"Tax Talk Today" Online

Browsing through the Trusts & Estates website recently, I noted a useful learning service regarding federal tax laws and return preparation, available on the Internet: Tax Talk Today.

Sponsored by the Internal Revenue Service, Tax Talk Today is a live Internet program featuring industry tax experts and professionals and top representatives from the IRS.

Each program features discussions, real time interaction and the opportunity for viewers to participate in the discussion by e-mailing questions directly to the studio. Late-breaking news from the IRS may augment or pre-empt original programming, making Tax Talk Today a primary you heard it here first source of news about IRS initiatives, rules and decisions.

In addition to the Live webcast, the FREE programs are available for up to 12 months through Tax Talk Today archives, as audio Podcasts or on DVD (perfect for conducting group viewings or for staff training).

This service began in 2001 as a public service of the IRS, according to "Website of the Month: Tax Talk Today" (2004), by  Susan B. Anders, posted by The CPA Journal, published by the New York State Society of CPAs.  Since 2009, the presentations have been produced by Tax Talk Today, Inc., a private company in Bethesda, MD, with content provided by tax-related companies in coordination with the IRS .

Tax Talk Today is promoted as a free service for those "auditing" presentations -- that is, those who do not expect to receive certified professional education credits.  Without payment (but still with a required online registration), you can replay any presentation, either live or archived, over an Internet-connected device.  Also, you can read the word-for-word transcripts of any past session, including any post-presentation supplemental materials.

Free of charge, viewers can tune in to each program and watch live, in addition to watching for up to 12 months by going to the Archives, or listening to the Audio Podcasts.

Earning CPE credit requires a purchase.* * *

The topics are varied, current, and important for tax professionals.  Past presentations are archived for a year, so listening or retrieving materials can be done conveniently.

Examples of archived presentations in 2011 instructive for a trust and estates lawyer, an accountant/preparer, or a consumer interested in this federal tax principles and procedures, include:

• Individuals: Complex Tax Issues Reviewed (09/13/11)
• Small Business Filings – Expenses, Credits & Recordkeeping (07/12/11) 
• Family Filing – Do’s and Don’ts (06/14/11)
• Ethics - Circular 230 Update (05/10/11)
• 2010 Individual Tax Law Update: Changes In A Complex and Uncertain Time (01/11/11)

To watch a presentation or access transcripts of past sessions, you must first provide an email address and create a password, then reply to an automated message sent to that email address.  When you log in for the first time, you must complete a registration form with basic information.

All that is simple.  Far harder is recalling what email address and password you supplied originally -- so keep both with your tax records.

"Our office thinks these tax talk sessions are a great idea.

An easy way of getting information out."
-- A Tax Talk Today participant

Update to Probate Petition in PA

Effective December 26, 2010, the registers of wills in Pennsylvania should be considering an additional concern in the processing of the standard probate form, RW-02, the Petition for Probate and Grant of Letters.  This form has remained unchanged since instituted in 2006.  See: PA EE&F Law Blog posting New Uniform Orphans' Court Forms in PA (10/18/06).

This change was necessitated due to the passage of Senate Bill 53, PN 2228, which was signed by the Governor as Act 85 of 2010, to become effective on December 26, 2010.

The Act inserted into the Pennsylvania Probate, Estates & Fiduciaries Code new provisions that eliminates a spouse's interest in an estate if a divorce action is pending (instead of finalized, as formerly provided), and if the grounds for divorce have been established.

In an updated form, language would be added to the statements of exceptions  that would change the effect of a testamentary disposition, as follows: “and was not a party to a pending divorce proceeding at the time of death wherein grounds for divorce had been established as defined in 23 PA C.S. § 3323(g).”

The Register of Wills of Chester County, Pennsylvania, posted an updated RW-02 Form customized for that County, with the following explanation:

REVISED PETITION FOR GRANT OF LETTERS PURSUANT TO ACT 85 OF 2010

Act 85 of 2010 has made changes to the Pennsylvania Probate, Estates and Fiduciaries Code effective December 26, 2010.  These changes have necessitated the addition to the Petition for Grant of Letters of the following language:

(Newly added language is underlined)

Except as follows, Decedent did not marry, and did not have a child born or adopted after execution of the documents offered for probate; was not the victim of a killing and was never adjudicated incapacitated and was not a party to a pending divorce proceeding at the time of death wherein grounds for divorce have been established as provided in 23 Pa.C.S. section 3323(g).

These changes impact the Petition for Grant of Letters Testamentary and the Petition for Grant of Letters of Administration.  The Petition for Letters provided on this website reflects this newly added language.

At least one vendor, The Lackner Group, has included a revised RW-02 Form as a template to be printed by their proprietary software (12/14/10 software revision).

Pending wider dissemination of a revised RW-02 Form, a typed or handwritten addition to an existing form should address the additional concern, presented by the new law, at probate.

Update: 10/13/2011:

On October 11, 2011, the Pennsylvania Supreme Court approved a revision of a Form RW-02 (Petition for Grant of Letters) (PDF, 2 pages) for use in all Registers of Wills offices in the Commonwealth beginning thirty days later, on November 10, 2011. See: PA EE&F Law Blog posting Revised PA RW-02 "Petition for Grant of Letters" (10/13/11).

Blogging on the Bus

I'm riding on a bus as I write this blog entry, which illustrates, in just one trip, a few trends affecting elders (and all of us in America) -- changes in employment patterns, in technology, and in mass transit.

The bus I'm riding is a Setra, Model S-417 Luxury Coach, assembled in North Carolina by Daimler Buses North America. The operator is RDC Bus Lines, LLC, a small business headquartered in western Pennsylvania. The express luxury coach service is operated between Pittsburgh and Harrisburg, PA, daily, via the Pennsylvania Turnpike, as the "Steel City Flyer."

The new service was announced in November, 2008, and was followed thereafter, by newspaper reports. See: "New Steel City Flyer service to Harrisburg begins this month" (11/07/08) by Kim Leonard, published by the Pittsburgh Tribune-Review; "Can a luxury bus fill the gap on a dropped US Airways route?" (11/12/08) by Ben Mutzabaugh published by USA Today's Blog "Today in the Sky";"New bus service to Harrisburg expands" (01/06/09) by Tom Barnes published by the Pittsburgh Post-Gazette; and "Bus line adds Camp Hill stop" (04/09/09) by Erica Dolson published by the Harrisburg Patriot-News (on Penn-Live).

The Steel City Flyer offers service from Harrisburg to Pittsburgh for business and leisure travelers.

One of the goals of this new stop [in Camp Hill] is to make travel more convenient for business people whose firms have a strong presence in both central Pennsylvania and Pittsburgh, Railroad Development Corp. president Bob Pietrandrea said.

The Steel City Flyer has also adjusted its westbound schedule to add an earlier morning departure time.

The driver today is Jim Wade, 64, of Bergholz, Ohio, who has operated or driven buses for 24 years, and who is now officially "retired." He just talked by cell phone with his supervisor, George, who is in his mid-sixties. Jim was talking about people he knew in the business who were "still goin'" in their eighties and nineties.

This is my first point: This is a business largely operated by persons near or over 60 years of age; and it runs smoothly.

This modern bus rides smoothly too while I type on my Asus Eee "netbook" connected continuously (even through the Turnpike's tunnels!) through the on-board wireless router to Verizon's high-speed 3G Wi-Fi service.

Gone are the days when a bus ride promised jolts, noise, stuffy air, and spills, but little time for productive work. Instead, on this luxury coach, I'm researching sources, adding links, and writing text in comfort and without stress, despite the curves and construction on the PA Turnpike.

My experience with this transportation service parallels that of another user (Susan D., of Pittsburgh), who posted her experiences on the Yelp! consumer review web site, rating it four of four stars. See: "Steel City Flyer" Review (02/09/09).

This is my second point: The fact that I am writing this posting enroute while riding at 55 mph (according to Jim when I asked) or higher most times, shows how transportation and technology have combined to allow greater business and personal efficiency, while conserving natural resources.

Clearly mass transportation is a trend that should be supported. Most recently, our federal government appears to favor high-speed train service.

The article "Pennsylvania part of plan for high-speed trains across the nation" (04/17/09) by Jon Schmitz, published by the Pittsburgh Post-Gazette, reported that "President Barack Obama's announcement yesterday of an ambitious plan for high-speed passenger trains connecting American cities puts Pennsylvania into a national competition for billions of dollars in federal aid."

Ten corridors, including one from Pittsburgh to Harrisburg and Philadelphia, were designated as eligible for some of the $13 billion authorized in the economic stimulus legislation or proposed by Mr. Obama for high-speed rail development. * * *

A statement by Gov. Ed Rendell and state Transportation Secretary Allen D. Biehler did not mention the maglev project. Instead it speculated about whether money could be obtained for studies of expanding rail service between Pittsburgh and Harrisburg -- currently served by just one daily Amtrak trip. * * *

"Imagine boarding a train in the center of a city. No racing to an airport and across a terminal, no delays, no sitting on the tarmac, no lost luggage, no taking off your shoes," Mr. Obama said.

"Imagine whisking through towns at speeds over 100 miles an hour, walking only a few steps to public transportation, and ending up just blocks from your destination." * * *

This is my third point: A Change is Gonna Come to long-haul, public transportation. New modes of conveyance will bring greater efficiency, convenience, comfort, and safety, which will empower all travelers, especially those who are older.

But that vision will be some time until full realization. A Steel City Flyer representative was quoted in the article:

"Realistically speaking, it's going to be years before you see anything resembling high-speed rail extended to Pittsburgh," said Mr. Posner, who recently started a luxury bus service to Harrisburg to fill the void in train and airline service to the state capital.

"As a railroad man, I look forward to the day when the Steel City Flyer [bus to Harrisburg] will have outlived its usefulness," he said. * * *

Reading this, I'm pleased that I took the Steel City Flyer today as the best way to travel between these two cities. However, I, too, look forward to the day in Pennsylvania when it "will have outlived its usefulness."

Now, please excuse me. I've got to jaw with our driver, Jim, a bit more before I "de-bus" in Pittsburgh's Center City.

Update: July, 2009:

As of July 16, 2009, the Steel City Flyer service terminated. See: Press Release, "Steel City Flyer to End Service on July 16, 2009" dated July 10, 2009, issued by Railroad Development Corporation (PDF, 1 page). For an intelligent blog commentary and responsive reader comments, see: So Long Steel City Flyer, posted July 10, 2009, on the East Busway Blog.

Update: October, 2009:

Amtrak expressed interest in expanding passenger train service between Pittsburgh and Harrisburg, dependent upon government subsidies. See: Article, "Amtrak recommends new train between Pittsburgh, Harrisburg" dated October 20, 2009, by Matthew Santoni, published by the Pittsburgh Tribune-Review.

Amtrak is recommending that another train be added to the sparse service between Pittsburgh and Harrisburg, if state and federal legislators decide the additional ridership is worth the expense.

In a study mandated by the federal Passenger Rail Investment and Improvement Act of 2008, Amtrak officials looked at passenger service in Pennsylvania and decided that the potential riders and revenue were sufficient to consider increasing the Pennsylvanian route between Pittsburgh and Harrisburg from one train per day in each direction to two, adding a midday departure from Pittsburgh and a late-night arrival that could connect to trains heading west to Chicago.

"The ridership was there, and it would have a minimal impact on operations," said Steve Kulm, Amtrak spokesman. "If this is going to move forward, state and federal legislators will have to make the next step." * * *

2008 Changes to IRA Rules

On January 21, 2009, MarketWatch posted an excellent article by Robert Powell, entitled Keep Track of Your IRA, about the many significant rule changes made in 2008 affecting individual retirement accounts.

There were many new laws, court decisions, IRS notices and other rule changes affecting the retirement plan of choice for millions of Americans, according to Ed Slott, the nation's preeminent IRA expert. * * *

The article was also posted by Fox Business under the title "Don't Miss The Many New Rules Governing IRAs" (01/21/09).

The general features of an IRA are well-summarized on the AARP website.

The article first discussed the most significant changes in 2008, which were made by federal legislation:

By far, the biggest changes came as part of the Worker, Retiree, and Employer Recovery Act of 2008, or WRERA (which might be an acronym for "we're in big trouble").

Under that law, required minimum distributions for IRA owners, plan participants and beneficiaries are waived for 2009. Of note, you are still required to take your RMD if you turned 701/2 in 2008 but decided to wait until this year to take that distribution.

Another provision of WRERA: Starting in 2010, non-spouse beneficiaries aren't allowed to leave retirement plans with the former IRA owner's employer. They will have to transfer those plans to an IRA at a bank, brokerage or mutual-fund firm.

Under the Emergency Economic Stabilization Act of 2008, sometimes called the bailout bill, IRA owners who are 701/2 can transfer up to $100,000 to a charity in 2009 without having the amount included in their gross income.* * * [Links added.]

The article then highlighted, under headings, additional changes regarding IRAs, from which I derive a bullet-point Tip:

• Court decisions -- Tip: "According to Goldberg, the lesson learned is this: Don't designate a revocable trust as the IRA beneficiary. Instead, name an irrevocable discretionary trust with spendthrift language as the beneficiary, he said."

• IRS takes note of Roth conversions -- Tip: Starting in 2010, plans must allow . . . a non-spouse beneficiary of a qualified retirement plan to transfer the account to an inherited Roth IRA so long as the transfer is allowed by the plan and the beneficiary meets the Roth conversion eligibility requirements.

• Saving the 'stretch' IRA -- Tip: The IRS ruled in two cases that, where the custodian was at fault in failing to make a required annual distribution and then did a make-up distribution, the IRA owner didn't have to pay the 10% penalty on the early distributions.

• Identifying the beneficiary -- Tip: "Make sure your beneficiary or beneficiaries are 'readily identifiable.'"

• Rules on disclaimers -- Tip: "Suffice to say: If you plan to disclaim IRAs, make sure you talk to a qualified professional."

• IRA trust rulings -- Tip: "If you have a beneficiary who's a minor, it's best to designate 'a custodian or a trust to hold an inherited IRA for the minor' rather than have to ask for a ruling later."

• What the future holds -- Tip: "The only certainty is that that there will be a list next year, too."
  

The article did not mention another development in 2008 that could affect self-trusteed IRAs held with one particular custodian, as described in a New York Daily News article posted November 16, 2008, entitled "Accessing your IRA is easy with new Entrust Group debit card" by Phyllis Furman.

Tapping into your retirement savings is just one swipe away.

You may have heard of the 401(k) card, the debit card that makes borrowing from your 401(k) plan as easy as heading to an ATM. Now its cousin is coming to the market: the IRA Card.

This latest piece of plastic offering quickie access to your retirement funds is from the Entrust Group, an administrator of self-directed Individual Retirement Accounts.

The card, which launches Monday, lets you draw from your IRA savings and do other things like change investment allocations within your account, in a flash.

To get started, you set up an IRA checking account with a minimum deposit of $1,000. You can then tap into those funds with the IRA Debit card - which is co-branded with Visa - or with IRA Card checks. * * *

The article mentions one criticism of the new access card:

But critics of products like the IRA Card and 401(k) cards warn they can be dangerous because they allow you to quickly tap into funds that should be locked away and growing for your retirement. * * *

Remember too, the IRS will evaluate any distributions made under such an IRA access card, whether casual or intentional, under its very strict taxation rules.

Approved Software for PA Inheritance Tax Filings

On December 3, 2008, the Pennsylvania Department of Revenue, Inheritance Tax Division, updated its list of "Inheritance Tax Approved Software Vendors" that was sent to the Commonwealth's Registers of Wills.

The listed vendors, in their software packages, offer a form of the REV-1500 ("Pennsylvania Inheritance Tax Return -- Resident Decedent") that meets "the current standards" required by the Department. Some, but not all, of those same vendors also offer an approved form of the REV-346 ("Estate Information Sheet").

Following is the chart provided by the Department:

Company Name and REV-1500 software	REV-346 software
ATX
REV-1500	REV-346
CCH
REV-1500	REV-346
Data Tech Software Solutions
REV-1500	REV-346
Faster systems, LLC
REV-1500	Not included
Fast-Tax
REV-1500	Not included
GEMS
REV-1500	Not included
The Lackner Group, Inc.
REV-1500	REV-346
RIA
REV-1500	Not included
STF Services Group
REV-1500	REV-346
TaxWise
REV-1500	Not included
TAXWORKS
REV-1500	Not included

THORPE
REV-1500	Pending

The Department itself offers, online, both a standard PDF form of the REV-1500 and a "fill in" PDF form of the REV-1500 (June, 2005 revisions), along with related schedules, instructions, and other Inheritance Tax forms, on its Forms and Publications web page.

But, interestingly, the Department does not offer its own form REV-346 in the long list of forms posted on its Forms and Publication web page.

Instead, this form is found on the website of the Unified Judicial System of Pennsylvania, as posted in PDF format by the Administrative Office of Pennsylvania Courts.

REV-346 is RW-01 in the list of the court-approved, standardized Register of Wills forms:

• RW-01: Estate Infomation Sheet

• RW-01: Estate Information Sheet (Fill-In)

As you can see from the chart, presently there are twelve vendors offering software printing Pennsylvania Inheritance Tax returns for filing with the Department. You can automate production of PA Inheritance Tax Returns by choosing and using such software.

But, whatever you do, don't staple the return intended for the Department! Deadly, unpredictable delay might be your penalty.

Penn Treaty Insurers under PA Rehabilitation

On January 6, 2009, the Pennsylvania Insurance Department announced in a Press Release entitled "Insurance Department Takes Control of Struggling Allentown-based Insurer & Subsidiary" that the PA Commonwealth Court approved the Department's petition to place Penn Treaty Network America Insurance Co. and its subsidiary, American Network Insurance Co., into a "rehabilitation" conducted under the Department's statutory control.

Penn Treaty was an aggressive issuer of long-term care insurance policies over the past decade.

The very name "Penn Treaty" invoked a powerful, historical, moral compact known as Penn's Treaty -- an exchange of promises made early in the history of Pennsylvania by the Commonwealth's founder, William Penn:

In 1682, along the gentle banks of the Delaware River, under the shade of a great elm tree in an area then known as Shackamaxon, William Penn is believed to have made a Treaty of Friendship with the Native Americans.

Few events in American history are noted for the just and fair treatment of peoples from different cultures.

The legend of William Penn's Treaty with the Indians became a universal symbol of religious and civil liberties. Voltaire made reference to the event in 1764, and artists throughout Europe recreated the scene first painted by Benjamin West in 1771.

Drawings of the transaction were used to promote commercial interest in the emerging land. American painter Edward Hicks created numerous depictions of the treaty meeting to promote social change.

In the pre-Civil War era, artistic renderings of Penn's Treaty were used to encourage political movements, religious agendas and social reforms. * * *

Penn's Treaty was never written, only spoken. Voltaire said it was "never broken."

William Penn’s “memorable treaty with Tamanend and other Delaware chiefs, of the Turtle Clan, under the great elm at Shackamaxon, within the limits of Philadelphia," is full of romantic interest. Unarmed, clad in his somber Quaker garb, he addressed the assembled Native Americans, uttering the following which will be admired throughout the ages:

“We meet on the broad pathway of good faith and good-will; no advantage shall be taken on either side, but all shall be openness and love. We are the same as if one man’s body was to be divided into two parts; we are of one flesh and one blood.”

The reply of Tamanend, is equally noble:

“We will live in love with William Penn and his children as long as the creeks and rivers run, and while the sun, moon, and stars endure.”

There is no actual record of the “Great Treaty,” the treaty made familiar to many by Benjamin West’s painting and Voltaire’s allusion to it “as the only treaty never sworn to and never broken.” * * *

As a modern-day insurance company, Penn Treaty, instead wrote and swore to its contractual arrangements with approximately 126,000 policyholders located in Pennsylvania and every other state.

But now, due to financial distress, the company requires "rehabilitation" by the Commonwealth to protect parties in interest. The necessity for such rehabilitation is distressing news for many Pennsylvanians who rely upon the company for their long-term care coverage. But this is not an outright bankruptcy, and that is some good news.

This is the text of the Insurance Commissioner's Press Release:

COURT APPROVES ORDER TO PROTECT PENN TREATY
POLICYHOLDERS, ENSURE CONTINUITY OF CARE

Insurance Department Takes Control
of Struggling Allentown-based Insurer & Subsidiary

HARRISBURG -- Insurance Commissioner Joel Ario announced today that the Commonwealth Court approved his petition for an Order of Rehabilitation for Penn Treaty Network America Insurance Co. and its subsidiary, American Network Insurance Co.

The order places the company under the statutory control of the Pennsylvania Insurance Department. It also grants the commissioner direct authority to preserve the company’s assets and oversee its current financial situation and operations, while continuing to pay policyholder claims.

“It is the Insurance Department’s responsibility to take action when a company is in financially hazardous condition,” Ario said. “Placing Penn Treaty into rehabilitation will make certain that long-term care policyholder claims are paid, helping to ensure continuity of care for a community in need.

“We gave Penn Treaty time to find a buyer and infuse new capital. To date, the company has been unable to raise enough capital, so we must protect the company’s assets and put policyholder protections into place. I want to assure policyholders that their policies remain in effect during this rehabilitation and that their premiums should continue to be paid in order for coverage to remain in place.”

This rehabilitation is the first receivership action the department has taken in more than four years.

Penn Treaty, headquartered in Allentown, provides long-term care insurance to more than 126,000 policyholders. Together, Penn Treaty Network America Insurance Co. and its subsidiary, American Network Insurance Co., write long-term care insurance in all 50 states and the District of Columbia.

The Insurance Department will perform an independent, comprehensive evaluation of the company's finances. Based upon this review and analysis, the department then will determine the viability of a rehabilitation plan. Any plan will give payment priority to policyholder claims.

Policyholders and other interested parties will receive further information about the rehabilitation in the future. In the interim, policyholders with questions on claims or non-claim matters may use the following toll-free number: 800-362-0700, ext. 3190.

For original documents, see: Rehabilitation Order: Penn Treaty Network America Insurance Company; and Rehabilitation Order: American Network Insurance Company. See also: "Penn Treaty Insurance Subsidiaries Enter Rehabilitation" (01/08/09) posted by PRWire.

How fortunes can change.

The Google search engine reports that, after the issuance of the Department's Press Release, "errors" occurred while indexing Penn Treaty websites, including www.penntreaty.net, which are unavailable online presently.

However, another website, XOM Reviews, still references information previously posted on a Penn Treaty website (www.penntreaty.com) as follows:

Welcome To Penn Treaty Network America

Description: Long term care insurance company provides rates and quotes online . . . information on the company, nursing home and home health care coverage, benefits, and policies.

Penn Treaty Network America -- America's Long Term Care Insurance Superstore

On November 20, 2000, a BusinessWeek article, entitled "Long-Term Care Policies That Will Last -- Built-in inflation protection is an invaluable feature" by Ellen Hoffman, referenced a recommended inflation feature of long-term care coverage, using Penn Treaty's policy as an example:

For a 55-year-old male with no health problems, two years of coverage at that level through Penn Treaty runs $340 without inflation protection or $600 with it.

The conclusion of that article, however, offered a general warning to consumers:

Long-term-care insurance is a relatively new product, so companies do not have decades of experience on which to base their premiums.

And regulators continually question how best to protect consumers against some insurers' aggressive marketing.

That's why it's critical to define your long-term-care needs and shop around until you find a policy that really meets them.

The Pennsylvania Insurance Department examined Penn Treaty as of year-end 1999 and 2003. See: Department's Examination Report, stated as of 12/31/03 (PDF, 28 pages; Examination Warrant Number 03-LH-359-Z). The 2003 Examination Report's first recommendation was: "[T]hat the Company secure an infusion of surplus to bring it into compliance with The Pennsylvania Insurance Company Law, NILS 40-5-106 (40 P.S. § 386)."

Nevertheless, on July 8, 2004, a Business Wire article entitled "S&P Announces: Penn Treaty Network America Insurance Co. and Penn Treaty American Corp. Ratings Affirmed; Outlook Positive" stated "the outlook remains positive" for Penn Treaty. Yet the article noted "PTNA continues to have the characteristics of a start-up company."

But, on February 20, 2008, Reuters reported that "A.M. Best Downgrades Ratings of Penn Treaty American Corporation". In the article, the position of that rating agency was made clear:

If there are any unanticipated negative events, material charges or write-downs as Penn Treaty works to become current on its Securities and Exchange Commission filings, an additional downgrade could occur.

Even if no unexpected items are found during this period, A.M. Best will not give consideration to an outlook change until Penn Treaty files audited GAAP financials on time. * * *

On October 3, 2008, Penn Treaty announced that it would no longer issue new policies. The New York Stock Exchange then suspended trading in Penn Treaty's shares. See: "NYSE suspends trading in Penn Treaty shares" (10/03/08) posted on a blog by Philly.com.

The New York Stock Exchange today suspended trading of the common stock of Penn Treaty American Corp.

That decision had nothing to do with today's PhillyInc. column, and everything to do with the Allentown insurers' announcement today that it is suspending the issuance of new policies and entering a rehabilitation plan with the Pennsylvania Insurance Department as of Jan. 1 [, 2009]. * * *

Now, by consent and with court approval, the PA Insurance Department has placed the Penn Treaty entities into a state-run "rehabilitation."

Holders of long-term care insurance policies issued by Penn Treaty and its affiliates should be vigilant, and should respond when contacted by the Department. In the meanwhile, read the Department's "Questions and Answers concerning the Penn Treaty and American Network Rehabilitations" (Word, 10 pages).

Don't rely on that familiar name alone, even though it resonates.

FTC: "Who Cares" About Health Care Vendors

On November 19, 2008, the Federal Trade Commission unveiled its "Who Cares" website, and issued a parallel booklet, to provide consumer information about health care products and services.

The new website and publication were announced in a Press Release entitled "FTC Announces Health Care Booklet and Web Site for Seniors" (11/19/08).

With all the sources of health information available -- many of them online -- it can be tough to tell fact from fiction, or useful products and services from those that don’t work or aren’t safe.

To help provide reliable sources of health information to seniors and their family members, caregivers, and friends, the Federal Trade Commission has developed a new booklet and Web site.

Who Cares: Sources of Information About Health Care Products and Services, online at www.ftc.gov/whocares, urges older consumers to discuss their health-related decisions with doctors and other trusted health care providers.

It also helps them:

• find links to agencies and organizations that care about topics like generic drugs, hormone therapy, caregiving, surgery to improve vision, alternative medicine, hearing aids, Medicare fraud, and medical ID theft;
• learn how to spot misleading and deceptive claims; and
• find out who you can contact to ask questions, enlist help, or speak up if you think a health product or service isn’t living up to its promise. * * *
  

That Press Release noted the availability of a printed Who Cares booklet, which appears to be a replica of the initial web pages:

Copies of the Who Cares booklet can be ordered from the FTC’s Consumer Response Center. Call toll-free: 1-877-FTC-HELP. For bulk orders of the booklet, go to www.ftc.gov/bulkorder.

This is the Table of Contents of that booklet, which also provides an overview of the website's content:

Care and Services

• Alternative and Complementary Treatments (p. 1)

• Assisted Living and Nursing Homes (p. 2)

• Hiring Caregivers (p. 3)

• Hormone Therapies (p. 4)

• Lasik and Other Vision-Correcting Surgeries (p. 5)

• Health Care Documents (p. 6)

Pills and Products

• Buying Prescription Drugs Online (p. 7)

• Dietary Supplements (p. 8)

• Generic Drugs and Switching Prescriptions (p. 9)

• At-Home Genetic Tests (p. 10)

• Vision Prescription Portability (p. 11)

• Hearing Aids (p. 12)

• Personal Emergency Response Systems (p. 13)

• Weight Loss Promises (p. 14)

Scams and Frauds

• Medical ID Theft (p. 15)

• Medicare Fraud (p. 16)

• Medicare Part D Plans (p. 17)

• Miracle Cures (p. 18)

• Prescription Assistance Programs (p. 19)

How to File a Complaint (p. 20)

The Who Cares booklet (PDF, 2.94 MB, 28 pages) can be downloaded from the new website. When viewed on a computer in Adobe Acrobat or Reader, the embedded links to Internet sources are "live", just as on the web pages.

This new FTC resource, Who Cares, should be consulted early by consumers who research medical services or products. And if a health care service or product has failed to deliver, the website can be accessed to file a complaint.