, one study found that monetary loss from financial elder abuse could be close to $3 billion a year. 

Experts have found that there are certain risk factors that can help indicate when someone is more likely to fall prey to a financial scam.  Peter Lichtenberg, director of the Institute of Gerontology at Wayne State University, found that older adults’ physical and mental health, along with their family and friend network, help predict their financial vulnerability. 

Lichtenberg has created a website (www.olderadultnestegg.com) with resources for professionals, older adults, and family members to assess whether someone is at-risk. He provides trainings for caregivers on how to determine if a loved one is experiencing cognitive decline and how to spot financial mismanagement. The website also includes a financial vulnerability survey that assesses a person’s risk of exploitation by asking 17 targeted questions. At the end of the survey, participants get a low, moderate, or high risk assessment. There are also resources to direct older adults and caregivers on how to get help. 

To take the survey and see the resources, click here.