Archive for July, 2010

Hip hope from stem cell technique

Posted on July 29, 2010 by Jason

BBC World News, July 28th, 2010

US researchers have developed a promising new
technique that might one day enable doctors to regrow broken or diseased
joints in patients.

Writing in the The Lancet, US researchers say they have regrown the forelimb thigh joint of rabbits using their own stem cells.

It was the first time an entire joint surface had been regenerated with the return of functions, they said.

The research could benefit patients with damaged hips, shoulders or knees.

The team removed the limbs from 10 rabbits and replaced them with an artificial limb-shaped skeleton.

This was soaked with chemicals which attract bone and cartilage stem cells.

Four weeks later the rabbits had regrown their joints and were able to move normally.

“This is the first time an entire joint surface was
regenerated with return of functions including weight bearing and
locomotion,” said Professor Jeremy Mao of Columbia University Medical
Center, New York.

“Regeneration of cartilage and bone both from the host’s own
stem cells, rather than taking stem cells out of the body, may
ultimately lead to clinical applications. In patients who need the knee,
shoulder, hip or finger joints regenerated, the rabbit model provides a
proof of principle,” he said.

Read more of this article.

New rule cracks down on debt settlement industry

Posted on July 29, 2010 by Jason

Yahoo News, July 27th, 2010

Companies that promise to reduce or eliminate credit card balances
and other debt for customers will no longer be allowed to charge an
upfront fee.

The Federal Trade Commission said Thursday that the
new restrictions are a crack down on the debt settlement industry, which
flourished during the economic downturn as borrowers struggled to pay
bills.

Debt settlement companies will now only be able to charge a
fee once a customer’s debt has been reduced, settled or renegotiated.
The rule goes into effect Oct. 27.

Since the start of the
recession, the Better Business Bureau has received more than 3,500
complaints about debt settlement companies. Customers complained that
they ended up deeper in debt or were sued by creditors after failing to
make payments. The bureau did not separately track complaints against
the industry prior to the recession.

Debt settlement companies
often charge an upfront fee, typically a percentage of the customer’s
outstanding balance. In exchange, the company promises to negotiate with
creditors to reduce or eliminate the debt, sometimes by as much as
half.

The new FTC regulations also require debt settlement
companies to disclose to customers how long it will take to get results,
how much it will cost, and any negative consequences that could arise
from the process.

For example, customers can go deeper into debt when they hire a debt settlement company.

This is because customers stop making payments on their loans, and late fees and interest charges continue piling up.

Customers
are also often required to start setting aside money in a separate
account maintained by the debt settlement company. This money is
intended to eventually pay off any remaining debt.

Under the new
rule, however, companies will only be able to require such an account if
it’s maintained at an independent financial institution under a
customer’s name.

Read more of this article.

When your unemployment benefits expire

Posted on July 29, 2010 by Jason

The Chicago Tribune, July 26th, 2010

With the U.S. Senate‘s failure in June to extend unemployment benefits that expired, things have gone from bad to worse for unemployed workers.

On
top of that, Congress hasn’t restored another recently expired subsidy
that has been paying the bulk of health insurance premiums for workers
who lost their jobs since September 2008.

Worker advocates have their fingers crossed that federal legislators will have a change of heart,
at least for unemployment benefits. But the unemployed shouldn’t bank
on that, given concerns in Congress that the deficit is getting out of
hand and spending must be cut.

States generally provide benefits
for 26 weeks, but federal money has allowed them to extend that for a
total of 60 weeks to 99 weeks, depending on the severity of unemployment
in each state, said Judy Conti with the National Employment Law
Project.

Read more of this article.

One Way to Judge a Nursing Home

Posted on July 28, 2010 by Jason

The New York Times, July 27th, 2010

While looking at nursing homes for my mother, I always asked the tour
guides if I could talk to the nurses’ aides. This seemed to me a
logical request. After all, these were the women — and they were all
women — who would spend the most time with my mother, who would notice
small changes that raised big questions, who would make her feel cared
for. Or not.

“They don’t do that,” I was told almost everywhere I visited.

I soon realized why. In casual conversations in hallways and dining
rooms at more than a dozen facilities, I found only one nurses’ aide who
had been on the job more than six months. I was witnessing in real life
one of the most dismal statistics in long-term care: More than 70
percent of nurses’ aides, or certified nursing assistants, change jobs
in a given year.

Then came the tour guide who didn’t say no. “No one has ever asked
that before, but why not?” the marketing director of a New Jersey
nursing home said in response to my request. He said he would ask three
aides then on break if they wanted to talk to me. They said yes.

I asked how long they had worked there. One said 12 years; another,
8. The third answered: “I’m the baby. I’ve been here four years.”

I decided this was the place for my mother. These women used the word
“we” when talking about the nursing home, making clear that they felt a
sense of ownership. And it seemed significant that the marketing
director asked their permission before allowing me to impose on their
break time. Moreover, he trusted them enough to leave me alone with them
in the break room.

That was 10 years ago. I do not know exactly what I would find today,
but the overall situation has not changed. The reasons for the high
turnover rate among nurses’ aides are the same as they were then: low
wages ($10.48 an hour on average), poor benefits, high injury rates and
lack of respect on the job.

Read more of this article.

Long Term Care Insurance:  Affording nursing home care can be impossibly expensive.  Insurance for long term care needs can be a literal lifesaver should you come to require long term care.  Consider your options at NewRetirement.com

What Do You Lack? Probably Vitamin D

Posted on July 28, 2010 by Jason

The New York Times, July 26th, 2010

Vitamin D
promises to be the most talked-about and written-about supplement of
the decade. While studies continue to refine optimal blood levels and
recommended dietary amounts, the fact remains that a huge part of the
population — from robust newborns to the frail elderly, and many others
in between — are deficient in this essential nutrient.

If the findings of existing clinical trials hold up in future research,
the potential consequences of this deficiency are likely to go far
beyond inadequate bone development and excessive bone loss that can
result in falls and fractures. Every tissue in the body, including the
brain, heart, muscles and immune system, has receptors for vitamin D,
meaning that this nutrient is needed at proper levels for these tissues
to function well.

Studies indicate that the effects of a vitamin D deficiency include an elevated risk of developing (and dying from) cancers of the colon, breast and prostate; high blood pressure and cardiovascular disease; osteoarthritis; and immune-system abnormalities that can result in infections and autoimmune disorders like multiple sclerosis, Type 1 diabetes and rheumatoid arthritis.

Most people in the modern world have lifestyles that prevent them from
acquiring the levels of vitamin D that evolution intended us to have.
The sun’s ultraviolet-B rays absorbed through the skin are the body’s
main source of this nutrient. Early humans evolved near the equator,
where sun exposure is intense year round, and minimally clothed people
spent most of the day outdoors.

Read more of this article.

The Best–and Worst–Places to Build a Nest Egg

Posted on July 27, 2010 by Jason

US News & World Report, July 27th, 2010

In the aftermath of a recession that wiped out 8 million jobs and
crippled even more portfolios, Americans are still struggling to rebuild
their nest eggs. So far, the results have been far from encouraging,
and a quick glance at the economy and financial markets reveals a host
of factors holding Americans back from their retirement goals. The
housing market, for instance, is still weak, a persistent unemployment
rate continues to stand in the way of a sustainable recovery, and many
Americans’ long-term investments are back to where they were a decade
ago.

A number of recent studies confirm the bleak outlook. For example,
one survey, conducted by the human resources consulting firm Hewitt
Associates, found that only 18 percent of employees who have jobs (that
they anticipate holding onto for the rest of their careers) at large
U.S. companies and contribute to a defined contribution plan will be
financially prepared for retirement. For its part, the Employment
Benefit Research Institute revealed that 43 percent of Americans report
having less than $10,000 stashed away for retirement. Worker confidence
has also taken a hit: Insurance provider MetLife says that just 35
percent of workers who are between 45 and 49 years old report feeling
ready for retirement.

Still,
even as workers throughout the country struggle to regain their
footing, it’s clear that not all states are created equal. With that in
mind, U.S. News created an index to measure which states are the best
for Americans who are saving for retirement. We’ve looked at each
state’s housing market, unemployment rate, per capita income, and taxes
to get a sense of where Americans are most likely to be able to tuck
away money for their nest eggs.

All state-by-state income figures
are from 2010. The numbers are nominal, meaning that they’re not
adjusted for inflation. Tax burdens are from a 2008 study by the Tax
Foundation. Unemployment rates are from June 2010. What follows is a
list of the five best–and five worst–performers. The highest possible
score that a state can earn is 42 points.

The Best States

Wyoming (Score: 40):
Wyoming’s loose tax code helped propel it to the front of the pack.
Notably, residents don’t pay taxes on wages or on capital gains. Both of
these exemptions allow workers to save noticeably more of their
earnings–both from investments and jobs–for use in retirement. What’s
more, even before the tax breaks, Wyoming residents have
well-above-average incomes. In 2010, the state’s per capita income is
$45,584. Only five states and the District of Columbia have higher
incomes. Wyoming’s 6.8 percent unemployment rate is also well below the
national average. Meanwhile, home prices there are expected to grow by
4.5 percent annually between 2010 and 2013, according to Moody’s
Analytics. Since many Americans choose to sell their homes to downsize
before retirement, price appreciation helps them grow the size of their
next eggs.

New Hampshire (Score: 39): New Hampshire’s
unemployment rate, which is currently 5.9 percent, is the country’s
fourth lowest. Meanwhile, the state’s state and local tax burden,
expressed in terms of taxes as a percentage of income, is just 7.6
percent. Only four states sport better numbers in that category. All
told, the Granite State performs well across all categories, but its
housing market keeps it out of first place. Between 2010 and 2013, home
prices there are expected to appreciate by 1.1 percent per year,
according to Moody’s Analytics. While that’s still a healthy amount,
it’s not good enough to catch Wyoming.

Alaska (Score: 38):
Taxes also figure prominently into the equation in Alaska. Like Wyoming,
the state has no taxes on wages or capital gains. The state’s state and
local tax burden, expressed in terms of taxes as a percentage of
income, is just 6.4 percent. Nationally, that figure is 9.7 percent.
Meanwhile, Alaskan real estate is also a good investment: Between 2010
and 2013, home prices there are expected to grow by 3.5 percent per
year, according to Moody’s Analytics. The state’s per capita income,
which is $43,369, is also healthy.

Read more of this article.

Relocation Assistance:  Living in a state not conducive to retirement?  Thinking about moving to a more applicable one?  You might want to consider assistance in relocating from one state to another.

Health Law Augurs Transfer of Funds From Old to Young

Posted on July 26, 2010 by Jason

The Wall Street Journal, July 25th, 2010

Mark Baumann, a 44-year-old uninsured diabetic, sees in the Obama
administration’s health-care law a future with stable coverage to pay
for his insulin shots and blood tests.

That’s likely to come indirectly at the expense of his mother’s generous health-care plan.

Humana
Inc., Mary Baumann’s insurer, intends to pare her “Medicare Advantage”
plan to make up for the smaller government payments it will soon receive
as a result of the new law, leaving her with higher costs or fewer
services. On the table are beefed-up co-payments and premiums, as well
as the loss of perks such as her free membership at a health club.

Across the country, dozens of private insurers that run similar
Medicare plans are preparing to pare dental, vision and certain
prescription-drug coverage starting next year, according to consultants
who have helped them assemble annual bids.

Although some planned
cuts might not materialize given Congress’s history of tabling unpopular
measures, the law represents the tip of a broader change. Most
Americans know the overhaul is designed to cover the uninsured, a
decades-long goal of Democrats. But it also represents a change in how
the government spreads its social safety net underneath Americans.
Already, it’s creating tensions that are a harbinger of debates to come.

Since
the creation of Social Security and Medicare, younger workers have
funded programs for the elderly. It’s a compact in which workers paid
for retirees with the understanding that they’d be looked after by the
generation behind them.

The health overhaul diverges by tapping a
program for the elderly to help provide insurance to 32 million
Americans of younger generations. Nearly half the funding for the law is
supposed to come from paying lower fees to hospitals, insurers and
other health-care providers that participate in Medicare, the federal
insurance program for Americans age 65 and older, as well as younger
disabled people.

Read more of this article.

Supplemental Medicare Insurance:  Should the trends in the above article pan out, it may become necessary for retirees to look to sources other than Medicare for their health insurance needs.  In consequence, it may be of benefit to consider Supplemental Health Insurance as a means of ensuring your medical future.

Plain Talk: We all can help prevent Medicare fraud

Posted on July 26, 2010 by Jason

The Capital Times, July 27th, 2010

I don’t know what’s lower in life than the professionals who
come up with schemes to defraud the government and, hence, their
fellow Americans.

Yet it goes on all the time.

On June 16, for instance, federal authorities announced they had
arrested dozens of suspects in five states on charges of defrauding
Medicare of some $251 million.

The suspects include several doctors and nurses in Miami,
Brooklyn, Detroit, Houston and Baton Rouge. They regularly billed
Medicare for unnecessary equipment, physical therapy and HIV
treatments that patients never received. Of some 94 arrests, 33
were from Miami, long a hotbed for schemes to steal money from
Medicare.

It used to be that unscrupulous hoodlums would dream up schemes
to milk the system. Today, though, the schemes involve a
sophisticated network of doctors, clinic owners, patients and
patient recruiters.

One of the schemes uncovered in this recent raid involved clinic
owners paying patients in exchange for using their Medicare
numbers. Some even gave bonuses to patients who would find new
participants.

Read more of this article.

Long-Term Care Services: Why It Pays to Shop

Posted on July 26, 2010 by Jason

CBS, July 26th, 2010

This is the third in my series of posts on the threat of high long-term care services. The first two posts provided an overview of the issues and estimated the risks
that you’ll need long-term care over your lifetime. Here I’ll discuss
the wide range of alternatives and costs for long-term care services.

I’ll start with a personal story. A few years ago, my wife and I
investigated alternatives for providing long-term care to her mother. We
were surprised to find a wide range of costs and quality of service.
While it took several days to shop for her care, it was definitely time
well spent. We moved her to a residential care facility for the elderly
(RCFE) close by us; it was over $1,000 per month less expensive than the
assisted living facility she was previously living in, and it offered
more personalized care.

This story illustrates that it’s important that you shop for the most
appropriate care at the best cost, whether you’re paying for these
services from your own resources or from insurance benefits.

Here are common alternatives for obtaining long-term care, categorized by cost:

  • No or low costs: Your spouse, family or friends pitch in and take care of you (if
    they’re willing and able). The type of assistance you’d need and the
    time involved varies widely, from minutes to hours each day. Note that
    if friends or family pitch in to help, it’s not necessarily free or even
    low-cost. Often spouses and other care-givers must quit their jobs or
    reduce their hours to free up time for care-giving.
  • Low to medium costs: Home health care, where
    personal care assistants, companions or home health aides come
    periodically to your home to help you as you need. According to Genworth’s Cost of Care Survey,
    the national median hourly rate in 2010 is $18 for licensed homemaker
    services and $19 for licensed home health aide services. Costs can vary
    widely by region, as shown by Genworth’s survey. In Arkansas, for
    instance, the median hourly rate for licensed homemaker services is $15,
    in Florida, $17, and in New York, the cost is $20 an hour.

Read more of this article.

Long Term Care Insurance:  It cannot be stressed enough how expensive the prospect of long term care is.  The proper insurance can potentially save enormous amounts of money should you require long term care.  Consider your options at NewRetirement.com.

Collect Now, or Later? Timing Your Social Security Benefits

Posted on July 21, 2010 by Jason

The New York Times, July 10th, 2010

Collecting Social Security as
soon as you are eligible is a tempting proposition — but experts agree
you should try to resist if you can.

The majority of people don’t follow that advice, choosing instead to
start benefits early. Why wait to collect what is rightfully yours?

That
logic may sound reasonable now. But in reality, the bigger risk is that
you will live to a ripe old age. You can claim Social Security any time
from age 62 to 70, but the longer you wait, the larger your monthly
check. And many people come out ahead if they wait at least until their
full retirement age, which is
different from the day you stop working for good. For people born 1943
to 1954, full retirement age is 66, and it creeps up for younger
people.

What do you stand to lose by taking benefits early? Take
those who are set to receive $1,000 a month at their full retirement
age. If they sign up for benefits at age 62, they will collect only
$750. But if they wait until 70, they will earn extra credit and receive
up to $1,320 a month — nearly a third more.

At first glance, it
seems that everyone should wait until they are 70. But that is not the
case. The answer depends on many factors, including when you stop
working, how much you have in savings, whether you are healthy, whether
you are married or single and whether your spouse earns more — or less.

It
may be impossible for some households to wait because the breadwinner
has lost a job or is no longer able to work. And planners agree that it
is smarter to collect earlier if it will prevent you from accumulating
debt.

But if you can wait, think of the money you aren’t receiving during that period as a payment
of sorts for an annuity that will pay a higher, guaranteed stream of
income later, if you live a long time (or at least longer than your
savings last), financial experts say.

“You can’t buy an
inflation-adjusted annuity for anywhere near the cost of delaying Social
Security,” said Henry Hebeler, a retired Boeing executive who
created AnalyzeNow.com, a
Web site that offers retirement advice and calculators.

Read more of this article.

Social Security Calculator:  A good way to start down the path of making this sort of decision is to use a calculator whose results will compare the benefits of taking Social Security now or taking it later.  You can try our free calculator at NewRetirement.com

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