Being frugal and saving money on everything run through my blood. I have patience, sometimes waiting years in order to score a great deal on an item I want, and I am willing to compromise on quality in some cases.

However, like many of you, health care is not an area I am willing to be patient in, or to compromise on quality. I always carry a health insurance policy, whether working and having access to a group plan during open enrollment, or in between jobs and purchasing an individual health care plan. If I need medication, I no sooner leave the doctor’s office than go straight to a drugstore and fill it. Does this mean that I must compromise on cost savings? Certainly not.

How to Save on Health Care

Here are six ways that both group-insured and self-insured people can save money on health care and medical costs:

1. Go Hybrid. If you are purchasing your own health care plan, then raising the deductible you will have to pay to use the service will decrease your monthly premium costs. To make up for this high deductible you could potentially pay out, make sure you keep a savings account to essentially insure yourself the amount of a deductible should a medical issue arise.
2. Use Prescription Drug Coupons. Go to websites like Internet Drug Coupons and see if there is a coupon for co-pays for your prescription medications.
3. Make Use of MinuteClinic. Take advantage of the MinuteClinic at CVS and various drugstores/pharmacies for minor issues that on-staff nurse practitioners can diagnose such as the flu, strep throat, bladder infections, sinus problems, and wellness checkups. For example, currently Houston area CVS MinuteClinics are offering over $150 in Health Services for free on particular dates (includes screenings for blood pressure, diabetes, bone density, cholesterol, and even dental and chiropractic services are available at certain locations). Also available are doctor consultations, medication reviews, and certain referrals that you normally may have to go to a general practitioner appointment to get.  
4. Transfer Prescriptions. Transferring prescriptions is very simple, and each time you do it, you can get a gift card for $10-$35 at many stores (CVS, Randall’s/Safeway, Walgreens, Target, etc.). Keep a look out on the internet or in Sunday newspaper circulars for coupons to transfer your prescriptions (or to fill a new prescription) and clip them to keep on hand in case you unexpectedly become ill and need medication. Just take your current prescription bottle, your insurance card, and the coupon to the pharmacy department at the store and they will do all the work for you!
5. Generics. Always ask your doctor to prescribe generics, and also call them to see if there is a generic available for the prescriptions you are currently taking.
6. Use Your Phone. One of the best ways to save in copays on office visits is to not go into a doctor’s office. If you feel comfortable doing so, ask the doctor if you can do your follow-up over the phone. If you have chronic conditions that require the same medications, ask for the doctor to call-in refills over the phone.

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Posted November 3, 2009 in Savings by Amanda | 2 Comments

I opened the mailbox on Friday and found a thick envelope from my employer: the 2010 Guide to Open Enrollment. During the next two weeks, employees of my company can renew our benefits selections or choose new ones for 2010.

If you find yourself in the same situation, it’s important that you take advantage of it. Barring a major life event like a marriage, birth, or death, this will be the only chance you have to elect 2010 benefits for your family.

Depending on your employer and benefit providers, your 2009 benefits may carry over if you skip open enrollment, but also could expire and leave you without benefits in 2010. Remember that different options are appropriate for different situations – that’s why you have choices!

Benefit Options

Your company may provide you with any or all of the following options: medical insurance, flexible spending accounts for dependent care, health care, or commuter spending, a health savings account, long- or short-term disability insurance, life insurance, dental or vision insurance, and more.

You also may have the option of a “cafeteria plan” where your employer gives you a certain amount of money to use to pick from various benefit options. If you haven’t used them in the past, watch for these options in 2010:

• High Deductible Health Plans provide cheaper premiums in exchange for a higher deductible – you are responsible for a certain dollar amount of medical costs before insurance kicks in. The deductible may not apply for certain expenses — annual physicals or other “wellness” visits and routine screenings are often covered at 100%
• Health Savings Accounts (HSAs) allow you to save tax-free (up to certain limits) for qualified health care expenses. HSAs are only allowed for employees with high deductible health plans. They allow you to save for your portion of medical payments. As an added incentive, your employer may contribute part or all of your deductible to an HSA for you. Contributions roll over from year to year, and can be accessed for medical expenses at any time or after 59 ½ for any reason. Other withdrawals before 59 ½ will result in taxation plus a penalty.
• Flexible Spending Accounts (FSAs) allow you to save tax-free (up to certain limits) for dependent care expenses (such as child or elderly care), commuter spending (parking or public transportation), and medical expenses under any type of medical plan besides a high deductible plan. Funds in these accounts expire at the end of each year or a few months after, so be sure to only contribute the amount you will actually use! That said, these accounts are a great way to save on taxes.
• Disability Insurance replaces a certain percentage of your income if a disability prevents you from working. Disability is more likely than untimely death, but more people carry life insurance than disability insurance. If your employer offers short or long term policies and your family is dependent on your income, consider electing this benefit in 2010.

5 Steps to Picking Benefits

The five steps below will guide you through the open enrollment process and help you choose cost-effective benefits for you and your family.

1. Consider your benefit needs: Your biggest benefit election will focus around medical insurance. What are the major medical needs of your family in 2010? Are you anticipating any major surgeries, a pregnancy, or new prescriptions? Has your family grown, or has a child graduated from college and dropped off of your insurance? For benefits besides medical insurance, consider how your family needs differ from last year – a new child/stay-at-home parent might mean a greater need for disability or life insurance. A medical condition might necessitate greater savings in an HSA or FSA.  A teenage child in need of braces might steer you toward dental insurance even if you have not had it in the past.
2. Review current benefit selections: What benefits did you elect for 2009, and how have they worked for you? Are you going to end up losing money in an FSA, or struggling to spend it? Did you wish you had set aside more for commuter or dependent care expenses? Did your dental premiums exceed what dental care would have cost you?
3. Understand your options: If your employer sent an enrollment guide, read it cover to cover and then read it again. Understand every option completely – if you have questions, contact HR or the benefit provider. Pay special attention to benefits that would be a change for you, specifically those outlined above – just because you haven’t used them in the past doesn’t mean they don’t make sense for you. If you and a spouse both have benefit options, understand all of the choices through both employers – some might differ in coverage, cost, or both.
4. Break out the calculator: First, figure out what medical plan makes sense for you – calculate your estimated medical costs under multiple plans, including premiums, co-payments, prescription costs, and payments to meet your deductible. A higher premium might make sense if it staves off out-of-pocket expenses later. If your out-of-pocket expenses are generally low, a high-deductible plan probably makes sense. Next, decide how much to contribute to your HSA and/or any FSAs. Remember to figure in any tax breaks when calculating how those may affect you. If you are also considering benefits from your spouse’s employer, run through the same scenario. Where possible, pick and choose the benefits from each employer that provide the best coverage for the lowest cost. Next, add up the cost of all of your benefit elections and HSA/FSA contributions, and make sure you can still afford other expenses. If you have to, go back and reevaluate lower-cost options.  
5. Take action: Use your employer’s process to select your benefits for 2010. If any circumstances change during the open-enrollment period, you can usually make changes before open enrollment ends.

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Posted November 2, 2009 in Insurance by Jill | 4 Comments

Prosper is back just in time for today’s Free Money Friday offer. Prosper is giving a $50 sign up bonus!

And it could quite possibly be the fastest $50 we’ve ever earned. I signed up my husband (because I already had an account) and it took a total of 4 minutes to get the $50!

How to Get Your $50 Sign Up Bonus

1. Create a new lender account at Prosper.
2. Get your $50 immediately deposited into your account.
3. Make two $25 bids on Prosper loans by December 31, 2009.

Prosper Bonus Terms and Conditions

• Limited time offer.
• The $50 sign up bonus may not be immediately withdrawn.
• The bonus will expire on December 31, 2009 if it is not invested by bidding on loan listings.

More About Prosper

Funding the Account. We did not have to fund the account with any additional money. You can use the $50 they deposit to immediately invest in the two loans.

Peer to Peer Lending. Prosper is a peer to peer lender focused on connecting borrowers and lenders by eliminating the bank in between.

Referrals. Once you are a prosper member, you can refer your friends and family. You get $100 if your friend gets a prosper loan.

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Posted October 30, 2009 in Quick Money by Madison | 1 Comment

To satisfy one of my crazy tax desires, I’ve decided to become an enrolled agent. Not exactly your typical free time hobby, but something I find intriguing. I’ve completed taxes for years and volunteered for VITA, so it’s really the next logical step.

As an enrolled agent, you can practice and represent taxpayers before the IRS. Sounds exciting, doesn’t it?

So I’ve been spending my time studying everything anyone ever wanted to know about taxes. I’m sure I’ll be sharing some of the topics with you in the future, as it’s reminding me of lots of great tax strategies.

Ok, back to studying…. in the meantime, you can check out the new e-book 52 Ways to Make Extra Money at PT Money. My tips are on page 24 (use Ebates) and page 32 (use Swagbucks).

Investing

• The Dow at 10,000 – Where Do We Go From Here?
• Proposed TFSA Changes
• Outsourcing Your Investing Decisions

Housing

• Eight Steps to Buying a House at a Good Value
• Now We Really Sold Our House
• Which Comes First: The House or the Nest Egg?

By the Numbers

• Simple Money Management Tips
• 10 Reasons Your Car Insurance Costs Are Through The Roof
• 3 Easy Steps To Dump Your Resentments – And The Money You’ll Save When You Do
• 10 Free Online Budgeting Applications

And More!

• The Smartest Choice We Can Make
• how to make yourself an expert
• Best Debt Consolidation Loans For Those With Good Credit
• Carnival of Personal Finance

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Posted October 29, 2009 in Roundups by Madison | 6 Comments

Interest is, well, quite interesting. Instead of your money accumulating in your mattress or shoe box, it can now accumulate plus earn its own money. Money earning money—what a concept.

And there are multiple ways to achieve this: you can open a savings account or purchase certificates of deposits in order to earn interest, or invest in the stock market in order to earn dividends. When the interest paid to you begins to earn its own money, called compound interest, or your stocks earn you dividends purely because you own them, it becomes even more riveting.

It is commonly known that the riskier the vehicles for earning money that you choose, the more potential you have for both reward and loss. But what if you could go with the riskiest option without shouldering any of the risk, and with reaping all of the potential rewards?

Investing in the stock market—whether for short term gains or long term income replacement (IRAs)—offers the greatest amount of potential return, but then it also makes some people’s stomachs turn. Therefore, investing someone else’s money sounds like the solution for the weak-kneed investor because it will eliminate your personal risk all together.

Where to Find Money

So where can you find other people’s money? Most households in America have extra money that trickles in during the year from sources other than their paychecks. Perhaps you receive:

• A Christmas bonus
• Credit card or bank card offers
• Reward points for purchases that can be cashed in
• Monetary gifts from relatives for various occasions
• Online surveys that earn you money
• Bonuses from signing up for bank offers
• A good tax return in April that you weren’t banking on

This money is unaccounted for in your household, so it is generally a pleasant surprise. Why not make this money work for you?

How to Get Started

Open up a savings account where you can deposit all the extra cash that comes into your household throughout the year. Then choose a time frame for investing this money. Perhaps enough extra money will accumulate for you to invest it quarterly, or maybe you will have to wait until the end of the year. Remember, you can start investing at $4.00 on sites such as Sharebuilder where you can split stocks into half shares in order to afford them.  

Budget your bills with the salary that you know you can count on.  This way, you are not risking what you know you are working for, and will always have money to put food on the table. If at the end of this you lose everything (which is not likely if you choose investments with lower risks), you are not any worse for it. You have essentially taken away your investment risk. Any extra money you earn from your investments will be icing on the cake, and you can thank your boss, Uncle Sam, your relatives, or anyone else who has unknowingly contributed to your interest earnings.

This approach may not make you wealthy, or allow you to retire at your desired retirement age, but it will certainly get you in the investing game without feeling vulnerable to risk.

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Posted October 28, 2009 in Savings by Amanda | 2 Comments