Drug benefit expanded to 1 million more seniors

WASHINGTON – In case the prospect of nearly $4,000 in prescription assistance isn't enough to perk up low-income seniors, the government is using '60s singer Chubby Checker to publicize "the twist" in the Medicare drug program.

As of Jan. 1, more than 1 million low-income seniors are newly eligible for more generous prescription drug benefits under the "extra help" program. Benefiting from a new law are those with life insurance policies and those who regularly get money from relatives to help pay household expenses but were previously disqualified because of too many assets or too much income.

"The safety net is frayed and this is a way to start stitching it back together again," said Hilary Dalin, associate director for benefits at the National Council on Aging.

Income limits are $16,245 a year for singles and $21,855 for married couples living together. Assets such as stocks, bonds and bank accounts must be limited to $12,510 for singles and $25,010 for married couples. The value of homes and automobiles are excluded.

Under the old law, applicants had to include the value of life insurance policies in calculating their assets. They also had to include as part of their income money received on a regular basis from relatives and friends to help pay household expenses.

As of Jan. 1, life insurance policies are no longer counted as assets and money received to help pay household expenses is not counted as income.

Social Security Commissioner Michael J. Astrue urged seniors who were rejected for the program in the past to reapply.

Reuters – A pharmacist looks through shelving to fill a prescription while working at a pharmacy in New York December …

To help promote the new twist in the law, Astrue enlisted Chubby Checker, who danced and sang "The Twist" to the top of the pop charts in the early 1960s. Those too young to remember Checker probably don't qualify for the 65-and-up health care plan.

Economy loses 85K jobs, unemployment rate steady

WASHINGTON – Lack of confidence in the economic recovery led employers to shed a more-than-expected 85,000 jobs in December even as the unemployment rate held at 10 percent. The rate would have been higher if more people had been looking for work instead of leaving the labor force because they can't find jobs.

The sharp drop in the work force — 661,000 fewer people — showed that more of the jobless are giving up on their search for work. Once people stop looking for jobs, they are no longer counted among the unemployed.

Reuters – People gather while awaiting the start of seminars for job seekers at an employment center in San Francisco, …

When discouraged workers and part-time workers who would prefer full-time jobs are included, the so-called "underemployment" rate in December rose to 17.3 percent, from 17.2 percent in October. That's just below a revised figure of 17.4 percent in October, the highest on records dating from 1994.

10,000 own up to 'morally unacceptable' tax evasion

Stephen Timms, the Treasury Minister, today branded offshore tax evasion "morally unacceptable" today, as HM Revenue and Customs (HMRC) announced that around 10,000 people came forward to declare money in offshore accounts before the UK tax amnesty deadline on Monday.

Mr Timms said: “Hiding money in offshore accounts to evade tax is economically and morally unacceptable. It robs public services of funding and places an unfair burden on the honest majority of taxpayers.
“Some people will still be tempted, and that is why the Government will bring forward measures during 2010 to build on the significant progress made both in the UK and globally during 2009 in closing down offshore tax evasion for good.”
Under the amnesty, introduced in July last year, those who came forward voluntarily must now pay any unpaid tax, plus interest, and a 10 per cent fine.

However, people who have not come forward will face investigation, penalties of 100 per cent on the tax due, being publically "named and shamed" and possibly even prosecution. New maximum fines of 200 per cent could be brought in during 2011 if the Finance Bill is enacted following the 2010 Budget.

Lennar Corp posts profit

Homebuilder Lennar Corp (LEN.N) posted a fourth-quarter profit, helped by a year-over-year increase in new orders, reduced sales incentives and lower construction costs and a tax benefit.

Reuters – A Lennar housing development is seen in Broomfield, Colorado June 26, 2007. REUTERS/Rick Wilking

Lennar said as a result of tax legislation that was enacted in its fourth quarter, it will receive a tax refund of about $320 million in early 2010.

European stocks fall on eve of key US jobs data

LONDON – Europe's leading stock markets dropped on Thursday, the eve of major US jobs figures, and as British investors awaited the Bank of England's latest decision on interest rates.

London's benchmark FTSE 100 index fell by 0.29 percent to stand at 5,514.37 points in late morning deals.
Frankfurt's DAX 30 shed 0.83 percent to 5,984.19 points and in Paris the CAC 40 lost 0.50 percent to 3,997.85.
The DJ Euro Stoxx 50 index of top eurozone shares decreased 0.62 percent in value to reach 2,990.92 points.
"Global equity markets have struggled to build on recent gains ahead of Friday's crucial non-farm payroll figures in the US," said ETX Capital senior trader Manoj Ladwa.

AFP/File – A French trader monitors shares prices in Paris in 2008. Europe's leading stock markets dropped, …

"Poor jobs data caused overnight jitters and London traders that make it to their desk through the snow and ice will be appropriately cautious," he added, in reference to the cold weather gripping Britain.

Wall Street little changed after ISM, ADP data

NEW YORK - Stocks were little changed on Wednesday after data showed the U.S. services sector grew in December, but at a marginal pace.

The Institute for Supply Management said its services index rose to 50.1 from 48.7 in November. The reading was below economists' forecast of 50.5, according to a Reuters survey. A reading above 50 indicates expansion.

"The overall number was pretty good, but it wasn't especially positive. There's still a lot to be desired. I think this will be overlooked in trading though, since there wasn't a huge shock in the headline number," said Dan Cook, senior market analyst at IG Markets in Chicago.

Reuters - Traders work on the floor of the New York Stock Exchange, January 6, 2009. U.S. stocks rose on ...

The Dow Jones industrial average (DJI:^DJI - News) was up 2.04 points, or 0.02 percent, at 10,574.06. The Standard & Poor's 500 Index (^SPX - News) was down 0.99 points, or 0.09 percent, at 1,135.53. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was down 1.95 points, or 0.08 percent, at 2,306.76.

Banks dominate best-buy tables as Building Societies raise rates

Alliance & Leicester crowned most competitive lender, as seperate figures show mutuals are increasing SVRs

Alliance & Leicester was the most competitive mortgage lender over the last three months, research released today has shown, as experts herald burgeoning competition in the market for home loans.

The lender, which is owned by Santander, consistently offered competitive interest rates to borrowers between October and December, according to an analysis by realpricecomparison.com, the price comparison website. It looked at the frequency that lenders appeared in its best-buy tables.

Online bank First Direct and its owner HSBC were the second and fourth most competitive lenders respectively, the research found, while Woolwich, owned by Barclays, was third.

Mortgage rates fell dramatically in the last half of the year as lenders fought to attract borrowers with the largest deposits and the cleanest credit histories.

Alliance & Leicester recently offered borrowers with a 30 per cent deposit a tracker rate of 1.99 per cent above base, a pay rate of 2.49 per cent, for two years. The deal was available through London & Country, the broker. HSBC and Woolwich both offered home loans with a starting interest rate of 1.99 per cent.