State Healthcare Coverage May Aid in Creating a National Plan

A feeling of excitement was felt on Capitol Hill in one of the first hearings, conducted after the inauguration of President Barack Obama. On Thursday January 22, 2009, the Senate’s Health, Education, Labor, and Pensions committee held a hearing to examine measures states are enacting to keep their citizens healthy.

According to Senator Edward M. Kennedy of Massachusetts, the chairman of the committee, 38% of deaths related to chronic illness among Americans arise from alcohol use, smoking, physical inactivity and poor diet. In addition, 75% of health care costs associated with chronic disease are preventable. State Senator of Iowa, Jack Hatch, stressed the importance of preventative healthcare measures. He mentioned that Iowa should lead prevention and wellness initiatives by enabling doctors to use efficient practices and administer proper protocols necessary to treat chronic illnesses. Health care costs are continuing to rise making it necessary for people to receive proper health education, so they can make better lifestyle choices to improve health and contain costs. The state of Iowa has enacted preventative healthcare measures as a means of reform. Some include: 1. By 2011, the state is expected to provide healthcare coverage for all eligible children 2. Iowa has strengthened its public health and prevention programs by launching the healthy communities initiative, enabling small businesses to receive a qualified wellness tax credit.

Mr. Emmet spoke about our country’s failure to treat mental illness. He revealed mental illness is a major cause of disability, yet many insurance services do not provide coverage for mental health visits.

Dr. Dobson stressed the need for community healthcare services. He revealed quality of healthcare can be enhanced and the cost of healthcare can be reduced by providing people with primary care, creating local networks to gather resources and providing state funding for healthcare related programs. State healthcare systems need to be sustained in order to enable one to have access to care and be treated efficiently.

Dr. Bigby spoke about the importance of prevention. She mentioned the 2006 Massachusetts health care reform bill designed to provide the citizens of the commonwealth with universal coverage. 97.4% of Massachusetts residents contain healthcare coverage, 99% of kids contain coverage and 90% of residents have regular healthcare providers and thus receive preventative care. In addition, Dr. Bigby spoke about “Mass in Motion,” a program designed to promote healthy eating and exercise through grants to cities and towns in hopes of making wellness a priority. She also addressed the need to remedy the racial and ethic disparity prevalent in who receives healthcare coverage.

The experts at this hearing were in agreement that access to and quality of healthcare needs to be augmented. In order for people to live healthier lives, they say diet and exercise programs, as well as preventative and routine healthcare services need to be provided to the people of our nation.

Medicare Prescription Drug Plan Open Season

Tis' the season...to apply for Medicare's prescription drug plan. Open season began November 15 and continues through December 31. During open season, new Medicare beneficiaries can join a prescription drug plan, while current beneficiaries should take this time to review the plan they're enrolled in. This is also a prime time to find out if you're eligible for Extra Help. Extra Help is available for beneficiaries with a limited income and provides those who are eligible with financial assistance for monthly premiums, annual deductibles and prescription co-payments. You can apply for Extra Help if:

1)You have Medicare Part A (Hospital Insurance) and/or Medicare Part B (Medical Insurance); and

2)You live in one of the 50 states or the District of Columbia; and

3) Your combined savings, investments, and real estate are not worth more than $23,970, if you are married and living with your spouse, or $11,990 if you are not currently married or not living with your spouse. (DO NOT include the home you live in, vehicles, personal possessions, burial plots or irrevocable burial contracts.) If you have more than those amounts, you may not qualify for the extra help. However, you can still enroll in an approved Medicare prescription drug plan for coverage.

For more information on Medicare prescription drug coverage, including applications for Medicare and Extra Help, visit the Social Security website.

Laid Off: How to Stay Insured

The holiday season is upon us. With Thanksgiving around the corner and the winter holidays just weeks away, many American workers are receiving an unexpected (and unwanted) gift from their employers: pink slips. According to the Wall Street Journal, 1.2 million workers have been laid off this year. Lay-offs are occurring across the board and impacting a wide range of industries. Tinseltown legends Harvey and Bob Weinstein laid off 11% of their employees at Weinstein Co. on Friday, while publishing powerhouse Conde Nast has begun cutting their staffs by 5%, a move that bloggers have begun referring to as "Empty Nast syndrome." The unstable economy is causing stress for many workers, who wonder if their jobs may be the next to go. "I put all this time and effort into my education," says New York based graphic designer Ashley Jones. "Now I'm hoping it wasn't all in vain." But as major magazines fold daily, Jones says "I'm feeling uncertain about my future and I just hope I can support myself."

Every Thanksgiving, at tables across America, families lift their glasses and wish for good health for themselves and their loved ones. But how do you take care of your health if losing your job also means losing your health insurance? For the newly-unemployed, the animal of the season may no longer be the turkey: it may be time to embrace the COBRA. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, a law that provides continued group healthcare coverage for uninsured former employees. COBRA allows you to keep the insurance plan you used at your former place of employment for an additional cost, though this cost is usually less than the cost of opening an individual insurance policy. On the other hand, there are affordable individual insurance policies as well as government programs for those who qualify. Explore your options and make sure you and your loved ones remain insured during this holiday season.

• "Newly Out of a Job? Here's how to replace the health benefits" by Anna Wilde Mathews at the Wall Street Journal: Mathews offers information and tips on using COBRA coverage, finding an individual insurance plan, and qualifying for government coverage.
  
• The Healthier and WISER series: The "Healthier and Wiser" series addressed some of the main health care coverage issues women encounter at different stages of their lives. It offers a variety of resources and information on how to stay insured.
  
• FAQs About COBRA: This FAQ from the U.S. Department of Labor offers extensive information on COBRA coverage.

Financial News You Can Use: The Healthcare Edition

Beware ignoring Medicare enrollment rules, InvestmentNews.com August 21, 2008: Financial advisors and future Medicare recipients, listen up: pay attention to Medicare enrollment deadlines, or you may face some costly consequences. Medicare only notifies potential-beneficiaries that they are eligible for Medicare if the beneficiaries apply for Social Security benefits before they turn 65. If you don't fall under this category, you must apply during one of three enrollment periods. Missing a deadline can result in higher Part B premiums or lapses in insurance coverage. Review your health insurance annually and start planning for Medicare at least six months before your turn 65. Visit Medicare.gov for more information on Medicare and Medicare enrollment periods.

Economic downturn not affecting individual policies coverage, but curbing medical care, from IFAwebnews.com August 19, 2008:
The National Association of Insurance Commissioners have released a national survey that shows "22% of U.S. consumers have reduced the number of times they see the doctor as a result of problems in the economy" while "11% of consumers have cut back the number of prescription drugs they take." Though cutting back on doctors visits and prescriptions may seem cost-effective now, these cost-cutting strategies can raise your insurance costs in the long run by putting you at risk for untreated health issues. Make your health a priority and use a budget to curb your spending in other areas of your life. For help on starting a budget, check out WISER's "Keep Track of Your Spending" fact sheet.

Uninsured to Spend $30 Billion, Study Says, from Wall Street Journal, August 25, 2008: A new study from George Mason and the Urban Institute reports that uninsured American will spend $30 billion out of pocket this year. Uninsured Americans often pay more and receive less care. If you're experiencing a lack of coverage, explore your options to find a solution to your coverage gap. The WISER Woman blog series "Healthier and WISER"offers information on healthcare options for stages in your life when you may be uninsured.

Healthier and Wiser: After Retirement

Healthier and Wiser

Many people who have health insurance obtain it through an employer. However, there may be times in your life when you are without coverage, facing coverage choices or grappling with retirement health issues. The "Healthier and Wiser" series will address some of the main health care coverage issues women encounter at different stages of their lives. It will point you in the direction of where to go to find more information. It is not intended as legal advice. You can check out the "Healthier and Wiser" series on Wednesdays.

This Week: After Retirement

If you are enrolled in Medicare and cannot afford to pay the out-of-pocket costs Medicare does not cover, is there any other assistance for you?

• There are state programs for individuals with incomes below or near federal poverty limits. For those at or below the poverty level, with limited resources, the Qualified Medicare Beneficiary Program (QMB) will pay your premiums, deductibles and co-payments under Medicare. The Specified Low-Income Medicare Beneficiary Program (SLMB) and the Qualified Individual Program (QI) pay Medicare Part B premiums for those with incomes between 120% and 135% of the federal poverty level. Call your state Medicaid office and ask if you are eligible. The programs can save you hundreds, or even thousands, of dollars each year.

• You might benefit from a Medigap insurance policy - a private insurance policy that pays out-of-pocket medical costs not covered by Medicare. Contact Medicare for more information on Medigap insurance policies sold in your state or call your state insurance commissioner. Every state offers free insurance counseling to seniors through a program called the SHIP program. Call Medicare at 1-800-Medicare for the nearest SHIP site.

• The National Council on the Aging has an interactive website program, called Benefits Check-Up, that will point you toward an array of state and private programs that can help you with medical costs. Find it on the web at www.benefitscheckup.org.

Financial News You Can Use

"Longer lifespans give new importance to annuities"via IFAwebnews.com: A new report by TIAA-CREF, a financial service firm, says that "annuities can be used to ensure that people have enough money for 30 or more years of retirement." Americans are currently experiencing longer life expectancies, which may make annuities more desirable for some when creating a retirement savings plans. For more information, on Annuities, check out "Making Your Money Last For A Lifetime: Why You Need to Know About Annuities."

"Report Urges Raising Social Security Age" from today's Wall Street Journal: They call it age inflation, a new term for the longer life expectancy of Americans. A National Bureau of Economic Research paper argues that the age for Social Security eligibility should be raised to compensate for the age inflation the nation has experienced since the creation of Social Security. There are some good reasons why you personally may want to delay your Social Security benefits. To find out more, check out "Shine a Light on Retirement", which explains why choosing to delay your retirement and social security benefits may help improve your retirement outlook.

"Gender Gap Exists in Adequate Life Insurance Coverage Despite Greater Financial Concerns among Women, According to MetLife Study" via TradingMarkets.com: According to a new study by MetLife, women with life insurance tend to own twice their household income in coverage, while men have coverage that covers three times their household income. The article notes that 64% of working women vs. 52% of working men say they are "very concerned about their families' financial futures in the event of their own premature death." For more information on life insurance for women, as well as health insurance in general, you may want to read "The WISER Woman's Guide to Insurance," a special report on insurance types, insurance needs and where to locate the coverage you want.

What are you reading? Leave us a comment and let us know what financial news you're reading today!

When to spend, when to save.. A young woman's guide

Managing your money is important at every age and the earlier you start, the better off you’ll be in the long run. This three-part series is intended to give young women starting out in the work force a simple guide for prioritizing spending. Consistent with WISER’s values and mission, but geared towards younger women, here are three major financial priorities that will put you on a steady track to a secure retirement: investing in your health, paying off debt, and saving for retirement.


Priority #1: Your Health
Invest in your health with a catastrophic coverage plan

If you’re young and “invincible” you’re not alone: people age 23 to 30 are the group most likely to lack health insurance. Twenty-somethings are likely to go a few years uninsured because of a combination of factors:

• they have aged out of their parents’ coverage,

• they no longer qualify for a school-sponsored health care plan when they graduate from or leave college,

• they have not yet settled into a “real world job” that offers employee benefits like health insurance

Combine these four factors with relatively low-income employment, a desire to pay off student loan debt, and a youthful and generally healthy body and you have a recipe for being uninsured and, therefore, being vulnerable to health emergencies that could cripple your economic future before you’ve even gotten started!

What can you do? To avoid this potential disaster, make the decision to trade some of your purchasing power now for long-term peace of mind with a high deductible health plan (HDHP), also called a catastrophic or emergency health insurance plan. HDHPs are health insurance plans that require you to pay a much higher deductible (around $5000 a year) before the insurance company begins paying towards your medical expenses, but also charges a significantly lower monthly premium (for non-smoking females, around $50 a month) than traditional “complete coverage” plans with lower deductibles. The HDHP option is best suited to women that are generally healthy, have no chronic conditions, and are mainly seeking a “safety net” in case of an expensive accident or unforeseen medical emergency.

You can compare these and other kinds of health insurance policies for free online by clicking here to visit ehealthinsurance.com.

Healthier and Wiser: Week 1

Healthier and Wiser

Many people who have health insurance obtain it through an employer. However, there may be times in your life when you are without coverage, facing coverage choices or grappling with retirement health issues. The "Healthier and Wiser" series will address some of the main health care coverage issues women encounter at different stages of their lives. It will point you in the direction of where to go to find more information. It is not intended as legal advice. You can check out the "Healthier and Wiser" series on Wednesdays and Fridays.

This Week: Women Without Coverage

If you, your husband, or both, are working, but your employers do not offer health care coverage, are there affordable coverage options for you?

• You may be able to get group coverage—and more favorable rates—if you are a member of an organization that offers group health care coverage. This could be a fraternal organization or a professional society, for example.

• High-deductible plans often offer more affordable monthly premiums and take care of major medical expenses such as hospitalizations, but not routine care. However, you would have to cover expenses that arise before you meet the deductible out of your own pocket.

• If you can’t enroll in a group plan and have a chronic condition that prevents you from buying an individual plan, you can check with your state’s insurance department to see if you might qualify for plans available for people in your circumstances.

• If you have a high deductible health insurance plan, you might also consider opening a Health Savings Account (HSA). The HSA is a special tax-advantaged savings account that is used for health care needs. You can deposit before taxes money into HSA accounts and use the tax-free money to pay medical expenses and insurance premiums. This option may be right for you if you have the money to set aside in an HSA, if you can use additional tax deductions, and if you have trouble finding traditional health care coverage that you can afford. (A word of caution: for many people, the tax savings of an HSA will be lower than the out-of-pocket costs of a higher deductible health insurance plan. Talk to a bank or credit union that sponsors HSA plans for more details.)