Jun

22

Mid-Year FSA Update

Filed Under Health Costs | 5 Comments

As I’ve mentioned before, we opted to contribute the maximum $2500 to our FSA account this year because we initially expected to pay $2000-$4500 in coinsurance for my husband’s surgery. As it turned out, we paid $0 in coinsurance, which meant we have to scramble to spend down the $2500.

Half-Year FSA Check-In
We use our FSA frequently, so I frequently check the balance and process requests for additional information. On a side note, I don’t know why they say you can use the card to pay at the doctor’s office if we ALWAYS have to send backup information and receipts. That doesn’t make it any more streamlined!

If you don’t check your FSA regularly, mid-year is a good time to check and see how much you have left to spend. Then you can start scheduling doctor’s appointments now, rather than waiting until the last month to try to fit them all in.

Our Progress
By the end of this month, we’ll have managed to spend almost exactly half of the money. That’s about $500 in prescriptions, two emergency room co-pays, miscellaneous travel/parking expenses, some over-the-counter items, and physical therapy. My husband’s preferred physical therapy center is no longer in Anthem’s network, but we opted to pay the higher co-pay rather than find a new center because we knew we had the FSA to spend down. That’s about $150 a week. (It varies. Some visits are $50, some are $25.) I’m not sure how many visits he’ll have, but twenty sessions will get us pretty close to the cap.

Planning to Exceed the FSA Limit
Given the higher PT expense, we’ll probably actually spend more on medical costs than our FSA limit. I still need new contacts and new glasses, as does my husband. He takes a few prescriptions and we still pay co-pays for those. I also have to schedule a few doctor visits for myself, so that will push us over the edge.

At first I was annoyed that we might exceed the cap and have to spend our own money, but then I remembered that the FSA is our money. It’s simple to forget that it’s ours because we don’t pay the bill for it at the end of the money, but I also always remember that we have to spend it all by 12/31/2010 or forfeit it. So, I’d rather exceed the cap and have to go out-of-pocket than leave money on the table.

It seems impossible to spend $2500 on medical care in a year, and in a normal year it might be, but even in a normal year it wouldn’t be that hard to spend $1000. It’s amazing how quickly these things add up.

Mar

31

Update on Dual Health Coverage

Filed Under Health Costs | 3 Comments

Six months ago I wrote a post about calculating the benefits of dual coverage. At the time, my employer was switching health insurance plans so that my husband and I would both have Anthem through our employers, and he would have dual Anthem coverage with different benefit levels. Once we learned he was scheduled for surgery, I called to find out how the benefits would be coordinated under two Anthem plans. What Anthem told me was completely incorrect, but it worked in our favor. So here’s how it really works.

Coordination of Benefits Under Competing Insurers
Previously, my employer offered United and my husband’s employer offered Anthem. Under that plan, United paid for anything Anthem didn’t cover, except doctor and prescription co-pays. Under those plans, he paid the Anthem co-pay level, which was sometimes higher, sometimes lower. We ended up paying nothing for tests and treatments beyond the initial co-pay.

Coordination of Benefits Under the Same Insurer with Different Plans
When I called Anthem to find out how it would work, I was told that he’d need to pay the higher co-insurance and deductible on his Anthem plan before my Anthem would cover anything. This is completely incorrect. Instead, it works exactly as if they were competing insurers. We pay doctor and insurance co-pays, but nothing else. So far the hospital bill alone has come to $277,000 (cost before insurance). To date, we’ve paid $60 in doctor co-pays and $200 in prescription co-pays, which is coming out of our FSA.

Here’s how it works:

Hospital submits claim to Anthem A (husband’s plan). They pay 70% of the bill up to the out-of-pocket max, after which they pay 100%. His out-of-pocket maximum is $4000 and his deductible is $2000.

Anthem A pays the hospital 70% of the negotiated rate. So, if it was a $1000 negotiated rate, they would pay $700. Since it was $277,000, they paid $100,000 of the negotiated rate of $104,000. If we didn’t have secondary insurance, we would have been billed for $4000.

The hospital sends the entire claim to Anthem B (my plan). Anthem B pays 90% of the negotiated rate. If it was $1000, they would pay $900, except Anthem A already paid $700, so Anthem B would pay $300. Since the negotiated rate was $104,000 and the Anthem A paid $100,000, Anthem B paid the remaining $4,000. We get billed for nothing.

Now that the $4,000 out-of-pocket max and the $500 deductible on my husband’s plan have been exceeded, Anthem B won’t receive any more bills. Anthem A will pay it all.

So, if my husband’s employer didn’t generously provide him with free health insurance, and my employer didn’t generously provide both us with free health insurance, we would have either been responsible for $4500 (his plan) or $2500 (my plan.) We were actually responsible for $0.

The downside is that we relied on what Anthem told me when setting our FSA contribution for the year and now have to figure out how to spend $2000 by December 31. We’ll find a way, it just wasn’t something we planned on.

Coordination of Benefits Under Same Insurer, Same Plan
If you both work for the same company, then you have the same plan and are only covered once each. You can’t double up under the same plan. If you have a $4,000 out-of-pocket max, that’s what you have to pay.

Doing Your Own Insurance Calculations
So, if one or both of your employers offer free insurance for one or both of you (and dependents), there’s no reason not to take it. If they offer you a bonus for declining coverage (and the declining spouse and dependents have alternative coverage), figure out if the bonus would cover the deductible gap if you did have a major medical bill. For example, if you’re offered $300 a month to decline coverage for the your spouse and two dependents, and have a $4000 out-of-pocket max under the other plan, you’d almost break even in the event of one major medical event. You’d come out ahead if there are none.

However, if you have to pay a premium for coverage from one or both employers, the premium cost may exceed any benefits you’d receive through coordination of benefits. For example, if you have to pay $2500 a year for an extra $4000 in coverage, you’d be better off putting the $2500 in your emergency fund.

Mar

16

Budgeting for Disability Leave

Filed Under Health Costs, Marriage and Money, Money Management, Personal Finance | Leave a Comment

My husband has been on surgery disability for several weeks now and we’ve learned a few surprising things about the process, the first of which is that it’s really not that much of a financial strain. Of course, we earn more than we spend, so it might be more difficult for families that are on the edge.

Total Reduction in Income
My husband’s income, after taxes, is reduced by about 25%. State disability income isn’t taxable, but the 5% bonus we’re receiving through his employer’s private disability plan is. If you’re planning a disability, find out if your benefits are taxable and budget accordingly.

I’m still working, so the total reduction in monthly income is closer to 15%. It’s something, but not so much that we really feel a pinch. I will also be interested to see how this affects our Federal taxes. We planned our withholding around our full incomes. If my husband is out for three months rather than the initial six weeks we estimated, that’s a full quarter of his annual salary, which may bring us into a lower tax bracket. If that’s the case, our total reduced income will be closer to 12%.

Total Reduction in Spending
We figured we’d see some reductions in spending, but we were stunned by the size of the reduction. We’re spending anywhere from 33%-50% less on our credit cards each month. Not only is my husband not eating out at all, or driving, or getting dry-cleaning, but I’ve also been seen some of my expenses go down. I expected our grocery bill to go up a lot, but it’s only gone up $15 a week or so. In addition, we have an FSA this year, so we’re no longer paying for prescriptions or co-pays.

The weather has been relatively mild, which has helped from an energy perspective. We had to use the heat during the day for about a month, but it was only heating the house an additional 3-5 degrees, so it wasn’t a big jump.

Planning for the Reductions by Stockpiling Cash
Once we knew the surgery was coming, we immediately put all major purchases on hold. We had planned to buy furniture, have some work done on the house, and buy me a car. None of that happened. Instead we funneled all our excess income into savings. Combined with our emergency fund, we had more than enough to cover the lost income and the gap between applying for benefits and receiving them. We’d expected that to be four weeks, but it was only three.

Pre-Pay Bills Whenever Possible
Before my husband’s surgery, he scheduled most of our bills for payment through our online banking. That way I didn’t have to worry whether a bill was due while sitting in the hospital. We were very glad he did that when his computer died the day before he went into surgery. Yes, I could access online banking from other computers, but I couldn’t use Quicken or access our budget. Let me tell you, not having access to Quicken or our budget for three weeks was very upsetting for me.

Between the FSA, reduced spending, and reduced income, we’re only falling about $600 a month short of our usual budget. That means we’re saving a little less, but far more than we were expecting. Recovering from surgery is tough, but the financial aspect doesn’t have to be if you plan carefully.

Feb

25

All About Disability Insurance

Filed Under Emergency Preparedness, Health Costs, Insurance | Leave a Comment

I’ve mentioned a couple times that my husband is receiving disability insurance while recovering from surgery. However, I was startled to discover recently that California is one of only five states with a state-run disability program. If you don’t live in one of these states (California, Rhode Island, Hawaii, New York, New Jersey), you should pursue other options for getting this insurance.

How State Disability Programs Work
In states that offer disability programs, your employer deducts your contributions through payroll deductions. Some organizations and government agencies are exempt, but may have a similar internal program. If you’re self-employed, you may be able to buy benefits through the state program.

Once you have a disability, you apply for benefits through the disability program, which is usually operated by the unemployment department. The specifics vary by state, but in general, you’re paid 55% of your previous salary per week, based on your highest-earning quarter out of the last five quarters. There is a cap, however. In California it’s $987. Disability income is not taxable, so even though you receive about half your salary, you’re not losing as much income as it seems. In California, there is a 52-week cap on benefits.

If you’re unemployed when you become disabled, you may also qualify for benefits, which will be higher than your unemployment benefits. Unemployment payments are low to encourage workers to return to work quickly. Disabled workers obviously can’t do that. You can’t receive both benefits at the same time.

How Employer-Provided Disability Programs Work
If you don’t live in a state with a government disability program, your employer may offer it privately as an employment benefit. Many employers provide it as a free benefit, but some ask employees to contribute. If your employer asks you to contribute, do it. It’s much cheaper to buy coverage through a large group plan than through an independent plan.

Unlike state plans, which are the same for everyone in your state, you should check with human resources or your insurance provider for information about eligibility, waiting periods, and filing a claim. Most plans cover up to 60% of your salary. My husband’s employer provides a state supplemental for 60% of his income. If your employer pays for the coverage as a benefit, the income may be taxable. Ask your employer.

How Private Disability Insurance Works
If your state or employer doesn’t offer disability insurance, you can acquire it privately. You’ll most likely be required to undergo medical underwriting as part of the application process. You may also be subject to a longer waiting period before benefits become available.

If you’re a high-earner, you may want to supplement your existing state or employer disability plan with a private plan. Private plans will usually cover 70-80% of your income. It can cost $600-1800 a year, so review your plan carefully to make sure you have adequate coverage and that it includes an “own occupation” rider. Without that, benefits may stop if you can return to any work. You want to be covered until you can return to your current occupation.

How to Apply for Disability Coverage
In order to apply for disability, you and your doctor must complete the form that proves your disability. Contact your state, employer, or insurance company for the proper forms and follow the instructions carefully. Be sure to notify the insurer when you return to work in order to stop the payments. Failure to do so is insurance fraud.

Worker’s Comp vs. Disability Insurance
Disability insurance is for injuries or illnesses that occur outside the workplace. If you’re injured on the job, then you should file a worker’s comp claim. All employers are required to maintain proper worker’s comp coverage. You don’t have to opt-in or pay for the benefit. Benefits and the claims process will vary depending on your state, so contact HR for advice.

State/Employer Disability vs. SSDI
If you’re disabled for more than a year, then you will most likely qualify for a Federal program known was Social Security Disabled Insurance (SSDI). SSDI is part of your FICA contributions. The benefit amount is based on your lifetime average earnings. If you expect to be disabled for more than a year, contact Social Security or speak to your doctor’s office about filing a claim.

Sources of Disability Insurance
If you live in one of the five states that requires disability insurance through the state program, then you probably already have it. If you’re employed and don’t live in one of those states, ask your employer about it.

If you’re self-employed, contact your insurance agent for information about applying. It’s vital that a self-employer person by coverage because you’ll have absolutely no income if you become injured.

If your employer doesn’t offer insurance, you have a few options. If you’re a member of a union or trade group, contact them to see if they have a group program. My husband bought a small, cheap plan through his professional organization. It has a 3-month waiting period, so we won’t be tapping it for his current injury, but at $80 a year, it’s worth it in case of future emergencies. If you don’t belong to a trade group, contact your insurance agent for information and q

Feb

3

Tips for Filing FSA Claims

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I’ve only recently begun filing FSA (flexible spending account) claims, but I’ve learned a few things about the process.

Use Your FSA Debit Card
If you have an FSA card, swipe it first. My HR department recommends using it in the pharmacy, rather than at the checkout. If you need to buy over-the-counter items, wait until you need to pick up a prescription and ring up the whole thing at the pharmacy counter.

Save Itemized Receipts
If you’re buying over-the-counter items and don’t have a card, keep the itemized receipt for filing your claim. I’ve noticed that both CVS and Costco list the FSA-eligible total at the bottom of the receipt. If you use the card, save the receipt anyway in case they need verification. Basically, save the receipt until at least the end of the tax year.

Save Prescription Detail Receipts
In addition to the itemized register receipt, save the slip of paper stapled to your prescription bag that lists your name, the medication, the date, and the price. Some FSA programs require more details for prescription reimbursement than the cash register receipt will show.

Get Itemized Receipts from Doctors
The IRS doesn’t allow FSA programs to accept the credit card or cash receipt for doctor co-pays. You need to get a copy of the appointment sheet where the doctor marked off the visit codes or wait for your explanation of benefits to arrive, which will list what you have to pay.

Notify HR If You Have a Problem
I had two problems with my first claim: first, the claim form crashed before I could print it. Once I got it to work again, it refused to accept claims for $10. I could enter any other number except $10. I notified HR again, but no one could figure out why it was doing that. I tried with two different computers on two different days!

Arrange for Direct Deposit of Reimbursements
If you file claims, you probably have an option of being reimbursed by direct deposit rather than check. You’ll get your money faster and won’t have to worry about lost checks if you set that up.

Keep a Copy of Your Claim
Keep a copy of your claim form and documentation if you have to mail your claims. Don’t send your original receipts – only copies. My FSA prefers faxed documentation, so I filed the fax with my other documents until my reimbursement comes.

If you use them properly, FSAs can save you a lot of money. Just make sure you file all your claims properly to reduce the hassle!

Oct

27

5 Financial Steps to Prepare for the End of the Year

Filed Under Health Costs, Investing, Money Management, Personal Finance, Taxes | Leave a Comment

The end of the year is just over two months away, and at least three weeks of that will be gobbled up by various holidays. So, take the time now to assess what you need to do to maximize your money by the end of the year.

Spend Down Your FSA
If you have a flexible spending account, any unused funds will vanish January 1, 2010. Remember, this is your money that was magically whisked from your paycheck before you received it. To avoid losing it, you need to use it up. So check the current balance and then start scheduling doctor visits, refilling prescriptions, and stockpiling supplies. Review your plan to make sure which appointments/purchases qualify.

Reassess Next Year’s Contributions
Take a look at your budget and expenses. Did you need to scramble to use up the FSA funds? Then perhaps contribute less next year. On the other hand, does anyone in your family have a major medical expense coming up? Maybe you should increase it. Look at it this way, you’ll spend this money either way. If you put it in an FSA, it will reduce your tax base and actually save you money.

Take Stock of Your 401K
If you stopped contributing during the crash, take a good look at your accounts and see if it’s time to get back in. This is also a good time to rebalance your portfolio. The economy has drastically changed – it might be time to get out of some sectors or into others. If you hold a variety of mutual funds, see if one has grown faster than the others and is now out of balance.

Estimate Your Taxes
If you’ve received a raise, run a small business in your spare time, had a major life change, or a major life issue, take a look at your tax bill. You can go to IRS.gov to use the withholding calculator. It’s not perfect, but it will give you an idea of whether you’ve under- or overwithheld. If it’s the former, change your W-2 to withhold additional funds and avoid a penalty. If you’re latter, decide whether you want to that money back now, and change your W-2 to withhold less, or plan ahead for how you’ll use that refund when it comes.

Maximize Your Tax Deductions
If you’re going to owe more than you thought, look into maximizing your tax deductions. For example:

  • See if you have any real stock losers that you can write off against capital gains or $3000 of ordinary income.
  • Are you just shy of the 7.5% of AGI minimum to deduct health costs from your taxes? Go see the doctor. If you have something big coming up next year that will put you over the limit, delay all other health costs until next year, too.
  • Are you debating whether to buy a car now or in January? Buy before the end of the year for that one-time new car tax deduction.
  • Make a few charitable donations or clean out your house and donate the decent stuff to a charitable thrift store.
  • Take advantage of Cash for Appliances. Upgrade your HVAC or water heater to also take advantage of the related tax credit (make sure it qualifies for both, first.)

Oct

15

Three Items Women Should Spend Money On

Filed Under Frugal, Health Costs, Personal Care, Travel | 2 Comments

Today’s post is for the ladies. I hate clothes shopping. I don’t love spending money. There are many things on which I’m not willing to spend much money, but there are three items that I will absolutely not be skimp on: bras, annual exams, traveling alone at night.

Buy Well-Fitting Bras
I know, you can go to the drugstore and get a bra in a cardboard container for $15, but I don’t suggest it. I’m also not saying you need to spend $300 on the La Perla lace dream. However, you should make a point of visiting a store to be properly fitted at least once a year and plan on spending at least $50 on a good, basic, well-fitting bra. Trust me, it’s better for your body and your other clothes will fit better. Wearing an ill-fitting bra not only makes you look dumpy.

How to Get Fitted
You’ll have to comfortable having a woman measure you, but this is okay. I recommend visiting Nordstrom or a specialty bra store known for fitting women of all sizes. Nordstorm saleswomen go through extensive training before they start fitting bras. Victoria’s Secret says they fit bras, but they don’t carry all sizes, so they can’t truly fit you for the correct size.

Each brand will fit a little different, so you may have to go up or down one cup size for a proper fit. That’s fine. Don’t, however, buy the claim that you can wear a 36A if they’re out of 34Bs. The cup may be the same size, but the bra isn’t. Visit a store that has your size.

Get Annual Exams – Even If You Don’t Have Insurance
If you don’t have insurance, your annual pap smear can be expensive. Given the discomfort involved, you might see your lack of insurance as a boon and opt to skip the exam. Don’t. Most communities have low-cost women’s health clinics or you can visit Planned Parenthood (they provide all kinds of care involving reproductive health.)

You should get an annual exam even if you don’t need birth control, have been monogamous, or aren’t currently sexually active. A pap smear is still the only way to check for cervical cancer. Although most cervical cancers are caused by HPV, some aren’t, so you need to be checked even if you’ve never had HPV. You’ll also receive a breast exam while there, which is another key to maintaining good health.

Stay Safe When Traveling Alone at Night
When I’m in a big city, I don’t mind walking or taking mass transit, except at night. If I’m traveling alone at night, I opt for a cab. Yes, the subway is cheaper than a cab, but it’s not safe to ride alone late at night. You never know what might happen. You should be safe on the bus, but waiting at a deserted bus stop can be dangerous.

If you’re driving along the highway late at night, don’t stop at rest stops to use the restroom. Always wait for a restaurant or gas station with a 24-hour attendant. People have been murdered at rest stops during the night. Don’t take the chance. If you have to buy something in order to use the bathroom, do it. The cost of a cup of coffee or a candy bar is a small price to pay for safety.

I’ll admit that I’ve bought cheap bras and been tempted to ride the subway at night. Fortunately, I let my comfort and safety outweigh my desire to save money. Ladies, if there are three areas where you sacrifice frugality for your greater good, these are them.

Oct

7

Calculating the Benefits of Double Health Insurance

Filed Under Health Costs, Insurance | 2 Comments

I have generous health insurance through my employer, which covers me and my spouse (and dependents, were I to have any) without cost to us. My husband also has free coverage for himself through his employer. That’s served us well in the past when our employers bought insurance through different insurers. My insurance counted payments from his primary coverage toward his deductible under my plan. They also covered the portion we would have paid as a deductible under his plan. They then covered the 30% gap in coverage, so we paid almost nothing for his care. Unfortunately, that will all change in January when we will both be covered through the same insurance company, but under different employers. Depending on how your coverage works, double coverage could save you a small fortune, or it could cost you one.

Choosing a Primary Insurance Provider
If you and your spouse both have coverage, you can opt for double-coverage under your plans. Some employers require you to pay to cover a spouse and dependents, some don’t. However, there are some tricky aspects to choosing a primary insurance provider. Your employer’s insurance is your primary, and the same for your spouse’s insurance through his or her employer.

If you have children, you can add them to either or both plans. If you had them to both plans, the insurance for whichever spouse has the earlier birthday in the year will be primary. If you were born May 5 and your spouse was born May 6, your insurance would be primary. The year of birth or age of the spouse is irrelevant.

Paying Deductibles
Deductibles can be tricky. Some will use deductible payments under one plan as deductible payments under the other, and some won’t. Now that my husband and I will have insurance from the same insurer, we’ll have to pay two deductibles in order for him to receive coverage under both plans. That brings our total out-of-pocket from $500 to $750 if we use both plans for him.

The Co-Pay Gap
Typically, you’ll pay the basic co-pay when you visit a doctor and the insurance pays the rest. This is true even with double coverage (only one co-pay is required, not two.) However, most plans only cover a portion of non-basic care, tests, etc. For example, my plan covers 90% and I pay 10%. My husband’s covers 70% and he pays 30%. Under our old double coverage, my insurance picked up that other 30%, so we paid nothing. Under our new double coverage, my insurance will only pay the gap between mine and his, so they’ll pay 20%, leaving us to pay 10%. Frankly, my employer is getting cheated on that one.

When Does It Make Sense to Use Both Policies
Since we’ve already covered our deductibles for the year, those will carry over to the new plan until the end of 2009. My husband can continue to use both policies to cover 90% of our costs. Once we get into 2010, we’ll have to decide whether it’s worth it to submit claims under the secondary insurance. So let’s do the math:

Basic care: Same co-pay, same coverage. There’s no benefit to using both plans for basic care.
Prescriptions: Same co-pay, same coverage. No benefit.
Expensive tests: Here’s where it could get tricky. Let’s say he needs a test that costs $1000. If it’s his first test of the year, we’d owe $500 and his insurance would pay the rest (the 30% is included in the $500). If we also submitted my insurance, we’d actually pay $750 for it.
Surgery: What if he needed surgery, which could easily run into the thousands of dollars. We’ll say $12,000 to be conservative. If his deductible hadn’t been met, we’d pay $500 for that, plus $3100 for his contribution. If we then added my plan, we’d pay $750 for the two deductibles, but the secondary insurance would kick in an additional 20%, so our contribution would only be $1200. In this case, the double-coverage would save us $1650.

Alternative Care: Most policies will cover a portion of a certain number of chiropractic, acupuncture, physical therapy, or mental health visits in a year. With double coverage, he can get covered up to the combined limit for both policies, so rather than 24 visits, he qualifies for 48. However, first we’d have to figure out whether the additional deductible would be less than or equal to the amount covered by the secondary insurer.

If you can get free secondary coverage from your or your spouse’s employer, you should consider accepting during your next open enrollment period in case a major emergency arises, but be careful how you use it on a regular basis. Make sure that the coverage gap will cost more than the extra deductible before you submit that second claim.

May

12

Take Advantage of Vision Insurance

Filed Under Health Costs | 2 Comments

I’m extremely near-sighted and have sensitive eyes, so I’m fortunate that my employer provides vision insurance. If you don’t have it, it may not be worth it to buy it on your own, but you should take advantage of it if your employer offers it. Ask your HR department for details of your plan, but this is a review of what it typically includes.

Vision Insurance Benefits
Although the exact levels of coverage vary, most policies cover at least the following:

Optometrist Exam and Fitting
If you wear glasses or contacts, then you should visit the optometrist annually. Even if your vision is fairly stable, your prescription may change slightly from year to year. If you wear glasses, it may not be too noticeable, but it can be very noticeable with contacts. Most vision insurance plans cover the exam and follow-up visits for fitting, with a reasonable co-pay of $10-$25.

Glasses
You can buy the frames and lenses directly from your optometrist. Most plans offer at least a $100 reimbursement towards the cost of glasses or contacts. Some plans will cover select frames and lenses in full.

Contact Lenses
Most plans will reimburse up to $100 a year if you opt for contact lenses in lieu of glasses. Some plans will cover two sets of contact lenses (four boxes) in full if you buy brands that are included in the brand. If you need specialized lenses, they will typically reimburse a portion.

If you have both glasses and contacts, consider which is the better benefit. You may not need to replace the frames every year, in which case four boxes of contacts may be cheaper than new lenses for your glasses. Or maybe you need new glasses, and can spread your contacts purchase throughout the year to take less of a hit up front.

Individual Vision Insurance
If you have an individual health plan rather than insurance through your employer, you may not be offered vision insurance. Even if you are, it may not be worth it unless it’s less than $10 a month. If you have to pay more than $10 a month for the coverage and only have a $100 materials reimbursement and an exam co-pay, you’d save about $100 a year if you choose expensive contacts. If you choose cheap contacts, then you might save $40 a year. If you only receive a discount on services and lenses, then vision insurance isn’t worth the cost. You’d probably be better off buying a Costco membership and receiving vision services there.

If you have employer-provided health insurance that doesn’t include vision insurance, your best bet is to put aside money each month for your vision needs rather than attempting to buy a vision plan on its own.

Jan

26

Cheap and Reliable Birth Control Methods

Filed Under Health Costs, Saving Money | 2 Comments

This post is for the ladies. Men really only have one birth control method available to them: condoms. Women have many more options available, but as most women can tell you, birth control isn’t typically cheap. If you want to save a little money without risking parenthood (or another child), here are some cheap birth control options that are also reliable.

Generic Birth Control Pills
If you can tolerate a generic brand of birth control pills, then they may actually be a frugal option. Now before someone argues that generic medications are just as effective as non-generics, that is true of generic birth control pills. However, from personal experience and my doctor’s experience, I can tell you that generic versions often produce negative side effects. One of my doctors refused to prescribe generics because she had too many patient complaints.

Free Sample Birth Control Pills
If your OB/GYN is nice, she may agree to give you free packs of pills every few months. They receive tons of samples, and are usually willing to give them to patients who ask. Since most non-generics cost at least $35 a month, several months of free samples can save you serious cash.

Fertility Awareness Method
Once you know the method and have a basal body thermometer, this method is free (well, you’ll need a pencil and paper, too.) Basically, the Fertility Awareness Method (AKA Natural Family Planning, NFP, or FAM) tracks your morning temperature and other fertility signs like cervical mucus and cervix position to determine when you’re fertile and when you’re not. You either avoid sex or use a backup method like condoms when you’re fertile.

Note, I only recommend this birth control method for committed couples in long-term relationships because it does carry a higher risk of accidental pregnancy if you misread the signs or get carried away by the moment. If you want to learn more, read Taking Charge of Your Fertility  (the library should have it.) You can also check out Fertility Friend for free online tracking, or Ovusoft for affordable software ($39 one-time.)

The advantage to this method is that you can immediately start using it to help you conceive once you’re ready to have a baby. You’re also not pumping artificial hormones into your body.

This is not the same as the Rhythm Method. That relies solely on the calendar. Since most women don’t ovulate on exactly the 14th day of their cycle and sperm can survive up to five days in the female body, it’s also very ineffective. You also can’t get by with taking your temperature only. Your temperature confirms ovulation, but it doesn’t predict ovulation. You must use both temperature and mucus tracking to be accurate.

Condoms
Condoms are pretty cheap and are 98% effective when used properly. Unfortunately, most of us do not use them properly. Read the instructions on the box to see whether you’re actually using them right. If you are, then they’re a perfect option for you. If not, start using them correctly.

Those are pretty much all of the cheap birth control methods. Some people will also mention Withdrawal, but I don’t recommend it. Some couples choose to combine the Fertility Awareness Method with the Withdrawal method (during fertile times.) Teenagers are also foolhardy enough to use this method. Technically it’s free. However, it is also frequently results in pregnancy. Abortions or babies aren’t free. Don’t use this method. Don’t even think about it.

Diaphragms, IUDs, implants, and cervical caps are generally effective, but they’re not cheap. They may be cheaper than non-generic birth control pills, though. An IUD is about $150-$500 to insert, but it lasts for several years. If you plan to use it for more than five years, then it starts to become a cheap birth control method.

Obviously, if you’re not in a committed, long-term, monogamous relationship, then condoms are your only safe option. It’s a good thing they’re pretty cheap. If you’re not willing to risk a baby, then the Pill is more affordable than other options. If you and your partner are willing to accept a slightly higher risk of pregnancy and are comfortable with your body, then FAM is the best cheap option.

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