Mainstreet - Family

Stories from the Uninsured: Anne Johnson

ProPublica — Fri, 06 Nov 2009 14:00:00 -0500

Using results from a questionnaire we did with American Public Media’s Public Insight Network, we’re looking at how the proposed health care reforms will actually affect people facing common health care coverage situations. This is the first in a series.

Anne Johnson, 41

Location: Corona, Calif.

Work Status: Unemployed

Income: $0

Her story:

Anne Johnson lost coverage for herself and her 18-year-old son in February when she lost her job as a secretary at a solar energy company, where she was earning about $25,000 per year.

Shortly before she was laid off, a cardiologist told her she needs her aortic valve replaced, but without insurance she can’t afford the surgery. She is supposed to get checkups every six months, but that is also too expensive – so she has put them off. Her last visit to the cardiologist was in January, so she is already three months overdue.

“Right now I have no idea what type of condition I’m in,” Johnson said.

What health care reform would mean for her:

Johnson’s son may already qualify for Medi-Cal, the state’s Medicaid program, which covers low-income children if they do not have private insurance, because her son is under age 21. (We let Johnson know that her son may be eligible.)

But if she gets a job that pays roughly the same as she earned before but does not provide health insurance, he would most likely lose his Medi-Cal coverage. The House reform plan, and the Senate Finance Committee plan would standardize Medicaid eligibility across states to 133 percent of the federal poverty line, which amounts to $19,378 for a family of two. The plan from the Senate Health, Education, Labor and Pensions Committee (known as the HELP committee) would expand it to 150 percent of the poverty line, still only $21,855.

Johnson would be able to purchase private health insurance from a gateway or exchange, a state-based pool offering a menu of private insurance plans. The House and the Senate HELP bills would also offer her a public plan.

Her low income would qualify her for a subsidy to help buy insurance through the exchange, according to all three reform proposals.

The House plan and the Senate Finance Committee plan would allow Johnson to choose from four levels of coverage ranging from basic to premium, while the Senate Health, Education, Labor and Pensions Committee does not specify levels of coverage.

But if Johnson remains uninsured, she will have to pay a hefty tax penalty: All three plans impose a highly controversial tax penalty on uninsured individuals. The HELP bill would impose a penalty of $750 per year per person, so Johnson would have to pay $1,500. The Senate Finance plan phases in a penalty of $750 per year per uninsured adult, so Johnson would pay the same amount since her son is 18. The House bill would fine families the cost of a basic health insurance plan from the health exchange, up to 2.5 percent of their taxable income.

Critics of the requirement that all individuals have health insurance say it would in effect increase taxes for poor and middle-class people for not being able to afford health insurance.

Anne Johnson shared her story in response to our “How (if at all) has the health care system failed you?” survey. The survey was created in collaboration with American Public Media’s Public Insight Journalism.

If you’d like to share your stories and experiences with ProPublica, join our Reporting Network.

ProPublica is a nonprofit news organization that produces investigative journalism.

Get Your Ex Off Your Credit Card

Brian O'Connell — Thu, 05 Nov 2009 14:15:20 -0500

Divorce is hard enough without one spouse abusing a joint credit card. But take heart, there are a few tried-and-true ways to get a reluctant spouse off your credit card — and out of that part of your financial life.

Let’s take a look. First, know that the end of a marriage can leave partners in emotional tatters. In the maelstrom of a breakup, particularly early on in the process, loose ends go unrepaired, and that can cost a spouse plenty if they aren’t addressed.

Credit cards are a good example of that. Even though a marriage is dissolving, creditors still want to get paid. And if both names are on the card, then both spouses are responsible for paying the tab.

The solution? Turn off the financial spigot before you divorce. Here are a few tips:

Start by contacting your credit card carrier and letting them know that you want to remove yourself as an authorized user. There may be some payments to negotiate between you and your ex, and if it becomes rancorous, you might have to close the card out and ask for a new one. By and large, though, joint credit card accounts can be closed at the request of one party.

If you still have a balance on your card, your credit card company likely won’t allow you to close the account. So you’ll either have to pay it off or, if that’s not possible, you’ll have to ask your card carrier to “freeze” your account until the balance is satisfied.

Make sure to tell your card carrier to contact the major credit bureaus that the account was shut down at your request. Also, tell your card company that you won’t be responsible for any more charges on the card. Record the dates, time and name of the customer service representative — you might need them later on to prove that you requested your card be closed.

Follow up with a letter confirm that you’ve requested that your name be removed from the card or that the card be closed. Send the letter via registered mail, so you are absolutely certain that the card company received it. Ask your card company to confirm that the card is closed out with a written letter of their own.

Wait a few months, then check your credit report to make sure that your credit card is listed as “closed” on your reports, or at least that your name isn’t on the card anymore. If it’s still listed as open, contact your card company immediately. To get a free credit report, visit the BankingMyWay Credit Center.

While closing a card out may ding your credit score, the financial damage that can be inflicted by a vengeful spouse is far more threatening, so don’t have any qualms about closing the card out, and moving on with your financial life.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Husband vs. Wife: Bypassing College for Business

Marek and Lori Fuchs — Wed, 04 Nov 2009 15:30:40 -0500

Lori and Marek Fuchs have never fought in their 16 years of marriage — except over money. In this column, Mr. and Mrs. Fuchs, a real-life married couple with three kids (ages 12, 8 and 5), articulate their very different approaches to personal finance.

This round, she says he's crazy for agreeing with a columnist who says college is a waste of money. He tries to explain, but hardly gets a word in edgewise.

It’s mom vs. dad, college vs. business and a doctor vs. a guy who partied his way through college and was lucky to emerge with a degree. Who do you think will win?

Mr. Fuchs: See that article I left on your nightstand for bedtime reading?

Mrs. Fuchs: Yeah. That’s not exactly my idea of good bedtime reading. While it definitely had intrigue and tension, there wasn’t a lot of romance!

Mr. Fuchs: Romance? It was a fine opinion piece written by TheStreet’s own James Altucher for The New York Post, all about how he doesn't want his two daughters to go to college. He did back-of-the-envelope calculations and it doesn’t pay. Considering the exorbitant tuitions, the kids are much better off starting businesses.

Mrs. Fuchs: Good Lord. Are we starting this again? Look, you are just going to have to pay for college you cheapskate, regardless of any back-of-the-envelope calculations Altucher might have done. And I’d like to hear what Mrs. Altucher has to say about her husband's “theories.” They shouldn’t let dads do cost/benefit analysis of college. Let me ask you, what is the purpose of college?

Mr. Fuchs: Mostly to party. And for that much money, it’s not worth it. You can learn to party more cheaply. All I needed was a bottle of Scotch and-

Mrs. Fuchs: Are these tears of laughter or sadness dripping down my cheeks? That was your purpose in college — I remember it all too well — but what do you envision college doing for our three kids?

Mr. Fuchs: You mean you want them to aim higher? No home college schooling, partying with dad in the basement?

Mrs. Fuchs: Yes, college provides kids a chance to test out their independence in a safe environment. Not many kids have the life skills to be totally on their own at 18 and college lets them figure it out in a place where the odds of disastrous outcomes are slim. For God’s sake, there is usually a shoulder-high brick wall surrounding it.

And what about higher learning? Think of all the ideas and schools of thought that the kids are exposed to in four (or six) years. Exposure to new ideas and ways of thinking is invaluable. Do you really want our kids to have our small town as their whole frame of reference? I want our kids to be well-rounded and exposed to art, philosophy, history, literature and the sciences, not to mention new people with all sorts of life experiences.

Mr. Fuchs: Plus, the parties rock. Better than in our basement.

Mrs. Fuchs: Look, taking down Altucher’s article is like picking low lying fruit. Even Sidney Franks, principal at Highbridge Finanical Group in Tarrytown, N.Y., who jokes that in light of college costs, "everyone should be a plumber," does manage to point out that “even though it’s not all numbers, you are likely to end up with more money with a college education.”

Think about it, he says. Your social life is linked to both college and your profession, which means your kids are likely to find their spouses that way. If they run in college graduate circles, it’s more likely they will marry a college graduate, which means that in a dual income family, your child is getting the benefit of a college education you did not pay for. See? In that light, it’s a bargain. A two for one deal.

Mr. Fuchs: Come to think of it, I got the benefit of your doctorate, which my parents didn’t pay for.

Mrs. Fuchs: Exactly. Also, Altucher preaches entrepreneurialism as a fitting alternative and some, like Apple’s (Stock Quote: AAPL) Steve Jobs and Microsoft’s (Stock Quote: MSFT) Bill Gates, did drop out of college to start companies that ended up doing OK. But as Franks point out, how many teenagers are equipped to do the same? Or would even want to? Entrepreneurs are born, not made. “Besides,” he said, “the majority of businesses fail and what if you lose the money you would have spent on college? Your education is a union card in our society, but it’s also an insurance policy.”

Moreover, Franks added, “do you really want to start up a plumbing business at 18 or would you rather spend a junior year in France?”

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Wealthy Will Pick Up Health Care Tab

The Associated Press — Tue, 03 Nov 2009 08:56:26 -0500

By Stephen Ohlemacher, Associated Press Writer

WASHINGTON (AP) — The typical family would be spared higher taxes from the House Democratic plan to overhaul health care, and their low-income neighbors could come out ahead.

Their wealthy counterparts, however, face big tax increases that could eventually hit future generations of taxpayers who are less wealthy.

The bill is funded largely from a 5.4% tax on individuals making more than $500,000 a year and couples making more than $1 million, starting in 2011. The tax increase would hit only 0.3% of tax filers, raising $460.5 billion over the next 10 years, according to congressional estimates.

But unlike other income tax rates, the new tax would not be indexed for inflation. As incomes rise over time because of inflation, more families — and more small business owners — would be hit by the tax.

"Twenty years from now, we're going to see more and more small businesses ensnared into paying higher taxes," said Rep. Dave Camp of Michigan, the top Republican on the tax-writing House Ways and Means Committee.

The tax would hit only 1.2% of taxpayers who claim business income on their returns, according to the estimates by the nonpartisan Joint Committee on Taxation. But that percentage would grow as business owners' nominal incomes rise with inflation.

In 2011, a family of four with an income of $800,000 a year would get a $24,000 tax increase, when the new tax is combined with an increase in the top two tax brackets proposed by President Barack Obama and other scheduled tax changes, according to an analysis by Deloitte Tax. That's a 12.5% increase in federal income taxes.

A family of four making $5 million a year would see a $434,500 tax increase, about a 32% increase, according to the analysis.
"These are very big numbers and very high effective tax rates," said Clint Stretch, a tax policy expert at Deloitte Tax.

The new health care tax would come on top of other tax increases for the wealthy proposed by Obama. The top marginal income tax rate now is 35%, on income above $372,950. Obama wants to boost the top rate to 39.6% in 2011 by allowing some of the tax cuts enacted under former President George W. Bush to expire.

House Democrats said they are proud that they found a way to finance the health care package largely from a tax on the wealthy. There is, however, little appetite for a millionaire's tax in the Senate, and some tax experts think it is a mistake to tap only rich people to pay for services used by all.

"If health care is a benefit that is worth having, then it's worth paying for," said William Gale, who was an adviser to President George H. W. Bush's Council of Economic Advisers and is now co-director of the Tax Policy Center. "This gives the impression that it's only worth having if someone else pays for it."

Obama promised during the presidential campaign that he would not increase taxes on couples making less than $250,000. However, the health care bill would impose new taxes on people who don't buy qualified health insurance, including those making less than $250,000 a year.

Under the bill, individuals are required to obtain health insurance coverage or pay penalties, which are described as taxes in the legislation. The penalty would be equal to the cost of an average insurance plan or a 2.5% tax on incomes above the standard threshold for filing a tax return, whichever is less. There would be waivers for financial hardships.

To help afford insurance, families with incomes up to four times the federal poverty level would qualify for subsidies. The poverty level for a family of four is $22,050 this year.

Republicans argue that the penalties violate Obama's tax pledge, and they liken the millionaire's tax to the Alternative Minimum Tax, which Congress enacted in 1969 to ensure that wealthy Americans cannot use loopholes to avoid paying any income taxes.

The AMT was never indexed for inflation, so Congress must enact a fix each year to spare about 25 million middle-income families from being hit with big tax increases.

"They're going down the same road by not indexing this tax," said the Republican lawmaker Camp.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Health Insurance Secrets You Need to Know

Seth Fiegerman — Tue, 03 Nov 2009 07:00:00 -0500

What hospitals and health care providers won’t tell you.

Swine Flu & No Sick Days: Worker Worries

The Associated Press — Mon, 02 Nov 2009 10:32:25 -0500

By Ashley M. Heher, AP Retail Writer

CHICAGO (AP) — For millions of Americans the rule is simple: If you don't come to work, you don't get paid.

That idea drives an untold numbers of carpenters, day care workers, servers, shopkeepers and small-business owners to their jobs each day. Sniffles or not.

As the swine flu spreads across the nation — and public health officials plead with the ill to, please, stay home in bed for several days until the fever goes away — a large segment of the American work force will face a tough choice about whether to call in sick or simply muddle through. That's because when skipping work means skipping food on the table or missing a rent payment, staying in bed isn't as simple as it sounds.

Kara Knoche, 28, is worried about getting swine flu and the money she would lose by missing a week of work. The Atlanta waitress is downing Vitamin C supplements, going out of her way to eat immune system-boosting foods and avoiding friends with the sniffles or hacking coughs.

"If you don't save up, you're basically behind and you're broke. Every dollar you make after that is probably going to go to bills," she said. "That makes for a very hard month. A person has to eat."

Across the country employers of all sizes are making contingency plans for a hard-hitting flu season.

Some business owners are cross-training employees to fill in for absent colleagues. Others are relaxing sick leave policies that require a doctor's note. (Many doctors' offices are advising swine flu patients to stay away unless their symptoms are severe to prevent overwhelming the health care system. )

Some corporations are heeding advice from the U.S. Centers for Disease Control and Prevention. Among their tips: moving desks farther apart, creating more shifts to have fewer people on duty at a time and reducing employee travel.

But that advice doesn't do much for many companies — particularly small businesses or those in the service industry where sick leave is almost unheard of or too costly for owners to afford.

"We don't have a real good contingency plan in place right now," said Gordon Weitzel, owner of Dayton's Chicken & Seafood in Salisbury, Md. His staff of 36 does not have sick leave.

"I've got some servers who cook, and I've got a lot of different people I can flip-flop. But it most certainly would be a hardship if 20 or 25 percent of my staff had swine flu" and stayed home, he said.

About a third of the nation's workers don't have paid sick leave, according to the U.S. Department of Labor. But even some workers who do don't take it because they fear retribution from their bosses if they don't show up.

The problem can be worse for parents who worry not just about their own health, but their children's. After all, a sick kid who got the flu from Mom or Dad can mean even more time off the job.

Kevin Huigens, 52, knows calling in sick means bringing home a smaller paycheck, or possibly none at all. As a technology contractor in suburban Chicago, his job doesn't come with sick leave or vacation time.

So what will he do if he gets sick this winter?

"If I'm well enough to sit up in bed with a laptop, I can still work," he said. "I can work from home somehow, some way. It may not even be a full eight hours, but I can get a few hours a day."

Even that might not be doable for some particularly ill patients.

Last year, Chicago real estate agent Jen Sanders was felled for five days by the seasonal flu after forgoing a flu shot for the first time in a decade. Stuck at home, she had to call other real estate agents to attend everything from home inspections to showing listings to potential buyers so she wouldn't risk losing her commission.

"It's horrible when you feel so crappy and you realize that you are losing money at the same time," she said.

This year, she made sure to get a flu shot. She'll also continue her strategy of keeping her gloves on during the height of the winter flu season when she's shaking hands.

"Every time I do a showing, I greet people," the 35-year-old said. "I try to do what I can without making other people feel awkward."

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

The Real Cost of Your Vice

Althea Chang — Mon, 02 Nov 2009 06:00:00 -0500

Those unhealthy habits like smoking and drinking can shrink your wallet and your lifespan.

Most Popular Kids' Costumes This Year

Michael Schreiber — Fri, 30 Oct 2009 17:22:50 -0400

Haven't bought a Halloween costume for your kid yet? You might have missed out on these options - they're the most popular cosutmes this Halloween.

The Health Care Bill Has Arrived

The Associated Press — Thu, 29 Oct 2009 15:50:59 -0400

By Erica Werner, Associated Press Writer

WASHINGTON (AP) — After months of struggle, House Democrats rolled out sweeping legislation Thursday to extend health care coverage to millions who lack it and create a new option of government-run insurance. A vote is likely next week on the plan largely tailored to President Barack Obama's liking.

Speaking on the steps of the Capitol, Speaker Nancy Pelosi said Congress was at a "historic moment" with lawmakers "on the cusp of delivering on the promise of making affordable, quality health insurance available to every American."

Officials said the measure, once fully phased-in over several years, would extend coverage to 96% of Americans. Its principal mechanism for universal coverage is creation of a new government-regulated insurance "exchange" where private companies would sell policies in competition with the government. Federal subsidies would be available to millions of lower-income individuals and families to help them afford the policies, and to small businesses as an incentive to offer coverage to their workers.

Large firms would be required to cover workers, and most individuals would be required to carry insurance.

The ceremony marked a pivotal moment in the Democrats' yearlong attempt to answer Obama's call for legislation to remake the nation's health care system by extending insurance, ending industry practices such as denying coverage on the basis of pre-existing medical conditions, and slowing the growth of medical spending nationwide.

Across the Capitol, Senate Democrats, too, are hoping to pass legislation by year's end. Legislation outlined by Majority Leader Harry Reid earlier this week would include an option for a government-run plan, although states could drop out if they wished, a provision not in the House measure.

Obama issued a statement saying House Democrats had reached a "critical milestone" on the road toward a health care overhaul, and singled out the proposed government insurance option. He also said the bill "clearly meets two of the fundamental criteria I have set out: It is fully paid for and will reduce the deficit in the long term."

Republican reaction was swift and critical.

Rep. Tom Price, R-Ga., head of the Republican Study Committee, issued a statement saying Democrats had produced a "government takeover that will limit choice, competition and innovation in health care while increasing costs and decreasing quality." He said the measure would kill jobs, raise taxes and inflict cuts on a program of private Medicare that provides benefits to millions of seniors.

GOP leaders long ago decided to oppose the approach requested by Obama and taken by Democrats, and health care is expected to figure in next year's congressional election campaigns.

Democrats issued a statement saying their 1,990-page measure "lowers costs for every patient" and would not add to federal deficits. They put the cost of coverage at under $900 billion over 10 years, a total that excludes several items designed to improve benefits for Medicare and Medicaid recipients and providers, as well as public health programs and more.

With Republicans expected to oppose the measure unanimously, Pelosi and her lieutenants worked for weeks to resolve differences within the Democratic rank and file.

The toughest of them covered the terms under which the government insurance option would function. Liberals generally wanted the government to dictate the rates to be paid to doctors, hospitals and other health care providers, with the fee levels linked to Medicare.

Moderates, fearing the impact on their local hospitals, held out for negotiated rates between the government and private insurers — and won.

Not all liberals were ready to sign on. "My inclination is not to support it," said Rep. Raul Grijalva, D-Ariz., a co-chair of the Congressional Progressive Caucus, but that represented a softening of his opposition.

Grijalva acknowledged there was an argument for progressives to vote "yes." ''The logic is to keep the ball rolling," Grijalva said Thursday.

Democrats control 256 seats in the House, are overwhelmingly favored to win one special election next week and are competitive for another. As a result, they can afford more than 30 defections on the legislation and still prevail.

The legislation would be financed by a combination of cuts in planned Medicare spending and an income tax surcharge of 5.4% on individuals making at least $500,000 annually and couples making at least $1 million.

The bill would require nearly everyone by 2013 to sign up for health coverage either through their employer, a government program or the new exchange.

In the meantime, a temporary government program would help people turned down by private insurers because of medical problems, lawmakers said. After that, insurers no longer could refuse to provide coverage to the sick, nor could they charge more because of poor health of the insured.

The plan also calls for a significant expansion of Medicaid, the federal-state health program for low-income people. And it would impose a requirement on employers to offer insurance to their workers or face penalties.

Pelosi, D-Calif., and the leadership have yet to work out disputes over abortion services and health care for immigrants, issues that must be settled before the bill can come to a vote.

Pelosi has also said the bill would strip the health insurance industry of a long-standing exemption from antitrust laws covering market allocation, price fixing and bid rigging. Democratic officials said the bill also would give the Federal Trade Commission authority to look into the health insurance industry at its own initiative. The officials spoke Wednesday on condition of anonymity, saying they were not authorized to pre-empt a formal announcement.

While precise figures were not immediately available, it appeared the legislation would target the drug industry for more than the $80 billion that pharmaceutical firms agreed to contribute toward health care in a deal earlier this year with the White House and key senators. But the industry managed to come away with a provision worth billions: 12 years of market protection for high-tech drugs to combat cancer, Parkinson's and other deadly diseases.

Medical device makers also took a hit, with a 2.5% excise tax on sales of their products that is reported to cost the industry $20 billion over the next decade. A $40 billion fee on those businesses was included in a Senate Finance Committee-approved version of the legislation, but Reid is considering cutting it by as much as half.

___

Associated Press writers Ricardo Alonso-Zaldivar and Julie Hirschfeld Davis contributed to this story.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Same-Sex Couples' Not-So-Golden Years

Joe Mont — Thu, 29 Oct 2009 12:45:16 -0400

BOSTON (TheStreet) — As same-sex couples are increasingly being granted rights similar to those of traditional marriages, many will be at a comparative disadvantage as they enter retirement.

The study by the Williams Institute at the UCLA School of Law says gays and lesbians will have less retirement income and fewer ways to pass savings on to their families after their death. Merrill Lynch, a unit of Bank of America (Stock Quoe: BAC), helped fund the report.

A large share of same-sex couples will be entering retirement in the next two decades, just as states open marriage and civil-union laws. There are about 1.2 million gay people living with a same-sex partner in America, according to the most recent U.S. Census.

Inequality in retirement savings needs to be addressed, says Naomi Goldberg, author of the survey, titled "The Impact of Inequality for Same Sex Partners in Employer-Sponsored Retirement Plans."

The study, citing census statistics, shows that traditional couples earn an average of 4% more in combined household retirement income each year compared to same-sex couples. It claims, however, that the statistic only tells part of the story.

Same-sex surviving spouses can't directly receive the balance of their deceased spouse's 401(k) plans. Because they must begin making withdrawals immediately, they face a higher tax rate and the loss of accruing interest. Surviving same-sex spouses also pay higher estate taxes.

"The bulk of these inequalities are a direct result of the Defense of Marriage Act (DOMA), which forces the federal government to treat same-sex couples differently than married couples when it comes to retirement savings or estate taxes after death," Goldberg says. DOMA was passed under President Bill Clinton.

There have been changes that have benefited gays and lesbians. The Pension Protection Act of 2006 gives surviving partners of same-sex relationships access to retirement assets.

Corporate America has shown an increased willingness to recognize same-sex couples. Companies such as Boeing, Coca-Cola, Pepsi, Nike and Microsoft offer the same benefits to straight and gay couples.

The federal government has proven less open-minded with its employees. Same-sex couples are unable to receive the same health care, retirement and family-leave benefits. Congress is debating a bill sponsored by Sen. Joe Lieberman (I-Conn.) and Sen. Olympia Snowe (R-Maine) that would change that. The move could affect as many as 35,000 government workers at a cost of $56 million in 2010.

The federal government's lack of recognition for same-sex marriages — even when legally sanctioned by such states as Massachusetts, Connecticut and Iowa — has a broader impact. Surviving same-sex spouses and partners are unable to tap Social Security spousal or survivor benefits, losing out on an estimated $5,700 a year.

Goldberg says female couples are at a particular disadvantage.

"A female same-sex couple is more likely to be on public assistance, more likely to continue working older in life and they receive less in overall income," she says. "Women are more likely to move from job-to-job, whether it is because of taking time out for kids or otherwise. When you have two women who are creating a household together, that disadvantage is compounded."

The study found that female same-sex couples over age 65 have an average of $3,615 less income than straight married couples.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Husband vs. Wife: Teaching Kids About Hard Times

Marek and Lori Fuchs — Wed, 28 Oct 2009 15:30:00 -0400

This round: He asks, “What do we want our children to have learned from this economic downturn?” She says, “Why do you use so many metaphors? It’s really annoying.”

Mr. Fuchs: During some of the worst of the financial mess, we argued over how much you should clue kids in to what is going on with the tapped out family budget. But assuming that things might be improving, what do you (as a mom of three, child psychologist and woman who often disagrees with me incessantly) think kids should take away from this whole economic mess? What should they have learned?

Mrs. Fuchs: That’s easy — resilience and the ability to stay a bit austere even after the economic smoke has cleared.

Mr. Fuchs: I know you don’t need affirmation from me, but that’s just what financial planners like William Driscoll of Driscoll Financial in Plymouth, Mass., say. Let’s take resilience first. The economy is cyclical. Obviously, this economic downturn was a burn, but hopefully kids can see that you can get through even a burn. This too shall pass, as they say, and it’ll pass without mom and dad completely losing their heads or sending little Johnnie and Jane to work in the coal mines. To stay with our biblical lingo for a moment: good times beget bad and bad good. If you have a lifetime ahead of you in this global economy, which is so prone to turbulence, it’s once of the most important lessons you can learn.

Mrs. Fuchs: OK, I’m going to overlook your many metaphors and assume that what you’re trying to say is that we can use this economic downturn to teach our kids concepts like hope and stick-to-itiveness. If they continue to work hard and look at situations in a flexible way, they will come through it and learn something in the process.

Mr. Fuchs: Yeah, well — that too. I guess I want them to learn the larger concept of hope, but also specifically about the economy: It goes in waves and while the undertow stinks, it doesn’t last forever. No need to jump out of windows.

Mrs. Fuchs: Windows, waves — how did I marry such a drama queen? So, what does Driscoll say about my other idea — maintaining that degree of austerity?

Mr. Fuchs: In this sense, Driscoll essentially thinks the downturn did the world a favor. “Parents weren’t as free to give money to their children as they were a couple of years ago,” he said, so they had to start thinking strategically and drawing distinctions. His own 17-year-old son, for example, works at Marshall’s and saves money for the many concerts he likes. But he also learned to take advantage of late-arrival tickets and student discounts. It sounds almost trite to say it, but Americans lost site of what was a want and what was a need (and what wants and needs they could afford, for that matter). If kids — and the entire family — made any progress toward a more strategic and austere life through the downturn, they should maintain it.

Mrs. Fuchs: This sounds like another lecture to the kids. Sorry to say that I’ll be busy when they come home from school ... ummm ... entering items into my financial software.

Mr. Fuchs: That’s perfect! Just do it in the dark.

Mrs. Fuchs: Why am I doing it in the dark?

Mr. Fuchs: I’m getting to that. See, lectures, let alone about home finance, bore kids to tears and are counterproductive. As we emerge from this economic muck, Driscoll said kids should instead see in our actions that we’ve learned lasting lessons, which we are carrying on into better times. Said Driscoll: “You have to show them physical examples of continued austerity: running around turning off lights, getting rid of one of the premium cable stations, talking to them about how you have to wait three months until you have enough money for a new flatscreen TV.” Even when times are good, he said, “they should see calm, dedicated persistence when it comes to staying on budget.”

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

What Does a Swine Flu National Emergency Mean?

Consumer Reports — Tue, 27 Oct 2009 12:30:00 -0400

Note: Consumer Reports has no relationship with the advertisers on this site.

It’s déjà vu all over again. The Obama administration declared the H1N1 (swine) flu outbreak a “national emergency” over the weekend—just as it declared a “public health emergency” back in April, shortly after the outbreak began. So what’s the difference?

When the government first declared the public health emergency in April, it paved the way for a streamlined response for the swine flu threat. For example, the government was able to distribute stockpiles of antiviral drugs, and other supplies, and expand the recommended usage of those drugs under emergency authorizations.

The latest declaration was done to allow the federal government to waive certain regulatory requirements so that hospital emergency rooms and other health-care providers can respond more quickly. Such waivers have been provided to hospitals in past emergencies, such as floods and hurricanes.

The “national emergency” declaration doesn’t mean that the nature of the outbreak has changed dramatically. But the flu is indeed spreading rapidly. According to the CDC this flu is widespread in 46 states, and flu activity is higher than the peak of many seasonal flu seasons. Health officials are concerned about a busier than usual flu season, and want to make sure hospitals have the tools to deal with greater volume.

What can be waived?

Hospitals can request a waiver of certain regulatory requirements that generally protect patients during day to day activities, but may slow down an emergency response due to high volume. Here are some examples:

Hospitals can request to set up an alternative screening location away from the main hospital.
Hospitals can request to transfer patients between emergency rooms at different hospitals and inpatient wards (which is usually not allowed due to access and privacy concerns).
Critical access hospitals (facilities that are certified under a specific set of Medicare conditions) and skilled nursing facilities can request waivers to allow them to increase the number of beds available and the average time of patient stays, which typically have set maximums.

Note: Consumer Reports has no relationship with the advertisers on this site.

The emergency waivers can also allow hospitals to bypass certain patient privacy provisions like:

Talking to family members and friends involved in a patient’s care without first obtaining the patient’s agreement
Not having to honor a patient’s request to opt out of the facility directory
Bypassing the requirement to distribute a notice of privacy practices
Not having to honor a patient's request for privacy restrictions or confidential communications

These provisions may or may not affect your community, but don’t be surprised if your hospital has tents in the parking lot to deal with admissions, or opens a clinic in a school gymnasium. And while hospitals need to make advance plans to deal with higher volume this flu season, that doesn’t men you should to rush to the emergency room with any cough or fever — the ER may just be the best place to catch the flu this year.

However, if you suspect that you or a child you care for has the flu and is having difficulty breathing or any of these other signs or symptoms, seek care immediately and don't hesitate to use an emergency room. Those with underlying conditions or other risk factors, should contact their health care providers at the first sign of flu. Others should try to treat themselves if the flu does not seem severe.

Keep up to date with our Swine (H1N1) flu coverage and recommendations.

—Subscribe to ConsumerReports.org or check out Consumer Reports’ Money advice.

DIY Costumes: Last-Minute Halloween Options

Michael Schreiber — Mon, 26 Oct 2009 18:18:11 -0400

There are plenty of super-easy, and reasonably respectable do-it-yourself Halloween costumes that can be thrown together at the last minute.

Good vs. Evil Halloween Candy

Althea Chang — Sat, 24 Oct 2009 08:15:44 -0400

Here are a number of Halloween staples, contrasted with treats that are a bit better on the bod.

Swine Flu Shots: Where to Get Them

Althea Chang — Thu, 22 Oct 2009 12:28:01 -0400

Swine flu shots are out there. Here's where you can go to get yours, now or very soon.

Husband vs. Wife: Halloween Budget Nightmares

Marek and Lori Fuchs — Wed, 21 Oct 2009 14:39:59 -0400

Lori and Marek Fuchs have never fought in their 16 years of marriage—except over money. In this column, Mr. and Mrs. Fuchs, a real-life married couple with three kids (ages 12, 8 and 5), articulate their very different approaches to personal finance.

This round, she ticks off plans for Halloween while he says, you make me want to scream and run from the room.

Mrs. Fuchs: Only a few weeks until Halloween and do you know what that means around here (besides you and the children on sugar highs)?

Mr. Fuchs: Surprise me.

Mrs. Fuchs: You on the roof hanging up ghosts. I’ve decided to go all out this year and decorate the house like I a Martha Stewart magazine spread. (Stock Quote: MSO) Do you have any black paint lying around?

Mr. Fuchs: Hold your headless horses. Turns out, Halloween is the holiday where Americans spend the second-largest sum of money.

According to the National Retail Federation’s 2009 Halloween Consumer Intentions and Actions Survey, conducted by BIGresearch, consumers are expected to spend nearly $5 billion this year. That’s any awful lot of candy corn. Here’s the problem, though. With Christmas, we all know it’s coming. Look how we’ve been planning since we were still sweltering in the heat of July. But Halloween sneaks up on you. And financial planners far and wide say that any surprise when it comes to family budgeting is no good. Our budget is enough of a horror show without a Jack-In-The-Box in the equation.

Mrs. Fuchs: Halloween is certainly being pushed, that’s for sure. The kids were poring over a Halloween catalog the other day, circling the costumes like I used to circle toys in the Christmas catalog. If we got each kid a store-bought costume...

Mr. Fuchs: Go no farther! I’m already horrified. What can we do to keep Halloween spending under control this year?

Mrs. Fuchs: Certainly not dole out that year-old candy you got at the dollar store last year – I’m still scrubbing eggs off the windows.

Mr. Fuchs: Hey, going hundreds over budget is no laughing matter. Can you stay on message here?

Mrs. Fuchs: Well, at risk of sounding like an old person lamenting the good old days here, why can’t our kids do it like we did it back when? Did you know anyone whose parents spent $30 or more on a costume to be worn once? We came up with a costume and put it together ourselves – some of dad’s old shirts, mom’s costume jewelry, some poster board and glitter – voila! – you had a perfectly decent costume. These are some easy, homemade costumes that worked last year and might spark ideas for this year: these costumes or try these.

Mr. Fuchs: Perfectly decent sounds great. It’s that reach toward perfectionism that always costs money. A lot are in the same boat. Also, according to this week’s survey, people are planning to spend an average of $56.31 on Halloween, down from $66.54 last year, with about a third saying its the scary economy impacting their plans.

Almost half say they’ll buy less candy, with around a third planning to reuse decorations. About 16.8% say they’ll make their costume and 15.8% say they’ll get last year’s out of the closet, mothballs and all.

Speaking of the candy, though, what about less of it? We live on a block where literally hundreds of goblins and goons amble by with outstretched palms. Can we tell them to get lost?

Mrs. Fuchs: Listen, it’ll cost more to get egg removed from windows. You’re just going to have to buy them candy. Start looking for sales and we can compare that cost with Costco (Stock Quote: COST), Target (Stock Quote: TGT) and Wal-Mart (Stock Quote: WMT).

Mr. Fuchs: Sounds good. Between the homemade costumes and discount candy, we’ll be fulfilling the mandate of financial planners, who are spooked by the concept of getting surprised. Halloween is a big holiday, expense-wise. But we’ve planned beforehand, which means less regrets afterward.

Mrs. Fuchs: I’ll even scale back my house decorations – I won’t dust until Halloween and we’ll have genuine spiderwebs and dust covered furniture in no time.

Mrs. Fuchs: If it saves money, I’m all for it. Let me dust, allergies be damned.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Nature’s Drug Store: Cheap Remedies

Althea Chang — Fri, 16 Oct 2009 11:15:23 -0400

Here are some natural remedies that you can use in teas, supplements, drops and more.

Medigap Changes That Could Affect You

Gavin Magor — Thu, 15 Oct 2009 13:58:54 -0400

WASHINGTON D.C. (TheStreet) – In July 2008 the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) was approved by Congress. Part of the act covered Medigap and introduced some changes effective June 1, 2010. The changes will only affect existing policyholders at the point of their annual renewal.

Medigap is "health insurance sold by private insurance companies to fill the 'gaps' in Original Medicare Plan coverage," according to the Medicare Web site.

One change affecting everyone is an additional benefit included with the basic coverage offered under all Medigap plans. If you take out a Medigap policy on or after June 1, 2010, coverage will include the amount of cost sharing for all Part A Medicare eligible hospice care and respite care expenses.

Prior to the implementation of the new coverage, only those with the high deductable plans K and L received any benefit for this expense, with 50% and 75% coverage of the cost sharing amount respectively. The benefit for plans K and L will remain at the levels before June 1, 2010. You will not gain this benefit if you choose to retain your current plan with the existing benefits.

Other changes were included that could affect your decisions about your choice of Medigap plan. As of June 1, 2010, four plans will be discontinued, two plans will have changes made to the coverage in addition to the hospice and respite care coverage already discussed, and two new plans will be added.

Plans E, H, I and J will be discontinued. This means that, beginning June 1, 2010, these plans will no longer be available for you to purchase. Existing holders of a policy with these plans will be able to renew the same policy when it falls due, but only if the provider continues to offer the plan. If your provider decides not to continue to offer your plan you will not be able to obtain one of the discontinued plans even if you hold a policy for one of the other discontinued plans.

Plans D and G will no longer offer at-home recovery, as a benefit after June 1, 2010. This benefit was previously also available under plans I and J, and as they are discontinued the benefit will only continue to be available to holders of policies with plans D, G, I and J in effect prior to June 1, 2010.

Previously, Plan G offered coverage of 80% of the Part B excess. Beginning June 1, 2010, the coverage is increased to 100% of the Part B excess. If you currently hold a Plan G policy you will not be able to obtain the benefit of this change on renewal unless you give up the at-home recovery portion of your existing plan. Essentially you can either retain the benefits of the existing plan or you can accept the changes and have the benefits of the new Plan G.

Two new plans, M and N are to be introduced on June 1, 2010.

Plan M is similar to Plan D except that only 50% of the Medicare Part A deductible is covered. In addition to 100% coverage of the Part B co-insurance, skilled nursing facility care and medically necessary emergency care in a foreign country are covered.

Plan N is also similar to Plan D, except that it requires co-payments of up to $20 for each covered health care provider office visit (including visits to medical specialists); and up to $50 for each covered emergency room visit. The ER co-payment is waived if you are admitted to the hospital.

If you are thinking about changing your plan you should consider doing it very carefully. Once you change your plan you cannot go back to your previous plan if it is not available to new policyholders.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Husband vs. Wife: Cutting Back the Smart Way

Marek and Lori Fuchs — Wed, 14 Oct 2009 13:52:55 -0400

Lori and Marek Fuchs have never fought in their 16 years of marriage—except over money. In this column, Mr. and Mrs. Fuchs, a real-life married couple with three kids (ages 12, 8 and 5), articulate their very different approaches to personal finance.

In this round, she says: a cleaning lady was too expensive, that’s why we cut back. He says: not having help costs us money—especially with your work strike.

Mr. Fuchs: We speak to financial planners on issues like insurance and college savings until I want to plug my ears, but what can they tell us about cleaning help? Nothing. Zip. Zilch. And in our lives, at least in the short run, that’s all that matters.

Mrs. Fuchs: Ah, the cleaning lady. With journalism imploding and my psychology practice down because of he economy, we had to cut back and stop using one.

Mr. Fuchs: But with three kids and two dogs who kick up dirt and dust around the clock, I swear it's losing us money long-term. To me, it seems a metaphor.

Mrs. Fuchs: To you, everything seems a metaphor.

Mr. Fuchs: No, hear me out. Because if you work for yourself and if more work can bring in more money, you should probably be careful that you don’t cut back in areas that’ll cost you more time. Time is money, quite literally. If, for example, we keep the house six degrees cooler this winter, that might be a better way to save money. That doesn’t cost time.

Mrs. Fuchs: I can’t type when my hands have the chilblains you know.

Mr. Fuchs: Chilblains? I suspect you have a good point, but what are chilblains, a bean dip?

Mrs. Fuchs: Funny. It’s what can happen when you expose me to too much cold weather.

Mr. Fuchs: Do you learn everything you know in life from those old English novels?

Mrs. Fuchs: Anyhow, you’re only concocting this theory because I went on strike and haven’t done the cleaning or laundry since last week. You don’t want to pick up my slack. As far as I can figure, there is no economic downside to doing your own cleaning — only marital ones.

Mr. Fuchs: I’m telling you, though, even the small amounts of laundry, dusting and (ugh, the worst) vacuuming I’ve picked up since your job action have me exhausted. I can barely write articles which, in an industry that is unraveling as we speak — from Gannett (Stock Quote: GCI) to Conde Nast to the New York Times (Stock Quote: NYT) — is no good. And financial planners support me. They say that when you cut back, especially if you are self-employed, be certain not to do it in any area that will cost you a ruinous amount of time and money. Compounding your troubles in this manner is a special risk for the self-employed. Remember a couple of years ago when I was going to paint the house to save us $7,000? Well, it would have taken me forever and cost me about twice that in lost work. If I were a tenured, salaried teacher on summer break—no problem. But the self-employed have to watch that cut backs don’t cut them down.

Mrs. Fuchs: I suppose you have a point on the large scale but you still have to have the money to be able to spend it. When you plan your budget you still have to make sure that things that are, ultimately, luxuries do not take away from things like saving for retirement or paying down debt. That will cost you even more in the long run than the time you spend sweeping – which I’ll bet you can do in the time it takes me to write my part of this column.

Mr. Fuchs: Are you saying I should quit my sniveling and start cleaning? Hey, I resemble that accusation.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Free Money Games Your Kids Will Love

Kali Geldis — Mon, 12 Oct 2009 17:20:37 -0400

Learning about personal finance doesn't have to be boring. In fact, some companies are taking personal finance education to a whole new level, with online games focused on making financial matters approachable for both kids and adults. Here's a roundup of a few sites you might want to check out with your kids.

FinancialSoccer.com

On this site, created by Visa (Stock Quote: V), players answer personal finance questions in order to score goals. You can pick your team, your level of play and your opponent for a "World Cup" match.

The game has three different levels of difficulty: one for children ages 11-14, one for teens 14-18 and one for 18 and up. The personal finance questions cover an extremely broad range of money issues, the more difficult dealing with bonds, yields and securities and the easier dealing with savings and checking accounts. Visa also provides plenty of materials for teens to study before they play.

Financial Football

Also run by Visa, Financial Football is an NFL version of the Financial Soccer game, just catered to a different sort of sports fan. I enjoyed the Financial Football game more than Financial Soccer because it has the types of questions that are asked are a bit more complex, although I did run into a glitch that forced me to restart the game. This is definitely a great education tool for a young football fanatic, despite any technical difficulties.

Bank or Bust

This game is one of the best budgeting games out there. Made by the Educational Broadcasting Corp., it combines real life decisions with fun choices. You begin by sorting expenses into categories like transportation and entertainment, an important budgeting tool for everyone. Next, you're asked to pick five habits out of 15 possible money-saving techniques; the goal is to pick the tricks that will help you save the most in the long-run. Finally, you spin a wheel that randomly puts you into possible saving or splurging scenarios. You make the choice and live with the consequences. As the game ends, you are able to see how much you've saved, and what car and house you would be able to afford if you kept up these saving habits. This isn't necessarily a game you'll play over and over again, but it is something that teaches skills, not just personal finance facts.

Moneytopia

This game, made by the Financial Industry Regulatroy Authority (FINRA), is definitely suited for your high school or college student. It's pretty long and involved, but it basically takes almost every financial decision you might have to make in your life and puts it into one game. The game has a steeper learning curve than the others, but it's pretty fun and very interesting. It throws real world situations at you too. There are people out there in the real world trying to scam you and this game reflects that too.

Mad Money

You can always count on PBS to make a great, educational game for kids, and they did just that with Mad Money. Similar to Bank or Bust in its concept, the player makes choices so that they can eventually save enough for a big purchase like a concert ticket or sneakers. The game is more simple than Bank or Bust and is better suited for younger kids - your tweens and teens won't be challenged enough.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

College is Top Savings Goal for Teens

The Associated Press — Mon, 12 Oct 2009 14:23:14 -0400

By David Pitt, AP Personal Finance Writer

DES MOINES, Iowa (AP) — Stroll through the mall on a weekend and you get the impression teens save money to buy clothes or iPods and video game systems, but a new survey shows their priority is quite different — saving for college.

The survey by online brokerage TD Ameritrade Holding Corp. shows putting money away for higher education is the top savings goal for today's teens. The results showed 62% of teens aged 14 through 19 save their money for college, a much higher rate than the 40% of adults who said they saved when they were teens.

The results weren't expected by educators who are pushing for financial literacy education in schools.

"It's a pleasant surprise that we're seeing young people paying that much attention to the importance of this issue," said Joseph Peri, CEO of the nonprofit Council for Economic Education. "Part of teaching the importance of investing is showing that the best investment a young person can make is an investment in themselves."

Peri's group and several other educational organizations are holding a conference in Washington this weekend in which 500 educators and government officials are discussing ways to teach basic financial literacy in schools. That means educating students about budgeting, bank accounts, investing and saving.

Although the T.D. Ameritrade survey indicated teens understand some of those concepts, it revealed some interesting generational shifts in attitudes about money.

Fewer than half of today's teens said they get their cash from part-time or weekend jobs, while 77% of adults said work was their source of money as teens.

Today's teens get most of their money from their parents or from gifts for occasions like birthdays.

The fact that they are given more of their money rather than earning it increases the importance of financial literacy at a young age, said Diane Young, director of retirement and goal planning for TD Ameritrade.

"One concern would be that when the focus is on saving for such a long-term goal and their parents are taking care of their day-to-day expenses, are they really learning how to manage cash flow?" she said.

Today's teens are more likely to get money for credit card payments, clothing and a car from mom and dad. Back in the day when today's adults were teens, they were much more responsible for their own bills and transportation. For example, just 9% of teens said they pay for all the costs associated with a car or other transportation, while 36% of adults said they had to pay for those expenses at that age.

The survey shows teens are not hesitant to sock more of their money away than their elders did when they were young. About 87% of teens say they save. That compares with 56% of adults who said they saved some portion of their income as teens.

The results also show 78% of teens said they want to establish a plan with their parents that involves splitting the cost of education.

That interest should prompt teens and their parents to discuss the options for saving. They can include a prepaid tuition plan that locks in costs of tuition and mandatory fees. There's also a 529 savings plan option that's an investment account offering tax-free earnings growth to cover tuition and other costs such as room and board and books. Other options include a Coverdell education savings account, which is similar to a Roth IRA in which taxes are paid up front but the savings grows tax-free and are taken out with no taxes due.

Custodial savings accounts, those set up by parents and turned over to students when they become adults, are also available. They typically help families set aside money for expenses not covered in the other plans such as sorority dues or music lessons.

The willingness of teens to share the financial burden shows that they are very aware of rising college costs, Young said.

More than 80 percent of teens reported that they consider education to be essential to future success, compared with 56 percent of adults surveyed who say they felt that way as teens.

"We've become more conscious of the opportunities that are out there for us and the competition that's out there," said Megan Partridge, 17, a student at Voorhees High School in Glen Gardner, N.J.

She said the importance of getting a college education has many teens and their parents thinking about how they're going to pay.

Partridge said although she doesn't set aside her own money, her parents have started saving for her college.

Outside of school, she's working on gaining experience that will help her succeed in college. For example, this summer she attended a youth leadership program in New York hosted by SuperFutures.org, a career development organization founded by financial services entrepreneur and author Jennifer Openshaw. Partridge said she met experts in sustainable development, an area she hopes to study in college.

The TD Ameritrade random telephone survey was conducted by Opinion Research Corp. for TD Ameritrade. The company interviewed 768 adults and 365 teenagers Aug. 6-10. The statistical margin of error for adults is plus or minus 3 percentage points and for teenagers 5 percentage points either way.

The survey points to other interesting trends about how kids learn about money.

It's no surprise that 93% say they rely on their parents for guidance about managing money, with half going to mom for most of the answers about money and a third saying dad is the most help.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Employers Look to New Insurance Option

The Associated Press — Mon, 12 Oct 2009 11:06:01 -0400

By Tom Murphy, AP Business Writer

Workers may need to do more homework when they evaluate their health coverage options this fall.

This year, more employers may include a new type of plan that can chop premium payments by nearly 20% and give consumers a tax break.

The tradeoff is higher deductibles, which have the potential to swamp customers with big bills. The plans, called consumer-directed health plans, vary from employer to employer and require careful comparison with other choices before making the switch.

These plans have been around for several years, but more employers are considering offering them as health costs rise and the recession fosters a new push to cut costs. Employees could see these higher deductible plans among their choices for the first time as open enrollment, the annual window when businesses allow employees to adjust their coverage, begins in a few weeks at many companies.

A consumer-directed health plan typically pairs insurance that carries a high annual deductible with an account fed either by an employer or by the employee through pre-tax contributions to help cover costs.

The deductibles — which start around $1,200 a year and can approach $10,000 for family coverage — make the customer pay more money out-of-pocket for care before most coverage starts. The idea behind this insurance is to give clients an economic incentive to spend carefully, while providing protection from devastating medical bills. Some plans also provide annual physicals and other screenings at no cost to patients to encourage basic and preventive care that could stave off bigger bills down the line.

Some employers help cover the out-of-pocket cost by funding what's called a health reimbursement arrangement for employees to tap. The money belongs to the company and stays with it if an employee leaves.

A common alternative is to offer health savings accounts. Employees can deposit pre-tax dollars to cover medical expenses not covered by insurance. Some employers contribute to these HSAs. Unused money grows in the account, which belongs to the worker and is portable if he or she changes jobs.

A consumer-directed health plan can help people on both extremes of the health care spending spectrum, but it can be risky for some who fall in between or for those who don't fund their HSA, financial planners and insurance brokers say.

"It doesn't fit most people," said Jon Beyrer, vice president of wealth management for Blankinship & Foster, a Solana Beach, Calif.-based financial advisory firm.

The plans offer premiums that are, on average, about 19% cheaper than the cost of more common insurance plans with lower deductibles, according to statistics from the Kaiser Family Foundation and the Health Research and Educational Trust.

People who use little health care can benefit from that price break and build up their HSA accounts. Plus they earn unique tax benefits. Money deposited in the accounts is either taken from your paycheck before taxes or it can be a deduction, it grows tax free, and then it is not taxed when taken out for qualified medical expenses.

"There's no combination like that in any other savings vehicle," Beyrer said.

People who use a lot of health care can benefit because HSA plans come with limits set by the government for how much money a customer spends out of pocket each year. Next year, that will be $5,950 for individuals and $11,900 for family plans, counting the money you spend on the deductible. Out-of-pocket maximums are typically listed in the insurance benefits summary.

Depending on a plan's coverage, these lower limits could help someone with a chronic condition like heart disease or diabetes or someone who needs expensive medications, said Paul Frontsin, director of the health research and education program for the nonprofit Employee Benefit Research Institute.

It's the people in between who really have to think hard about risk and what their plan offers. These plans can be a poor fit for people with tight budgets and little savings. Out-of-pocket expenses can pile up quickly.

"I would be worried about somebody who's really having a hard time making ends meet, switching to a higher deductible plan if they also had health issues," Beyrer said.

On the flip side, Jim Green hasn't paid a dime for health care since signing up a couple years ago for HSA-based insurance through his employer, Indiana's state government.

Green, 56, said the state pays his entire premium and contributes about $1,500 to his account every year.

When he visits the doctor, he simply pulls out a charge card that takes money from the company-funded account.

"My wife and I are not sick very often, and we don't go to the doctor very often, so it's covered everything we've had," he said.
Consumer-directed plans have become more popular in recent years with many businesses that offer coverage. Benefits consultants say companies like the lower premiums and the fact that these plans encourage workers to use the plans more judiciously.

Runaway health costs are at the heart of the debate in Washington to overhaul the nation's health system. Businesses would like to see something emerge that lowers expenses.

In 2009, the average annual premium for employer-sponsored family coverage outpaced inflation to rise 5% for the third straight year, topping $13,000 for the first time, according to Kaiser. The cost of single coverage remained relatively flat. The study did not include federal government employees.

The percentage of employers with more than 1,000 workers who offer a consumer-directed plan has climbed from 10% in 2005 to 28% this year. That figure has jumped from 4% to 18% over the same span for companies with 200 to 999 workers.

The Kaiser study also found that 31% of employers offering benefits but not a consumer-directed plan were "somewhat likely" to provide one next year. Another 11% said they were "very likely."

Several other benefits consulting firms see similar spikes in interest. But the percentage of businesses that commit to these plans often drops after companies see final insurance prices.

Workers can view consumer-directed plans as a major slash in benefits, which they can be, depending on how much an employer sacrifices coverage to cut costs. This can make companies reluctant to offer them.

Many workers also are scared off by the high deductible without considering the entire plan, said Ken Ambos, senior managing director with Equity Risk Partners Inc., a consultant that works with medium-sized companies.

"It's complex and it's difficult, and you end up taking a black eye even if you've done it for good reasons," he said.

Workers typically stick with their current benefits plan if cost increases aren't too painful, said Blaine Bos of the consulting firm Mercer. Existing plans generally involve coverage with a higher premium, modest co-payments and a deductible of a few hundred dollars.

"You know how it operates, you know how it's covered and what's covered," Bos said. "You're comfortable with the amount of out-of-pocket (costs) you have to pay."

Business owner Don Ehlerding faced annual premium increases as high as 20% until he switched to consumer-directed health plans a few years ago at his Fort Wayne, Ind., motorcycle dealerships, which employ about 30 people.

Increases have since been between 8% and 10%.

"That's the only thing we've been able to do to control premium cost," he said.

The slumping economy hurt sales at his business, Motorsports Inc., and he's thinking of offering only health savings accounts next year.
"We're just trying to survive this recession," he said. "Sometimes you just have to provide the best that you can that works best for the whole team."

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Flu Tracking Sites Spread on the Web

Kali Geldis — Fri, 09 Oct 2009 16:57:56 -0400

Are you worried about the flu in your area? Check out these helpful, easy sites that track flu information around the world.

Husband vs. Wife: Getting Therapy on the Cheap

Marek and Lori Fuchs — Wed, 07 Oct 2009 16:38:28 -0400

Lori and Marek Fuchs have never fought in their 16 years of marriage—except over money. In this column, Mr. and Mrs. Fuchs, a real-life married couple with three kids (ages 12, 7 and 5), articulate their very different approaches to personal finance.

In this round, he says: Pyschotherapy is too expensive for just anyone. She says: Think again, there are definite ways to save.

Mr. Fuchs: Dr. Mrs. Fuchs, when you are not dispensing financial planning advice in this column, you work as a therapist. My only experience in the mental health field is as a patient, but there is one thing I do know: Psychotherapy is expensive. But sometimes, during difficult times like these, people really need to talk to someone. Problem is, the expense of psychotherapy can itself add to their troubles and anxieties.

Mrs. Fuchs: That’s true. But Mr. Fuchs, if you are really keen on addressing your — hmm, shall we call them “your issues” — there are plenty of places to go besides the private, pay-big-bucks-out-of-pocket route.

Mr. Fuchs: Good, because $175 an hour, which lasts forty-five minutes in your racket, will give me more issues than I have to begin with.

Mrs. Fuchs: Really? Whatever the case, you — and others — have three good options.

Mr. Fuchs: Do tell.

Mrs. Fuchs: Well, first of all, many therapists, both psychologist and licensed clinical social workers, have a sliding scale, especially if they are starting a private practice.

Mr. Fuchs: A sliding what? What is this psychology or the local playground?

Mrs. Fuchs: A sliding scale — meaning that they are flexible with their fee if you ask and can explain why you aren’t able to pay the full fee. Some are willing to go quite low in certain cases — it never hurts to ask.

Mr. Fuchs: Ah, sometimes a fee is not really a fee. Didn’t Freud say something like that about cigars? Anyhow, any other options to prevent psychological care from becoming a major source of financial anxiety, Doc?

Mrs. Fuchs: The first place I’d actually start is with my insurance company. Find out who is on their panel and how many sessions they will pay for. Most insurance companies pay for at least 20 sessions a year, which can really help if you’re in a stressful situation. Once you get the list of providers, ask your doctor and friends who they like from the list and interview them to make sure they are a good fit.

Mr. Fuchs: It’s the first place you’d start, but you mentioned it second? ‘Vy do you subordinate ‘zese things? ‘Ve must explore.

Mrs. Fuchs: Always the comedian. Anyway, if insurance isn’t an option, the next place to check out is the local university or post graduate center. Most have training clinics that provide therapy to the public as an educational experience for their students. You get an enthusiastic student who is closely supervised by an experienced licensed clinician at a fraction of the cost.

Mr. Fuchs: What kind of fraction?

Mrs. Fuchs: Well, when I was in a post graduate program a few years ago, I saw patients for as little as $15 a session – it really can be that low. Again: call up, explain your financial situation, and ask about the fee.

Mr. Fuchs: Anything else?

Mrs. Fuchs: Nope. Your 45 minutes are up. I’ll bill you.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Flu Shot 101: Answering the Important Questions

Althea Chang — Wed, 07 Oct 2009 15:31:33 -0400

The first rounds of flu shots are now being administered, but some Americans, even those who’ve read up on the basics of the flu still have questions about both the seasonal and swine flu shots.

For instance, how effective are they? Who develops them? How can the vaccine I get be different from what other people might get? And what kind of side effects might I experience? Here are some answers.

1. If vaccines are made based on guesses of what influenza strains will be around each flu season, how effective can they really be?

If results from decades past are any indication, flu vaccines have been effective.

“Past studies have shown in years when the vaccine viruses and circulating viruses are well-matched, the vaccine can reduce the chances of getting the flu by 70% to 90% in healthy adults,” the CDC says.

“If match is very suboptimal then effectiveness in preventing illness among healthy persons would typically be more like 40% to 50%,” says CDC spokesman Anthony Fiore. While the CDC wouldn’t say how often strain selection wasn’t so good, “we think there is a good match in most years over past 20,” Fiore noted. If you’re one of those people who have gotten a flu shot and then the flu in the same year, that statement probably offers little comfort.

Effectiveness can also differ for the very young and the elderly, who may be more susceptible to illness, but they can still prevent major complications and death. “The seasonal flu shot is 30% to 70% effective in preventing hospitalizations due to lung infections in people with chronic conditions like asthma or heart disease, notes the CDC. And in nursing home residents, the vaccine might be “50% to 60% effective in preventing hospitalization or pneumonia, and 80% effective in preventing death from the flu,” the agency says.

It’s also important to note, however, that the flu vaccine can’t prevent colds and other illnesses with similar symptoms, and it won’t protect you from the flu virus if it’s already in your body because it takes about two weeks for the shots to work, according to the CDC.

2. Who decides which strains to target?

Strains of the flu virus that will be target by the flu vaccine are chosen based on circulating strains of the flu infecting people in previous years and information on how they change. The Food and Drug Administration, Centers for Disease Control and Prevention and the World Health Organization collect samples of the influenza virus and choose the most prevalent and virulent strains that could cause the most illness in a given flu season, the CDC explains.

The CDC conducts lab tests on thousands of strains of the flu virus to see how antibodies fighting the flu react to the strain that’s already out, and to new flu strains. The agency decides what strains should be targeted, then talks to the FDA. Soon after, vaccine makers start the production process.

3. Is it safe to get both the seasonal flu and the swine flu shots at the same time?

Yes, according to the Department of Health and Human Services. “Both the seasonal and … H1N1 flu shots can be given on the same day, but should be given at different sites,” different arms for example, HHS says.

Remember, two H1N doses are needed in children younger than 9 the first year they are vaccinated in order to maximize the protective benefit from vaccination, but only one is needed for anyone older.

4. How was H1N1 “swine” flu vaccine development approached differently from regular flu vaccine development, and what is the vaccine development process like?

One difference between the regular season flu shot and the H1N1 shot is that the regular shot is a trivalent vaccine (it targets three different strains of the flu virus) and the H1N1 vaccine targets only one strain, says Jeff McLaughlin, spokesman for GlaxoSmithKline (Stock Quote: GSK), a vaccine maker.

“Otherwise, the H1N1 vaccines are produced by the same U.S.-licensed manufacturers who produce the seasonal flu and they are produced in the same way,” says FDA spokeswoman Pat El-Hinnawy. Companies develop vaccines to match the influenza strains expected to circulate that year and submit applications to the Food and Drug Administration for approval, she adds. Both seasonal and H1N1 vaccines are manufactured using the same approval and manufacturing processes, according to HHS.

For shots, “the virus is inactivated, using the same processes the manufacturers use for seasonal influenza vaccines,” HHS explains, using eggs to develop the shot. “The vaccine administered via nasal spray contains a live, attenuated virus,” which means that it’s weakened, according to the HHS.

“Influenza vaccine production begins as early as six to nine months before the beginning of vaccine distribution. Even with this early start, it isn't possible to complete the entire production and distribution process prior to the vaccination season, particularly given the limited number of influenza vaccine manufacturing plants in the United States and the large number of doses that are produced each year,” according to the CDC. The vaccines are distributed in phases over several months.

With that lead time in mind, swine flu shot development seems particularly rushed, with the first H1N1 vaccine trial only beginning in August, according to Medscape. But since it takes about two weeks for a vaccine to take effect and prompt the body to develop disease-fighting antibodies, there was enough time to observe its effectiveness and determine that younger kids, those less than 9 years old, might need two shots in order to develop enough flu-fighting antibodies.

Vaccine developer Sanofi Pasteur (Stock Quote: SNY) collected trial data 21 days after vaccinations and found that “in adults 18 years of age through 64 years of age, 98% of participants achieved seroprotective antibody titers at 21 days,” meaning they developed the antibodies needed to fight the swine flu. “In adults 65 years of age and older who received the same formulation, 93% achieved seroprotective titers,” the company reported. Results from trials in children will be available later this month. As far as safety goes, since swine flu vaccines are so similar to seasonal flu vaccines, they’re expected to be safe.

5. Are vaccines made by different companies different from each other?

While the targeted strains of the flu virus are the same, other flu shot ingredients can vary. On its Web site, the FDA lists information on vaccines made by each manufacturer, including CSL Limited, Novartis Vaccines and Diagnostics (Stock Quote: NVS), Sanofi Pasteur and MedImmune (Stock Quote: AZN).

MedImmune makes FluMist, the nasal vaccine made of a weaker version of the live virus. Sanofi’s injectible version of the vaccine contains thimerosal, a chemical preservative derived from mercury that some have blamed for autism in children. The Novartis version of the flu shot contains thimerosal as well. CLS’s version of the vaccine does not include thimerosal, and unlike the other injectibles which are relatively clear, this version contains some sediments that can be mixed in by shaking the syringe, according to package inserts.

6. What kind of side effects are there?

The most common side effects following flu vaccinations are mild, such as soreness, redness, tenderness or swelling where the shot was given, according to McLaughlin of GlaxoSmithKline. And the CDC and FDA will be watching closely for any “adverse” or “unusual events,” says FDA spokeswoman El-Hinnawy.

“Seasonal influenza vaccines are highly effective in preventing influenza disease. The expectation is that a vaccine against 2009 H1N1 influenza would probably work in a similar fashion to the seasonal influenza vaccines. CDC and FDA believe that the benefits of vaccination with the 2009 H1N1 influenza vaccine will far outweigh the risks,” the CDC says.

“CDC and its partners will use multiple systems to monitor the safety of 2009 H1N1 influenza vaccine. Two of the primary systems that will be used to monitor the safety of these vaccines after they are in widespread use are the Vaccine Adverse Event Reporting System, which is jointly operated with FDA, and the Vaccine Safety Datalink Project,” the CDC says. The agency adds that it will also work with other federal agencies, local health departments, health professionals and academics monitor people who have been vaccinated for side effects.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Have This Talk BEFORE You Tie the Knot

Miranda Marquit — Tue, 06 Oct 2009 15:53:30 -0400

We hear all the time that one of the main causes of divorce is money. One way you can reduce the chance (it never goes away) of money fights with your spouse is to discuss finances beforehand. But how can you tell if you are on the same financial page? Here are four things to discuss before you marry:

1. Assets and Liabilities

First of all, couples need to get it all out in the open. It is vital to share your assets and your liabilities. “Complete honesty is necessary here,” says Kelly Campbell, the founder and principal of Campbell Wealth Management in Fairfax, Va. “You don’t want any surprises. It might be embarrassing in some cases to admit how much debt you have, but it needs to be on the table from the beginning.”

Having a starting point for creating a financial plan going forward is important. And it is a good idea to know the exact situation before the marriage; that way, you both are aware of where you stand with regard to money. Debt, insurance, pensions, investment accounts, cash flow, income and property are all items that should be covered. As part of the discussion about assets and liabilities, Campbell recommends that couples also discuss their spending and saving habits.

2. Credit History

Another important financial issue to discuss is credit. One partner’s poor credit can reduce the chances of approval for car loans and mortgages. Even if you do get approval, you might not get the best deal on an interest rate. Some states will allow you to use only the better credit score. However, common property states won’t allow this, and your partner’s bad credit could lower your credit score. By disclosing your credit issues, you can face the problem together, and work on a plan to improve a credit score that needs some help.

3. Handling the Finances

Figuring out how to handle the finances in your marriage is an important discussion to have. “You need to understand how you will combine [your money] if you decide to do that, and how you will divide up expenses if you decide to keep some aspects of your financial lives separate,” Campbell points out. He says that potential spouses should discuss different systems and options for handling individual and shared bills ahead of time.

“You also need to talk about your situation with kids. Will one of you stay home? Realize that if one of you stays home full- or part-time, a contribution is being made. You would have to pay for those services if the stay-at-home parent were working full-time. Have a plan for making sure that the stay-at-home spouse participates in money decisions.”

4. Long-Term Financial Goals

Look at what you want to accomplish. Do you have similar aims for your money? Being on the same page with regard to the big picture can save heartache down the road. This is also a good time to chart a course based on your goals, and on the issues you have discussed previously.

“If one of you has a lot of income right now, but the other has greater retirement assets, you can see how to meld that situation so that you meet your long-term goals,” Campbell says.

When having the financial talk, Campbell recommends that couples try to keep emotion out of the discussion and instead focus on the facts and numbers. “Having a third party, a financial planner perhaps, can help keep emotions in check.”

And if you're concerned about broaching the subject? “The best way to start that conversation is to say, ‘let’s have a budget,’” says Campbell. “As you start to look at what’s coming in and what’s going out, it naturally leads into the money talk.”

—For more ways to save, spend, invest and borrow, visit MainStreet.com.

Lasik Surgery: Go in with Eyes Open

Consumer Reports — Tue, 06 Oct 2009 14:53:00 -0400

Note: Consumer Reports has no relationship with the advertisers on this site.

Ads say that Lasik can "reduce or eliminate dependency on glasses or contact lenses" and "vision improves almost immediately." The downsides are less widely advertised.

More than half of Americans who have Lasik or other laser vision-correction surgery still need to wear glasses at least sometimes. Side effects such as dry eyes, halos, glare and starbursts around lights are common. Those results are from a Consumer Reports National Research Center survey of 793 adults who have had vision-correction surgery since 2001.

Although 80% of respondents said they were highly satisfied with the surgery, our findings point out the need for realistic expectations.

Among the main reasons for having surgery (respondents could cite more than one): 61% said they were tired of wearing glasses; 52% said they wanted to see a bedside clock in the morning; 38% said contact lenses were uncomfortable and hard to care for. But afterward, 55% still needed to wear glasses or contacts at least sometimes. And of those who found it very hard to see that clock, just 36% had little or no trouble seeing it after surgery.

If you're considering laser eye surgery, find basic information at www.fda.gov (search "lasik"). Talk to others who have had the surgery. And ask yourself:

Am I a good candidate?

Your vision should have been stable for the past year. You should be at least 18 and not pregnant or breast-feeding. You shouldn't have a disease that impedes healing (diabetes, say) or take medications that do so. Skip surgery if you have dry eyes. People who were nearsighted before surgery tended to be slightly more satisfied with the results than those who started out farsighted or with astigmatism.

What are my options?

In Lasik (laser-assisted in situ keratomileusis) surgery, a flap is cut into the cornea's surface and lifted, laser energy reshapes the underlying cornea, and the flap is folded back into place. Recovery is generally the fastest. In PRK (photorefractive keratectomy), the surgeon removes layers of tissue from the cornea's outer layer before reshaping the cornea. PRK is often suggested for people with thin corneas. In Lasek (laser epithelial keratomileusis), the outer surface is instead peeled back before lasing, then replaced.

Will insurance pay?

Maybe not, because the surgery is elective, but ask your insurer. Many Lasik centers offer discounts. Costs vary widely. The typical national price for both eyes, after any discounts, is about $3,314.

How do I find a surgeon?

Look for a board-certified ophthalmologist (check at www.abms.org) who has performed your planned procedure many times.

Respondents were happiest if their doctor met with them before and after surgery, took a medical history and eye measurements (cornea thickness, pupil size, tear production) and spelled out risks and benefits. Choose carefully: Satisfaction with the surgeon, even more than the place of surgery, predicted overall satisfaction.

—Subscribe to ConsumerReports.org or check out Consumer Reports’ Money advice.

Seasonal Flu Shots Delayed for Some U.S. Providers

The Associated Press — Thu, 01 Oct 2009 13:21:29 -0400

By David A. Lieb, Associated Press Writer

The largest U.S. supplier of seasonal flu vaccines said it is running behind on shipping those vaccines — partly because of the crunch to produce millions of doses of the swine flu vaccine.

The pharmaceutical company Sanofi Pasteur said it has shipped more than half of the 50.5 million doses of seasonal flu vaccine order by U.S. health care providers. But the company has sent notices to customers indicating that additional doses may be delayed.

Company spokeswoman Donna Cary said it could be November before some customers get the rest of their orders.

The delay already has forced some doctor's offices to turn away parents seeking season flu vaccines for their infants and toddlers and caused some public health offices to cancel scheduled community vaccination clinics.

"We understand it does create an inconvenience for some people who wanted to hold their seasonal influenza campaigns earlier," Cary said. "We apologize for that, but we're doing every thing we can."

The federal Centers for Disease Control and Prevention said Sanofi Pasteur had alerted it a while ago that it may need to delay shipments, but the federal agency did not learn the details until Thursday, said spokesman Tom Skinner.

The delay isn't surprising nor cause for big concern, Skinner said, because about 70 million of the nation's expected 114 million doses already have been delivered and vaccinations started unusually early. October is the traditional time when seasonal flu vaccine clinics open.

"Vaccine, while it's coming out, may not be coming out to some of the providers when they thought they were going to get it," Skinner said. But, "it's coming, and people may have to be patient and persistent in inquiring about when they can get it."

Right now, the swine flu is the dominant virus. And while seasonal flu outbreaks can happen as early as October, that virus usually peaks in January or later.

Sanofi Pasteur, the Swiftwater, Pa.-based vaccines division of the French drug-maker Sanofi-Aventis SA, is producing about 45% of seasonal influenza vaccine, making it the largest of the country's five suppliers. The company normally finishes producing flu vaccines by the beginning to middle of October, Cary said, but it expects to run several weeks later this year.

Cary attributed part of the backlog at Sanofi Pasteur to its simultaneous production of 75.5 million doses of the swine — or H1N1 — vaccine for the U.S. Also contributing to the delay is the fact that this year's seasonal flu vaccine includes a strain that develops more slowly in laboratories, she said.

But "everybody who ordered vaccine from us will be getting it," Cary said.

At the Jefferson City Medical Group, which serves about 70,000 patients in mid-Missouri, the vaccine delay primarily is affecting children younger than three — considered to be a high-risk group for the flu.

The medical group has received just 150 of its 700 doses of preservative-free vaccines, which Missouri law stipulates must be used for children between six and 35 months old. Doctors used the last of those this week and have been told they may have to wait another month to get the rest of their supply, said Cindy Andrews, a nurse who is helping coordinate clinic's flu vaccines.

In northeast Kansas, at least three health care providers have postponed flu-shot clinics indefinitely because vaccine supplies from Sanofi Pasteur have been delayed.

The Cotton-O'Neil Clinic in Topeka, had planned a walk-in clinic next week. However, as of this week, 9,000 vaccine doses — or a third of the clinic's total supply for the season — hadn't arrived, spokeswoman Nancy Burkhardt said.

"We do not know why they haven't shipped it," Burkhardt said.

Lyon County, Kan., health officer Ann Mayo said an Oct. 6 drive-through vaccination clinic has been canceled because the health department has used the 1,660 doses it received in August and hasn't received an additional 1,500 doses that were due to arrive this week from Sanofi Pasteur.

The National Community Pharmacy Association, which advocates on behalf of 23,000 independent pharmacies nationwide, said it started hearing concerns about the availability of the seasonal flu vaccine in early September. Oklahoma, Kansas, Georgia were some of the hot spots, said association spokesman Kevin Schweers.

Walgreen Co., which has about 16,000 certified immunization providers in more than 7,000 pharmacies nationwide, said it ordered several times its normal supply of seasonal flu vaccines this year because of the increased public awareness caused by the swine flu. It used several different suppliers and expects the last of its doses to arrive in the next couple weeks, said spokesman Jim Cohn.

There is no shortage now. But Walgreens — which already has administered 2.5 million seasonal flu vaccines — doesn't expect its supply to last past the end of December, Cohn said.

"We're encouraging people who want to get a seasonal flu shot to do it now," he said.

Associated Press writers Lauran Neergaard in Washington, John Hanna in Topeka, Kan., and David Twiddy in Kansas City, Mo., contributed to this report.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

5 Big Class Action Lawsuits: Facebook, Fen-Phen and More

David Seaman — Wed, 30 Sep 2009 16:57:26 -0400

Think a big company has done you wrong and suspect others have suffered the same fate? Time for a class action lawsuit? Here are some famous examples.

Higher Ed Jobs Mean Lower College Costs

Marek Fuchs — Wed, 30 Sep 2009 14:18:20 -0400

Holly Foster didn't even secure herself a job on a college campus with the traditionally robust, if little known, tuition benefit in mind. The communications department gig at Hamilton College was a good fit, but her children were little at the time, and the concept of steep college bills was still an abstraction. Fast forward, a few years later. When she realized what this benefit amounted to, Foster nearly danced a gavotte.

For Anne Riffle, who works in Hamilton’s Registrar’s office, the lure of getting tuition covered as an employment benefit was a major factor in her coming to work at the upstate New York school in the first place. With three kids, she’s been dancing ever since.

Families around the world show the strain of the daily nightmare that is the cost of college. But for families with a parent working on a college campus, there can be considerable relief in the form of getting all or half of tuition covered. The rules vary by institution, but many cover the tuition of an employee’s child in full on their own campus and half if they attend another accredited school. Moreover, as an employee, you don’t have to be a professor or high-ranking administrator to qualify. Secretaries and even athletic department equipment managers also stand to benefit.

Whatever the precise case, this is a benefit few outsiders know exists. But in these tight-fisted times or even, considering the cost of college, during flush times, it presents a good reason to consider a campus career of one kind or another.

At Hamilton, there are currently about 90 children of employees receiving the benefit with about a dozen attending Hamilton, said Stephen Stemkoski, the school’s director of human resources, who said that in meetings with prospective employees, eyebrows do calisthenics when they get to this particular line item on the benefit list.

Even if the parents among them don’t actually dance around his office, Stemkoski notes, “I think they may want to.”

Employees (contract workers are ineligible) need to have worked at Hamilton for three years and the school will pay half their tuition at Hamilton or elsewhere. Those like Riffle, who have been at Hamilton since before June of 2000, have full tuition covered at Hamilton.

These days, some schools, like Hamilton, have done away with full tuition coverage on their own campus, while grandfathering it in for longstanding employees. Drew University in Madison, N.J., still allows children of employees free tuition though, like most others, books still cost, as does room and board, if the student chooses to live on campus. While Drew offers up its own campus free as air, it covers 42% of other campus tuition versus Hamilton’s 50%.

The point is that while some universities offer similar benefits, the precise details vary from campus to campus. There are commonalities, though. Most require a term of employment before qualifying for the benefit. Usually, too, a five-year plan will try the patience of the college, which tends to pay for only eight semesters, though they might not have to be sequential.

The underlying premise, though, holds across an array of colleges: If you want a big chunk of your kid’s tuition covered, get thee to an institution of higher learning and grab a job, any job.

I have three kids, which means before too long, I’ll probably be seeing you around campus.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.