Ask Our ExpertsÑArchive by Topic
By: Source: AARP Bulletin Date Posted: 2007-06-16 15:57:00-04:00
GRIEF AND LOSS
Q. A friend's husband died six months ago, and she is still taking it very hard. Are there programs that can help her? (July-August 2002)
AARP has an extensive grief and loss program that has helped millions of people since it was started in 1973. Your friend might begin by calling the toll-free AARP Grief Support Line at (866) 797-2277, which is open to everyone, not just AARP members. The service is confidential and staffed by trained volunteers who have experienced the loss of a loved one themselves. It is available 9 a.m. to 9 p.m. ET daily. The AARP-run website at www.griefandloss.orgdetails other aspects of the program, including a full range of publications. Our primary booklet for the newly widowed is "On Being Alone." Order it online or by calling (800) 424-3410 or writing AARP Fulfillment EEO1531, 601 E St. N.W., Washington, DC 20049. Ask for D150 for the English version, D13949 for the Spanish version.—Expertise provided by Katherine Wood
For more information from AARP on Grief and Loss:
- AARP ' s Grief & Loss program (AARP.org)
- Understanding the Grief Process
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HOME OWNERSHIP
Q. I'm thinking of taking out a debt consolidation loan. Will the amount affect my ability to qualify for a reverse mortgage?
A. No. Having the loan wouldn't disqualify you as long as the loan amount plus your remaining mortgage and other debts didn't exceed the value of your home. All your debts must be paid off with the money you get from the reverse mortgage. Here's an example: Let's say you owe $100,000 on your mortgage, your loan and other debts. Based on your age, home value and interest rates, you qualify for $125,000 under the reverse mortgage program. You'd be able to pay off all the existing debt and still have $25,000 left. (The $125,000 must be repaid when you or your heirs sell the house.)
A reverse mortgage can be expensive, but it lets you tap into your home equity and continue living there. The older you are when you take the loan, the more you can get from your home and the less you'll pay in fees compared to the size of your loan. For more information, go to www.aarp.org/money and click on "Reverse Mortgages." —Expertise provided by Sally Hume
Q. I am 55, single and a renter. I'm saving money to buy a home, which will take me at least five more years. Will I be able to get a 30-year mortgage when I'm 60?
A. It is very common now for people in their 60s to buy or refinance homes. If you have established good credit, you should be able to get a 30-year mortgage.
To reassure yourself, check with several lenders about the home-buying process. You may also want to check out the various types of loans and loan terms that are available to you. For more information, visit the U.S. Department of Housing and Urban Developmentwebsite. —Expertise provided by Craig Hoogstra
Q. I recently got a new mortgage that was then sold to another lender. Will this have any impact on me? Will the interest rate stay the same? (May 2004)
Few lenders hold on to an original loan. Most sell them on the secondary market within days or months of the initial loan so they can get cash to make more loans.
When a lender sells a mortgage, the terms of the loan should not change for the borrower as long as all payments are made on time.—Expertise provided by Sally Hurme
Q. My wife and I plan to build a barrier-free home for retirement. Where can we get easy-to-understand information to get us started? (June 2003)
You can start by visiting the universal design section on AARP's websiteto learn about design features and take a virtual tour of some barrier-free homes. The Center for Universal Design in Raleigh, N.C., is another good resource. Call (800) 647-6777 to request free information.—Expertise provided by Tricia Selby
Q. I received an ad in the mail saying a reverse mortgage could give me extra income in my retirement. How do these mortgages work? And how can I learn more about them? (January 2003)
A reverse mortgage is a way to get money out of your home without having to leave it. It's a loan against the equity built up in your home that is repaid—with interest—when you die or leave or sell the property. Reverse mortgages are available only if you're a homeowner 62 or older and only on your main residence. Although some of these loans are offered by state or local governments, most are underwritten by mortgage companies. Some people find a reverse mortgage a good way to make their later years more comfortable. You should be aware, however, that such a loan can entail significant fees. AARP explains the subject in detail in a free booklet, "Home Made Money: A Consumer's Guide to Reverse Mortgages"(order #D15601). Get the guide to reverse mortgages online or by calling (800) 424-3410.—Expertise provided by Kenneth Scholen
Q. I hear that the government has a program that can make a person's home more weather-tight and reduce heating costs. Where can I find out about it? (November 2002)
The U.S. Department of Energy (DOE) has a Weatherization Assistance Program for low-income households. The program is administered by agencies in the states. To find out about weatherization assistance in your state, visit the DOE's Energy Efficiency and Renewable Energy website or call (800) 363-3732. The program reduces energy costs by increasing energy efficiency. Weatherization specialists come into the home and typically install insulation, seal holes and cracks and repair or replace heating units. The home can be an owned or rented house, apartment or mobile home. DOE says weatherization can reduce a household's energy costs by an average of $300 a year. Program details and eligibility requirements vary from state to state. But in many states, a two-person household with earnings just under $18,000 would meet the income requirement.—Expertise provided by Christopher Baker
For more information from AARP on Home Ownership:
- Dream House: A Model for Transgenerational Design (AARPmagazine.org)
- Interactive Tours of Universally Designed Homes (AARP.org)
- Checklist: Does Your Home Meet Your Needs? (AARP.org)
- AARP.org ' s Reverse Mortgages channel
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INSURANCE
Q. When my husband retired eight years ago with company benefits, our monthly health insurance premiums were $25. Now they're over $1,200 a month. Is it legal for the company to increase our premiums at such an extraordinary rate? (September 2005)
If the company reserved the right to change the terms of retiree health insurance in its benefit plan, then the increases are probably legal.
In addition, some companies limit what they will contribute toward retirees' insurance premiums. Once the employer's cost hits the cap, retirees have to pay the rest.
The terms of employee benefits are outlined in a summary plan description, which employers are required to give to workers and retirees. If you don't have a copy, request one. Ask, too, what changes, if any, have been made that explain premium increases.—Expertise provided by Geraldine Smolka
Q. I have continued to work so my wife and I can have health insurance. We are both 61. If I retire at 63½, can we be covered under the federal COBRA law until we turn 65 and become eligible for Medicare? (June 2005)
COBRA (the Consolidated Omnibus Reconciliation Act) enables workers who leave a company to avoid a lapse in coverage by continuing in their employer’s health plan for a specified period, typically 18 months. The company must have 20 or more employees, and the worker cannot be terminated for misconduct.
If your wife is covered under your employer’s plan when you retire, she, too, will qualify for COBRA coverage. —Expertise provided by Geraldine Smolka
Q. I carried life insurance on my previous mortgage, which would have paid off my home had I died. I recently refinanced my mortgage, but the insurer won’t cover me because I am over 65. Is this legal? (June 2005)
Yes. But the good news is that a general life insurance policy can serve the same purpose as mortgage life insurance and is usually more flexible and less expensive.
The proceeds of mortgage life insurance can be used only to repay mortgage debt. A general life insurance policy, however, allows the heirs to use the proceeds as they see fit—to pay off the mortgage or for other purposes. Of course, if the mortgage is not paid off, monthly payments must continue. —Expertise provided by Jean Constantine-Davis
Q. How can I fight a 39 percent premium increase on a long-term care insurance policy I’ve had for 10 years? (May 2005)
Most long-term care policies cannot be raised because of your age or other changes in your personal circumstances, such as becoming disabled.
But if the insurer can demonstrate to state insurance regulators that higher premiums are needed to pay anticipated claims, an increase will generally be granted across the board.
Some consumers have succeeded by taking legal action against insurers who raised premiums excessively. Check with your state insurance commission to learn what protections you may have against premium increases. To find your state’s information, go to the National Association of Insurance Commissioners. —Expertise provided by Enid Kassner
Q. My credit union recently dropped federal insurance and is now insured by a private company offering $350,000 coverage per account. Should I be concerned? (May 2005)
State-chartered credit unions in some states can be insured privately—but only if the credit union members and the National Credit Union Administration, a federal oversight agency, approve. (Federally chartered credit unions are all covered by federal insurance.)
Private insurance plans typically offer more coverage than the $100,000 limit imposed by federal insurance. If a privately insured credit union fails, however, the federal government will not come to the rescue.
For more information on insurance for credit union accounts, go to the NCUA website. —Expertise provided by George Gaberlavage
Q. Can an employer legally limit its retirees to one kind of health care plan when active employees have several plan options? (May 2005)
Yes. Although employers may not offer health plans based on a worker’s age, they may offer them based on a worker’s employment status.
Health benefits may vary, for example, for full-time workers and part-time workers, or for union workers and nonunion workers. Similarly, an employer may offer retirees just one health plan and active workers a choice of health plans.
All retirees, including early retirees and those eligible for Medicare, must be offered comparable coverage. To do that, some employers simply supplement Medicare benefits. —Expertise provided by Geraldine Smolka and Laurie McCann
Q. I am 63 and was "retired" by my employer in April 2004. I continued in the group medical and dental plan through COBRA. When it expires, how can I get coverage for the four months until I turn 65 and Medicare kicks in? (February 2005)
One option may be to convert your group plan to an individual policy. You may want to compare the cost of converting with the cost of buying a new individual policy that will cover you until you’re eligible for Medicare.
Under HIPAA (the U.S. Health Insurance Portability and Accountability Act of 1996) states must guarantee a way for individuals to buy insurance if they have exhausted their coverage under COBRA, the federal law that lets certain workers keep their coverage for a time after they leave their employer’s plan. HIPAA does not apply to dental coverage. To learn more, go to AARP’s website and read "When You’re Losing Your Group Health Insurance."—Expertise provided by Geraldine Smolka
Q. Does the Federal Deposit Insurance Corp.'s bank insurance limit of $100,000 per depositor apply to just one account, or can several accounts, such as IRA and joint accounts, be insured at the same bank? (December 2004)
The limit depends on the ownership category of the account (single, joint, self-directed retirement or revocable trust). If you have, for example, a checking account, a savings account and a certificate of deposit at the same insured bank, and all three accounts are in your name only, the three accounts combined are insured up to $100,000.
Deposits held in an individual retirement account, however, would not be included in this total because they are protected in a separate ownership category up to $100,000. Therefore, you may qualify for more than $100,000 in insurance coverage at the same insured bank.
The FDIC maintains an online estimator that can help you calculate your insurance coverage. Check the website or call (877) 275-3342 toll free for more information.—Expertise provided by George Gaberlavage
Q. Is there a central place to find out if my wife's grandmother, who is 101, has life insurance? No one in the family can find proof of coverage because of several moves and lost paperwork. (November 2004)
No, there is no central repository for life insurance policyholders. After a policy reaches maturity, usually when the policyholder turns 100, the insurance company will send a notification to the insured's last known address. If the money is not claimed, it goes to the state's unclaimed funds division in her name.
It may be worthwhile to go through her old checkbooks and receipts for evidence of paid premiums.
Finally, if a company insures her home, she may have purchased life insurance from the same agent.—Expertise provided by Sally Hurme
Q. Can a company start charging you for medical insurance after years of providing it free? I thought I was promised free insurance as a retirement benefit, but now they say I have to start paying. Is this legal? (September 2004)
It depends on the terms written into your employee benefit plan. If the company has reserved the right in that plan to change its retiree health insurance program, then a court would most likely rule its action legal.
The terms of employee benefits are outlined in what is called a summary plan description (SPD), a document that employers are required by law to give to employees and retirees. You should check your former employer’s current SPD to see if the company is acting in accordance with the SPD’s terms.
Your experience is not uncommon. More and more companies are reacting to the rising cost of health insurance by passing more of that cost on to employees and retirees.
This trend underlines how important it is for everyone planning for retirement to face the harsh fact that their future health insurance costs may be considerably higher than they expected.—Expertise provided by Mary Ellen Signorille and Gerry Smolka
Q. I understand that if I lose my job, I may be able to continue my health insurance under something called COBRA. What is that? (January 2004)
COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, is a federal law enacted in 1986 that allows certain workers who've lost their jobs to extend group health coverage for 18 months for themselves and their spouses and dependent children. In some instances, coverage can be extended to 36 months.
COBRA rights may also apply to retirees and others under certain circumstances.
COBRA coverage is valuable but it can also be costly, because under COBRA, in addition to paying your portion of the group health plan premiums, you must also shoulder whatever your employer may have paid. Still, COBRA coverage usually costs less than a comparable nongroup policy.
Experts say that exercising your COBRA rights may also keep alive your future eligibility to buy insurance outside of a group, protecting you from being refused coverage for a pre-existing condition.
Because health care coverage is so important, you are urged to examine COBRA's requirements closely.
The U.S. Department of Labor offers a booklet, "Health Benefits Under COBRA." Get it online (it's a PDF file), or call toll free (866) 275-7922.
AARP provides information on other options when you're losing your group health insurance.—Expertise provided by Geraldine Smolka
Q. I'm on Medicare and don't know whether I need medigap insurance. Where can I get information? (July-August 2003)
The Centers for Medicare &Medicaid Services (CMS) and state insurance departments oversee medigap insurance, which is sold by private companies to supplement Medicare coverage. You can request information from CMS by calling (800) 633-4227 or visiting the Medicare website. AARP has recently updated its online information on Medicare and related topics, including Medigap. AARP advises that, before you buy a medigap policy, you examine alternatives that may cost less. It describes these alternatives and, should none suit you, provides a five-step process to help you find a medigap policy right for you. The site also contains a list of the 10 federally authorized standard medigap plans. A tip: Apply for medigap within six months of starting Medicare Part B to avoid denial of coverage or high costs because of pre-existing conditions.—Expertise provided by Geraldine Smolka and Joan Gibala
Q. My company has shifted more of its health care costs to me. Will that trend continue in 2003? (January 2003)
Yes. A study done by the Henry J. Kaiser Family Foundation suggests that many firms are likely to boost employee health care premiums in 2003.—Expertise provided by Susan Raetzman
Q. I'm about to turn 65. I still work and have good health insurance. Do I have to abandon this coverage to qualify for Medicare? (November 2002)
You can choose to keep this coverage as long as you are working, providing you work for an employer with 20 or more employees. If you decide to keep your employer's coverage, Medicare Part A (hospital insurance) will supplement it and make reimbursements after your employer's plan pays. You can, however, elect to delay enrolling in Part B (medical insurance), though you risk paying higher premiums later if you change your mind and fail to observe the rules on delayed enrollment. If your employer has fewer than 20 employees, by law Medicare will be your primary insurance. For more details, visit the Medicare website. General Medicare information is also available by calling (800) 633-4227.—Expertise provided by Geraldine Smolka
Q. My wife and I are thinking about buying long-term care insurance. Do we need to buy inflation protection? (November 2002)
It depends largely on your age. If you're under 70, the answer is probably yes. Most people don't need to use long-term care benefits until they are in their 80s. Therefore if you're 55 or 60 today, a daily benefit that seems adequate now may cover just a fraction of long-term care costs 25 years down the road. On the other hand, if you're 70 or older, it may make more sense for you to choose a policy with an adequate daily benefit and avoid the added expense of inflation protection.—Expertise provided by Enid Kassner
Q. The business I retired from paid my health benefits for 14 years. Now they say I have to pay for them. Can they do this? (July-August 2002)
It depends on the terms of your employee benefit plan. These are outlined in what is called a Summary Plan Description (SPD), which employers are required by law to provide to employees and retirees. If your company's SPD includes specific language reserving the right to change the plan at any time, a court would recognize your employer as legally entitled to reduce or eliminate your benefits. Your experience underlines how important it is for new or prospective retirees to examine their SPDs carefully and to raise any questions they may have with the plan sponsor. If they discover that the employer has the right to make changes at any time, they may be able to make a better arrangement, such as shifting to coverage under a spouse's plan.—Expertise provided by Amy Shannon
For more information from AARP on Insurance:
- Guide to States Offering Tax Incentives for Long-Term Care Insurance (January 2003)
- Life on the Edge — Without Health Insurance (February 2002)
- AARP Member Discounts on Insurance (AARP.org)
- AARP.org ' s Health Insurance channel
- Understanding Long-Term Care Insurance (AARP.org)
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LIFESTYLE
Q. My father, who is 86, has had a heart attack and has been diagnosed with Parkinson’s in the last year. My sister and I have taken away his driving privileges because we feel he cannot manage safely. How can we help him accept that he can no longer drive?
Persuading someone that it’s time to stop driving is rarely easy. But a trusted family physician may be able to help by talking to your father about how health problems can affect driving safety.
You might also urge your father to try other ways of getting around, such as public transportation (many systems offer reduced fares for older people) and carpooling with friends and relatives.
For more guidance, get a copy of "Family Conversations With Older Drivers" by the Hartford Financial Services Group and the Massachusetts Institute of Technology’s AgeLab, online at www.thehartford.com/talkwitholderdrivers, or by writing to The Hartford, We Need to Talk, 200 Executive Blvd., Southington, CT 06489.
AARP offers a free handbook, "Older Driver Skill Assessment and Resource Guide: Creating Mobility Choices." Write to AARP Fulfillment EE01668, 601 E St. NW, Washington, DC 20049, and specify stock number D14957.—Expertise provided by Brian Greenberg
Q. Can you tell me about the necklaces that can be worn in case of an emergency? (November 2004)
There are many providers of personal emergency response systems (PERS), electronic devices that let you summon help in an emergency. You wear the device, which is a buttonlike radio transmitter, on a necklace, wristband or belt, or in a pocket. When you press the button, it sends a radio signal to a console connected to your telephone. The console automatically dials preselected emergency telephone numbers.
Most of the systems are programmed to call an emergency response center, where staffers assess the situation and send emergency personnel to the caller's home. Not all systems work in all areas, however. It is important to find out how the system can be tested in and around your home.
Fees for installation and monthly monitoring vary. If you don't know how well a service will work for you, avoid signing long-term contracts.
For more information on PERS, go to the Federal Trade Commission's website. For a free brochure, call the FTC toll-free at (877) 382-4357.—Expertise provided by Marc Freiman
Q. Out of concern about identity theft, I recently refused to give my Social Security number when I applied for a credit card. As a result, I was rejected. Can a business do this? (September 2004)
There is no federal law that prohibits businesses from requiring a Social Security number as a condition for granting credit. The company was therefore within its rights.
In a case like this, you have to decide whether the business can be trusted with this important information. Before making that decision, you would certainly be within your rights to ask what steps the company takes to protect such information.
The Federal Trade Commission offers useful publications on identity theft. They can be retrieved on the FTC website or requested by calling toll free (877) 382-4357.—Expertise provided by Neal Walters
Q. My wife and I plan to retire in a couple of years to a community where living costs are lower and there's good medical care. Is there any guide to help us explore possible locations? (September 2003)
Yes. The May-June 2003 issue of AARP The Magazine featured an article on " The 15 Best Places to Reinvent Your Life."Supplementing the article, the magazine has assembled on its website links to a wealth of useful sources to help you pick the city that's best for you. These are organized into 20 different categories that let you investigate such things as housing prices, local taxes, health care and local transportation, culture and recreation.—Expertise provided by Robert Long and Steve Slon
Q. I often see references to useful information available only on the Internet. This is frustrating, since I don't own a computer. What can I do? (March 2003)
Public libraries, including those at state universities, usually offer Internet access, and many librarians will also assist you in getting started online—or retrieve specific information on the Internet for you. It's also worth considering getting your own computer. Many powerful ones are available secondhand at bargain prices. And many adult education centers, community colleges and others offer courses for beginning computer users.—Expertise provided by Hugh O'Connor
For more information from AARP on Lifestyle:
- AARPmagazine.org ' s Lifestyle channel
- AARP.org ' s Travel and Leisure channel
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MEDICAL CONDITIONS
Q. How can I find out if a brand-name drug has a generic equivalent?
A. The simplest way to check if a brand-name drug has a generic equivalent is to ask your doctor or pharmacist. You can also go to fda.govor www.drugstore.com. Type in the drug brand name—if there's a generic, both the brand and generic names should appear. — Expertise provided by N. Lee Rucker
Q. My father lives in an assisted living facility in Pennsylvania. What will happen when his finances are exhausted and Social Security is his only income? What are his options?
If your father lived in a nursing home and depleted his resources, then Medicaid would help pay his bills. But Medicaid generally does not cover assisted living, and unfortunately Pennsylvania is not one of the states that provide limited support under federal waivers.
So your best bet is to talk with the administrators at your father’s residence to see if they can reduce their fees or suggest sources of funding. Contact your local agency on aging, too. Don’t wait until a crisis occurs.—Expertise provided by Don Redfoot
Q. My husband recently had a stroke. Where can I learn about therapy, so we can get a better idea of what to expect? (July-August 2003)
A good place to start is the website of the National Institute of Neurological Disorders and Stroke, where you will find a fact sheet with key information about strokes, including organizations you can turn to for help. One of these is the American Stroke Association, which provides various services. Its Family Support Network includes a toll-free information and referral service staffed by stroke survivors and caregivers. You can learn more about it by calling (888) 478-7653 from 9 a.m. to 5:30 p.m. ET Monday through Friday or by visiting the association's website at www.strokeassociation.org.— Expertise provided by Susan Raetzman and Molly Melvin
Q. My husband was recently declared legally blind. Where can I find out about services to help him? (June 2003)
The American Foundation for the Blind publishes a directory of services for the blind and visually impaired. You can get it online or by calling (800) 232-5463. The National Federation of the Blind (NFB) website is another good source for, among other things, lists of NFB state contacts and information about rehabilitation services.—Expertise provided by Laurel Beedon
Q. There's been a lot in the news lately about obesity. How can a person find out if he or she is obese? (February 2003)
Researchers have developed a calculation called the Body Mass Index (BMI) as a measure of whether an adult is overweight or obese. To find your BMI, divide your weight in pounds by your squared height in inches and then multiply by 703. If the resulting BMI number is 25 to 29.9, you are considered overweight; if your BMI value is 30 or more, you are considered obese.
Several BMI calculators are available online. The National Institutes of Healthoffers one. For tips on trimming your weight, visit AARP's health website.—Expertise provided by Susan Raetzman
Q. I have psoriasis and recently heard about a new drug to treat this condition. Where can I get reliable information on it? (February 2003)
The best thing to do is to talk to your physician to find out about the drug, its possible side effects and whether it's right for you. You should check with your physician or pharmacist to make sure the drug will not cause an adverse reaction when used with other medications you may be taking. In addition, you can seek information about the drug online. This website, run by the U.S. National Library of Medicine and the National Institutes of Health, contains information on thousands of prescription and over-the-counter medications that is presented in non-technical language.—Expertise provided by David Gross
Q. I recently had a mastectomy and was told by a friend that Medicare will cover the cost of a prosthesis. Is this true? (January 2003)
Yes, after a mastectomy Medicare Part B covers breast prostheses (including a surgical brassiere) with a doctor's prescription. Beneficiaries, however, are responsible for paying 20 percent of the Medicare-approved amount. For information, contact the Durable Medical Equipment Regional Carrier serving your area. To get that number, call (800) 633-4227 or visit the Medicare website.—Expertise provided by Craig Caplan
Q. My mother's arthritis makes it hard for her to open jars and cans, etc. Where can I get devices to help her? (June 2002)
Two companies that offer such products are Gold Violinof Charlottesville, Va., (877) 648-8465, and Youcan Toocanof Denver, (888) 663-9396.
AARP members get 5 percent discounts on Gold Violin products.—Expertise provided by Tricia Shelby
For more information from AARP on Medical Conditions:
- Archive of Health Discoveries columns
- Taming Cancer ' s Big 4 Killers (June 2002)
- Keeping Alzheimer ' s at Bay (March 2002)
- 4 Ways to Beat the New Blood-Pressure Guidelines (AARPmagazine.org)
- Conquer Fat (AARPmagazine.org)
- 12 Steps to Handle a Disturbing Diagnosis (AARPmagazine.org)
- AARP.org ' s Health and Wellness channel
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MEDICARE
Q. My aunt, whos 92, has been in a nursing home for three years. Shes using her savings to pay for it but will run out in about six months. As her guardian, when do I need to apply for Medicaid?
A. Many people are ineligible for Medicaid when they enter a nursing home, but then spend down their income and assets and qualify for the federal-state assistance program. Tell the homes administrators about her situation right away so they can begin to check her financial status to determine if and when she meets the qualifications for coverage. (To qualify, her nursing home expenses must exceed her income, and her total assets cant exceed an amount set by states, generally around $2,000.) Then, as soon as your aunt makes the last payment she can afford, you can apply for Medicaid. It should be processed within 45 days, as required by federal law. — Expertise provided by Wendy Fox-Grage
Q. Im 65 and joining Medicare Part D. How can I find out the cost of my drugs for the year?
A. Go to the Medicare Prescription Drug Plan Finder at www.medicare.govand enter the names of the drugs you take and the dosages. Youll see the cost of your drugs under each plan in your area, including your estimated annual and monthly out-of-pocket costs. If you join a plan halfway through the year, look for the amount youre likely to pay for the rest of the year. (For a handy guide to the site, go to the Bulletin online guide to the Medicare drug plan finder. You can also call the Medicare help line at 1-800-633-4227 for the same information. — Expertise provided by Patricia Barry
Q. I'll be 65 this December. When should I sign up for Medicare?
A. You'll be eligible to enroll in Medicare Parts A (hospital), B (doctor) and D (drug plan) starting Sept. 1, 2007 —three months before the month in which you turn 65. The simplest way to enroll in A and B is to visit your local Social Security office or call 1-800-772-1213. You can enroll in Part D at www.medicare.gov, by phoning the Medicare hotline at 1-800-633-4227 or by contacting the plan of your choice.—Expertise provided by N. Lee Rucker
Q. I need help with my prescription drug costs and I'm too young for Medicare. What can I do?
A. Contact the manufacturer of your medicine: Most companies offer free or low-cost prescription drugs to low-income people who meet their eligibility guidelines. Also, many states provide help. Call your state health department and check out AARP Bulletin(click on "Your guide to state-run and private pharmacy assistance programs"). Other sources: Needymeds.com(click on "Patient Assistance Programs") and the Pharmaceutical Research and Manufacturers of America. —Expertise provided by Lynda Flowers
Q. I am an American and live abroad. My husband is not a U.S. citizen, and neither of us has worked in the United States long enough to accrue Social Security benefits. We hope to move to California but are concerned we won't be able to afford health insurance. As a U.S. citizen, am I entitled to sign up for Medicare?
A. Yes, you can enroll in Medicare if you are age 65 or older and reside in the United States. But your husband, who is not a U.S. citizen, must live here for five years in order to enroll.
If you are Medicare age when you move back, apply immediately to avoid penalties (higher premiums) for enrolling late. You can get an application from the U.S. embassy or consulate nearest you.
Individuals who are not eligible for Social Security benefits must pay the premium for Medicare Part A (for hospitalization). All beneficiaries pay the Part B premium (for doctors, and outpatient services). In 2006 Medicare premiums total $481.50 a month—$393 for Part A and $88.50 for Part B.
You can also enroll in a Medicare prescription drug plan, with an average monthly premium of $32. For more information, go online to www.medicare.govor to www.aarp.org. —Expertise provided by Keith Lind
Q. If I’m traveling abroad, will Medicare cover the costs if I need medical care? (February 2005)
In most cases, Medicare will not pay for medical care or supplies received outside the United States. But some supplemental Medigap policies—specifically plans C, D, E, F, G, H, I and J—do provide emergency coverage during foreign travel.
Under these plans, Medigap pays 80 percent of costs that Medicare would cover in the United States for the first 60 days of each trip and after the $250 annual deductible is paid. Coverage is subject to a $50,000 lifetime limit.
Some Medicare Advantage plans might also offer coverage for care received abroad. Call (800) 633-4227 or download a PDF for more information.—Expertise provided by Craig Caplan
Q. As a new citizen in 2000, I will not have enough employment credits by age 65 to be eligible for Medicare when my current HMO plan expires. Is there any way I can still enroll in Medicare? (December 2004)
You can only "earn"entitlement to Medicare benefits through contributions to the Social Security system as a worker. But if you meet certain qualifications, you can pay a premium to enroll in Medicare Part A, which covers hospitalization. Buying into Part A (eligible beneficiaries do not pay the Part A premium) is open to individuals who are at least 65 and are U.S. citizens residing here or legal aliens living here for at least five years.
Like all beneficiaries, you are required to pay the premium for Part B, which covers physician and outpatient services. Your local Social Security office can provide more details and tell you how to enroll.—Expertise provided by Keith Lind
Q. I understand Medicare covers hospice care if a person has less than six months to live. Does coverage end if the person lives longer than six months? (October 2004)
No, Medicare coverage for hospice care can be continued beyond six months, provided certain conditions are met.
To get this coverage, both the patient’s doctor and the hospice medical director must certify that the patient is terminally ill and probably has less than six months to live. The care patients receive must be given by a Medicare-approved hospice program, and they must agree in writing to forgo nonhospice Medicare benefits for their terminal illness.
Medicare hospice coverage is provided for defined periods of care—two 90-day periods, followed by an unlimited number of 60-day periods—and it will continue as long as the doctor recertifies the patient at the start of each period.
Medicare offers a 12-page booklet, "Medicare Hospice Benefits," (PDF), that can be requested by calling (800) 633-4227; TTY toll free (877) 486-2048.—Expertise provided by Susan Raetzman
Q. I understand a husband and wife can each get a $600-a-year credit on their Medicare discount drug cards if their combined annual income is below $16,862. Do Social Security retirement benefits count as part of this income? (September 2004)
Yes, they do—and before Medicare premiums are deducted. So do many other sources of income, including Veterans Affairs benefits, pensions and annuities, interest, dividends and alimony received.
On the other hand, there is a considerable list of items exempted from the income calculation. These include welfare benefits, home sale proceeds, life insurance death payments and child support received.
The $16,862 income requirement for couples comes out to $1,405 a month. A single person’s income must be below $12,569, or $1,048 a month, to qualify.
The AARP Bulletin website provides detailed information on the drug discount card. You can also call Medicare at (800) 633-4227 for further information.—Expertise provided by Patricia Barry and Lynda Flowers
Q. Is there a deadline for signing up for one of the prescription drug discount cards being offered through Medicare? (June 2004)
There's no immediate deadline. The card program will continue through Dec. 31, 2005, after which Medicare's new prescription drug benefit begins, and you can apply for a card at any time until then. But if you think you qualify for the $600 annual assistance for lower-income people, it may pay you to look into the matter soon.
Medicare offers detailed information on the cards. You can go to the official Medicare websiteor call Medicare at (800) 633-4227; TTY toll free at (877) 486-2048.
Whether online or over the phone, you will be asked to indicate what drugs you use and provide other information needed to help define the options open to you. In return, you will get a list of discount card providers in your area, the prices they charge for the drugs you use and which pharmacies (retail or mail order) accept which cards.
When Medicare published information on drug discounts last month, some providers said some of its information, especially on prices, was incomplete. For this reason, be sure to check directly with any card providers you're considering before making your decision.—Expertise provided by Susan Raetzman
Q. Does Medicare cover glaucoma testing? (March 2004)
Yes, it does, but only for people judged at high risk for the disorder. This includes people with diabetes, a family history of glaucoma and African Americans 50 or older. A screening is allowed once every 12 months and must be done or supervised by an eye doctor who's legally allowed to perform this service in your state. If you have questions, call Medicare at (800) 633-4227. —Expertise provided by Craig Caplan
Q. My siblings and I plan to move our mother into a local nursing home. Which facility offers the best care? (November 2003)
At Medicare's website, you'll find a handy tool, Nursing Home Compare, that lets you search for nursing homes by county, city, ZIP code or facility name. As you narrow your hunt, you will discover basic facts and contact information for each facility.
You can also compare how each home performed in three key areas: quality measures (including the percentage of residents with bedsores), inspections (including any health deficiencies found in the most recent state survey) and average time the nursing staff works with each resident a day.
A few caveats:
1. Nursing Home Compare turns up only those facilities certified for Medicare and Medicaid. Assisted living facilities and private nursing homes may not appear.
2. Data on nursing/staff hours are not always accurate.
3. Online "comparison shopping" can never supplant the value of visiting a home. See AARP Bulletin Online's guide to nursing home performance data available by state.—Expertise provided by Faith Mullen
Q. I retired at 65 but am thinking of returning to work. Will my Medicare eligibility be affected if I do? (November 2003)
No; you'll be entitled to Medicare benefits no matter how much more you earn.
You'll also be covered by Medicare if you decide to buy group health insurance through your employer (but the company must have 20 workers or more). In that case, your employer-based insurance would become the primary payer and Medicare the secondary payer.—Expertise provided by Craig Caplan
Q. I'm told that Medicare will pay for an influenza shot. Can I get the flu shot anywhere it's offered—say, at a pharmacy—and then send the bill to Medicare for reimbursement? (October 2003)
No, Medicare will accept claims for flu shots only from Medicare-certified providers. Before getting your shot, therefore, make sure that whoever provides it is certified and has made arrangements to submit claims for Medicare reimbursement.—Expertise provided by Craig Caplan
Q. I'm on Medicare and don't know whether I need medigap insurance. Where can I get information? (July-August 2003)
The Centers for Medicare &Medicaid Services (CMS) and state insurance departments oversee medigap insurance, which is sold by private companies to supplement Medicare coverage. You can request information from CMS by calling (800) 633-4227 or visiting the Medicare website. AARP has recently updated its online information on Medicare and related topics, including Medigap. AARP advises that before you buy a medigap policy, you examine alternatives that may cost less. It describes these alternatives and, should none suit you, provides a five-step process to help you find a medigap policy right for you. The site also contains a list of the 10 federally authorized standard medigap plans. A tip: Apply for medigap within six months of starting Medicare Part B to avoid denial of coverage or high costs because of pre-existing conditions.—Expertise provided by Geraldine Smolka and Joan Gibala
Q. I'm told Medicare will cover nursing home care only under certain limited conditions. What are these? (June 2003)
Medicare Part A covers only skilled care in facilities certified to provide such care. This is in contrast to the custodial care provided by most nursing homes. To qualify, beneficiaries must also meet other conditions. In particular, they must have completed a hospital stay of at least three days within the past 30 days, and a physician must say that they need short-term skilled nursing care. Further, coverage is limited. If you have questions about this coverage, call your Medicare "fiscal intermediary."To get that number or for other information, call Medicare at (800) 633-4227 or visit the Medicare website.—Expertise provided by Craig Caplan
Q. I'm new to the fee-for-service Medicare plan. How does the claims process work? (March 2003)
Your doctor or equipment supplier is required by law to file Medicare claims for the covered service or supplies you receive. You will be mailed a Medicare Summary Notice for all services and supplies billed to Medicare in the month. If you have questions about the charges on this statement, call the doctor or supplier. If you have other questions, call the Medicare carrier that processed the claim; the phone number should appear on this notice. If you object to what was paid and want to appeal, call the Centers for Medicare & Medicaid Services, which administers Medicare, at (800) 633-4227. When you seek care, make sure the provider participates in Medicare and accepts its rates, because if not, you could wind up paying the whole bill. The process described here applies only to fee-for-service Medicare. Participating managed care plans such as HMOs get paid set amounts by Medicare and file no claims. Enrollees in these plans generally are not involved in any claims paperwork.—Expertise provided by Craig Caplan
Q. I recently had a mastectomy and was told by a friend that Medicare will cover the cost of a prosthesis. Is this true? (January 2003)
Yes, after a mastectomy Medicare Part B covers breast prostheses (including a surgical brassiere) with a doctor's prescription. Beneficiaries, however, are responsible for paying 20 percent of the Medicare-approved amount. For information, contact the Durable Medical Equipment Regional Carrier serving your area. To get that number, call (800) 633-4227 or visit the Medicare website.—Expertise provided by Craig Caplan
Q. I'm about to turn 65. I still work and have good health insurance. Do I have to abandon this coverage to qualify for Medicare? (November 2002)
You can choose to keep this coverage as long as you are working, providing you work for an employer with 20 or more employees. If you decide to keep your employer's coverage, Medicare Part A (hospital insurance) will supplement it and make reimbursements after your employer's plan pays. You can, however, elect to delay enrolling in Part B (medical insurance), though you risk paying higher premiums later if you change your mind and fail to observe the rules on delayed enrollment. If your employer has fewer than 20 employees, by law Medicare will be your primary insurance. For more details, visit the Medicare website. General Medicare information is also available by calling (800) 633-4227.—Expertise provided by Geraldine Smolka
Q. I understand the age at which a person can start collecting full Social Security benefits is being raised. Is the age of eligibility for Medicare going up, too? (June 2002)
The age of eligibility for Medicare has not been changed. It remains 65. You're right about Social Security, however. The age of eligibility is being raised from 65 to 67. The change will be phased in gradually and affects everyone born after 1937. People in that age category will have to wait longer to collect full benefits. The phase-in will become complete in 2027 when people born after 1959 turn 67. The Social Security website offers a chart showing complete age requirements. Information on age requirements is also available by calling the Social Security Administration at (800) 772-1213.—Expertise provided by Evelyn Morton
For more information from AARP on Medicare:
- The latest Medicare news from AARP Bulletin Online ' s Medicare channel
- AARP.org ' s Medicare channel
- Getting Started with Medicare (AARP.org)
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SOCIAL SECURITY
Q. My man and I have been living together for more than seven years and are considered common-law husband and wife under our state laws. If he dies, am I entitled to his Social Security benefits?
A. If your state recognizes you're in a common-law marriage, then Social Security will likely find you eligible for survivor benefits. Go to your Social Security office and fill out forms that require statements from both of you and two blood relatives, saying you're in a common-law marriage. You must also submit supporting evidence, such as mortgage or rent receipts, bank records or insurance policies. For details, go online to www.ssa.gov.—Expertise provided by Evelyn Morton
Q. I'm 60 years old and drive a truck for a living. I didn't pass my last Department of Transportation physical because of my diabetes, so now I'm out of a job. Can I qualify for Social Security disability?
A. First, to qualify for disability benefits, you must have worked long enough to earn the number of work credits required by Social Security. To view a chart on how many credits you need, go online to www.socialsecurity.gov/dibplan/dqualify3.htm. Second, an evaluation by Social Security must determine that you can't do the work you did before, or any other work, because of a medical condition. Your medical condition must also be expected to last for at least one year or to result in death.
To apply online for disability benefits, or to learn more, go to socialsecurity.gov. — Expertise provided by Laurel Beedon
Q. My husband died in 2004, and I thought I'd be entitled to 100 percent of his Social Security benefit, since I was over 65 at the time of his death. But I'm getting only 80 percent, which is the amount he received at age 62. Can you help?
A. Because your husband elected to claim his benefit early, at age 62, he was entitled to receive only 80 percent of the amount he would have received had he waited till age 65 to collect. And his choosing to take an early benefit also reduced the survivor benefit that you receive. If your husband had waited until he was 65 to claim a benefit, he (and you) would have received his full benefit amount. However, if your own benefit based on your work history is higher than his, you can contact Social Security to switch and collect your own. — Expertise provided by John Turner
Q. Are there statistics on how long the trust funds for Social Security will last?
A. The 2006 Social Security trustees' report (which comes out around May 1 every year) says that trust fund assets along with accrued interest will be enough to pay Social Security benefits in full and on time until 2040. Without any change to current law, the assets will be able to pay about 74 percent of benefits for decades thereafter. — Expertise provided by Laurel Beedon
Q. My mother died in 1995, and my father never applied for her Social Security benefits. Is it too late or could he still apply?
A. In general, when people are eligible for more than one Social Security benefit, they receive the higher benefit amount—not the two benefits added together.
So, if your father is receiving benefits, and the amount is higher than what he’d receive based on his deceased wife’s work record, there would be no point in applying for her benefits. However, if he would receive more based on his wife’s work record, your father can apply at any time for her Social Security benefits. But those benefits would not be retroactive from the time of her death.
For information, visit the Social Security Administration website. —Expertise provided by Laurel Beedon
Q. A friend just learned that her employer has been withholding Social Security deductions from her check but hasn't paid into the Social Security Administration for two years. What should she do?
A. It's against the law for employers to withhold and keep an employee's Social Security contributions, and they may be subject to criminal sanctions for failing to pay such employment taxes. Of course, it's also possible that the employer is not at fault and that the Social Security Administration mistakenly omitted her contributions on her statements for those two years. If your friend's W-2 statement from her employer does not reflect withholdings, she should contact Social Security at (800) 772-1213.—Expertise provided by Laurel Beedon
Q. I have my 401(k) with a former company that is not doing very well financially. Do I need to be concerned about the safety of my money if it goes bankrupt? I'm retired, but I like the investment options in the company's 401(k).
A. You should worry only if you have invested part of your 401(k) assets in your former company's stock (think Enron). In that case, you would lose money if the company went bankrupt. But you don't face the same risk with the other funds in your 401(k) because they are not assets of the company but are held in a separate trust. However, if you wish to cut ties to your former employer, you could investigate other investment options in the marketplace.
Q. I am 48 years old, and my wife, our two children and I live in Alabama with my mother in the house she owns. Would it be OK for her to take out a reverse mortgage to help us with finances, like education costs and things we want to buy? When she passes away, can she just leave us the house or do we have to buy it?
A. You would be required to pay off the outstanding debt from the reverse mortgage on your mother's home when she dies. If you did not have enough money to pay off that debt, the house would be sold and you would get the proceeds left over after the debt was paid. But before you take out a reverse mortgage, consider this: If your mother needed to move permanently to a nursing home for health reasons, the debt from the reverse mortgage would come due once she was living outside her home for 12 months.
Q. I was married for 25 years to my first wife. I have been married to my second wife for six years. When I die, who will get my Social Security benefits?
A. It's possible they both will be eligible for benefits. Divorced widows or widowers may receive benefits based on the Social Security records of their former spouse if they meet the following criteria: Their marriage lasted at least 10 years, they are at least age 60 and they are not currently married, or they remarried after age 60.
Your current spouse should be eligible to receive a widow's benefit when she reaches age 60. But just so you know, if the benefit your former or current spouse earned on her own work record is higher than the benefit based on your work record, she will receive the higher amount—not both added together.—Expertise provided by Laurel Beedon
Q. I am a married woman who has never been in the paid work force. I chose to stay at home to raise our children. Since I've never received a paycheck from an employer, can you tell me how my Social Security benefits are calculated?
A. You can receive spousal benefits based on your husband's work record, assuming he has worked long enough to have 40 credits (about 10 years' worth) and is old enough to receive benefits.
In general, if you are at full retirement age, your benefit is 50 percent of your husband's benefit. You may start collecting as early as age 62 (early retirement age), but your benefits will be reduced. For more detailed information, go to the Social Security Administration's website at www.ssa.gov.
Remember that the traditional full retirement age of 65 is gradually moving toward 67 for those born after 1937.—Expertise provided by Laurel Beedon
Q. I went to college after becoming an "empty nester." Last year I got laid off from my job, and my unemployment benefits stopped after six months. Now I am having trouble paying off my student loan. Can my Social Security check be garnished until the loan is paid off?
A. In December, the U.S. Supreme Court ruled the government can garnish up to 15 percent of your Social Security income if you default on your student loan—unless you receive $750 or less a month. However, other debt collectors can't garnish your Social Security income as long as it is kept in a separate account and not commingled with any other money. You should also know that your IRS tax refund can be seized and you can be sued by the government for the balance left on your student loan.
Before you get behind on your loan payments, find out if you can extend the terms of your loan, or if there are other repayment options that are available to you. For more information, visit online the company that primarily manages student loans, Sallie Mae. —Expertise provided by Sally Hurme
Q. I am getting Social Security benefits based on my deceased husband's record. If I remarry, will I lose my benefits?
A. It depends on your age. If you remarry before you turn 60 (when widows' benefits can begin), you are no longer eligible for your former spouse's benefits unless the remarriage ends.
If you remarry after age 60, you can continue to collect your deceased husband's benefits as a widow or you can receive your current husband's benefits, whichever is higher. If you're eligible for benefits based on your own earnings and they are the highest, you will get those. —Expertise provided by Laurel Beedon
Q. My Social Security statement indicates no earnings in 1978 when I worked a full year. What should I do?
Only you know all the places and dates you worked and how much you earned. If your record is not complete, let the Social Security Administration (SSA) know right away.
You must provide your name, Social Security number, the year that is not correct, and the name and address of your employer(s) then. The SSA may be able to search its records using the employer's name and address.
For more information, go online to www.ssa.govor call (800) 772-1213. —Expertise provided by Laurel Beedon
Q. I heard that the size of your monthly Social Security benefit is determined by how much you earned during the last four years you worked before retiring. Is this true? (December 2004)
No. Benefits are based on a worker’s 35 years of highest earnings. If the individual has worked less than 35 years, a zero is awarded for each year without earnings. Every year the Social Security Administration mails workers a record of their earnings as well as a summary of estimated benefits they may receive.
To read more about how benefits are calculated, go to AARP’s Public Policy Institute’s Research Center.—Expertise provided by Laurel Beedon
Q. I was separated from my job after 13 years recently, and my former employer deducted Social Security and Medicare tax from my severance pay. Is this legal? (June 2004)
Yes, it is. Severance pay is considered compensation, just like regular pay, and as such is subject to the FICA tax.
Some people, however, confuse severance pay with retirement savings such as the money they have in a 401(k) plan. In most cases, anyone separating from a job who has 401(k) savings can roll that money over into another retirement savings account and in that way continue to defer payment of any tax.—Expertise provided by Laurel Beedon
Q. I was married for 10 years and am now divorced. My ex-husband has remarried and divorced again. Will I be eligible to collect on his Social Security benefits, or will his second ex-wife be eligible? (May 2004)
To qualify for a divorced spouse's benefits, you must be unmarried and at least 62 years old at the time you file for them. You also must have been married to your former spouse for at least 10 years. It doesn't matter that he has remarried and been divorced.
He, by the way, must also be at least age 62 and either eligible for or receiving Social Security retirement or disability benefits.
You should be aware that benefits paid before you have reached full retirement age are reduced based on what your age is at the time you receive benefits. Also, the amount to which you are entitled based on your years of work must be less than half the amount your former spouse is entitled to.
If you want to get an estimate of your benefits as a divorced spouse, call the Social Security Administration at (800) 772-1213. The representative may be able to tell you over the phone or may refer your request to a local field office. Or you can visit your local office. Call the toll-free number or use the SSA website's Office Locator to find the nearest location.—Expertise provided by Laurel Beedon
Q. My wife and I have both worked all our lives and have accumulated enough credits to qualify for Social Security. Will our benefits be reduced because both of us will be collecting? (March 2004)
No. If both of you qualify for Social Security based on your work records, you can each collect on that record without any reduction.
It's important to note, however, that there are two main ways a person can qualify for Social Security benefits: either on your own work record or by being a spouse or other immediate family member of a worker who's paid into the program. Under the spousal-benefit rule, wives and husbands are entitled to an amount that equals up to half of the working spouse's benefit.
If you qualify for more than one benefit, you will receive a benefit equal to the highest amount for which you qualify. This determination is made by the Social Security Administration (SSA) when you apply for benefits.
To learn more about retirement benefits, call the SSA at (800) 772-1213 and request Publication 05-10035, or find the booklet online. —Expertise provided by Laurel Beedon
Q. I'm not on the Internet. Is it possible to get Social Security information by phone? (February 2004)
Yes. The Social Security Administration has a toll-free number—(800) 772-1213; TTY, (800) 325-0778—that's staffed from 7 a.m. to 7 p.m. Monday through Friday. If you have a touch-tone phone, you can get recorded information on many topics 24 hours a day. Have your Social Security number handy when you call.—Expertise provided by Laurel Beedon
Q. I recently became a widow. I am 57 and have two children, ages 23 and 25. When do I qualify to collect my late husband's Social Security? (January 2004)
Your benefits as a widow can begin when you reach 60. Under certain circumstances, a widow can begin collecting earlier than 60—but none of these conditions appears to apply in your case.
For example, a widow can receive benefits at any age if she has in her care a child, or children, of the deceased worker who is under 16 or who was disabled before age 22.
These provisions apply equally to widowers.—Expertise provided by Laurel Beedon
Q. I've just started collecting Social Security. When can I expect my first cost-of-living adjustment, and how is it calculated? (October 2003)
Cost-of-living adjustments (COLAs) are made automatically every January. The COLA for 2004 is expected to be announced after the middle of October.
The COLA is equal to the percentage increase in the Consumer Price Index (CPI) from the third quarter (July through September) of last year to the third quarter of this year.
Cost-of-living adjustments have increased each year since they began in 1975. The lowest increase was 1.3 percent in 1986 and in 1998, and the highest was 14.3 percent in 1980. The 2003 Social Security COLA was 1.4 percent.
Many beneficiaries say the COLA does not reflect how much their cost of living has increased. The U.S. Bureau of Labor Statistics, which compiles the CPI, says that's understandable, given that the index measures what a "market basket" of specific goods and services costs the average household, not any specific family or individual.—Expertise provided by Laurel Beedon
Q. I'm thinking of starting to collect my Social Security retirement benefits when I turn 62. How much would my payments be reduced, compared with what I would get if I wait until 65? (September 2003)
Assuming your full retirement age is 65, your benefits would be reduced about 20 percent if you opt to start collecting benefits at 62. If you hold off until age 63, the reduction would be about 13 1/3 percent, and if you wait until 64, you would receive about 6 2/3 percent less.—Expertise provided by Laurel Beedon
Q. I cared for my brother for several years before he died. Now I hear I could have collected a death benefit from Social Security. Is this true? (March 2003)
No, it is not. The Social Security lump-sum death benefit, a one-time benefit of $255, is payable only to a spouse who was living with the person at the time of death or to a spouse or child eligible for Social Security survivor benefits in the month the person died.—Expertise provided by Laurel Beedon
Q. I recently heard that members of Congress don't contribute to Social Security. Why can't they pay into the system like the rest of us? (March 2003)
Your informant is incorrect. Members of Congress, the president and vice president, federal judges and most federal appointees do pay Social Security taxes, as mandated by Congress in 1983. And if they meet the standard requirements and apply for them, they can collect Social Security benefits.—Expertise provided by Laurel Beedon
Q. My wife and I are both retired and receive Social Security based on our work records. Will my wife's benefit increase if I die before she does? (January 2003)
That depends. If you die before your wife, she is entitled to one of two benefits: a widow's benefit or a benefit based on her own work. In such cases, Social Security pays a benefit equal to the higher amount of the two. Your wife would receive a benefit based on 100 percent of your benefit or her benefit, whichever is higher. The Social Security Administration provides a free booklet on survivors' benefits—available online or by calling (800) 772-1213 and asking for publication 05-10084.—Expertise provided by Laurel Beedon
Q. I've been working part time since I started to collect Social Security benefits two years ago, at age 65. Will these recent earnings make me eligible for a higher Social Security benefit? (December 2002)
Possibly—it depends on your past earnings and work record. Social Security calculates retirement benefits based on a person's highest 35 years of earnings. If your current earnings exceed past earnings, your benefit will be recalculated and possibly increased. The Social Security Administration (SSA) automatically recalculates earnings—you do not need to take any action. This process can be particularly advantageous for people who had previous years with little or no earnings. The formula SSA uses to compute benefits is complex, but you can learn about it on the SSA website. You can also request a statement showing your lifetime earnings and estimated benefits online or by calling (800) 772-1213.—Expertise provided by Laurel Beedon
Q. Isn't there any age limit on paying Social Security payroll taxes? I'm 82, and every year $500 is deducted from my paycheck. (June 2002)
No, there is no age limit. Anyone working at a job covered by Social Security must pay Social Security (also called FICA, for Federal Insurance Contributions Act) taxes, regardless of age. Currently the biggest groups of people who are exempted from the Social Security system are some state and local employees who participate in other pension plans.—Expertise provided by Evelyn Morton
Q. I understand the age at which a person can start collecting full Social Security benefits is being raised. Is the age of eligibility for Medicare going up, too? (June 2002)
The age of eligibility for Medicare has not been changed. It remains 65. You're right about Social Security, however. The age of eligibility is being raised from 65 to 67. The change will be phased in gradually and affects everyone born after 1937. People in that age category will have to wait longer to collect full benefits. The phase-in will become complete in 2027 when people born after 1959 turn 67. For a chart showing complete age requirements, visit the Social Security website. Information on age requirements is also available by calling the Social Security Administration at (800) 772-1213.—Expertise provided by Evelyn Morton
For more information from AARP on Social Security:
- AARP Bulletin Online ' s Social Security channel
- Collecting Social Security Benefits: Is Sooner Better? (November 2002)
- States Deducting Social Security Benefits from Unemployment Payouts (April 2002)
- Special Report: Is Social Security Really Broken? (September 2001)
- AARP.org ' s Social Security channel
- The Role of Social Security in Your Financial Planning (AARP.org)
- Understanding Social Security Privatization (AARP.org)
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