Shoppers this holiday season may feel like minnows in shark-infested waters. While there may be some good bargains out there, watch where you step because there are some pitfalls especially if you're buying gift cards.

Yes, these cards make the perfect gifts for a lot of reasons -- no gift wrapping, the person you are giving it to can purchase what they really want you can give them a card for their favorite store, restaurant or hobby. But buyer beware. You need to read and understand the fine print -- sometimes VERY fine -- on the cards before purchasing them. According to Consumer Reports, last year shoppers were out $8 billion because of unused, lost or expired gift cards.

Here are some gift card shopping hints:

1. Watch out for fees added to the purchase of the cards -- especially those offered by major credit card companies.

2. Beware of expiration dates on the cards that may render them worthless if Aunt Nellie leaves hers in her desk drawer for too long. It would be nice to inform the person you are giving it to about that date.

3. Will the cards be honored? In this roller coaster economy we are in, it is possible that some stores may go out of business and the cards will be worthless. You need to choose gift cards from companies that have staying power and will stand behind their cards.

4. Make sure the gift card has a toll-free number with it that you, or the person you give the card to, can call if there is a problem.

For more tips about gift cards, go to this Consumer Reports article:

http://www.consumerreports.org/cro/money/shopping/shopping-tips/gift-card-pitfalls-12-07/overview/gift-card-pitfalls-ov.htm?resultPageIndex=1&resultIndex=2&searchTerm=gift%20card%20buying%20tips

The Federal Trade Commission also offers some good information:

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt010.shtm

The warning bells are ringing for individuals who have purchased long-term care insurance coverage.
The Wall Street Journal has reported that Conseco Inc., a major insurer, has transferred its long-term care policies to a state-supervised trust. "The policies were a drag on the company's earnings because they were underpriced and required continuing capital infusions to meet the long-term needs of policyholders," the Journal article stated.
This affects more than 140,000 owners of Conseco Senior Health Insurance Co. policies, who may face higher rates and reduced benefits.
In a written statement, Pennsylvania Insurance Commissioner Joel Ario defended the transfer stating that without the transfer "The likely result would have been either substantial rate increases or insolvency."
One Conseco policyholder, a 73-year-old Florida woman, is worried that the Conseco long-term care policies that she and her husband paid more than $45,000 in premiums for over 20 years won't pay now when her husband may need nursing care.
Long-term care policies are expensive but their selling point is that care costs in old age may be far more financially draining on individuals and their families. In the early days of long-term care policy sales, some insurance agents used the fear of skyrocketing nursing home costs to make sales when, in fact, many seniors never need nursing home care.
If you can afford the premiums, the policies could be a good investment but -- in the wake of Conseco's recent moves -- proceed with caution. If you currently own a policy - keep an eye on your insurance company's financial health.
According to the Journal article, persons shopping for long-term care coverage "should take particular care in picking out a financially stable insurer by examining its financial statements and ratings, and checking into its record of premium increases." Consult a trusted financial adviser. Don't rely on someone whose sole purpose is to to sell you a policy.

The National Association of Insurance Commissioners offers some tips for consumers interested in purchasing long-term care insurance.

Go to: http://www.naic.org/index_ltc_section.htm

A few days ago, Frank, a 92-year old, long-time UCAN member contacted the Fraud Squad for our help getting a promised $3800 refund for hearing aids he returned five months earlier to Praudigy Hearing Clinics. Praudigy was a contracted vendor that had been doing business out of local CVS Pharmacies.

Frank had asked for, and been promised, the refund several times by Praudigy, which revealed to UCAN that it was having financial difficulties, and could not provide the refund.

UCAN contacted CVS for help and they stepped in right away. The CVS corporate office contacted Praudigy, and Frank had his full $3800 refund a couple of days later.  Not only did CVS help this 92-year old senior, but called UCAN with the promise of sending letters or postcards to all Praudigy customers to accommodate their needs and/or to make them whole.  

Thank you CVS for standing up for its consumers.

First, some good news for the 44 million elderly and disabled beneficiaries of Medicare. The government has announced that there will be no premium increase in 2009. This is only the sixth time in Medicare's history that rates have held steady for two consecutive years, according to the Bloomberg News.

Rick Foster, Medicare chief actuary, said holding the line on premiums had NOTHING to do with this year's presidential election. Really??????

As Election Day approaches, wouldn't it make smart political sense for an unpopular Administration to hold the line on premiums when the nation's seniors and disabled are struggling with the costs of health care, food, transportation and housing? 

In fairness, we'll give Foster the benefit of the doubt.

Now for a related story...the Los Angeles Times reported the arrest of an ex-con for scheming to bilk the Medicare for millions.

Turns out the con, who is now singing to the feds, was a small player in a larger fraud scheme aimed at fleecing the Medicare system for $33 million. The arrests were made by the Medicare Strike Force. The Times reported that since its inception, the Strike Force has indicted 175 people alleged to have ripped off Medicare for half a billion dollars.

"We're talking about losing billions of dollars annually through fraud and abuse," said Kirk Ogrosky, the Justice Department prosecutor.  Really?

The Miami Herald reports that healthcare fraud is "massive" in South Florida. In the year ending Sept. 30, 245 defendants were charged with filing $793.5 million in false Medicare claims, according to U.S. Attorney R. Alexander Acosta.

While most cases resulted in convictions, the Herald reports that the government has recovered little from the Medicare crooks because they spent it quickly on lavish lifestyles.

In the meantime, the nation's seniors and disabled are shortchanged on what Medicare will--and will not--cover for their healthcare needs.

How much more fraud is out there? If aggressive fraud investigation and enforcement are made a priority by the federal government perhaps more millions can be saved--and maybe the Medicare system will no longer be the subject of dire predictions about its financial solvency. 

Maybe Medicare premium increases could become permanently frozen--or even decreased? Maybe the nation's seniors and disabled, who rely on it for their health care, will no longer see premiums and copayments rise every year.

A new president looking for ways to fund a better health care system for Americans should take a hard look at increased policing of the Medicare system for fraud and inefficiency. 

How to Report Medicare fraud