Collins & Hepler, PLC

Collins and Hepler Welcomes Michele M. Cook to the Firm

10/24/2025

Covington, VA – Collins and Hepler, PLC is proud to announce that Michele M. Cook has joined the firm as its newest attorney. Ms. Cook was officially sworn into practice in Virginia’s 25th Judicial Circuit today, following her successful completion of the Virginia State Bar Examination on October 10, 2025.

A lifelong learner and dedicated community member, Ms. Cook brings a unique and well-rounded background to her legal practice. Before entering the field of law, she worked with CSX Transportation and holds a Class A Commercial Driver’s License (CDL). In addition to her professional achievements, Ms. Cook is also the author of a children’s book, showcasing her creativity and diverse interests.

Ms. Cook earned her undergraduate degree from Liberty University, graduating Summa Cum Laude, and received her Juris Doctorate from The University of Mississippi School of Law, where she graduated Magna Cum Laude.

An Alleghany County resident, Ms. Cook is deeply invested in the community she now serves. She is a member of the Steering Committee for the Covington Farmer’s Market and actively participates in the New River Valley Sheep and Goat Association.

“We are thrilled to welcome Michele to the firm,” said Michael Collins, Partner at Collins and Hepler, PLC. “Her breadth of experience, academic excellence, and strong commitment to her community bring invaluable perspective to our team and to the clients we serve.”

Partner Jeanne Hepler added “Michele’s diverse background—from transportation to agriculture to publishing—gives her a unique ability to connect with people from all walks of life. We’re excited to see how her perspective will strengthen our client relationships and enrich our practice.”

With offices in Covington and Lexington, Virginia, Collins & Hepler makes it easy to serve clients throughout Western Virginia. The firm is committed to providing high-quality, client-focused legal services across a wide range of practice areas including property and real estate matters, elder care law, wills and estates and criminal and traffic matters. The addition of Ms. Cook reflects that ongoing mission and the firm’s dedication to both professional excellence and community engagement.

Join us for our Open House!

9/11/2025

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Feel free to call us at (540) 463-7119 for more information. Hope to see you there!

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10 Types of Trusts: A Quick Look

8/26/2025

Considering the myriad of trusts available, creating the right estate plan can seem daunting. However, that is what we, as estate planning attorneys, do every day. We know the laws and will design a plan which addresses your specific situation.

When we meet, all you need to do is be prepared to share your goals and insight into your family and financial situation, and we will design a plan that incorporates the best documents for your situation.

Here is a look at the basics of ten common trusts to provide you with a general understanding of the options available. There will not be a quiz at the end. 😊

Bypass Trust. Commonly referred to as a credit shelter trust, family trust, or B trust, a bypass trust contains a portion of a deceased spouse’s accounts and property and uses the deceased spouse’s lifetime exclusion amount to reduce or eliminate estate tax. Because the estate tax is calculated at the first spouse’s death, this trust is bypassed for estate tax purposes at the second spouse’s death.
Charitable Lead Trust. A charitable lead trust is a trust which provides a stream of income to a charity of your choice for a period of years or a lifetime. At the completion of the period of years, or at death, whatever is left goes to you or your loved ones with significant tax savings.
Charitable Remainder Trust. A charitable remainder trust is a trust which provides a stream of income to you for a period of years or a lifetime and then gives the remainder to the charity of your choice with significant tax savings once the period of years or death has occurred.
Special Needs Trust. A special needs trust allows you to provide money or property for the benefit of someone with special needs without disqualifying them from receiving governmental benefits. Federal laws allow special needs beneficiaries to receive certain types of benefits from a carefully crafted trust without defeating eligibility for government benefits.
Generation-Skipping Trust. A generation-skipping trusts allows you to distribute your money and property to your grandchildren, or even to later generations, without taxation, by using your lifetime exemption to offset any tax that could be due.
Grantor Retained Annuity Trust. A grantor retained annuity trust is an irrevocable trust which provides you with an annuity for a specific amount of time based on the value of the property in the trust and upon completion of the annuity period, the remaining money and property is transferred to those you have named. This type of trust is used to make large financial gifts to your loved ones of accounts or property that are expected to grow in value at a higher rate than the annuity rate being paid back to you.
Irrevocable Life Insurance Trust. An irrevocable life insurance trust is designed to own high-value life insurance and receive the payment of the death benefit upon the trustmaker’s death. The benefit of this type of trust is that the life insurance proceeds are excluded from the deceased’s estate for tax purposes. However, the proceeds are still available to provide liquidity to pay taxes, equalize inheritances, fund buy-sell agreements, or provide an inheritance.
Marital Trust. A marital trust is designed to protect the accounts and property for the surviving spouse’s benefit, as well as qualify for the unlimited marital deduction. These accounts and pieces of property are excluded from estate tax at the first spouse’s death but are included in his or her estate for tax purposes.
Qualified Terminable Interest Property Trust. A qualified terminable interest property trust initially provides income to the surviving spouse and, upon the surviving spouse’s death, the remaining money and property are distributed to other named beneficiaries, while still allowing the trust to qualify for the unlimited marital deduction. These are commonly used in second marriage situations and to maximize estate and generation-skipping tax exemptions and tax planning flexibility.
Testamentary Trust. A testamentary trust is a trust created in a will. This type of trust is created upon the individual's death and is commonly used to protect the money and property on behalf of a beneficiary as opposed to transferring the money and property to the beneficiary outright. It can be used when a beneficiary is too young to manage their own money or property, has medical or drug issues, or may be incapable of responsibly managing their own money. The trust can also provide asset protection from lawsuits, or a claim by a divorcing spouse brought against the beneficiary. Unlike a revocable living trust or an irrevocable trust, where property should be transferred into a trust during the trustmaker’s lifetime to work property and avoid probate, testamentary trusts require the sometimes lengthy and expensive probate process before the trust is created.

There are many types of trusts available. We will help you select which trusts, if any, are a good fit for you. We are happy to help you navigate various estate planning options. Call today to schedule your in-person or virtual appointment with Ms. Hepler at (540) 962-6181.

The Law Offices of Lexington Attorneys Larry Mann and Jeanne Hepler Are Merging

5/23/2025

The existing office of Mann Legal Group, at 15 E. Nelson Street, Lexington, VA

The Mann Legal Group, PLLC will be merging with Collins & Hepler, PLC. The new firm will retain the name Collins & Hepler, PLC, with Larry Mann remaining Of Counsel to provide legal services and advice on an ongoing basis as needed. They anticipate the merger to be beneficial for prospective and current clients.

Mann and Hepler feel that the merger seemed a natural fit, since both offices focus primarily on estate planning and real estate matters. Hepler also practices elder law, which is a helpful adjunct to any estate planning practice, and Mann’s office is equipped to handle any type of real estate closing, so the merger complements and enhances the services provided to the clients of both firms.

Hepler states: “Larry and I both take a client-needs focused approach to our practices, and we are similar in our values. I believe that the merger will be highly beneficial to the clients of both firms, and I am looking forward to working with Larry and his staff. Legal assistants Julie Crowder and Michelle Webb have worked with Larry for a very long time and have a wealth of knowledge and experience, particularly in the areas of estate administration and real estate closings. I am very excited about this merger and the opportunity to work closely with them in the service of our clients.”

The newly merged firm will be located in the existing offices of the Mann Legal Group, at 15 E. Nelson Street. The firm will retain the Mann Group’s phone number, (540) 463-7119 as well as the Collins & Hepler number, (540) 962-6181. Please reach out to us if you have any questions or need legal assistance. An open house date and time will be announced in the near future.

Demystifying Probate and the Executor’s Role

4/30/2025

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When creating a Last Will and Testament (commonly known as a will), one of your most important considerations is who to choose to serve as the executor (also called a personal representative) of your estate.

As the name implies, the role of the executor is to execute the instructions that you provide in your will. You may give your chosen executor some discretionary powers in determining how your assets (money and property) are to be distributed, but they have limited latitude to make independent decisions. Any deviation from their specified powers could cause a conflict in your estate that leads to legal consequences.

To avoid any unnecessary complications in the settling of your affairs, take care to avoid ambiguous or unclear language in your will. If there are any doubts about your last wishes, the executor and beneficiaries may wish to consult with an estate planning lawyer to discuss next steps.

What Happens With Your Will When You Die?

Upon the death of the testator—the person who made the will—probate will be opened if the testator died owning accounts or property in their sole name and without a properly completed beneficiary designation form.

Probate is the court-supervised process in which the testator’s will is validated and administered. The person named as executor in the will initiates and carries out the probate process. The probate process can vary slightly from state to state, but generally unfolds in the following manner:

1. The death certificate is filed with the court.
2. The testator’s will is submitted to the court and confirmed as valid.
3. A petition to initiate probate is filed.
4. The court gives the executor permission to gather, evaluate, and manage the testator’s assets.
5. The executor contacts beneficiaries to inform them that probate has commenced.
6. Lists of the deceased’s assets, debts, bills, and taxes are compiled and submitted to the court.
7. The testator’s outstanding debts and taxes are paid from the testator’s assets.
8. The remaining assets are distributed to the beneficiaries.
9. The estate is closed and probate ends.

These steps imply that the decedent has, in fact, left a will.

**Dying without a will—known as dying intestate—entails much greater court involvement.

The court appoints an executor, identifies heirs, and determines who gets what. Dying intestate can even empower the state to choose the guardian of your minor children.
It may not be possible to avoid probate completely (e.g., if a guardian appointment is required for a minor child, if an executor must represent the decedent in a pending or new lawsuit, or if the decedent died with assets solely in their name and without a designated beneficiary). Probate duration and costs, however, can be reduced through careful estate planning.

Responsibilities of the Executor**

The executor named in a will is responsible for carrying out the testator’s final wishes. The executor is a liaison between the probate estate and the probate court, as well as between the probate estate and the beneficiaries. Their duties include locating and valuing assets of the estate, paying debts, and distributing assets to beneficiaries in accordance with instructions in the will.
Executors owe a fiduciary duty to the estate and its beneficiaries that compels them to act in the best interests of both. Because an executor may also be a beneficiary of the estate, their actions may be scrutinized to ensure they are acting fairly and legally.

When an Executor Can Use Discretion

The executor must, to the best of their ability, carry out the directions expressly stated in the testator’s will. They cannot make changes to the will, but there are cases where the executor can use discretion when settling an estate. The testator might explicitly give discretion to the executor, or the need to exercise discretion may arise due to ambiguity in the will, as in the following examples:

The will gives the executor wide latitude to decide when to sell the testator’s property. The will allows the executor to decide whether to convert assets to cash prior to distribution. The will states that “reasonable and necessary” repairs must be made to the testator’s home prior to its sale or distribution (words such as “reasonable” or “necessary” may be too vague and leave the executor confused about how to proceed). If the will is unclear, the executor should seek clarification from the court to assist with interpretation. Anyone with a stake in the estate may also raise a legal challenge against the executor, asking the court to remove the executor or commencing probate litigation against them.

When a gray area exists within the provisions of the will and the executor acts in good faith and within the scope of their power and duties, the court may uphold their actions. A petition to remove an executor or a lawsuit against the executor for breach of fiduciary duty will only succeed if there is evidence of misconduct, such as the executor explicitly going against the will or estate’s interests, acting in their own best interest, or withholding an intended gift from a beneficiary.

Beneficiary Agreements to Change a Distribution

While the executor and beneficiaries cannot rewrite a testator’s will after the testator has died, the beneficiaries may be able to mutually agree to modify what they receive from the estate.

Making changes to distributions can be done using a document known as a nonjudicial settlement agreement. A nonjudicial settlement agreement is a contract that may be used whenever the beneficiaries agree that asset distribution should be different than what the will stipulates, including in these situations:

As a strategy to minimize a beneficiary’s inheritance tax When the family wants to balance out unequal distributions among all beneficiaries To settle disputes about the distribution of assets A nonjudicial settlement agreement can be a way to resolve a loved one’s legal challenge to the will. The court should respect this agreement if it meets applicable legal requirements. However, before signing an agreement to change the provisions of the will, the beneficiaries should consult with a probate attorney so they understand whether this type of agreement is legally recognized in their jurisdiction, along with what the implications and potential consequences would be.

Legal Guidance for Executors and Other Family Members

In addition to assisting with a nonjudicial settlement agreement, there are many issues related to probate that might require attorney assistance.

When creating your will, it is crucial that you set out your intentions in a way that minimizes the potential for conflict among everyone involved.

You can get legal help with a will or probate issue. Contact our law office and schedule a consultation for further assistance.

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Can Artificial Intelligence Programs Write Basic Estate Planning Documents?

3/7/2025

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With the increased coverage of artificial intelligence (AI) and all of the applications it can have in our everyday lives, some people may wonder whether an AI program can create an estate plan for them. While AI may be able to generate basic estate planning documents, including wills and trusts, there is no guarantee that they will be valid and enforceable. Providing accurate information and executing the documents in compliance with your state's laws is critical. Otherwise, your documents will not work as intended. Most people do not have the legal knowledge necessary to determine what clauses and language should be included in a will or trust to accomplish estate planning goals. They also are not familiar with state laws or how to comply with them. This is why people rely on experienced attorneys to prepare the necessary documents to carry out their wishes.
Some state laws are complex and hard to understand, and you may not know enough specifics to offer the correct information about your situation or verify that AI has properly generated or created your will or trust. Additionally, your final documents may contain wording, formatting, and grammatical errors that make them unenforceable. To review them carefully, you have to know what to look for, which often requires that you possess a certain level of legal education and knowledge. The AI program does not understand your situation and will not help you solve a complex legal issue unless you can provide additional information. Even then, you should be cautious and ask yourself the following questions:

How well do I understand my options for protecting my money, property, family, or business if I have a medical emergency and after death?
Do I have a complex financial situation with large amounts of property, income, or debt?
Is my family structure complicated (family dynamics leading to questions about property or disinheritance)?
Am I undecided about my wishes (how to divide my money and property or what to include in an advance directive)?

Ease and Convenience versus Legal ExpertiseOnline estate planning programs that use artificial intelligence are designed to streamline or automate the process, making it more accessible and cost-effective for those on a tight budget. While they may provide convenience and accessibility, they provide limited guidance, and they do not offer the same level of customization, legal expertise, and personalization that an experienced estate planning attorney can provide.
You must carefully consider your needs and circumstances before choosing a reputable online estate planning program, such as one of the following:

Quicken WillMaker & Trust
Trust & Will
LegalZoom
Rocket Lawyer
U.S. Legal Wills

Each program requires you to answer a series of questions in an attempt to tailor various legal documents, such as wills, trusts, advance directives, powers of attorney, and other estate planning documents, based on the information you provide. You may have trouble providing accurate and specific answers for several reasons:

Legal knowledge. Crafting precise answers to estate planning questions requires familiarity with legal terms, their context, and how they should be structured in a legal document.
Clear intentions. Vague or ambiguous answers can lead to inaccurate, incorrect, or inadequate documents for your situation.
Complex legal requirements. Legal documents must adhere to specific formatting, contain specific language, and comply with legal requirements that vary by state and are not always straightforward.
Legal consequences. Certain instructions or clauses within a document require predicting and avoiding potential legal issues; being unaware of the risks has adverse legal consequences.
Omission and oversight. You may overlook critical details or legal considerations necessary to achieve your estate planning goals, resulting in incomplete or ineffective documents.

If you do not understand which estate planning strategies should be implemented to address your unique situation, how can you ensure that the software is creating the appropriate documents for your needs? Legal professionals have the necessary expertise and training to ensure that your concerns are addressed and can implement an adequate estate plan so that your wishes can be legally carried out.
Situations Requiring More Than a Basic WillWhile a basic online will may be a viable option for some, an experienced attorney is helpful in the following circumstances.
Blended Families
If you have remarried and have children from a previous relationship, you must create a will or trust that ensures that your money and property are distributed in a way that considers both your new spouse and children from the prior relationship. You may have to make some complex decisions, which may be difficult to evaluate without legal advice.
Special Needs Planning
If you are a family with a dependent child or an adult with special needs, you may want to establish a special needs trust to provide for the ongoing care and financial support of your loved one while still maintaining their eligibility for government assistance programs. This requires a custom strategy to consider your options and ensure that your trust is legally compliant in your state to accomplish your goals.
Estate Tax Planning
If you are an individual with a large estate potentially subject to estate taxes, you will want to understand the latest tax-saving strategies, such as gifting, trusts, or other legal tools to minimize estate tax liabilities and preserve a greater legacy for heirs.
Business Succession
If you are a business owner looking to pass your business on to the next generation or sell it upon retirement, you will need a comprehensive plan that effectively addresses the shift in ownership, management, and business property for a smooth and successful transition.
Multistate or International Property and Heirs
If you have real property in different states, heirs may be subject to estate administration processes across multiple jurisdictions, which will require consideration of different state laws and potential tax implications. Having property and heirs in other countries creates even more complexity.
Asset Protection
If you have concerns about potential creditors coming after your hard-earned money while you are alive or creditors or ex-spouses taking the inheritance of your beneficiaries (spouse, children, loved ones, etc.) after your death, you will need an estate plan that has been specifically crafted to protect your life savings from potential creditor claims and legal challenges. This plan will need to contain specialized provisions and must be created in a manner that complies with the law to ensure that it is legally valid and not a fraudulent transfer.
Charitable Planning
If you want to include charitable giving as part of your estate plan, it may require establishing charitable trusts, foundations, or other organizations to support specific philanthropic causes while maximizing tax benefits. Each organization will have rules regarding gifts that you must follow to avoid negative consequences.
An estate planning attorney can address the unique needs and goals of you and your family. They will educate you about your situation and allow you to make informed decisions.
Errors That Make Online Documents UnenforceableEstate planning attorneys help you avoid the following common mistakes in online documents that could make them unenforceable, require a court to interpret them, or lead to fighting among your loved ones:

Ambiguity in wording. Ambiguity can lead to disputes and legal battles among potential heirs. Example: a will stating "I leave my property to my children" without specifying which children by name
Improper use of legal terms. Misusing legal terms like property, beneficiary, or per stirpes can lead to confusion or incorrect interpretation of your intent.
Incorrect names or identities. Misspelling the full name of a beneficiary or heir or using a previous name after a legal name change makes it challenging to identify the intended recipient.
Inconsistent terminology. Using different terms to refer to the same asset (e.g., house, residence, property) may create confusion about what is being inherited.
Improper witnessing and notarization. Failing to properly witness or notarize a will and other legal documents according to state laws can render them invalid and unenforceable.
Lack of clarity in distribution. Vague instructions regarding who will receive your accounts and property or how they will receive them, such as "divide my estate fairly among my children," may cause disputes if there is no clear definition of terms like fairly.
Failure to address contingencies. Not accounting for contingencies, such as what to do if a beneficiary predeceases you, can leave money and property without designated recipients, subjecting it to your state law.
Inadequate powers of attorney. Failing to grant adequate powers of attorney, such as financial or medical decision-making authority, creates complications in managing affairs during incapacity and with advance directives at the end of your life. This could require your loved ones to get a court involved, which is what the powers of attorney were meant to avoid.
Conflicting instructions. Providing contradictory instructions within a single document or across several documents leads to uncertainty about your intentions.

There are many considerations and potential scenarios that should be included in your estate plan. Online legal programs cannot adequately address unique situations or additional estate planning details, exposing you to unnecessary risks.

Experienced estate planning attorneys play a vital role in designing and reviewing state-specific forms that address your family's needs as well as ensuring that your wishes are met while preventing disputes in the estate administration process.

If you wish to use artificial intelligence estate planning programs, they can be used as an outline to begin the process. Take this information to an estate planning attorney, such as Ms. Hepler, to review and address the many situations you may not have considered regarding your unique family dynamics and financial circumstances. If you are ready to create a legally enforceable, customized estate plan, please give our office a call to schedule an appointment with Ms. Hepler at (540) 962-6181.

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The Beneficial Ownership Information Reporting Rule is a New Federal Mandate

10/31/2024

Scary but True
Failure to report could result in possible civil and criminal penalties. See if you are required to report.

image courtesy of https://www.fincen.gov

This is a reminder that laws and regulations are continually being added and updated. One such important new federal reporting requirement has been added which affects those who file documents with the Secretary of State. It is the Beneficial Ownership Information (BOI) Reporting Rule, part of the Corporate Transparency Act. The purpose of the reporting requirement is to counter crimes such as money laundering and terrorism. The reporting requirement took effect on January 1, 2024. Reporting companies are required to file an initial online report. This report will need to be updated if there is a change in the information provided. Each report is filed online on the Financial Crimes Enforcement Network (FinCEN) website and there is no fee to file.
Reporting companies that were created prior to January 1, 2024, have until January 1, 2025, to file. Reporting companies created between January 1, 2024, and December 31, 2024, will have 90 days from their creation to file. After January 1, 2025, reporting companies will have 30 days after creation to file.

What Is A Reporting Company?
A reporting company is an entity that was created by the filing of a document with a Secretary of State or similar office. There are some entities that are exempt such as banks, governmental authorities, tax exempt entities, and accounting firms.

What Information Is Needed and Who Does It Apply To?
The BOI report is required to include for each beneficial owner or applicant the person’s full name, date of birth, current address (residential or business), and a unique identifying number from a document such as a passport, driver’s license, or a state or local government identification document. A beneficial owner is someone who has substantial control over the company, or they own or control no less than 25% of the ownership interests of the company. A trustee of a trust may be considered to exercise substantial control over a reporting company and thus would be considered a beneficial owner. An applicant is someone who directly files with the Secretary of State of their respective state or with a similar office, the creation or registration documents of the company or they may also be someone who is primarily responsible for the filing of such documents by controlling or directing the filing. An applicant is also someone who qualifies as a foreign entity to do business in the US.

What You Should Do?
It is important to accurately assess several factors in filing the BOI report. Some of these factors include whether your company is a reporting company, who is a beneficial owner of your company, and whether your applicant information should be reported or if an exemption applies. This is important because there are civil and criminal penalties for filing false or fraudulent information. If incorrect information is corrected within 90 days of the initial filing a safe harbor exception applies. Please take note of this new reporting requirement to make sure you meet the deadline and provide accurate information in doing so.

For More Information and guidance, please contact FinCEN directly at:
Website: https://www.fincen.gov/boi
Phone Number: 1-800-767-2825
Email: [email protected]

Misconceptions Explained about Nursing Homes

5/8/2024

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Will the nursing home take away my home? Will the state take my money?

These are common questions people have when seeking advice on elder care issues. These questions result from misconceptions about paying for nursing home care. The “government” or “the state” never takes your assets to pay for your nursing home care costs. Nor will a “nursing home” seize your assets to pay for its bills.

What actually happens is that Medicaid, the governmental program that pays for nursing home care, will not pay for your care unless you complete any necessary “spend downs,” which may include selling your home and using those proceeds and other assets to pay for your care before you can qualify for Medicaid assistance.

Even though your assets will not just be taken away, the high cost of nursing homes is still concerning. According to Genworth Financial’s 2021 Cost of Care survey (the most recent data available), the median monthly cost of skilled nursing in a private room at a nursing home will set you back $108,405 per year. The cost of this care is understandably a worry for many seniors.

How do you pay for this astronomical cost to reside in a nursing home? Normally the cost is paid in one of three ways:

1)    If you qualify for Medicaid, payment of a portion or all of the nursing home costs will come from government funds.
2)    If your asset level does not allow you to qualify for Medicaid, the cost is paid by your own resources.
3)    If you have long term care insurance, that insurance will pay for a portion or all of the cost for the term of the policy.

No one “takes” assets from you; the nursing home simply requires payment for its services if you intend to reside in the nursing home. The notion of assets being seized by the state or a nursing home is only one of several misconceptions about paying for long-term care (LTC).

Everyone’s situation is different; determining the best way to pay for the cost of LTC can include a complex analysis and result in multiple options. Certainly, the solution is not to allow the fear caused by misconceptions about paying for LTC to prevent you from becoming fully informed. It is better to act now if you wish to take full advantage of the options available to plan for the risk of LTC.

At Collins & Hepler, PLC, we assist clients at all stages of the process of planning for and dealing with long-term care and other end-of-life issues. Proper planning has saved some of our clients thousands, and in some cases, hundreds of thousands of dollars. Clients who wait to seek assistance at the point when nursing home care is required have, in many instances, already lost some of the options that would have been available had they sought advice earlier, although it is never too late to try to save assets, even if you or your loved one is already residing in a nursing home. To learn more, contact our office at (540) 962-6181 and schedule an appointment with Jeanne Hepler, who was named one of Virginia's "Go To" Lawyers for Elder Law by the Virginia Lawyers Weekly.

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Older Americans Say They Feel Trapped in Medicare Advantage Plans

1/26/2024

News from the National Academy of Elder Law Attorneys (NAELA): Enrollment in Medicare Advantage plans has grown substantially in the past few decades, enticing more than half of all eligible people, primarily those 65 or older, with low premium costs and perks like dental and vision insurance. However, as the private plans’ share of the Medicare patient pie has ballooned to 30.8 million people, so too have concerns about the insurers’ aggressive sales tactics and misleading coverage claims.

Enrollees who sign on when they are healthy can find themselves trapped as they grow older and sicker. “It’s one of those things that people might like them on the front end because of their low to zero premiums and if they are getting a couple of these extra benefits — the vision, dental, that kind of thing,” said Christine Huberty, a lead benefit specialist supervising attorney for the Greater Wisconsin Agency on Aging Resources. “But it’s when they actually need to use it for these bigger issues,” Huberty said, “that’s when people realize, ‘Oh no, this isn’t going to help me at all.’”

Medicare pays private insurers a fixed amount per Medicare Advantage enrollee and, in many cases, also pays out bonuses, which the insurers can use to provide supplemental benefits. Huberty said those extra benefits work as an incentive to “get people to join the plan” but that the plans then “restrict the access to so many services and coverage for the bigger stuff.”

David Meyers, assistant professor of health services, policy, and practice at the Brown University School of Public Health, analyzed a decade of Medicare Advantage enrollment and found that about 50 percent of the beneficiaries — rural and urban — left their contract by the end of five years. Most of those enrollees switched to another Medicare Advantage plan rather than traditional Medicare. In the study, Meyers and his co-authors muse that switching plans could be a positive sign of a free marketplace but that it could also signal “unmeasured discontent” with Medicare Advantage.

SOURCE/MORE: Click This Link

Good news for Medicare Prescription Drug Beneficiaries: More Medicare Prescription Drug Help in 2024

12/20/2023

The Inflation Reduction Act of 2022 (IRA), signed into law by President Biden on August 16, 2023, is already providing cost savings for Medicare beneficiaries in 2023, including a monthly cap of $35 for covered insulin and free vaccines for certain conditions. In January 2024, even more beneficial changes are starting. As noted on the www.medicare.gov website:

If you have drug costs high enough to reach the catastrophic coverage phase in your Medicare drug coverage, you won’t have to pay a copayment or coinsurance, starting in 2024. (Note that according to KFF, this provision will effectively cap out-of-pocket costs at approximately $3,250 in 2024)
Extra Help affording prescription drug coverage (the Part D Low-Income Subsidy (LIS) program) will expand to cover more drug costs for people with limited resources who earn less than 150% of the federal poverty level, starting in 2024. People who qualify for Extra Help generally will pay no more than $4.50 for each generic drug and $11.20 for each brand-name drug.

In addition, the drug price negotiation program created by the IRA allows Medicare to use its bargaining power to negotiate the prices of prescription drugs for the first time.

The pattern of lowered cost continues in 2025, when the annual Part D out-of-pocket cap will be decreased to $2,000. Individuals will also have the option to pay out-of-pocket costs in monthly amounts over the plan year, instead of when they happen.

SOURCE/MORE: CENTER FOR MEDICARE ADVOCACY>>

<<Previous

Collins and Hepler Welcomes Michele M. Cook to the Firm

Join us for our Open House!

10 Types of Trusts: A Quick Look

The Law Offices of Lexington Attorneys Larry Mann and Jeanne Hepler Are Merging

Demystifying Probate and the Executor’s Role

Can Artificial Intelligence Programs Write Basic Estate Planning Documents?

The Beneficial Ownership Information Reporting Rule is a New Federal Mandate

Scary but True
Failure to report could result in possible civil and criminal penalties. See if you are required to report.

Misconceptions Explained about Nursing Homes

Older Americans Say They Feel Trapped in Medicare Advantage Plans

Good news for Medicare Prescription Drug Beneficiaries: More Medicare Prescription Drug Help in 2024