health insurance

Why You Should Buy Travel Insurance — Even if Your Credit Card Offers It For Free

Holly Johnson — Thu, 10 Oct 2019 08:00:07 +0000

Travel is never cheap, and that's especially true if you're flying to a destination far from home. For that reason and plenty of others, savvy consumers tend to pay for travel insurance before they even head to the airport.

With a travel insurance plan, you can buy coverage that will reimburse if you if your trip is canceled or delayed for a covered reason beyond your control. You can even purchase "cancel for any reason" policies that let you back out of your trip any time you want.

Other inclusions travel insurance policies offer include medical coverage, baggage delay coverage, lost luggage insurance, travel accident insurance, and more.

Many consumers lean on the free travel insurance their credit cards provide — and that can sometimes make sense. After all, premier travel credit cards offer most of the coverage you get with a travel insurance policy for free. And if you can get insurance for free, why pay for it?

The reality is, there are a ton of reasons to buy travel insurance even if you get some coverage with a credit card. Here are a few of the most important details to consider as you plan your next trip.

Pay for sufficient medical coverage

Even though travel credit cards are pretty good about offering perks like trip cancellation/interruption insurance and baggage delay coverage, they're notoriously bad when it comes to offering medical coverage. That's a real problem if you're traveling to a destination where your own health insurance coverage won't work, such as any trip abroad.

With travel insurance, however, you can buy a policy that offers a much higher limits for medical expenses. It wouldn't take long to rack up huge medical bills if you wind up in the hospital due to illness or broken bones during your trip, but you can protect yourself with adequate travel insurance coverage that includes coverage for medical bills. (See also: How Emergency Medical Coverage Could Save Your Vacation)

You need medical evacuation coverage

In addition to medical coverage, you'll want to make sure you have adequate coverage for medical evacuation. This type of coverage will kick in if you become injured or ill and require emergency transportation to get back home. This could mean emergency evacuation in a plane or helicopter with a full medical team, so it's easy to imagine just how much you'd be stuck paying if you didn't have this type of coverage.

Most credit cards don't offer emergency evacuation coverage and ones that do may not offer high enough limits to help you sleep well at night. If you're worried about the high cost of medical evacuation if you were to become sick or injured overseas, you'll want to buy travel insurance that includes this benefit.

Credit card coverage may not even apply

Also note that some credit card insurance coverage may not even be applicable to you. Primary auto rental coverage, which is a popular credit card benefit, is a great example of coverage that doesn't always work.

Many credit card auto insurance policies only cover certain types of cars for certain amounts of time. For example, some cards only offer insurance for rental periods of 31 days or less. And some credit card auto insurance policies also limit the number of countries you can use your coverage in, meaning it may not work at all depending on where you travel to. (See also: 7 Times Travel Insurance Is Worth It)

You may want higher coverage limits

A final reason to purchase travel insurance is the fact that you get to select your coverage limits. This is unlike credit card coverage since it gives you whatever limits your credit card issuer decides.

For example, some cards offer free baggage insurance that can cover you if your baggage is lost by a common carrier. However, this benefit sometimes includes limits on the cost per person, per trip for carry-on baggage and checked bags, which may not be enough if you have brand-name luggage that would cost a lot more than that to replace.

The same is true with trip cancellation/interruption insurance, which is one of the most important valuable travel benefits you can buy. Travel credit cards that offer this perk tend to limit it to $10,000 per person and $20,000 per trip, which may not be enough if you splurged for a luxurious trip of a lifetime.

The bottom line

There are times when it makes a lot of sense to rely on your credit card's insurance coverage, but you have to make sure you have the coverage you need with high enough limits to count. In many cases, credit card travel insurance just isn't enough.

If you're on the fence about whether you have the coverage you need to protect yourself, you may want to buy a travel insurance policy just in case.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Apps That Help You Save on Prescriptions

Kat Tretina — Wed, 21 Nov 2018 09:00:12 +0000

If you have an ongoing health condition that requires prescription medication, you're well aware of how expensive it can be. Rising medication costs have increasingly hurt consumers' wallets — and their health. In fact, in a recent survey by Consumer Reports, 17 percent of respondents said they didn't fill a needed prescription due to cost.

However, skipping your medication because you can't afford it can put your health at risk and can worsen your medical conditions. Thankfully, there are apps that can help reduce your costs and make your prescriptions more affordable. (See also: The One Question You Need to Answer to Choose the Best Health Care Plan)

1. Easy Drug Card

The Easy Drug Card is a discount prescription app you can use to save money on your prescriptions, if you don't have insurance or if your insurance won't cover the cost of your medicine. What sets the Easy Drug Card apart from similar apps is that you can also use it to save on your pet's medications, too.

With the Easy Drug Card, you get a discount of up to 80 percent off your prescription price.

2. FamilyWize

FamilyWize is a free app where you can download or print off a discount card and use it at any major pharmacy. This app is for everyone, whether or not you have insurance. Hand the card to the pharmacist, and they'll enter the card's information. The FamilyWize card is accepted at all major pharmacies, and the average savings is 40 percent per prescription.

3. GoodRX

Most people go to the same pharmacy to fill all of their prescriptions. It's easy and quick, but you might be paying a premium for that convenience.

Prescription drug prices can vary widely from pharmacy to pharmacy, even if you have insurance. For example, if you needed to fill a prescription for Lipitor in the Orlando area, you'd pay $23 at Walgreens. But, if you're willing to drive to Costco, you'd pay just $10 for the same exact medicine.

However, you don't need to call each pharmacy to get a quote. GoodRX is an app that helps simplify the process. Just download the app and enter the name of your prescription and it will list the price of the medicine at local pharmacies near you. Even better, GoodRX also posts coupons you can use at each pharmacy to save money, too. (See also: 7 Smart Ways to Invest in Your Health)

4. ScriptSave WellRX

ScriptSave WellRx helps you find the lowest price on your medications and offers discounts to help you save even more money. Just enter the name of your medication and zip code, and the app will tell you which local pharmacy offers the cheapest price. Download the ScriptSave WellRX savings card, and you'll save up to 80 percent on your prescriptions. It's especially helpful for those without insurance or who have very high copays.

5. CVS ExtraCare

With the CVS ExtraCare app, you can manage your prescriptions and sign up for the Health Rewards program. With this program, you can earn credits that can be redeemed for Target coupons.

You earn a $5 coupon for every 10 credits you earn:

Fill or refill a prescription: 1 credit
Fill or refill a 90-day prescription: 3 credits
Sign up for pharmacy alerts: 1 credit
Sign up for email reminders: 1 credit
Get a flu shot or vaccine from an in-store pharmacist: 1 credit
Add prescriptions to your online account: 3 credits

As you can see, these credits add up, and you can use the coupons on most items in the store, including food, gifts, or housewares.

6. Walgreens

The Walgreens app is a comprehensive tool you can use to manage your family's prescriptions. You can transfer prescriptions, order refills, and even chat with a pharmacy expert through the app.

The app can also help you save money by earning points for filling your prescriptions:

Earn 100 points for every 30-day prescription picked up in-store.
Earn 300 points for every 90-day prescription.
Earn 100 points per vaccination.

Those points can be redeemed for discounts at the register.

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This article is from Kat Tretina of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways to Embrace Having to Work in Retirement

Emily Guy Birken — Thu, 28 Jun 2018 08:00:15 +0000

We all know what retirement is supposed to look like: You get a nice farewell luncheon and a gold watch from your employer — and then you get busy golfing, traveling, spoiling the grandkids, and generally living it up in your golden years.

So if you find yourself with an underfunded nest egg and the realization that you have to continue working in retirement, you can be forgiven for wanting to throw an epic temper tantrum. Working in retirement is not what we were promised, and if that doesn’t warrant some flailing and crying, I don’t know what does.

But not being able to fully retire doesn’t have to put you in a permanent bad mood. Once you’ve stopped shaking your fist at the heavens, consider these ways to not only accept, but also embrace the reality of working in retirement.

1. You may be happier than retirees

Though it might seem like retirement is the key to happiness, psychological researchers have found that working is actually better for your subjective well-being. According to a 2014 study by Dr. Elizabeth Mokyr Horner in the Journal of Happiness Studies, retirees do experience a rush of well-being and life satisfaction in the first few months after they retire — but they feel a sharp decline of their levels of contentment within the first few years of retirement.

There are a couple of reasons for this decline in happiness. First, anything you spend years planning for is unlikely to live up to your expectations. It’s only natural for retirees to feel let down when they realize their new chapter in life isn’t exactly what they expected. In addition, when you end a career that has helped define who you are, it’s common to feel adrift once that career has ended. Finally, retirement can often lead to a shrinking social circle, since you no longer see co-workers on a daily basis. Lack of social contact can increase feelings of loneliness and depression, which can be a major problem among retirees.

Even if you are not happy about the fact that you have to work past retirement age, remember that working may actually be improving your happiness by helping to define you, giving you a broader social circle, and providing you with a reason to get up every morning. (See also: How to Find Your New Identity After Retirement)

2. You can make your workplace better

One of the benefits of working past traditional retirement age is the amount of knowledge and experience you bring to your job. Not only does that make you a valuable member of your workplace, but it provides you with an opportunity to help encourage and shape the culture there. By taking younger co-workers under your wing and making suggestions based on your depth of knowledge, you can potentially improve the company you work for. It’s tough to do this without the kind of clout your experience lends you.

3. You can put off taking Social Security

According to the Center for Retirement Research at Boston College, approximately 42 percent of men and 48 percent of women begin taking their Social Security benefits at age 62, the earliest you are eligible to receive them. But Social Security benefits are permanently reduced by up to 30 percent by taking them so far in advance of full retirement age.

If you are still working in retirement, you can put off taking your Social Security benefits, and thereby increase your monthly benefit by as much as 8 percent per year that you put off Social Security. In addition, you may also be increasing your Social Security monthly payment by continuing to work, since the Social Security Administration calculates your benefit based on your 35 highest earning years. If you are at the top of your lifetime salary while working past retirement age, these high earning years will replace lower earning years from your youth — and potentially increase your monthly payment. (See also: 6 Smart Ways to Boost Your Social Security Payout Before Retirement)

4. You are in a retirement investment sweet spot

Though working past retirement age may not be your idea of fun, it does give you an unparalleled opportunity to invest. First, since you are over the age of 50, you can take advantage of the catch-up provisions that allow you to contribute up to $24,500 to your 401(k) and up to $6,500 to your IRA, allowing you to reduce your tax burden while funding your retirement accounts.

In addition, since you are working longer, that means you have a longer investment timeline to play with. This can allow you to invest for growth in ways that a typical retiree could not, since she would be trying to protect principal. Since you anticipate working for a few more years, you get a few more years of the magic of compound interest working to build your wealth. (See also: 7 Reasons to Invest in Stocks Past Age 50)

5. You can keep using your employer’s health insurance

All Americans are eligible for Medicare as of age 65, but the program costs more than you might expect and covers less than you might think. Not only do you have to pay a premium of at least $134 per month for Medicare Part B, but you will be on the hook for 20 percent of the Medicare approved amount for health care after you have met the annual deductible of $183. In addition, Medicare does not cover prescription drugs, dental or vision care, foot care, hearing aids, or dentures.

Being able to stay on your employer’s health insurance could be a major benefit to working, since you are likely to have more comprehensive coverage under that insurance and it may be less expensive for you, as well. (See also: 4 Common Mistakes to Avoid When You Enroll in Medicare)

No need to curse the heavens

Working in retirement may not be what you planned, but it doesn’t have to feel like the end of the world. If you take the time to recognize how working in retirement can actually help your emotional, mental, financial, and physical well-being, you can embrace the reality of working when you’d expected to be golfing.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How Emergency Medical Coverage Could Save Your Vacation

Holly Johnson — Mon, 14 May 2018 08:31:08 +0000

One of the great things about good travel credit cards is the travel-related insurance they include for free. Many cards include trip cancellation/interruption coverage, checked baggage coverage, and rental car coverage.

You might think that means you don't need to buy a traditional travel insurance plan for your trip. Unfortunately, there's one important type of coverage that credit cards tend to leave out — emergency medical coverage.

But when you're traveling far from home and break a leg or get an infection, what prevents you from racking up expensive medical bills? If you don't have travel insurance that includes emergency medical coverage, then nothing can stop the barrage of medical bills you'll likely face if you get sick. And although credit cards don't typically offer emergency medical coverage as part of their benefits, many travelers assume they do. (See also: When Is Your Credit Card's Travel Insurance Good Enough?)

Yes, you should buy emergency medical coverage

Beth Godlin, president of Aon Affinity Travel Practice, says that it's a "dangerous assumption" to presume that your credit card offers medical coverage. And it's equally dangerous to assume that your health insurance will cover you abroad. Chances are it won't, but you should check your policy to make sure.

"No one wants to get sick or have an accident, especially during a dream vacation, but it happens," says Godlin. "It could be a minor issue that's resolved by a visit to the cruise ship doctor, or it could be more severe and require medical attention or even an emergency evacuation."

For these reasons, travelers — particularly those heading abroad or to a remote location — need to understand if their current medical insurance would cover any care or even emergency evacuation required during their trip. If not, they should seriously consider buying the right supplementary coverage.

Carol Mueller, vice president of marketing at Berkshire Hathaway Travel Protection, suggests shopping around among travel insurance providers and finding one that offers at least $15,000 in emergency medical coverage for a basic trip. Even if you're healthy, "you never know what will happen when you travel," she says.

It's important to keep in mind how stressful and demanding it can be to become injured or ill abroad. Let's say you sprain your ankle, get a nasty ear infection, or have a heart attack. Mueller says that many people are surprised by the fact that the second you walk into the hospital, they ask for your credit card in many places around the world.

To protect your finances and keep your stress levels under control, Mueller suggests using a travel insurance provider that will work with medical teams anywhere in the world to make prepayments for your care. You may have the option to pay your medical bills with a credit card and then ask for reimbursement when you get home, but some travel insurance companies will go the extra mile to get your bills paid upfront.

"A good travel policy will not only make sure you're getting charged a fair amount, but they'll also ensure you're getting adequate care in the country you're traveling in," says Mueller.

Emergency medical coverage limits and inclusions

While $15,000 may be the minimum you should settle on for emergency medical coverage, you can buy policies with higher limits. Berkshire Hathaway Travel Protection offers plans with up to $50,000 in emergency medical coverage, for example.

How do you decide? Mueller says to look at your personal situation and the trip you're taking to determine how much coverage is reasonable. "If you're going to an all-inclusive resort for a week, you may need less coverage than if you're doing something active like hiking," she says. (See also: 7 Times Travel Insurance Is Worth It)

In terms of what is covered by emergency medical coverage, any medical expenses incurred while you're traveling are fair game. This includes medical care for both injury and sickness.

Mueller notes that you should also make sure you have cancellation coverage in your policy as an extra precaution in the case of illness or injury.

"Let's say that you leave for your trip within a few months, but you get sick right before you go," she says. "With travel insurance that offers some sort of cancellation coverage, you may be able to cancel your trip and get your money back if you follow your policy's terms and conditions."

Don't forget about medical evacuation coverage

In addition to medical coverage that pays for surprise bills related to an injury or illness, you should also make sure you have adequate emergency evacuation coverage. This is a separate type of insurance from emergency medical, so it will be listed separately on your travel insurance policy and have a separate limit for coverage.

Mueller says that you should look for a comprehensive travel insurance plan that includes emergency evacuation coverage with limits of $150,000-$500,000.

That may sound like a lot, but evacuation costs can be astronomical if you need to travel far to get home or to a hospital that can help with your condition. If you're taking a cruise, for example, think of all the expenses it would take to get you from the middle of the ocean to a hospital in the U.S. Your ship might have to get the Coast Guard involved, and you may require transport in several different vessels.

Or, imagine you're hiking the Swiss Alps and break your ankle. You may require pickup in a helicopter and transport in a plane. When you think of emergency medical evacuation coverage that way, it's easy to see how you could need $500,000 in coverage — or even more.

How to find the right policy for your needs

Both Mueller and Godlin suggest shopping around to find an affordable policy that provides limits you feel comfortable with. And when you're spending several thousand dollars on a trip, it's smart not to cheap out on coverage that can keep you safe from financial harm.

"It's important to consider the total investment made for a trip relative to the nominal cost to protect it with travel protection," says Godlin. "Sometimes a relatively small investment can have a huge payoff for traveler safety and peace of mind."

Since many plans have different tiers of coverage, Mueller suggests calling providers you're interested in working with and talking through the "what ifs" with them as you shop. "A lot of times, the insurance company will consult with you to figure out the best plan for your needs at the lowest cost possible," she says.

The bottom line: There's nothing wrong with using your credit card's travel insurance coverage to protect your trip, but you need emergency medical coverage to protect your finances in case you're hurt or sick. If you don't get it, your dream vacation could turn into a financial nightmare a lot faster than you think.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Money Mistakes at 20 That Will Land You in Debt by 30

Kentin Waits — Mon, 14 May 2018 08:01:14 +0000

Few mistakes are more difficult to erase than money mistakes. The errors of youth have a way of haunting us long after we've changed our ways and become models of responsible personal finance. If you're in your 20s, look ahead and make life easier for your 30-something self. Here are eight money mistakes at 20 that will land you in debt by 30.

1. Amassing huge student loans

According to Student Loan Hero, today's average student loan borrower will graduate owing $37,172. What makes student loan debt particularly dangerous? First, most loans have variable interest rates. When rates increase, so do your payments (try budgeting around that). Second, student loan debt can't be discharged in bankruptcy. If you default, the government can garnish your wages, take your tax refund, and even dip into your Social Security payments in retirement. (See also: What Really Happens When You Don't Pay Your Student Loans)

2. Carrying credit card debt

With high interest rates, late payment penalties, and other fees, a modest credit card balance can quickly become a major problem. People who overspend in their 20s can easily rack up huge debt loads by their 30s — a situation that forces many to delay homeownership, toil away at jobs they dislike, and live with constant financial stress. Avoid the drama of consumer debt. Adopt a strict policy of paying off your credit balances in full each month. (See also: The Fastest Method to Eliminate Credit Card Debt)

3. Ignoring your credit score

Your FICO score is your GPA of adulthood. That magic number affects everything from loan eligibility and interest rates to employment opportunities. Since rebuilding a low credit score can take years, you can't afford to ignore it. Just imagine getting stuck with a higher mortgage rate at 35 because you were late with a few car payments at 27. Not good. (See also: How to Rebuild Your Credit in 8 Simple Steps)

4. Splurging on a new car

Countless 20-somethings are tempted to buy a new car as soon as they land their first real job. But with steep prices, rapid depreciation, and higher insurance premiums, buying new is seldom a smart financial move. This single bad investment can strain your budget for years and leave little money to establish an emergency fund or aggressively pay down student debt. (See also: 3 Reasons Why You Should Never Buy a New Car)

5. Not talking finances with your significant other

Ready for an important love lesson? Talking about money won't kill your romance, but the stress of overwhelming debt just might. Before you commit, share your full financial picture (warts and all). Talk about income, debt, bad money habits you're trying to overcome, and your personal financial goals. It'll not only bring you closer as a couple, it'll empower you to work as a team. (See also: 5 Money Conversations Every Couple Should Have)

6. Overspending for your wedding

According to a study conducted by The Knot, the average cost of a wedding in the United States hit a whopping $35,329 in 2016. And while new unions are always a cause for celebration, the price tag for these elaborate events often forces young couples to assume more debt at a time when paying off student loans, saving for a home, and funding retirement accounts should be top priorities. With interest, wedding bills can easily become money monsters that devour budgets for years. (See also: 3 Reasons Taking a Loan For Your Wedding Is a Bad Idea)

7. Not building an emergency fund

Ah, the optimism of youth! Twenty-somethings often don't realize that a layoff, uninsured medical expense, or unexpected home repair can spell financial disaster. Without an emergency fund to cover at least six months' worth of living expenses, they risk being forced into high-interest credit card debt — a decision that can launch a long-term cycle of debt. (See also: 7 Easy Ways to Build an Emergency Fund From $0)

8. Going without health insurance

We all feel invincible when we're in our 20s, but accidents and unexpected health issues can throw our lives off course at any moment. Without insurance, medical bills can quickly reach staggering amounts (in fact, medical expenses are the most common cause of personal bankruptcy in the United States). Protect your most important asset — yourself. (See also: The One Question You Need to Answer to Choose the Best Health Care Plan)

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This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Choose the Best Primary Care Physician

Christa Avampato — Tue, 27 Mar 2018 09:30:20 +0000

Your primary care physician is someone with whom you should feel comfortable, so you can ask questions, get recommendations, and seek guidance for your health and the health of your family. But selecting one is not an easy decision. Here's is a list of questions to ask and things to consider before making your choice.

Do they take your insurance?

Insurance is a complicated business. What's covered, and at what cost to you (if any), are points that you must understand for your physical and financial health. Not all doctors take every form of insurance. The best way to know if a primary care doctor is covered under your insurance is to go straight to your insurance company and ask if the doctor is "in-network." If you have a doctor in mind, just provide their name to check on their network status. If you don't have a doctor in mind, the insurance company can help you find one who is in-network. (See also: The One Question You Need to Answer to Choose the Best Health Care Plan)

Are they taking new patients?

Though a doctor may be in-network, they may not be taking new patients. Solving that problem can be done in one of two ways: calling the doctor's office, or visiting an online site like Zocdoc.com. Zocdoc is similar to Yelp, in that it lists doctors and practices with reviews from patients, but it goes a step further in helping you find in-network doctors that are accepting new patients, and allows you to schedule appointments through the app. Though a doctor may not be listed on Zocdoc, they may still be taking new patients, so even if you don't see a doctor you're interested in on there, you should still contact them directly to inquire.

What extra services do they offer?

If you live in an area that has a competitive market, you may find that doctors offer extra services that are free or have a reduced rate. In New York City, I've found a number of doctors offering free telemedicine — conducting medical appointments over video chat — and will take questions by email from patients much more frequently than they used to. I've also found that many of them are offering more workshops and information sessions about different health topics that are free to patients and their family members. These extra services can make a world of difference.

What hours are they open?

Our immune system doesn't always break down between the house of 9 a.m. and 5 p.m., Monday through Friday. Often we need care on the weekends or in the evenings. If you need that added flexibility in your schedule, check to see if a doctor's office has coverage during non-traditonal hours.

If they don't, does the doctor have hours they're on-call or do they have a partner practice that can help you outside of their regular business hours? (See also: Urgent Care or ER? How to Decide Where to Go)

Who else is a part of the practice?

Because health care needs are growing more complex, many doctors' offices have additional medical staff (sometimes part-time, sometimes full-time) who are specialists in their fields. This can include an OB-GYN, allergist, dermatologist, pediatrician, and a variety of other specialists. Having all of these specialties in one practice provides a more inclusive level of care for patients and gives your primary care physician a greater understanding of your overall health.

Are they affiliated with a specific hospital?

If you have a hospital preference, it's important to check a doctor's affiliations. Many times their affiliation will impact which hospital you can go to if needed, and that's something you want to know before any hospital visits.

What do other patients say about the practice?

Patient reviews are also something to consider when choosing a practice. Zocdoc, Yelp, and Google Reviews are good places to check for reviews on the doctors, staff, and the practice.

"The first wealth is health," said Ralph Waldo Emerson. Though it can seem time-consuming to choose a primary care physician, it is well worth the investment. Your primary care physician is your front-line partner in your health, and it's not a decision to be taken lightly.

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This article is from Christa Avampato of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways to Safeguard Your Financial Future With Just $200

Tim Lemke — Mon, 26 Mar 2018 09:00:06 +0000

Sometimes it is a series of small decisions that can make a big difference in our lives. This is certainly true when it comes to protecting our financial assets.

Building a high net worth isn't just about generating wealth. It's also about protecting what you have and avoiding disaster. Fortunately, there are a number of things you can do to put armor around your finances that won't cost you a lot.

Check out these ways to safeguard your financial future for $200 or less.

1. Get renters or homeowners insurance

You can protect nearly all of your belongings from theft, fire, and many other bad events by paying a monthly insurance premium that is often less than $200. Homeowners insurance can protect you from lawsuits, disasters, and other things you might not expect. If you don't own the place you live, your belongings can be protected for less than $20 a month with renters insurance.

Bad things can happen. We all want to pinch pennies, but insurance is an expense we should all try to budget for if we want to avoid financial tragedy. (See also: 5 Reasons You Definitely Need Renters' Insurance)

2. Get life insurance

If you are married and your spouse earns an income, would you be able to make ends meet if they suddenly passed away?

Life insurance will replace any lost income, and it's not very expensive to have a policy. With term life insurance, you pay a fixed monthly or annual premium to be covered for a specific amount over the course of a specific term. For example, you might purchase $1 million in coverage for a 20-year term. In most cases, you can get a very good life insurance policy for under $200 per month. (See also: Term vs Whole Life Insurance: Here's How to Choose)

3. Contribute to a retirement account

If you open a Roth IRA, you can contribute up to $5,500 each year and invest in almost anything. Since money contributed to a Roth IRA is taxed upfront, all future withdrawals are tax-free. If you have $200 a month, this will get you nearly halfway to that maximum contribution. A $200 monthly contribution over several decades could result in $1 million or more when you retire.

You may also choose to contribute to a 401(k) plan if your employer offers it. Let's say you're earning $40,000 annually, and set aside and invest $200 per month, or 6 percent of your income. And let's say your employer matches half that. That comes out to $3,600 annually, which can grow to well over a million when you retire. (See also: 401K or IRA? You Need Both)

4. Craft a will

Having a will is especially important if you have a family and a lot of assets. A will offers guidance as to who gets your financial assets after you pass away, as well as who is responsible for any dependent children you leave behind. If something happens to you, you need to know that the people who care about you will be taken care of. The good news is that it's fairly easy to write a will and it can be done cheaply.

LegalZoom and similar online services will allow you to file a will for as little as $69. Even if you go through an attorney, you may only spend a few hundred dollars. A will is a good investment, because without one, your family members may be stuck with astronomical legal bills to sort out the ensuing confusion after your death. (See also: Here's What Happens If You Don't Leave a Will)

5. Meet with a financial adviser

For $200, you are unlikely to get a financial adviser to meet with you regularly or manage your investments themselves. But, there are fee-only advisers who would charge that much for an hour or so, which is enough time to get some basic advice and determine if you are on the right track financially. Periodic meetings with a fee-only adviser can help you develop a simple financial plan and identify a few good investments. These sessions could pay for themselves easily in the long run. (See also: 7 Occasions When You Should Definitely Hire a Financial Adviser)

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Surprising Ways Marriage Can Make You Richer

Tim Lemke — Mon, 19 Mar 2018 09:00:06 +0000

Marriage can be a wonderful thing, and not just because of the potential for lifelong companionship. Tying the knot can be a great financial decision, too.

When you get married, you'll be eligible for some key tax breaks, and there are a number of other advantages that will ultimately help you build wealth. Take a look at these examples of how marriage can make you richer.

1. There's a larger standard tax deduction

Under the 2018 tax law, every married couple filing jointly is eligible for a standard deduction of $24,000. That's nearly double from the previous law and exactly twice the standard deduction for single people. This standard deduction is more important than ever, as the new tax law does not allow for as much itemizing of deductions. (See also: 12 Things You Should Know About the New Tax Law)

2. You may save on taxes if filing jointly

Much has been said about the so-called "marriage penalty" in which couples could face a higher tax rate if they file jointly. But in truth, this was not an issue for most people, and the new tax law makes it even less likely that married couples will be penalized.

In fact, in most cases under the 2018 tax law, there won't be much difference between your taxes if you file separately or jointly. But it could be very advantageous for couples to file jointly if one spouse makes considerably more than the other.

To illustrate this, let's say you earn $37,000 in taxable income. Under the 2018 tax law, you'd be in the 12 percent tax bracket and pay $4,440 in tax if filing separately. Now let's say your spouse earns $190,000 per year and pays $60,080, based on the 32 percent tax bracket, also filing separately. If you file jointly instead, you'd report a combined income of $227,000 and would be in the 24 percent tax bracket. You would pay $54,480 in tax, a savings of nearly $10,000.

3. You have more buying power

When you get married, you are pooling financial resources. If both of you have assets and income, then you have greater ability to make purchases. It means you may be more likely to afford a down payment on a home, and have more ability to handle the monthly mortgage. It means you may become more attractive to lenders, though it is worth noting that you will still each have separate credit scores.

4. You can contribute to an IRA even if you don't work

If you want to contribute to an individual retirement account (IRA), you must have earned income. But there are exceptions, most notably in the form of a spousal IRA. With a spousal IRA, each spouse can have their own IRA, as long as one of the spouses has earned income. For most people, the limit of contributions on each account is $5,500 annually, so the total contributions allowed for married couples doubles to $11,000. The only catch to a spousal IRA is that couples must file their taxes jointly. (See also: 4 Ways Couples Are Shortchanging Their Retirement Savings)

5. You can receive Social Security spousal benefits

When you file for Social Security benefits, you can file for your own benefits or under your spouse's. Even if you did not earn any income during your life, you can receive benefits through your spouse. Usually, spousal benefits are up to half your spouse's normal Social Security benefit. You'll also be able to receive spousal benefits even after your spouse passes on.

6. You may spend less on health care

There is considerable evidence that being married can make you healthier. Married couples look out for one another. They keep each other on track regarding diet and exercise, and a spouse is often the first person to notice when you appear unwell.

The Harvard Health blog reported in 2016 that married people tend to live longer, are less likely to be depressed, and have fewer strokes and heart attacks. The report also cites studies showing that married people have better immune systems. This potentially means that your health care expenses could be less than if you remained single.

7. You can get health insurance through your spouse

If one spouse has access to health insurance through his or her employer, they can add a spouse to their plan. This is very helpful when one spouse is not employed or is not offered health insurance through their job. In most cases, family plans offer savings over plans for individuals.

8. Auto insurance is cheaper

Generally speaking, auto insurance companies will charge less to married couples than single people. That's because they tend to see marriage as something a more mature person does. Of course, it helps if both drivers have good driving records; if your spouse has a worse driving record than you, you may not see any savings.

An analysis from Carinsurance.com revealed that married couples can typically see savings of 10 to 15 percent in most states. It's worth noting that insurance companies will offer discounts for multiple cars, as well.

9. You can inherit assets from your spouse without a will

To be clear, no one is suggesting you should celebrate when your spouse passes away. But it's worth noting that when you are married, you are usually entitled to inherit their assets, even if you don't have a formal will drawn up. Note: Crafting a will is still a very good idea. (See also: Here's What Happens If You Don't Leave a Will)

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Times Travel Insurance Is Worth It

Tim Lemke — Tue, 06 Mar 2018 10:00:08 +0000

Traveling is one of the best things you can do for yourself, but it can also be quite costly. This cost can be exacerbated if you end up being forced to cancel or cut your trip short and are unable to get your money back.

Travel insurance can help you avoid losing money if your plans change unexpectedly, or if you encounter an emergency while on your trip. It's not always worth the added expense to purchase travel insurance, but there are a number of instances when it's wise to get it. Consider these when planning your next trip.

1. The trip is expensive

Perhaps you managed to book a pricey, customized, VIP tour of the Antarctic ice shelves, complete with a penguin encounter. Maybe you got an exclusive after-hours tour of the Vatican Museums. You saved up enough money to book these bucket list vacations. It took you a long time, and a lot of hard work. These are trips that you may never be able to book again if you are forced to cancel. Travel insurance is not necessarily going to allow you book that expensive, once-in-a-lifetime experience again, but at least you'll avoid the pain of also losing all the money you spent to book it.

2. You've had recent health issues

One of the most common reasons you may be forced to cancel a trip is an illness or injury that prevents you from traveling. If you are battling cancer, for example, you may feel good one day and not so great the next. It may also be impossible to predict when treatments or surgery may be needed. In this case, travel insurance can give you some peace of mind and allow you to go ahead and book that trip.

Older travelers who may have certain health conditions that have the tendency to flare up may also find travel insurance useful. It is important to note, however, that many travel insurance policies do not cover trip expenses if you cancel due to a pre-existing health condition, so be sure to check the specific provisions of the policy before buying. (See also: What Exactly Does Trip Cancellation Insurance Cover?)

3. There's a chance you may be pregnant

If you and your partner have been trying to have children, you may be wary of vacationing because you don't want to cancel a trip if you do get pregnant. At the same time, it seems silly to avoid traveling if you're not expecting. Travel insurance can come in handy here, because it will allow you to book travel without worrying about losing money if you get some good news. (See also: Everything You Need to Know About Buying Travel Insurance)

4. If you're cutting things close

Let's say you've booked a cruise departing from Barcelona leaving on Saturday, but your schedule only allows you to fly to Barcelona that day. To make things dicier, you have to take two connecting flights to get there. If you experience any delays or miss a flight, you may miss the cruise departure entirely. Travel insurance could reimburse you for costs you incur to catch up with your cruise.

Keep in mind, however, that travel insurance may only cover you if you're delayed due to weather or mechanical problems with the airline. Missing a flight because you overslept, for example, may not be a valid reason to seek reimbursement.

5. If you're going somewhere with unknown medical care

Getting sick or hurt on a trip can be a harrowing experience, and that's especially true if you find yourself in a place where medical care is below American standards. Even today, there are many countries that lack a robust health infrastructure, and medical staff there may not be equipped to perform surgeries or other emergency procedures. A good travel insurance plan can cover travel to better health facilities or hospitals, to ensure you have the best possible medical care even if you are far from home.

6. If you're traveling to a "high-risk" country

Adventurous travelers may find themselves in places that carry some risk to personal safety. Some nations are torn apart by civil war or unrest. Others are prone to incidents of terrorism. Even countries that have general political instability can be risky places to visit.

It's possible to buy travel insurance that covers you for a variety of things if you go to these countries. You can be covered for injuries, for example, or if you have to be evacuated. There are even policies with provisions relating to kidnapping and extortion. (See also: 5 of the Safest Countries to Visit in 2018)

7. If you're in the military

Those serving in our armed forces must be ready to travel anywhere at a moment's notice. If you are on active duty or a reservist, you know that any vacation could be interrupted if duty calls. Travel insurance can reimburse you for costs if you have to cancel or interrupt a trip due to military service.

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Urgent Care or ER? How to Decide Where to Go

Kat Tretina — Fri, 02 Mar 2018 09:00:07 +0000

A few weeks ago, I was walking with my husband at the park when an enormous, bearlike dog came out of nowhere and barreled into me. Caught by surprise, I got knocked into the dirt. When the shock wore off, I realized my ankle had twisted in a way it wasn't meant to and I had trouble getting to my feet. Within an hour, my ankle had swollen to double its normal size and I couldn't put weight on it.

I was about to head to the emergency room (ER) — and the huge bill that would undoubtedly come with it — when I reviewed my insurance policy to see what my copay would be. In the paperwork, I found out that going to an urgent care facility would be much cheaper. I was thrilled and the urgent care facility I visited helped me get back on my feet (literally).

If you're sick or injured, your first instinct might be to head to the emergency room. However, doing so can come with a large bill. In fact, the average ER bill is a staggering $2,259, according to Cigna. Visiting a local urgent care center, where the average cost is just $176, might make more sense. Here are a few key things to consider before going to the hospital. (See also: How to Handle a Massive Medical Bill)

Seriousness of illness

When deciding where to go, consider just how serious your injury or illness ill. If you're sick or have an infection and your doctor is unavailable, you may think the ER is your best bet. However, some insurance companies don't cover ER visits for non-life-threatening emergencies. That means that if you have something like pink eye and go to the ER, you could end up footing the bill entirely on your own.

If you're not facing a true medical emergency, an urgent care facility is a cheaper and safer option.

Services

Although urgent care facilities are usually cheaper and more convenient than the ER, they have limitations. They tend to have X-ray equipment, EKGs, and lab testing, but lack the facilities needed for more complex illnesses or problems. And, urgent care centers usually just have one or two doctors available and no specialists. Because of these factors, urgent care facilities are best for short-term illnesses or injuries, such as:

Coughs.
Minor injuries or burns.
Fevers.
Stomach pain or vomiting.
Sore throat.

If you have a more severe injury or illness, an urgent care facility might not be able to give you the care you need. Instead, you may need the tests, expertise, and care that only a hospital can provide. You should head to an emergency room (or have someone take you) in the following situations:

Head injuries.
Allergic reactions.
Unconsciousness.
Deep wounds or severe burns.
Chest pain.
Major broken bones.

Availability

If you are hurt or sick outside of your doctor's normal business hours, both urgent care centers and the ER are useful options.

Although urgent care facilities tend to have longer hours than your normal doctor, they are not usually available around the clock. If you are injured late at night or very early in the morning, your only option may be the ER.

Wait times

Most urgent care centers operate on a first-come, first-serve basis. You could wait as little as five minutes to see a doctor or have X-rays done. You'll also get necessary treatments and be on your way home faster than you would seeking treatment at a hospital.

Emergency rooms work differently. They use a triage system, where patients are seen based on the seriousness of their condition. If you have a mild problem, such as a sprained ankle or a sore throat, you could wait several hours so that others can be seen first.

In-network vs. out-of-network

Many doctors working in emergency rooms are independent contractors. That's important to know, because that means they may not operate within your insurance provider's network. Visiting the ER and being cared for by an out-of-network physician can mean a huge bill later on.

If possible, going to an in-network urgent care center will be cheaper than going to the ER. However, if your illness or injury is serious and you need to go to the ER, you can request an in-network doctor when you fill out your admissions forms.

Payment plans

Depending on your condition and whether or not you have insurance coverage, you could be on the hook for a large medical bill regardless of what kind of center you visit. If you are short on cash, where you go can affect what payment options are available to you.

Most urgent care facilities require payment in full before you leave and don't offer payment plans. If you don't have insurance, you could have to pay hundreds or even thousands right away. Without that money in savings, you might have to rely on credit cards to pay it and end up in debt.

Emergency rooms often have more leeway. They may offer payment plans or even have charitable funds set aside to cover the costs of low-income patients. Talking to the billing department about your situation can help you identify all of your options so you can pay for necessary treatments. (See also: What to Do If You're Hit With a Huge Medical Bill)

Managing your medical bills

If you've already been hit with a big bill after medical treatment, don't panic. There are ways you can negotiate your medical bills and qualify for financial assistance or reduce how much you owe.

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This article is from Kat Tretina of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Kinds of Insurance Every Retiree Should Consider

Dan Rafter — Thu, 01 Mar 2018 09:30:09 +0000

Your insurance needs don't remain constant throughout your life. You need different insurance coverage when you're single and in your 20s than you do when you're raising a family in your 40s. When you retire, your insurance needs will evolve once again.

There are certain types of insurance protections you'll no longer need after leaving the workforce, and other types that you'll want to add. Here is a primer on the kinds of insurance that every retiree should consider.

1. Health insurance

You'll absolutely need health insurance after you've retired. Health care costs are only rising, and seniors tend to spend a large percentage of their income on medical care each year.

A study released by Fidelity Benefits Consulting said that the average 65-year-old couple retiring in 2017 would need $275,000 to cover their medical expenses throughout retirement. That number isn't falling, either. Fidelity reported that the 2017 figure is up from the $260,000 that the average 65-year-old couple needed in 2016.

Most seniors will qualify for Medicare, the federal health care insurance program, when they turn 65. Medicare isn't free, but it does cost far less than what you'd pay for private insurance. Medicare covers a lot, but it doesn't cover every medical service you might need.

Do you need to purchase supplemental health insurance to boost the coverage you're already getting with Medicare? That's not an easy question to answer. It all depends on your health and how often you plan on visiting a doctor after you retire. For many retirees, Medicare may be adequate. (See also: 5 Common Medicare Myths, Debunked)

2. Homeowners or renters insurance

Will you still own a home after you retire? If so, you still need your homeowners insurance policy. This policy will pay out to help you rebuild if your home is damaged by a fire or other natural disaster. It will also help you pay for any items inside your home — such as electronics, clothing, furniture, and jewelry — that get stolen or damaged in a disaster.

Renters insurance works the same way, but it protects people who are renting an apartment. If you plan on ditching your home and renting after you retire, make sure to invest in a renters insurance policy. Think about how much money you'd need to replace your valuables if they were stolen or destroyed. (See also: 5 Reasons You Definitely Need Renters Insurance)

3. Auto insurance

If you plan to keep driving after retirement, you'll need to pay for auto insurance. It's illegal in most U.S. states to drive without car insurance.

Maybe you're planning to sell your car and move into an urban neighborhood after you retire. Instead of doing your own driving, you plan to walk, take public transportation, or Uber to grocery stores, movie theaters, and restaurants. In this case, getting rid of your car insurance might make sense. But even if you're hanging onto your car only for emergencies or long trips, you'll need to keep your auto insurance policy.

4. Life insurance

Life insurance is usually one type of policy you can drop after retirement. After all, life insurance is a way to protect your loved ones who are dependent on your income. Once you get to retirement age, these dependents — usually your children — should be self-sufficient. They won't need a payout after you die to pay their bills.

But what if your spouse or children still aren't financially self-sufficient by the time you retire? If that's the case, you should hang onto your life insurance policy. Maybe you have a child with special needs. That child might still rely on financial assistance from you. What if you were gone and you didn't have a life insurance policy? Would that child still get the financial assistance necessary?

In most cases, retirees no longer need life insurance policies. But for special cases, keeping the policy is the smart move. (See also: When Dropping Your Life Insurance Is the Right Decision)

5. Umbrella insurance

What if someone was visiting your home and seriously injured themselves? Would your homeowners insurance policy provide enough protection? Maybe. But umbrella insurance can provide retirees with the peace of mind that they'll be protected even if their homeowners insurance doesn't offer enough coverage.

Umbrella insurance provides extra liability coverage above the limits of your homeowners and auto insurance policies. Basically, it pays out in cases where your homeowners and auto policies don't pay enough to cover all of the damages for which you are responsible.

Say you get into an auto accident that ends up with a liability claim of $1 million. If your auto insurance only covers a maximum of $500,000 for liability, your umbrella policy would cover the remaining $500,000. (See also: Beware: Your Insurance May Not Cover These 8 Losses)

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Make Sense of the Different Parts of Medicare

Damian Davila — Tue, 20 Feb 2018 09:30:09 +0000

If you're nearing retirement age, you probably know the gist of what Medicare does. The federal social program provides health insurance coverage to those age 65 or older, as well as younger people with certain disabilities. But do you know the specifics of each part of Medicare?

According to the 2017 EBRI Retirement Confidence Survey, only 8 percent of retirees are very confident about the future of Medicare benefits. This may be due to a lack of information about the various parts of the program and what each one of them offers. (See also: 5 Common Medicare Myths, Debunked)

Let's break down each of the Medicare parts.

Medicare Part A (hospital insurance)

Part A covers inpatient hospital stays, care in a skilled nursing facility (following a hospital stay), hospice care, and some home health care. It covers hospital services, including semiprivate rooms, meals, general nursing, drugs as part of your inpatient treatment, and other hospital services and supplies.

Once you reach age 65, you usually don't pay a monthly premium for Part A coverage as long as you or your spouse paid Medicare taxes for at least 10 years. This is known as "premium-free Part A." Those under age 65 may also qualify for premium-free Part A if they have a disability or end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS).

For workers who paid fewer than 30 quarters of Medicare taxes, the standard Part A premium for 2018 is $422 per month. For those who paid 30 to 39 quarters of Medicare taxes, the standard Part A premium is $232 per month.

It's important to understand that Part A coverage is the bare minimum in terms of health coverage and that you should plan to supplement this coverage with the additional parts of Medicare. Generally, you're only responsible for one deductible (about $1,340) for each benefit period and no coinsurance for hospital stays under 60 days per benefit period.

Medicare Part B (medical insurance)

This is medical insurance that covers doctors' appointments and many other medical services and supplies not covered by Part A. In most cases, you'll automatically get Part A and Part B starting the first day of the month you turn 65. You'll get your red, white, and blue Medicare card in the mail three months before your 65th birthday (or your 25th month of getting disability benefits).

Part B helps pay for necessary services and supplies to treat your medical condition, as well as preventive services to detect or prevent illness at an early stage. Most preventive services have no cost as long as you get them from a health care provider accepting the amount that Medicare approves for payment. Part B includes payments for clinical research, ambulance services, durable medical equipment, and a second opinion before surgery.

For 2018, the standard premium for Part B is $134 (and may be higher depending on your income). If you collect Social Security benefits, your premium may be slightly reduced.

Since Medicare Part B requires a monthly premium even if you don't use it, you should consider delaying Part B if you're still receiving coverage through an employer group health insurance plan. Talk with your health plan administrator to learn more about how to delay Part B (and even Part A) without paying a penalty when enrolling later.

Medicare coverage depends on federal and state laws. Use this Medicare Coverage tool to find if Medicare Part A and Part B will cover your test, item, or service. Note that there are certain things that Part A and Part B (also known together as "Original Medicare") will not cover. For example, Original Medicare doesn't cover hearing aids and exams, eye exams, and most dental care. Part C and Part D can help you cover those gaps.

Medicare Part C (Medicare Advantage plans)

Americans enrolled in Medicare Part A and Part B are also eligible to sign up for health coverage plans, known as Medicare Advantage plans, with private health carriers approved by Medicare. The primary benefit of Part C is that you get a wider choice of medical providers and a more comprehensive prescription drug coverage. When you sign up for a Medicare Advantage plan, you must continue paying your Part B premium.

There are different types of Medicare Advantage plans:

Health Maintenance Organization (HMO) plans: You generally must get your care and services from providers within the plan's network. Some HMO plans may allow you to get a referral from your primary care doctor for an out-of-network provider.
Preferred Provider Organization (PPO) plans: You pay less as long as you use the doctors, hospitals, and health care providers within the plan's network and pay more when using those outside the network. Unlike an HMO, you're not required to choose a primary care doctor and you don't need a referral to see a specialist.
Private Fee-for-Service (PFFS) plans: The main difference between a PFFS and other plans is that the insurance company, not Medicare, determines how much the provider receives and the beneficiary pays for a covered health service. PFFS plans offer flexibility but often at a higher cost.
Special Needs Plans (SNPs) plans: An SNP is only available to individuals with specific diseases or characteristics, including cancer, dementia, diabetes mellitus, or end-stage liver diseases. Benefits are tailored to the specific needs of that condition.
HMO Point of Service (HMOPOS) plans: An HMOPOS plan allows you to get some services out-of-network for a higher cost.
Medical Savings Account (MSA) plans: Plans that combine a high deductible health plan with a bank account into which Medicare makes deposits to pay for health care services throughout the year.

To enroll in a Medicare Advantage plan:

Use the Medicare Plan Finder to search for plans in your ZIP code (for personalized search, use your Medicare number).
Enroll in your selected plan by mailing an enrollment form, calling the plan administrator, or calling 1-800-MEDICARE (1-800-633-4227).

When joining a Part C plan, you'll need your Medicare number and start date of Part A and/or Part B coverage.

Medicare Part D (prescription drug coverage)

To help Americans with the rising cost of prescription drugs, the Social Security Administration established Medicare Part D in 2003. Like Medicare Part C, Part D is provided by private health insurance companies approved by Medicare. To enroll in Part D, you must have signed up for Part A and/or Part B. Deductibles and covered medications vary per plan. You are first eligible to sign up for Part D coverage during your Initial Enrollment Period (IEP), which typically takes place during the same seven-month window as your IEP for Original Medicare (Parts A and B).

Medicare Part D is also available to those with Part C, though some Medicare Advantage plans may already provide prescription drug coverage. Medicare Advantage plans with drug coverage are sometimes referred to as "MA-PDs." HMO and PPO plans often include some prescription drug coverage, while PFFS and MSA plans often require additional drug coverage through Medicare Part D.

Make sure to check your eligibility for your drug coverage from other organizations, such as Department of Veterans Affairs, workplace union, or TRICARE before signing up for a Part C or Part D plan. You use the same process to enroll in a Part D plan as you would for Part C.

The bottom line: Keep informed

You have unique medical needs. That is why Medicare offers a wide range of options for medical coverage. As you get closer to retirement age, keep on top of the latest developments of Medicare and its different parts so you can minimize your medical expenses. To learn more, use this directory to find Medicare contacts using your state and organization or topic of interest.

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Cut the Cost of a Hospital Stay

Aja McClanahan — Mon, 05 Feb 2018 09:30:08 +0000

Let's face it: No one wants to get sick or be in pain in a strange place. For this reason, going to the hospital can be an unpleasant experience. To add insult to injury, you can be faced with a huge bill once the whole ordeal is over.

Though going to the hospital may not be something you can avoid, you might be able to lessen the blow by cutting the cost of your stay. Here are some tips that could lower your final bill from the hospital. (See also: How to Handle a Massive Medical Bill)

Consult with your doctors

Before going to the hospital, ask your physician to explain, in detail, the services that will be rendered during your stay. Maria Townsend, an insurance adviser, says you should take it a step further and get this information in writing. "Get an itemized summary of treatment that will be provided during the hospital stay and send it to your insurance carrier for preapproval," she says.

You can also inform yourself ahead of time by researching the costs involved in certain medical procedures and treatments. Fair Health Consumer can help you get an estimate based on your location and whether or not you'll be going through insurance. By doing this research beforehand, when your bill comes, you can compare your initial estimate from your doctor and identify mistakes or charges that should not be on your bill.

Talk with your insurance

Once you are aware of the services your doctor is proposing and estimating, make sure every aspect of your care is covered and approved by your insurance. This alone can cut down on the prospect of a huge bill for your hospital stay.

For example, you need to know whether the physician (or anyone else) rendering services is in your insurance network. Alicia McElhaney, founder of She Spends, a money management website says, "Basically, what happens is that a hospital may be covered by your insurance, but a doctor working there may not be. As a result, you may receive bills for services from the doctor after receiving care."

If you find out that some service providers or facilities aren't covered under your insurance, ask for a list of providers and facilities that are. It might be a hassle to change doctors, but it could be a worthwhile activity that can save you a lot of money.

Shop around

If you've contacted your insurance and received a list of in-network providers and facilities, you may still want to compare prices for two or more options in your network. This can help you reduce your total out-of-pocket expense.

Another way to save money is by having lab work and X-rays done at clinics or imaging centers outside of the hospital. These services are almost always more expensive when performed in a hospital. If you are shopping these services around, clear this with your doctor first. You want to make sure that you are getting the exact diagnostic and imaging information they need to treat you effectively.

Be thrifty

There are a few money-saving methods that most people don't think about when staying in the hospital. You don't have to use every product or service that is provided to you.

For example, you can ask if the hospital will allow you to bring your own prescription or even nonprescription drugs. In some cases, you may save on both the cost of some drugs and the fee charged to administer them.

You might also be able to save on other things like meals or paper products you'll be given during your stay. The cost of even basic items like plastic baggies and tissues are inflated when passed on to patients.

Log your stay

While you are in the hospital, you should document every part of your stay. If you're not able to, ask a friend or relative to help you. Things you want to keep track of include how long you were in different places in the hospital and with whom: operating room, recovery, anesthesiologist, surgeon, etc.

You'll also want to document procedures and medications that were given to you. This way, if there are any errors on your bill, you'll have a log to help clear up errors. (See also: 6 Ways to Avoid Surprise Medical Bills)

Check your bill

Once the bill arrives, go through it with a fine-tooth comb, as medical bills sometimes contain errors. You'll want to check your bill against both your insurer's explanation of benefits and the log you kept for yourself during your hospital stay.

If things don't add up or you don't understand a charge on a bill, don't be shy about calling your insurer and the hospital. You can request an explanation or even a further break down of vague line items or anything categorized as miscellaneous.

For claims your insurance denies, follow up with the company to find out why. They should give you information on the next steps for getting your hospital stay covered. Depending on their response, you may have some recourse by following up with your doctor or appealing the decision with your insurer.

Negotiate with the hospital

It might be scary to get a hospital bill that seems larger than life, but it's not set in stone. Once the bill arrives, you can try to negotiate with the hospital a few different ways.

To begin, you can offer to pay your entire bill with cash. The hospital may also extend a discount if you pay at the time you receive the service. The hospital likely prefers cash to drawing out payments over an extended period of time or sending your account to collections for nonpayment.

The next thing you can do is ask for a payment plan. This may not technically reduce the amount of the bill, but it can reduce the blow to your pocketbook if you can't pay the entire bill at once. Plus, it doesn't hurt to ask for a discount anyway. Many times, the hospital is just happy to collect and is willing to make payment that much easier for you.

Another alternative is asking for financial assistance or charity care that could reduce your bill. There may be an application process to be eligible, but it's worth a shot if it means you don't have to pay the entire amount billed to you. (See also: 7 Ways to Negotiate Medical Bills)

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This article is from Aja McClanahan of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Get Health Insurance If You Missed the Open Enrollment Deadline

Kat Tretina — Wed, 03 Jan 2018 09:30:14 +0000

This year, the Open Enrollment period to sign up for a policy through the Health Insurance Marketplace was much shorter than in the past. The deadline for enrollment on the Federal exchange was December 15. (Many state run exchanges were open longer.) Previously, you had well into January to choose a plan. It's likely that many people were unaware of the change and missed their chance to enroll in an insurance policy.

Instead of taking the risk of going without insurance, there are a few alternatives to get some form of coverage after the Open Enrollment deadline.

1. Find out if you qualify for Special Enrollment

If you've experienced a major life event, you may be able to enroll in a plan outside of the Open Enrollment period. You can qualify for Special Enrollment in these situations:

You got married.
You had a baby or adopted a child.
You divorced or separated from your spouse and lost your insurance coverage.
You moved to a new home with a different ZIP code than your old residence.
You lost your job, either by resigning or being let go, and lost your insurance policy.

These life events must occur within the past 60 days for you to be eligible for Special Enrollment. If you do qualify, you can complete a questionnaire and choose a plan through a designated Special Enrollment section of healthcare.gov.

2. See if your parents' insurance will cover you

If you are under the age of 26, your parents may be able to add you to their own insurance policies. If their insurance is through an employer, they can add you during the plan's enrollment period. To do so, they just have to contact their insurance company. However, keep in mind that adding you to their plan will cause your parents' insurance premiums to increase, sometimes by hundreds of dollars a month. Make sure you and your parents are comfortable with the cost and discuss who is responsible for the additional fees.

3. Take on a part-time job

Another way to get health insurance — and boost your income — is to take on a part-time job. Some companies, including big names like Starbucks, Whole Foods, and Lowe's, offer comprehensive insurance benefits to part-time employees.

Some of them require you to work for a certain amount of time before you're eligible for benefits, but others allow you to enroll in an insurance policy on your first day. As an added bonus, your earnings from your part-time job can cover your share of health care costs and help bulk up your savings. (See also: 9 Big Companies That Offer Benefits for Part-Time Workers)

4. Research state or federal programs

All states offer Medicaid programs that provide coverage for millions, but the rules can vary from state to state. In general, Medicaid is designed for individuals who have a low-income, or are disabled, elderly, or pregnant. Children can also qualify for Medicaid coverage.

If you have children and they are not eligible for Medicaid, you may be able to get them insurance through the Children's Health Insurance Program (CHIP). Getting them coverage through CHIP, even if you go without insurance, can help you save money on their medical costs.

5. Get a short-term insurance plan

If you don't qualify for other forms of health insurance, one thing to consider is enrolling in a short-term plan. Short-term plans are offered by private insurance companies and provide coverage in emergency situations or catastrophic events. While not as ideal as having a regular health insurance policy, a short-term plan can be an important safeguard in a pinch. (See also: The One Time Short-Term Health Insurance Makes Sense)

If you don't know where to start, you can find short-term and catastrophic insurance plans by contacting an insurance broker. You can find brokers near you through the National Association of Health Underwriters database.

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This article is from Kat Tretina of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Sign Up for Health Care in 2018

Christa Avampato — Mon, 30 Oct 2017 08:00:07 +0000

If you need to buy a health insurance plan through the Affordable Care Act (also commonly referred to as the exchange, the ACA, or Obamacare), there are a number of important facts that you must know for 2018 open enrollment. As someone who has purchased health insurance through the ACA several times, I know how important it is to have this information. Here are the details you need for open enrollment this year. (See also: The One Question You Need to Answer to Choose the Best Health Care Plan)

What is open enrollment?

Open enrollment is a time period at the end of the year when anyone can buy a new health insurance policy for the following year if they don't have health insurance through another source (such as an employer).

Is open enrollment the only time to get health insurance through the ACA?

To be eligible to enroll in a health insurance plan through the ACA outside of the open enrollment period, you must have what's known as a qualifying life event. Healthcare.gov's screener tool provides a questionnaire that tells you whether or not your life event qualifies you for a special enrollment. If it does, you will be directed to the appropriate website where you can purchase a new health insurance policy.

How do I get started in open enrollment?

Depending upon the state in which you claim your residency, you will either have a state-specific exchange or you will be a part of the federal exchange program. Healthcare.gov directs you to the appropriate Marketplace for you when you enter your ZIP code at the start of the process.

When is open enrollment this year?

Open enrollment begins on November 1 and ends on December 15. It's important to note that open enrollment is a full six weeks shorter than it has been in years past, so you have much less time to enroll than you would have had in previous years. Some states that run their own state exchanges have extended their open enrollment period beyond the federally set end date of December 15. For example, my home state of New York has decided to make January 31 the end date for its open enrollment.

How does open enrollemt benefit consumers?

It may seem trivial, but open enrollment does offer people several benefits.

Locks in rates and benefits

Having an open enrollment period locks in the monthly cost (premium) that you pay to have health insurance for an entire year. Locking in your premium means that insurance companies cannot change it during that year. Because the benefits of your plan are also locked in for the year, insurance companies can't deny you any of the coverage you purchased during open enrollment.

Covers pre-existing conditions

Thanks to the ACA, you cannot be denied health insurance because of a pre-existing health condition. Before the ACA, it was legal for a health insurance company to deny coverage based on pre-existing conditions.

Provides minimum essential coverage

All plans available through the ACA must provide what's known as minimum essential coverage. This includes:

Ambulatory patient services. This is any service that takes place outside of a hospital and includes visits to a doctor's office, health clinic, or urgent care center.
Chronic condition treatment. Chronic conditions are illnesses that must be consistently treated to prevent or slow their progression. They may or may not ever be fully cured. These include asthma, high blood pressure, high cholesterol, and diabetes.
Emergency room services.
Hospitalization.
Laboratory services. These services include tests that help doctors diagnose your illness or condition. Blood work and screenings are examples of lab services.
Maternity and newborn care.
Mental health services and addiction treatment. This includes both inpatient and outpatient services. Inpatient services are those that require you to check in to a facility for multiple days of treatment. Outpatient services are those that occur in an office visit to a therapist.
Pediatric services. This includes checkups, vaccinations, and immunizations, as well as dental and vision care.
Prescription drugs.
Preventive and wellness services. This includes physicals, immunizations, and screenings. For women, this also includes well visits to a gynecologist. Many times, these services are included in the insurance plan with no extra fee other than a copay if you go to a service provider who is in-network. In-network means that a service provider is preapproved by the insurance company. These in-network lists are available to you directly from the insurance company.
Rehabilitative services and devices. This includes inpatient and outpatient services that help you to recover from an illness or injury.

What if I can't afford the monthly premium for a plan on the ACA?

As of right now, the ACA offers subsidies to people who have incomes that are below certain thresholds. These subsidies are directly applied to your premium so your monthly bill is less than it would be without the subsidy. When you are on the ACA website, it will ask you if you'd like to see if you qualify for a subsidy. If you select yes, it will walk you through a short series of questions about your income to see if you qualify. If you do qualify, it will tell you how much of a subsidy you can receive, and you will be able to apply for it directly on the site. The subsidy will then be reflected on each of your monthly premium bills.

How can I find out if I qualify for Medicaid?

Some states have chosen to expand their Medicaid programs to cover more of their residents. To find out if you qualify for Medicaid, choose your state and household size on Healthare.gov and the site will tell you if you qualify.

I'm still confused about what I need to do to get health insurance through the ACA. What should I do?

Healthcare.gov has worked hard to train its customer service agents to provide phone support for people who need additional help. A page on their website details what you should know before you call as well as the contact numbers for you to use. I have personally used New York's customer service line, and I received helpful, timely, and excellent service.

If you need to buy insurance through the ACA, I highly recommend selecting your plan as early as possible in the open enrollment period. Having health insurance is one of the most responsible personal finance actions you can take to care for yourself and your family. If you need or want to purchase your own health insurance for 2018, please make sure to go to Healthcare.gov between November 1 and December 15.

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This article is from Christa Avampato of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: