| AFSA | RETIREE NEWSLETTER |
February,
2006
Volume 20, Number 1 |
American
Foreign Service Association, 2101 E Street NW, Washington, DC, 20037
Web: www.afsa.org E-mail afsa@afsa.org
Phone number (800) 704-AFSA
- 2006 Retiree Directory
- Foreign Affairs Authorizations
- For Your Information
- Universal Design
- Medicaid and Long Term Care
- Day On the Hill
- Long-Term Care Insert
The 2006 Directory of Retired Members is a hit! We made changes to make it easier to read, and AFSA members who have called us are pleased with the larger print. The member pages flow without interruption and Retiree Resources conveniently can be found in the back of the directory. We did make mistakes and for that we apologize. As they come to our attention, corrections will be listed in our retiree newsletters. See page 4 of this issue.
Foreign Affairs Update: Appropriations
Congress
passed two FY06 foreign affairs appropriations bills. Despite being
stand-alone bills, which are not subject to the deal-making associated
with omnibus bills, the appropriations were not only below the department's
requests, but also below fiscal year 2005 funding.
Congress appropriated $20.9 billion for the FY06 bilateral and multilateral
foreign aid portion of the 150 International Affairs account and funding
for USAID and the Peace Corps ($1.9 billion or 8.1% below request and
3.16% less than FY05 funding). It appropriated $9.6 billion for State
and International Broadcasting accounts (about $.2 billion or 2.9% below
request, and 11.4% below FY05 funding levels). Overall, Congress appropriated
$31.7 billion for the total 150 account, including funding for the PL-480
food program and the Institute of Peace, (5.8% or $2 billion below request).
The request for retirement and disability programs was fully met.
During the past few years the funding levels for the 150 account have increased, unlike funding levels for many domestic programs. Now, although the world has not gotten safer, tight budget constraints also seem to be catching up to the international affairs account.
Budgets are getting tighter for international affairs at a time when both threats abroad and the need for department resources continue to grow. In a few weeks we will see the FY07 budget request, and efforts will begin again to get adequate funding for protecting and advancing our national interests abroad and taking care of the people who serve us abroad. This time, though, we will also have the background of an election year to further influence the dynamics. Ken Nakamura, Director of Legislative Affairs.
RNet Pin If you mislaid you pin number notification from OPM, you can call OPM at 1-888 767 6738 or in DC (202) 606 0500 or email it at retire@opm.gov and ask for a new pin number. Be prepared to give your name and SS# and wait for two to three weeks.
Annuitant Direct The department has discontinued "Annuitant Direct", an automated service used by retirees to change addresses, bank accounts and deductions by telephone.
WAEs and Flexible Spending Accounts Re-employed annuitants (WAEs), unlike other retirees, are eligible to establish Flexible Spending Accounts. There will be more to come on this subject.
Virginia Pension Tax Relief Bill Delegate. L. Scott Lingamfelter has proposed legislation to exempt federal, military, state and local pension income from Virginia State income taxes.
Cell Phone Discounts About a dozen retiree members have reported back about their success or lack of success in getting cell phone discounts. Most reported that they were given discounts ranging from 5 to 33%. Whether or not they were given discounts seemed to depend on the particular person they talked to, rather than any standard procedure.
ADST Biennial Award Dinner Former Secretary of State Colin Powell and former Secretary of Defense Frank Carlucci will each receive the Ralph J. Bunche Award for Diplomatic Excellence and the International Business Leadership Award at the ADST award dinner at the Willard Hotel on February 23. AFSA members may attend at a special discount rate. Call (703) 302-6990 or go to www.adst.org.
No, it's not that kind of design. Universal design is an approach to planning homes in which houses and their features accommodate a wide range of people, regardless of age, ability or situation. Rather than modifying homes to make them accessible or suitable when abilities or circumstances change, universal design integrates these accessibility features into the overall design at the outset. This integration results in better design and aesthetics and avoids the stigmatizing quality of some modifications, without significantly increasing cost.
With
universal design people who are very different -young, old or disabled
-- can enjoy the same home and, they can continue to enjoy it when their
needs change. Building entrances without steps makes it easier not only
for people in wheelchairs, but also for those who move furniture or
push baby carriages. Soft-sided bathtubs cushion falls for children
as well as seniors. Raising dishwashers, washers and dryers a few inches
eliminates bending and back strain for people of all ages. Adjustable
closet brackets work for children as they grow and people confined to
wheelchairs. Easy to reach and use switches and knobs make life more
convenient for everyone.
While most of us do not have the chance to build a new home or remodel
an old one, we can still look at our homes with an eye to making changes
that help to ensure that we can continue to live comfortably and safely
in our homes. See www.aarp.org/families/home_design/a2004-03-23-whatis_univdesign.html
for some universal design resources.
Legislative Update: Medicaid and Long-Term Care
The House Reconciliation package (HR 4241) contains no cuts in retirement or health benefits for federal retirees. It does contain provisions that would make it harder to qualify for Medicaid and Medicaid's long-term nursing home care.
Medicaid provides comprehensive long-term care for severely disabled persons. It now provides about half of all such care, amounting to about $50,000 per person per year. Given this cost, those of us who cannot afford or who cannot qualify for long term coverage may need Medicaid at some point.
In order to qualify for Medicaid coverage, people above the poverty level must first exhaust their assets (except for their primary residence and $2,000 per individual and $3,000 for couples). State examiners may now review any transfer of assets within a three-year period before application for Medicaid to determine that assets have not been hidden or given away rather than used for long- term care. If examiners conclude that a transfer was made to obtain benefits, they can impose a penalty period that will delay eligibility for Medicaid. The penalty period now starts on the date of the transfer.
The House Reconciliation package (HR 4241) would tighten Medicaid asset transfer rules for long-term nursing home care by extending the "look-back" provision for asset transfers from three to five years. This means that a person suddenly needing long term care, who five years ago transferred $20,000 to a grandchild for college or to a son or daughter for a down payment on a first home, would be denied the equivalent of $20,000 in Medicaid coverage because his eligibility would be delayed. The rules would also change the date of the transfer from when the gift of assets was made until when the Medicaid application was filed, delaying eligibility, perhaps for a lengthy period, at a time when it is needed. HR 4241 would also deny benefits to people with $750,000 or more in home equity.
The Senate version (S. 1932) makes modest adjustments to the Medicaid asset-transfer rules. At the time of this writing, it is expected that the two bills will go to a House-Senate conference committee where differences will be reconciled into a final bill.
If the look-back provision is changed to five years, it will become more difficult for people to plan for their own financial security and provide in normal ways for their families. One response is to consider acquiring long-term care insurance if finances and health permit. For more information on long term care, go to http://www.afsa.org/retiree/LTCQandA.cfm and http://www.ltcfeds.com.
Age
Discrimination Ruling
A federal district court reversed itself, now holding
that an EEOC regulation permitting employers to reduce or terminate
health insurance of Medicare-eligible retirees does not violate federal
age discrimination law. AARP is appealing the reversal because of its
serious implications for age discrimination policies.
AFSA
Outreach
Retirees play a key role in the AFSA nationwide outreach
programs. Since 9/11, AFSA has deployed more than 650 retirees experts
on counterterrorism, Middle Eastern and South Asian issues for speaker
and media programs nationwide. If you want to be involved with AFSA
outreach, please contact Tom Switzer at switzer@afsa.org
or call toll-free: (800) 704-2372, ext. 501.
AFSA's
Day On The Hill
Come and be heard! Join AFSA for our sixth annual "Day
on the Hill" program on May 4 and meet with your elected officials
on Capitol Hill. Look for your invitation to be mailed March 2006. If
you can't come to D.C., get involved with our Virtual Day On the Hill
efforts. For more information, please contact Austin D. Tracy at (202)
338-4045 ext. 506 or go to www.afsa.org/dayonthehill
Q: What is long-term care?
A: Long-term care is for people with ongoing physical illnesses, disabilities and/or cognitive impairments. It includes assistance with activities of daily living, home health or adult day care, as well as care in a nursing home or assisted-living facility.
Q: Will I need LTC?
A: It is hard to predict, but studies indicate that about half of all women and a third of men over the age of 65 will spend some of their final years in a nursing or retirement home.
Q: What do LTC policies cost?
A: LTC insurance can be costly. The cost depends on a number of factors, including age, state of health, amount of daily benefits, the maximum benefit period, and inflation protection. In purchasing coverage, consider not only your current financial situation, but also your future income in retirement and projected increases in the cost of premiums. When choosing benefit amounts, find out how much nursing and assisted living facilities, as well as home health care agencies, charge for services in the area where you think you will retire.
Q: How do people pay for LTC?
A: They pay for LTC by using personal or family resources, purchasing LTC insurance, or, if at the poverty level, with Medicaid assistance. Medicare does not pay for most LTC needs.
Q: Should I buy LTC insurance?
A: You should not buy LTC insurance if you cannot afford the premiums, have limited assets or have difficulty paying for basic living expenses. You should consider buying it if you have significant assets, some of which you want to protect, and you want to pay for your own care and maintain some level of independence. As a rule of thumb, premiums should not exceed 10 percent of your annual income.
Q: What kinds of LTC policies are available?
A: LTC insurance can be purchased from private insurance companies, through an employer or association, or through the federal LTC program. Most policies are sold to individuals. Group policies, generally sold through employers and associations, may offer certain advantages; they may not have qualifying medical requirements, and retirees, spouses and parents may also qualify. Additionally, federal law gives tax advantages to people who buy certain long-term care insurance policies under the Health Insurance Portability and Accountability Act of 1966.
Q: What should I look for in an LTC policy?
A: Since plans offer different combinations of health benefits, it is important to shop among policies, companies and agents to get coverage that best fits your needs. LTC policies differ in which services they cover and how they cover these services. For example, one plan may pay for home care from licensed facilities only, while others will pay for other licensed health care providers, such as practical nurses. Some plans may pay for care in any state-licensed facility; others may limit the kinds of facilities covered. Look carefully at any exclusions or limitations and the "triggers" used by plans to determine whether benefits should be paid. These triggers generally include inability to perform a certain number of activities of daily living (bathing, continence, dressing, eating, toileting and transferring) and cognitive impairment or mental incapacity, such as Alzheimer's disease. Finally, compare the benefit amounts and length of coverage, and look at when benefits start and whether there is inflation protection.
Q. Does AFSA have a long-term care insurance program?
A. Yes, AFSA is now offering group rates brokered by the Hirshorn Company for nine insurance carriers. The long-term care offerings feature excellent coverage with more competitive premiums than the Federal Plan. The Hirshorn Company offers personalized service in choosing a company and plan that fits members' needs. Contact Hirshorn representative Carl Shaiefer at 1(800) 242-8221 or cshaifer@hirshorn.com. On the AFSA website go to the LTC Coverage Page to learn about coverage choices, including the Federal Plan, and the AFSA LTC Quote Request Form.
Q: How can I found out about the federal long-term care program?
A: The Federal Long Term Care Insurance Program is administered by Long
Term Care Partners, LLC, a joint venture company between John Hancock
Life Insurance Company and MetLife, the country's largest carriers of
group long-term care insurance. The OPM Web site contains information
about LTC insurance at www.opm.gov/insure/ltc/faq/apply.asp#2
Certified LTC insurance consultants are available to answer questions
at the toll-free number: 1 (800) LTC-FEDS (800-582-3337) weekdays from
8 a.m. to 7 p.m. Information is also available at www.ltcfeds.com. The
Web site offers online applications and an interactive calculator to
provide customized price quotes. You do not need to wait for an open
season to apply.
AFSA Retiree Staff
Bonnie
Brown, Retiree Counseling and Legislative Coordinator, Monday through
Wednesday at (202) 944-5509 or 1 (800) 704-2372, ext.509, or at brown@afsa.org.
Norma Reyes, Retiree Recruitment and Communications Coordinator, Monday,
Wednesday and Thursday at (202) 944-5514 or 1 (800) 704-2372, ext. 514,
or at reyes@afsa.org.
