The Health Reform bill has received considerable attention
from the media and public, yet within this legislation there is an act that has
gone unnoticed and which may affect the lives of millions. The Elder Justice
Act would enact federal and state measures to prevent and punish the abuse and
exploitation of the elderly by their care providers. If passed, it would be the
most comprehensive and far reaching legislation dedicated to stopping elder
abuse.

Every year approximately 5 million seniors are abused,
neglected, or exploited. Elder abuse is a growing epidemic that crosses all
socio-economic, gender, and ethnic boundaries and yet it goes largely unnoticed
and unpunished. Currently only 2% of federal funding for family violence is
allotted to elder abuse and there is little legislation that addresses this
issue.

The Elder Care Act seeks to integrate the disjointed federal
and state agencies and organization and to ensure the quality of personal care
by; mandating background checks for care providers employees, require states to
establish hiring criteria, and punishing care providers who do not report
crimes. There are currently over a dozen states who do require care providers
to screen potential employees, including California and Florida who have large
elderly populations. Furthermore, states that do conduct background checks may
only check for crimes committed within state lines. Under the Elder Care Act,
all states would have to establish thorough screening guidelines for care
providers and more aggressively investigate and prosecute perpetrators of elder
abuse.

In order to oversee these reforms, an Office of Elder
Justice would be formed within the Department of Health and Human Services and
an Elder Justice Coordinating Council would be established to synergize
national and local efforts. It will cost approximately $757 million a year to
administer these changes. Critics of the bill accuse it of being an example
runaway spending but it is a small percentage of the nearly $1 trillion the
healthcare bill will cost. Furthermore, financial exploitation of the elderly
results in thousands of seniors losing their savings and having to rely on
public assistance to survive. By preventing this from happening, the government
would actually be saving money and improving the quality of life for our aging
population.

However, what it debatable is whether this act will
effectively curb elder abuse. Family members or friends, not hired caregivers
perpetrate a majority of these crimes. Moreover, a majority of elderly people
receive their care from their home and their abuse goes unseen. How these
abuses will be addressed has yet to be seen, by the Elder Care Act represents
an important step in protecting our senior population. 

The cost of prescription drugs has become a major source of
concern for many Americans, especially for those on Medicare. The Medicare open
enrollment period lasts from November 15 to December 31 and is the only time
when you may change your prescription plan, opt to stay with your current
coverage or drop your plan altogether. It therefore is imperative to carefully
consider the available options, as the plan you choose will determine the cost
and availability of your medication for the remainder of the year. During this
years’ enrollment period, it is especially important to practice due diligence
as there have been several changes that will affect costs and coverage.

Currently, 27 million people are registered for Medicare
Part D, two thirds of which are enrolled in a private standalone plan (PDP). According
to a report released by the Henry J. Kaiser Family Foundation, the average
monthly premium for PDP’s will most likely increase by 11% or $38.94 a month in
2010. Furthermore, 60% of PDP’s will require an annual deductible that may be
as much as $310. Premiums and deductibles vary considerably by the type of plan
and region and you should therefore check to see if your PDP options are
subject to these changes.

The Medicare Part D “doughnut hole”, which is the gap
between two set amounts that Medicare will cover, has been widened. In 2010, coverage
stops at $2,830 and resumes at $6,440, which means your personal expenses could
reach $3,610. If there is a likelihood that you may need a medical procedure or
service in the coming year that falls within this range, you should take this
potential cost into account.

Those who are enrolled in the Medicare Advantage plan should
also expect to pay additional fees. The Henry J. Kaiser Foundation found
that the Medicare advantage plan monthly premium is expected to rise by 32%.
Advantage plan users can expect to pay a premium of $48 a month for their
current plan. Furthermore, the healthcare bill, which has already been passed
by the House of Representatives and awaits the decision of the Senate, would
reduce the Medicare Advantage budget by 4.5%, which will affect
beneficiaries.

Regardless of what your plan is, if you take prescription
drugs, you need to factor the rising cost medication into your decision. In the
past year wholesale prices of brand name drugs rose by 9% for a total increase
of $10 billion. For the three quarters of adults aged 45 and older who
currently use prescription drugs, this means their annual drug expenditures
will be around $2,810. These prices are likely increase even more during the
coming year, which may have a significant impact on your costs.

During this open enrollment period, you should be on the
look out for additional or increasing costs and how this may affect your coverage.
As you will be unable to leave you plan for a year, erring on the side of
caution is a safe bet and you should take this time to fully explore your
options.

A more in depth version of this article can be found in the
current edition of Retirement Weekly, a
MarketWatch publication.