Archives for June 2012

Supreme Court Upholds The Affordable Care Act Health Care Law. What Does It Mean For You?

Earlier today the Supreme Court came back with a 5-4 decision upholding most of the key provisions of the Protection and Affordable Care Act (PPACA) that was passed by Congress and signed into law in 2010.

The law has been an extremely contentious, but no matter where you stand on the issue, with today's announcement the only way the act won't go into effect is if it is repealed by Congress. Because of that the election seems to have just taken on added importance this year.

So with the law being upheld, what does the decision mean and how will it affect health care and the economy in the U.S.?

Health Care law Upheld By Supreme Court

Pros And Cons Of The Law

So what are some reasons people are happy about the law being upheld?

More people will have health coverage.
Folks with pre-existing conditions can get coverage.
People can stay on their parents coverage until age 26.
More people can take advantage of care.

Others are unhappy that it was upheld, and cited a variety of reasons it should be repealed now.

Individual mandate is a loss of freedom forcing people to buy coverage.
Increased cost to business, which could hamper recovery from recession.
Higher costs for many people.
Government bureaucracy will weaken health care.

So let's review what some of the things that are in the health care law that have now been upheld.

Individual Health Care Coverage Mandate

One of the most controversial aspects of the health care law was the individual mandate. That part of the law required that individuals have some form of health insurance, either on their own or through an employer. If you don't have coverage, you pay a penalty. The court upheld the individual mandate, and people will soon be required to have insurance or pay the penalty.The court clarified that the the requirement is not a mandate, but a tax, and as such is constitutional and falls under the government's taxing authority.

So what is the penalty for no health care coverage? It will be whichever is greater of:

(In 2014) 1 percent of a household's taxable income, or $95 per person in the household, up to three people.
(After 2016) 2.5 percent of a household's taxable income, or $95 per person in the household, up to three people.

Some have suggested that if you don't pay the tax/penalties for not having coverage you could be subject to the same penalties as non-payment of taxes (jail time).

Upheld Provisions Of Obamacare

Most of the main provisions of the Affordable Care Act were left intact after the Supreme court made their ruling. Obamacare provisions that remain in effect:

Pre-existing conditions: Insurers may not deny coverage based on pre-existing conditions, one of the key planks of the overall insurance industry reform outlined in the bill.
Coverage up until 26: The ACA had a provision that required companies to offer coverage for the children of policyholders up until the age of 26.
Medicare coverage gap closed: There is something called “donut hole” in Medicare Part D coverage. Basically after people have paid their deductible Medicare kicks in to cover 75% of the cost of meds. After a threshhold is reached the patient is 100% liable to pay the costs. After the donut hole is crossed, costs are 100% covered by Medicare again. The gap will gradually be eliminated so that it will be closed by 2020.
Cadillac insurance plan tax: People with high end “Cadillac” insurance plans can expect a 40 percent excise tax beginning in 2018.
Tax on indoor tanning: There is a 10% tax on indoor tanning that will now remain in effect.

Medicaid Provision Limited

The Affordable Care Act when it was passed had a provision that said families earning as much as 133 percent of the federal poverty line would be eligible for Medicaid. If states failed to comply with the expansion of Medicaid the government would be able to withhold all Medicaid funds.

The court allowed for the expansion of Medicaid, but denied the government's ability to withhold all funds, but not the ability to withhold new funds. Because of this ruling the expansion of Medicaid is now thought to be optional for states.

Health Care Will Be A Major Election Issue This Year

While the ruling today was certainly a big win for Obama, and will have major ramifications for this country, the debate surrounding health care is far from over.

Already you're seeing how the election season will be shaping up, and I guarantee that the health care law, and the repeal thereof, will be one of the main issues people will be focusing on, right after the struggling economy.

What are your thoughts on the Supreme Court's decision today and what effect it will have?

How To Enjoy A Cheaper Road Trip

By Miranda Marquit 1 Comment

One of the fun things about the summer, in my opinion, is the road trip. I've already been on one this travel season, and I'm excited for further road trips. Most of the time, my road trips are relatively short, ranging from three days to a week. Road trips can be a great way to spend time with family, and even enjoy a fairly inexpensive vacation.

If you want to have a cheaper road trip, though, it helps to plan ahead.

Tips For A Cheaper Road Trip

cheaper road trip

Here are some tips for creating a cheaper road trip that everyone in your family can enjoy:

Map your route: The first step is to map your route. You don't have to have everything perfectly timed (that takes some of the spontaneity out of the journey), but you should have a general idea of where you want to go, and which days you should arrive. Plus, mapping it out can help you find the best hotel deals, as well as the cheapest gas prices.
Car maintenance: Before you head out, check your car. Make sure that everything is in good order. Breaking down in the middle of a road trip is an expensive proposition. A little expense now can save you big later.
Be smart about food: One of the things I remember from my childhood is the big cooler. My parents brought a big cooler packed with drinks (including milk and juice), deli meat, condiments, and other items. We made our own sandwiches, and had access to other food. A smaller cool, and a bag with other items, was available as well. Bring your own food, and you'll spend much less. When you do need to replenish your supplies, head a little farther into town and visit the local grocery store.
Use your rewards: Maximize your road trip with the help of a rewards program. You can save up money for a road trip, but then use credit cards. Earn the rewards, pay off the balance when you get back, and be ready for the next trip. You can also sign up for hotel rewards and earn free stays. If you already have free stays, use them during your road trip to reduce costs.
Look ahead for discounts and promotions: Find out if there are discounts and promotions in the area. Look online for coupons on food, attractions, and lodging. It's a great way to cut down on costs. Groupon, LivingSocial, and Restaurants.com can all provide you with discounts to use during your road trip.
Choose souvenirs carefully: Rather than load up with expensive souvenirs that clutter the house, choose carefully. We buy a magnet or two, and postcards. These items don't take up much room, and they are inexpensive. We save money on those items, and can spend on the things that are more important to us.

A road trip can be a fun way to go on vacation. If you are careful about what you spend your money on, and if you plan ahead, it should be possible to enjoy an inexpensive vacation that helps you create plenty of good memories.

What are your tips for taking a cheaper road trip?

Saving Money On Your Pet’s Food Bill With Dog Food Coupons And More

By Contributor 1 Comment

We all want to feed our pets the best food possible to keep them happy and healthy. Feeding your dog the highest quality dog food, however, can come with a high price tag. To keep from going over your dog food budget, here are some money saving tips:

Find Coupons

Does your dog already have a favorite dog food brand that you struggle with finding dog food coupons for? Often their websites or social media will offer discounts. For example, sign up for Pedigree dog food coupons on their website or “like” their Facebook page for printable dog food coupons so that you can receive discounts on the best dog food brand. Many companies, even high end brands, offer traditional dog food coupons in newspaper inserts. If you often buy your dog food at a particular store, sign up for their emails for notification of sales. You can combine your coupons with the sale for the best price possible without sacrificing nutrition.

saving on pet food

Ask your family and friends if they will trade coupons of your favorite dog food brand for coupons they may need. Many coupon swap groups do this already, but a simple email to your friends or a notice on the work bulletin board can help you save several dollars on your dog's diet. Another source of coupons is eBay–people often sell coupons for a fraction of their face value.

Buy In Bulk

Even if you don't have much storage space, consider buying in bulk. Large bags of dry food and multiple packs of wet food usually have a much lower unit price. Dry food can be portioned into smaller, airtight containers which can be easily found at pet or department stores. Wet food cans can be stored in the back of the pantry or unused closet space. If you have a smaller dog or are concerned a large quantity of dog food might go bad before it's used, ask other dog owners if they would like to split the quantity with you. You still get the lower price and the best quality food.

Visit The Feed Store

If you have never visited your local feed store, they are a great source of the best foods for excellent prices. They carry animal feed for both pets and farm animals and are usually very knowledgeable about nutrition. See if they carry your favorite dog food brand and ask for vendor coupons. Many dog food companies distribute coupons directly to the store to be given to customers.

Higher quality dog food doesn't have to break the bank. By combining coupons and sales and by lowering your cost-per-unit price, you can continue to feed your dog the best.

Boost Your Deductible And Save On Insurance

By Miranda Marquit 1 Comment

One of the most common recurring costs in your life is likely to be insurance. From auto insurance, to health insurance, to home insurance, you pay every month to protect your assets.

While many people acknowledge the importance of insurance, no one likes to premiums. If you want to reduce your costs, one of the best ways to do so is to boost your deductible.

What is a Deductible?

raise deductible to save on insurance

Your deductible is the amount of money you pay out of pocket before the insurance actually kicks in to cover costs. The higher your deductible, the lower your premium, since the insurance company won't have to pay as much of your cost for an incident.

Boost your deductible, and you will find that your monthly cost drops. I reduced my health insurance premium by half, just by boosting my deductible by a few thousand dollars. The more you are willing to pay out of your own pocket, the lower your premium will be — and the more you can save each month.

Do You Have the Money for a Higher Deductible?

Another issue you run into is that you might not have the money for a higher deductible. My deductible on my health insurance is $7,500 right now. What if you have a $20,000 deductible on your house? Yes, you'll save on premiums. But what if you have an incident, and you have to come up with that money? If you are going to raise your deductible, you need to have that money available, just in case.

This means that you need to create an emergency fund. Indeed, if you want the capital to meet your deductible obligations, you really do need to build a good emergency fund. If your auto insurance policy has a $5,000 deductible, you need at least $5,000 in your emergency fund. I use my Health Savings Account as a sort of emergency fund to cover my out of pocket health expenses. There are limits to how much you can contribute each year, but you can eventually build up what you need, and supplement further with a different emergency fund.

Without an emergency fund, you can actually end up in financial trouble when something happens and you need to pay out of pocket. Before you decide to increase your deductible, it's a good idea to get a solid start on building an emergency fund. That way, you will have the cash you need to pay out of pocket without breaking the bank.

You don't need to have a complete emergency fund to start, but you need to have a plan. One way to improve your ability to build your emergency fund is to bank the savings. I started an emergency fund, and then raised my deductible by a little bit more. I banked the savings as part of the emergency fund. Then, I raised the deductible a little bit more, and banked the savings. You are still paying the same each month, but you get to keep more of the money, since it is going in your bank account, rather to the insurance company.

A Tale Of Personal Banking Gone Bad

By Contributor 1 Comment

One of the biggest misconceptions in personal banking that many people seem to fall prey to these days is that all banks offer basically the same account options. How false this idea actually is I can certainly tell you, and that’s exactly what I intend to do here.

As a young man, I had the good fortune of being supported by parents with great intentions and reasonably high incomes. In short, I wasn’t forced into early labor; in fact, working while in school was discouraged, despite my desire to make some money on the side. My parents urged a focus on education as my one and only job – the idea being that good grades would eventually land me a concrete, high paying job down the road, and then I could pay them back.

Unfortunately for all of us, we couldn’t foresee the economic turmoil that lay ahead, which would strike at the most inopportune time, just as I was graduating from college.

The Start of It

Upon graduating, despite reasonable concern from my parents who were sincerely feeling the effects of the economic downshift, I decided to use my small life savings to do some traveling. My hope was that by taking a year or so to live cheaply and enjoy the world as a young man, I would gain some great life experiences and return to the working world just as things were starting to look up. How naive an idea that was is now laughable, but only because I managed to turn a resulting bad situation around and again find financial stability relatively painlessly.

About six months into my stint of traveling, my savings, which I had transferred over to my checking account, was dwindling faster than I could comprehend. I assumed that I’d been spending too much on food, drinks, and fun without really doing the math or sensibly budgeting. It didn’t add up though. By month seven, I had just enough to buy a plane ticket home, which I did immediately. And then I realized what had happened.

Bank Fees Take Their Toll

My existing accounts, both savings and checking, had huge maintenance fees attached to a failure to keep a minimum balance in both. I’d had no idea these fees even existed as I’d set the accounts up with my parents way back in high school. Somehow, they’d forgotten as well, and the result was a ridiculously huge amount of money being virtually thrown away to the bank over the course of six months. It was enough to cut my travel plans decidedly short, and force me to take out a hefty personal loan to cover my living expenses for the next 4 months before I finally found a job.

The Remedy – Researching New Banks

Aside from the loan, which I’ve just recently been able to pay off in full, I immediately dropped my old bank in disgust, and did a huge amount of research on various other options before deciding to go with an online bank, much thanks to discover.com/online-banking and other similarly helpful online banking sites that I used to compare interest rates and maintenance fee-free options. The number of vastly better options I quickly found literally disgusted me, such was my angst that I'd been so careless.

The Takeaway

Number one, never, ever, be naive enough to think that all banks and account options are created equal: they’re not. And number two, doing research on both your existing bank account and financial institutions and comparing them to other available options out there can save you a world of financial woe and heartache. The fact that I missed out on so much money and opportunity to continue an incredible traveling experience for such an unnecessary and easily-avoidable reason, has me kicking myself on a regular basis.

So do yourself a favor, and make sure you do the research before you find yourself doing the same.

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