Jan
25
Compare Republican Presidential Candidates on the Issues
Filed Under Election, Health Costs, Personal Finance, Retirement, Taxes | Leave a Comment
As I said yesterday, voters in six states have had their say on the 2008 presidential candidates. As always, the presidential election is important, but voters this year face very serious issues. No matter where you stand on the issues, it’s important to consider all the candidates and then choose the one who best matches your beliefs.
In advance of Super Tuesday, I’m presenting summaries of the candidates’ statements on economic issues. Candidates are listed in alphabetical order. In order to be included on my list, they must still be in the race and be listed in the national polls at RealClearPolitics. In general, that means they’re polling above 2% nationally.
Most of these are copied from the candidate websites directly, although I had to search the internet for some statements. I relied on CNN’s election center and OntheIssues.org for most of the answers I couldn’t find on the candidates’ sites. Some statements are rephrased for length or clarity (or to cut the campaign rhetoric). I haven’t injected any personal commentary.
Taxes
- Eliminate all federal income and payroll taxes
- Supports the FairTax, which will replace the Internal Revenue Code with a national sales tax
- Provide monthly rebate for sales taxes on purchases up to the poverty line.
Healthcare
- Make health insurance more portable from one job to another
- Expand health savings accounts to everyone (currently limited to those with high deductibles)
- Make health insurance tax deductible for individuals and families
- Provide tax credits for low income families buying insurance.
Retirement
- Provide personal retirement accounts proposed by Bush.
Economic Stimulus Package
- No immediate plan available
Foreclosure
- Pressure lenders to refinance loans so rates will rise more slowly and affordably
- Increase regulation of the mortgage industry
- Ban low teaser rates and stated income loans.
Taxes
- Make Bush tax cuts permanent
- Repeal estate tax
- Tie Alternative Minimum Tax to inflation.
Healthcare
- Provide tax deduction of up to $15,000 for families without employer-based health coverage
- Institute Health Insurance Credit for low-income Americans that can be coupled with other revenue sources such as Medicaid and employer contributions to make coverage more affordable to millions who are uninsured
- Require availability of low-cost insurance options
- Repeal state regulations that limit coverage options and increase costs.
Retirement
- Expand tax-free savings accounts
- Eliminate the double taxation of individuals’ current savings.
Economic Stimulus Package
- No plan available
Foreclosure
- Supports government assistance for victims of predatory or fraudulent lenders.
Taxes
- Repeal the Alternative Minimum Tax (AMT)
- Make the Bush income and investment tax cuts permanent.
Healthcare
- Eliminate the tax code bias toward employer-sponsored health insurance
- Provide all individuals with a $2,500 tax credit ($5,000 for families) to purchase health insurance
- Allow individuals who buy multi-year policies that cost less than the full credit to deposit remainder in expanded health savings accounts
- Allow families to purchase nationwide insurance to increase competition and reduce costs
- Allow individuals to buy insurance through any organization or association that they choose
- Promote preventative care.
Retirement
- Supplement the current Social Security system with personal accounts.
Economic Stimulus Package
- Cut the corporate tax rate from 35 to 25 percent
- Allow first-year deduction, or “expensing”, of equipment and technology investments
- Establish permanent tax credit equal to 10 percent of wages spent on R&D.
Foreclosure
- No plan available
Taxes
- Exempt members of America’s armed forces from income taxes
- Pass the Liberty Amendment, which repeals the 16th Amendment (income tax amendment)
- Repeal capital gains and dividends taxes
- Repeal estate tax
- Repeal taxes on tips
- Adopt the FairTax plan, which replaces income tax with national sales tax.
Healthcare
- Institute medical savings accounts where consumers can save pre-tax dollars
- MSA would be used to pay for health care expenses, with the patient negotiating directly with the physician of their choice for the care they choose
- Ensure major-medical insurance policies remains available and affordable for catastrophic care
- Allow families to claim a dollar-for-dollar tax credit for the rising cost of health insurance premiums
- $500 per child tax credit for medical expenses and prescription drugs that are not reimbursed by insurance
- $3,000 tax credit for dependent children with terminal illnesses, cancer, or disabilities.
- Waive employee portion of Social Security payroll taxes (or self-employment taxes) for individuals with documented serious illnesses or cancer and suspend Social Security taxes for primary caregivers with a sick spouse or child.
Retirement
- Ban government borrowing from Social Security trust fund
- Allow young people to stop contributing to social security
- Reduce contributions and allow people to invest money themselves
- Repeal taxes on social security benefits.
Economic Stimulus Package
- See tax and foreclosure plans.
Foreclosure
- Repeal tax on mortgage debt discharges (currently, forgiven loan balances are taxes as income)
Taxes
- Repeal tax on interest income, dividend income, or capital gains earned by people earning less than $200,000 a year
- Make Bush tax cuts permanent
- Reduce lowest tax rate from 10% to 7.5%
- Repeal estate tax.
Healthcare
- Encourage states to eliminate the cumbersome insurance regulations that increase costs and reduce competition
- Make all health care expenses tax deductible
- Reduce uninsured emergency room expenditures
- Use savings from reduced emergency room expenditures to help the needy buy private insurance
- Support tax deductions to help individuals buy private insurance.
Retirement
- Support personal retirement accounts
- Would consider indexing social security benefits to prices rather than wages.
Economic Stimulus Package
- Institute immediate 100% expensing of equipment for two years
- Permanently reduce the corporate tax rate
- Introduce immediate retroactive tax credit reflecting the lower 7.5% tax rate for 2007 earnings to employees who earned less than $97,500 in 2007.
Foreclosure
- Reform and expand Federal Housing Administration (FHA) loan portfolio limits to allow larger loans to homeowners
- Reduce required down payment
- Allow FHA to help nonprime borrowers who may not be able to meet the current requirement
- Raise the maximum loan amount for borrowers in higher-priced areas
- Expand NeighborWorks foreclosure avoidance initiative.
Jan
21
Get Fit without Ruining Your Budget
Filed Under Budget, Fitness, Health Costs, Saving Money | Leave a Comment
Apparently the third Monday in January is the saddest day of the year. Researchers determined this because this is the day you’ll receive holiday credit card bills and this is the day most people realize those resolutions have failed. Here are some tips for renewing that resolution to get in shape without busting your budget.
Find a Gym Near Your Office
If you ran out and joined a gym near your house, see if they have a branch near your office that you can either switch to or use as well. That way you can visit the gym on your lunch. Not only does it fit well into your schedule, but you’ll find that you’re more productive in the afternoon. I’m fortunate that I can walk to my gym, but if you don’t have one in walking distance, look for a five-minute drive or less. That will give you enough time to do some real exercise.
Get a Guest Pass
If you haven’t already joined a gym and want to, ask for a one-week guest pass before you join. If you don’t use your guest pass much during that week, don’t join the gym. You can get fit with other options instead
Join with Family Members
Family members usually get a discount, so have yourself added to your spouse’s membership if you’ll actually visit that gym or chain. Not only can you encourage each other, but the second membership will be cheaper and probably won’t require start-up fees.
Ask for a Discount
Gyms are always running specials. Ask for one. If they don’t give you a good deal, walk away. Then go home and research offers online. Most chain gyms display their offers right on their website. Print it out and then go back to talk to the manager.
Hire a Trainer for a Few Sessions
Trainers are expensive, but I was in the best shape of my life after working with a trainer once a week for six months. Alas, I couldn’t maintain the expense, but I did hire one for five weeks recently to show me how to use new machines and learn new techniques. Most gyms have an introductory training special. My gym, 24-Hour Fitness, offer 5 sessions for around $50 for first-time buyers. Yes, you’ll get pressured to buy more sessions, but you can say no.
At the very least, take the free introductory session offered when you join. They’ll cover the basics on using the machines and recommend the right machines for you. Don’t watch other members to learn how to use them because most people use them improperly. At best, you won’t see much improvement. At worst, you’ll get hurt.
Trainers will also help you fine-tune your cardio exercises. Most people do that wrong, too. You don’t have to go at top speed the whole time. In fact, you’ll lose more fat if you vary the pace and change machines from time to time.
Quit if You Hate It or Don’t Go
Most gyms have a cancellation fee, but that fee is much lower than the cost of continuing to pay out the rest of your contract. If you’re simply not going to go, bite the bullet and pay the cancellation fee.
Exercise at Home
As I mentioned yesterday, it’s possible to get in shape at home. All you need is a plastic stool and some free weights. You might also want resistance bands or a balance ball. You can find most of this stuff at Target or a local sporting goods store. Watch the Sunday newspaper ads for sales, or check online. Free weights are usually $1 a pound, but I’ve found them for half that during sales. I recommend the neoprene-covered weights because metal weights can be slippery. Now go online to women’s magazines, men’s magazines, and fitness sites to find free workouts you can print out. Some sites allow you to enter some data to customize them to your needs. Look for routines with pictures or videos so you can see how to do the moves properly.
If you have cable, check your On Demand menu. Mine has several exercise programs, and some of them are very tough. Try several until you settle on one you like. Since these programs are already included in the cost of your cable, this is a free option. Most of the shows don’t require any accessories. You can also check your library for exercise videos.
Walk
If you don’t want to exercise at home or at a gym, consider walking. All you need are walking shoes, a ski hat for colder days, and maybe a sports bra for women (change in the office bathroom.) Most walkers don’t work up a sweat, so you won’t need to shower afterwards. You can easily do it on your lunch hour. If you live in a wet or snowy climate, you can also walk in the mall. Just make sure you leave your money and credit cards in your office, not in your wallet!
Consider Buying Wii Fit
If you already have a Wii, then consider getting Wii Fit. It’s expected to cost around $70 and release later this month. It offers a variety of programs and will track your results. You can also compete with family members. It’s definitely cheaper than joining a gym if you already have a Wii. If the Wii is in your family room, it’s also harder to avoid than the gym.
I work out part time at the gym and part time at home. The combination works well for me. Even if you don’t want to spend a lot, you can find a way to get in shape and keep your budget in good shape, too.
Jan
11
Check Medical Bills to Save Money
Filed Under Health Costs, Money Management, Saving Money | Leave a Comment
As I mentioned yesterday, I was overcharged when I visited the eye doctor in November. Fortunately, I listened carefully when the doctor explained his pricing and then double-checked the receipt when I got home. Something similar happened just last week after my husband visited the emergency room for stitches in his finger. Those two errors could have cost us $304, but I’m super-vigilant when it comes to making sure my medical bills are properly charged.
Examples of Mistakes in Medical Bills
With the eye doctor, it was a simple error on his assistant’s part. While preparing the bill, she looked up my contacts on a chart and put them down as $195. I was stunned, but I didn’t say anything because this was a new kind of contacts and my doctor had said they were expensive. My doctor matches the pricing of 1-800-Contacts, so I checked the website when I got home. It said they were $75, which is still high, but they really are that good. They’re ProClear’s if anyone’s wondering. I called the office and the assistant double-checked. She’d accidentally charged me for the toric lenses, and promptly credited my card for the error.
Just before Christmas, my husband got a bad cut and went to the emergency room for stitches. Last week we received a statement from our insurance company detailing the charges. It said our share was $284, which is odd, since our co-pay is $100 max. I reviewed the statement further and noticed that the hospital charged the wrong insurance. He’s covered by his employer and mine, but my plan is better for things like this, so we prefer to use that one. We’re not sure why they charged the other insurance because he doesn’t even carry the card with him, but we assume they looked him up in the computer and submitted the bill to the first one they found. Needless to say, he called the hospital to have the correct insurance bills and avoid paying $184 more than we actually owe. Given that they gave him the wrong kind of stitches, which left a scar, and it cost us another $100 to get them removed, it’s the least they can do.
How to Avoid Overpaying Your Medical Bills
Chances are, you’ve encountered several similar instances in your dealings with insurance, doctors, and medical bills. If you’re not careful, you could wind up paying much more than you actually owe. Here’s how you can avoid overpaying:
If a receipt is offered, take it. That way you can compare it to the insurance statements later.
Check your insurance statements. I don’t know if all insurance companies do this, but Blue Cross sends you a statement of your charges, the amount they paid, and how much you owe. If you have a receipt, compare it to the statement. If you see any charges that don’t make sense, especially tests your doctor didn’t order for you, call the insurer or your doctor’s office to get it straightened out. Also compare it to your coverage, because sometimes they do bill the wrong insurance.
Fight any improper charges. If you’ve had a long hospital stay, you’ll see all sorts of odd charges. In this case, you may want to contact a Medical Bill Advocate to make sure the hospital doesn’t sneak in any improper charges. Medical Billing Advocates of America reports this example: “It’s hard to learn how much that $12 “mucus recovery system” was really worth. We saw this on a bill once, and later learned it was a box of tissues that retails for about $2–and it’s not a billable item anyway!” And that’s the cheapest example on their site.
Keep calling until it’s resolved. With the eye doctor, it only took one call to get the contacts error corrected, but it took several calls to get my insurance coverage sorted out. I’m sure I was annoying them by calling every week to check on the progress, but in this case, it was enough to motivate them to resolve it.
Take advantage of secondary insurance. If you have coverage under more than one plan, most doctors will bill both of them. I know someone who avoided paying anything for health care because even the co-pay was covered when both her insurance plans were billed.
If you’re not careful, you could end up spending way too much on health care and health expenses. It takes just a few minutes to double check your medical bills to make sure you’re not overcharged.
Jan
10
Budget for Health Expenses
Filed Under Expenses, Health Costs, Money Management, Personal Finance | Leave a Comment
Even if you have insurance, health expenses can surprise you. Last year I used my vision insurance to visit the eye doctor for new contacts and glasses. I went in accustomed to paying around $200 a year for those expenses. I left with a $900 charge on my credit card (partly due to error and party because I switched to the “Rolls Royce” of contact lenses.) I checked the receipt and got a refund for the error, then sorted out coverage with my insurer for another part, but it still cost in the range of $500. Then I went to the dentist and learned I needed a crown. Fortunately, my dental insurance covered nearly 100% of the cost rather than the 50% they said they cover, so the two expenses balanced out somewhat.
Still, if I’d planned ahead, neither expense would have been a shock to my budget. I don’t have access to a Health Savings Account (HSA) or a Flexible Savings Account (FSA), but that doesn’t mean I can’t plan ahead for medical and health expenses. If you do have access to either of those accounts, then you have several options when it comes to saving for health expenses.
Health Savings Account
The HSA is relatively new. It was introduced in 2004, and some employers offer them along with high deductible health plans. The idea is that you use the HSA to pay for qualified health expenses until the deductible is spent, at which point insurance kicks in. In 2008, you can contribute up to $2800 for a single person and $5900 for a family. Contributions come from pre-tax dollars, which reduces your tax base, and employers can also contribute. The downside is that you can’t withdraw the money for non-medical expenses without paying taxes and a 10% penalty (unless you’re over 65, in which case you only pay taxes.)
Most medical expenses qualify, but not all. You can use the funds to cover:
- Co-pays
- Deductibles
- Prescriptions
- Over-the-counter medications for defined conditions (like allergies)
- Glasses
- Hearing aids
- Dental expenses
- Vision expenses
- Transportation related to medical care
You don’t have to pay the funds directly to someone, but can use it to reimburse yourself for the expenses. You do have to keep receipts to document the expenses, though. You can use the funds to pay expenses even for spouses and dependents who aren’t covered by your high-deductible health plan, but you can’t use it to pay their premiums.
The nice thing about the savings account is that you don’t lose it if you don’t use it. You can roll it over when you change jobs. If you die, it transfers to a beneficiary with no limits on how he or she can spend it.
Flexible Spending Accounts
Many employers offer FSAs. These are also funded with pre-tax dollars, up to a cap of $5000, and are used for similar expenses as the HSA. The trick is that you do lose the funds if you don’t use them by the end of the plan year. Also, if you change jobs, you can only use it for expenses incurred while you were covered by the plan. On the other hand, all funds are available on day one of the plan year, even if you contribute to it with funds from each paycheck. If you plan to switch jobs, get your expensive medical treatments before you leave the plan so you can spend down the money.
Personal Savings Account
If you’re like me and don’t have one of those plans available, you can create your own account to cover health expenses. It won’t reduce your tax base or use pre-tax dollars, but it will collect interest if placed in a high-interest-rate savings account. Simply visit a bank, or online bank, that offers no-fee savings accounts and set up direct transfers from your checking account every month. Then when you have health expenses, reimburse yourself from the savings account. If you don’t spend it, you’ll still have the savings.
This is especially helpful for people with individual health insurance instead of an employer-provided plan. Rather than spending an extra $200 a month to reduce your deductible by $1500, put that $200 a month into the savings account. Then if you need it, you can pay towards your deductible, if you don’t, you still have the money.
Determining How Much to Contribute
Before you contribute to any account, figure out how much you usually spend on health expenses. Get out your receipts for last year and total up how much you spent on co-pays, deductibles, emergency room visits, lab fees, dental costs, eye exams, glasses, the chiropractor, prescriptions, and over-the-counter treatments for colds, allergies, and other defined conditions. That’s approximately how much you should contribute to your savings account or spending account. You may want to add a small cushion, especially if you have young children. Add more if you’re pregnant or have an ongoing condition that may require additional treatment.
Regardless of which plan you choose, it’s a good way to cover health expenses without going into debt or running up credit card interest for unexpected costs.
