From the monthly archives:

June 2009

Medical Insurance ? What Does Yours Cover?

June 30, 2009

in Personal Finance

Almost everyone knows the importance of having health insurance. They take action towards acquiring some sort of plan for their family, often thinking they have enough coverage. It’s quite common, however, to arrive in a critical medical situation only to find your insurance does not cover what is necessary.

There are different kinds of health insurance available to you. The term itself refers broadly to insurance which pays for medical expenses. Some insurance plans may cover disability or long-term nursing care, as well as custodial care. Other options could include government sponsored programs falling under the social services spectrum, or benefits received from any of the major private insurance companies.

Some larger firms will purchase a group plan to cover all of their employees. Then again, there are other people who must purchase their own policy. Each of these scenarios has one thing in common: to help people pay for unexpected or overly high medical and healthcare expenses employees may run into. There are similar benefit plans provided to people through government social welfare programs.

Your insurance policy will list which benefits are covered. Any uncovered medical care will need to be paid for out-of-pocket. It may be prudent on your part to verify with your insurance company beforehand whether the procedure or prescription your doctor recommends is covered. It’s always important to read your insurance policy. It will provide you with all of the information in reference to what is covered and what isn’t. There is also the possibility your doctor may need to contact your insurance company in writing before they will approve your prescription.

Any questions regarding your plan and what is covered should be directed to you insurance company. Ask your representative to explain it clearly to you to make sure you understand.

Keep in mind it isn’t your doctor who decides what medications are paid for, but your insurance company.

Medicare

Medicare is a program for people aged 65 and over which is provided by the government. Medicare eligibility and enrollment is covered by the Social Security Administration branch. You can reach a representative at 1-800-772-1213 for enrollment information or to ask any questions you may have.

Medicare Supplement Insurance can help with some of the voids presently found in areas not covered by Medicare itself. With a total of twelve standardized supplemental insurance plans (labeled A through L) there’s a plan available for you. Among these supplemental plans, there are four which offer higher deductibles.

People in the following situations don’t necessarily need any supplemental Medicare options:
* You have group health insurance through an employer or former employer including government or military retirees
* You already belong to a Medicare Advantage Plan
* Medicaid pays for your Medicare premiums and other out-of-pocket costs

Part A and B of Medicare are a must in order to participate in a Medicare supplemental insurance plan. Part A covers hospital services, nursing facility care after certain hospital stays, home health care as well as hospice care. Also, after you’ve paid for the first three pints of blood in a calendar year, Part A covers the rest.

Part B covers medical expenses, clinical laboratory services as well as most outpatient hospital treatments at a usual rate of 80%.

Part D of the Medicare supplemental insurance plan pays for both generic and branded prescription drugs. You must join a prescription drug plan for this option to cover your expenses.

It’s important to become knowledgeable about your health insurance policy and its coverage. This will keep you from any shocks in the future, while giving you the opportunity to search for other options should the need arise.

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Tips to Create, Prioritize and Manage a Budget

June 29, 2009

in Personal Finance

Mention the word “budget,” and people’s eyes tend to glaze over. Budgeting isn’t the most exciting activity in the world, and on the surface it is extremely limiting. We don’t like it when other people try to tell us how to spend our money, and even setting parameters of our own may seem too much.

What many of us do not realize is that a budget is the ticket to financial freedom. It restricts what we spend each month, but in the long run it allows us to get more out of our money. Instead of frittering funds away on things we could comfortably do without, we can save up for emergencies as well as things we enjoy.

Here are ten tips for creating a budget, setting priorities and keeping tabs on spending.

1. Be realistic. All too often, we create the perfect budget on paper, only to completely blow it in practice. This is frequently because we are not realistic about our expenses. It may help to save all receipts for a month before you start on your budget. That way you can evaluate how much you’re really spending and avoid budgeting too little for any given item.

2. Remember the little things. Eating out every day instead of packing your lunch might not seem like a big deal, but it can really add up. The same is true for many of the habits we have. Cutting back where practical can save you more money than you might think.

3. Lower your bills when possible. A good place to start is with your cable bill. Do you really need all of those movie channels? What about your cell phone bill? Would a less expensive plan meet your needs? Knocking a few dollars a month off of your bills could leave you with hundreds of extra dollars each year.

4. Get the whole family involved. A budget affects the entire household, so everyone should have a say. You may have to make changes that everyone doesn’t agree with, but they will be more likely to accept them if you listen to all input. Family members may also have ideas that you wouldn’t have thought of on your own.

5. Give everyone an allowance, not just the kids. Setting reasonable limits for discretionary spending will help prevent your budget from being derailed.

6. Make sure the necessities always come first. Budgeting for entertainment and other wants is important, but if push comes to shove, food, water, clothing and shelter are the most important things. Budget for these and the things that enable you to work (such as transportation) first.

7. Include savings in your budget. Saving up some money for emergencies is crucial for every individual and family. Try coming up with an amount to save each month and include it in the budget before any non-necessities.

8. Keep track of all expenditures. Save receipts or write down every expense so you can compare your actual spending to your budget. If you spend less money than budgeted, consider allocating more to savings. If you spend more money than you planned, you need to either watch your spending more closely or make adjustments to your budget.

9. Avoid using credit cards irresponsibly. Buying on credit will result in less spending of money in the short run, but you will have to pay it back with interest unless the balance is paid in full each month.

10. If you get extra money, use it wisely. Consider putting it directly into savings or using it to pay down debt. Spending it on something you want might feel good, but that doesn’t help your overall financial picture.

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What does Long-Term Care Insurance Cover?

June 28, 2009

in Personal Finance

Long-term care insurance was developed specifically to cover costs of any long-term care services. These include those not covered by any traditional health insurance plan or Medicare. Included services can be received in your home, such as assistance with Activities of Daily Living as well as any care received in any facility or community setting.

The most popular options summaries and choices are:

* Your own selected daily benefit amount (i.e.$100/day), being the maximum daily amount for care paid for by the policy. With the variety of policies, this could range from $50/day to as much as $500/day.  More policies are starting to specify benefits in terms of a monthly amount to allow for flexibility as to when you will require more care, such as when family members aren’t available to assist you.

* You are often able to choose if you want the policy to pay the same amount for care in all settings, or less for care where it is less expensive, such as in a home setting. This could be changed to 50-75 percent of what you would normally pay in a nursing home setting.

* You have the opportunity to choose the type of coverage you prefer ? comprehensive or facility care only. Comprehensive policies cover a wider range of settings in which you can receive care and services, such as at home and in various types of facilities.

* Many policies offer you additional optional benefits allowing for a more customized coverage. One of the most important is Inflation Protection. This will help protect you from any rising cost of health care over time. Be sure to talk to your insurance representative about this option before completing your application process.

Many policies may also pay for services or devices to support people living at home:

* In-home monitoring systems
* Grab bars, ramps and other home modification
* Assisted transportation to and from medical appointments
* Training courses for friends or relatives in order to provide personal care safely

What is not covered by long-term care insurance?

As with all insurance, long-term care policies have exclusions. These often follow particular state regulations on which exclusions are allowed. Long-term care policies typically exclude the following (even if you meet all the other requirements of the policy):

* Any care or services provided by family member is not covered. The only exception to this is if the family member is an employee of the facility or organization providing a particular service, and receives pay for services in the form of normal compensation such as a pay check.

* All care and/or service provided outside the USA, unless your policy has an international care clause allowing the patient to seek treatment outside the USA.

* Any care or services resulting from attempted suicide (no matter what the mental capacity) or intentionally self-inflicted injury.

* All services or care provided for treatment of alcoholism or drug addiction (except in cases of addiction to prescription medication when administered according to your physician’s advice).

* All treatments provided in any government facility (unless by law).

* Any services available under any governmental program such as Medicare (except Medicaid), workers’ compensation, employer’s liability or occupational disease law.

There are some policies providing coverage for everyday household needs such as housekeeping, laundry, managing medication, meals and other items required for daily activities. However, these are only available if you receive funds for Activities of Daily Living.

As a final note, long-term care policies will not pay for anything related solely to comfort or convenience. Some examples of these would be a television in your room, or visits to the hair salon (normally located in the nursing home).

By paying close attention to what your needs and desires really are, and comparing them to your present insurance policy, you may find it necessary to make some changes or additions to what you are covered for, and what you aren’t. This will make sure there are no unexpected surprises or disappointments later on.

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The Importance of PIN Numbers

June 27, 2009

Credit and debit cards are the ultimate in spending convenience. They make it easy for us to buy online, by phone or by mail. They help us reserve cars, hotel rooms, plane tickets and more. They eliminate the need to carry large amounts of cash. And when we need cash but don’t have it, we [...]

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Saving Money in Tough Times: Everything You Need to Know To Survive the Financial Crisis

June 27, 2009

The book “Saving Money in Tough Times” is a brand new release and was written by author Jonathan Pond, a well-known figure on prime time TV, hosting and contribution to special finance and investment programs. He has won several awards, including an Emmy Award and Malcolm Forbes Public Award for Excellence in Advancing Financial Understanding.
In [...]

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Healthy Food on a Small Food Budget

June 26, 2009

They say you are what you eat, and that’s pretty much true. If you eat unhealthy foods that are loaded with fat and sugar, you will be unhealthy. If you eat fresh, unprocessed, nutritious foods, you will be healthy. But when you’re on a budget, that notion tends to be passed over in favor of [...]

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Health Plan versus Health Insurance

June 25, 2009

Long gone are the days when family doctors made house calls. With today’s rising cost of just about everything, from diagnostic treatments to prescription drugs, we’re running in circles trying to find some sort of manageable health care network to provide us with workable solutions.
Health plans were previously more frequently known as HMOs. You may [...]

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Getting the Best Out of Your Health Insurance

June 24, 2009

Resolving issues with health care companies are potentially trying experiences. You’ve possibly been underpaid, or are having issues pertaining to the company not authorizing necessary services. This experience doesn’t have to be a headache. The tips below can possibly avoid additional stress.
1) Be prepared for problems. Keep all records in the same place
The [...]

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Generic Medications versus Branded Medications

June 23, 2009

There has long been confusion among patients and their families when the topic of generic versus name-brand or branded drugs comes into play. There are many people who are of the opinion that generic drugs are a lower quality version of branded drugs. This simply is not the case. Both types share the same quality, [...]

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What is “Quote Massaging?”

June 23, 2009

Quote massaging is a system used in the UK whereby anyone who is seeking to reduce car insurance rates can change one’s job description in order to reduce the cost of insurance.
While this system is not available in the US, it is widely used among the top five UK insurance comparison sites online. Among [...]

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