Personal Finance Blog — Page 30 — Tips And Stories To Help You With Managing Money

Be Aware Of Health Insurance Glitches

May 2, 2016 By Twila Van Leer

A large percentage of insured Americans receive unexpected bills. — Check to see if your medical appointments are covered by your insurance company. Don’t let your bill be a big surprise.

If you thoroughly understand every twist and turn of your health insurance, you’re one of a rare minority in America. Insurance plans have become so complex it’s hard to tell when you might be stepping outside your network’s coverage.

Unexpected fees

When you are recovering from a medical procedure is not a good time to learn. Unexpected fees might add to the misery. The problem is huge. Nearly a third of insured Americans who have financial difficulties can blame part of the problem on medical bills they were not anticipating, according to a survey conducted by the Kaiser Family Foundation.

Unexpected bills

Some 70 percent of those who received unexpected bills didn’t understand that they were receiving services outside their insurance parameters. Problems often occur when there is a hospitalization in which a number of health professionals are involved. Payment guaranteed to your primary care physician often does not extend to emergency care doctors, anesthesiologists, radiologists and others who provide services.

Out-of-network services

A New York study in 2011 showed that the average cost of out-of-network services was $7,000. Often, medical costs are accrued in an emergency, so it is not likely the patient will be able to ask if those who take over his/her care are on their covered network. They are at the mercy of the system.

How to protect yourself

If you know you are being hospitalized in advance, call the hospital and try to determine who will be involved in your care and if they are part of your network. It isn’t foolproof, since the hospital may not know in advance which individual in a group of experts will take care of you. Also, ask that necessary tests done outside the hospital be sent to network providers.

Call your insurance carrier

If you’ve made those efforts and they don’t fully protect you from unexpected bills, the first thing you should do is call your insurance carrier and tell them the circumstances. Some employer-sponsored plans have policies that consider charges that were made without the patient’s understanding, particularly if they occur during an emergency. Your insurance company may be willing to negotiate with the providers for a lower charge.

Consumer protection agency

See if your state has a consumer protection agency that deals with medical payment issues. At least 10 states do have a program that will help consumers who are hit with unexpected medical charges.

Changing the laws

Experts who have made in-depth studies of the problem say that it will take changes to several laws, usually at the state level, to address the issue. New York has taken steps to protect patients in such instances. Its’ law does not eliminate the fees, but requires the insurance carrier and providers to negotiate.

As the scope of the problem grows, it is likely that resolutions will be sought. In the meanwhile, the majority of patients who are billed for out-of-network services have little recourse except to pay the bills.

On-Demand Workers: Be Aware of Tax Issues

May 1, 2016 By Twila Van Leer

Tax issues with on demand workers. — Uber workers are considered self-employed and have to set aside money for taxes.

If you make your living doing on-demand jobs, defined by the Internal Revenue Service as an “online marketplace or application that connects free lance providers with customers,” you need to be aware that Uncle Sam will tax your income.

About 10 percent of the U.S. workforce falls into this category – some 14.6 million people. It’s a business and is regulated by the same tax requirements that apply to more usual businesses.

Set Aside A Portion Of Your Income

The smart thing to do is set aside a portion of your income through the year so the April l5 deadline doesn’t catch you by surprise. For instance, people who drive for Uber or Airbnb or otherwise routinely do jobs that are on-demand, may be considered independent contractors. They are likely to receive a 1099 form reporting their income, rather than a W-2. And since there is no automatic withdrawal of taxes, the individual is responsible for keeping track and anticipating tax charges.

Self-Employment Tax

Not only are these self-employed persons responsible for routine taxes, they also may be required to pay a self-employment tax, which has been imposed by the IRS as payment for Social Security and Medicare.

Keep Track Of Possible Deductibles

Anticipating taxes should prompt on-demand workers to keep track of possible deductibles. Drivers, for instance, can deduct the costs of car washes, providing water or snacks for passengers, etc. Accurate records will be invaluable when you sit down to fill out the tax forms.

Schedule C

Schedule C is the form you need to report profit and loss from business income. SE is used to compute the self-employment tax.

Rental Income

Some people add to their income by renting out their home for special occasions. Think Super Bowl. They may realize big bucks for their efforts, but the income is taxable. A one-shot rental is not taxable, but two or more triggers taxes. If you rent your home out for 15 days or longer, you must start to report the rental income and the particulars associated with the rental, such as deductions for utility expenses, etc. That means you have to separate your own expenses from those associated with the rental.

Making estimated tax payments through the year will help fend off the shock you might experience when it comes time to file.

More information is available through Publication 334, the IRS Tax Guide for Small Businesses. Publication 527 focuses on rental income and expenses and Publication 463 offers guidelines on the use of your vehicle for business purposes.

Use Your Time Productively

April 30, 2016 By Twila Van Leer

Six ways to make your time more effective:

Don’t touch things twice

If you have a note to make a phone call, make the call. Don’t save emails to deal with later. Although there could be exceptions, right now is almost always the best time to act. Picking things up twice demands that you go through the same thought process twice, and that uses up your time.

Eat frogs

In other words, do the least appetizing things on your list first. Using up time dreading awful tasks instead of getting them done is a waste of time. The thing is still there waiting. Doing the tasks that are distasteful removes them from the list of things you have to think about. It frees you to tackle the things you like.

If possible, delegate “the urgent” to others

If that can’t be done, take care of them yourself right now. Don’t let the “tyranny of the urgent” get in the way of what really matters. Either delete or delegate them as quickly as possible so you can get on with what is more important. The first trick, of course, is to recognize those items that can be listed under “urgent.”

Say no

It’s one of the most powerful tools you can wield. Don’t equivocate with terms such as “I don’t think I can” or “I’m not certain.” You owe your first allegiance to your existing commitments. Researchers at the University of California in San Francisco determined that those who overload themselves experience more stress and depression. Turning down excessive requests can save your mood and your productivity.

Check emails on a schedule

Don’t allow it to become a constant interruption. Use your computer’s ability to prioritize messages and then set alert when messages come from your most important vendors or customers. Save the rest of your emails until the time you have set aside for them. It is possible to set up an autoresponder that will tell senders when you will be checking your emails again.

Avoid multitasking

Although it would appear to make good sense to do more than one thing at a time, it really can reduce your productivity. Researchers at Stanford found that trying to do more than one task takes a toll in attention and recall and wastes time as you switch from one task to another. The brain can focus on only one thing at a time, so concentrating on just one thing is more efficient.

What Next In U.S. Economy?

April 29, 2016 By Twila Van Leer

Even though the government reports job growth again this spring, other factors seem inconsistent, leading to a somewhat hazy view as to what actually can be said for the national economy in the long run.

Inconsistent Factors In Determining Growth Or Decline In Economy

In March, only 126,000 new jobs were reported by the Labor Department, ending a run that saw more than 200,000 per month. The April figure rose again, to 225,500 new jobs. But the rising employment numbers have not been matched by significant increases in earnings.

Counterpoints to the job market improvements are signs that worker productivity is lagging, exports are diminishing, only modest gains have been reported in consumer spending and overall economic expansion is “sluggish.”

America has been the engine pushing the world’s economy in recent years, but the International Monetary Fund predicted recently that recovering strength in the big Asian economies could see them move into the lead.

The many factors determining either growth or decline in the economy are sending mixed signals of either potential strength or potential weakness. Lower oil prices have led to cutbacks at energy companies and the manufacturers who supply them. A stronger dollar has stymied export growth and depressed corporate profits.

On the rosy side, layoffs are down and home sales have surged this spring. A bad winter weather-wise, cheaper oil and a West Coast port wrangle (since resolved) all had a negative impact.

Factors Being Poured Into The Economic Mix In Recent Reports Include:

The number of Americans who applied for unemployment benefits dropped to 279,500 recently, the lowest level in 15 years. The decline seems to portend more hiring, according to the Labor Department. Some employers are holding off on hiring until the trend of the economy is clarified, the department report said. That opinion was supported by a private survey by ADP, a payroll processor. That survey showed that businesses added 169,000 jobs in April, compared with 175,000 in March.

Worker productivity dipped in the first quarter of this year while labor costs went up. The Labor Department report said it was only the third time in 25 years that productivity has shown a decline over two quarterly reporting periods. Such declines suggest that workers are becoming less efficient.

The trade deficit increased in March, creating a drag on the U.S. gross domestic product. However, imports rebounded after the West Coast ports dispute was settled. American exports have become more expensive for foreign purchasers because of the strength of the dollar. The trade gap rose 43 percent over February, the government report shows.

Although the government estimated an 0.2 percent annual growth during the first quarter of 2015, some economists argue that when the trade deficit is factored in, there was actual shrinkage in the economy from January through March.

Job Hunting? Go Online

April 28, 2016 By Twila Van Leer

The number of online resources to help in the job search is expanding and creating a very valuable tool for people looking for work. They have the advantages of being available 24 hours a day and of being constantly refreshed as new jobs come onto the market.

Online Resources Convenient For Employers

Employers are becoming aware of the resources and find them convenient in matching the qualifications of applicants to their particular needs. There is no charge for the majority of the services.

Among The Resources You Might Tap Are:

1. America’s Job Bank, which lists job openings nationwide.

2. FirmFind, which lists job possibilities by category to make your search more specific.

3. Your state also is likely to have job listings online if you are interested in staying put geographically.

How Resources Work

The computerized systems streamline by matching your skills, abilities and work history to specific job requirements. They list government jobs as well as those in the private sector. They range from unskilled to highly technical and can be part-time, temporary or permanent.

How Can You Enhance Your Possibility Of Finding The Perfect Job Online?

Be professional in your application. Be sure you include a current phone number, address and email address. Be straightforward and accurate in listing your qualifications. Be thorough and use correct grammar and punctuation.

Create An Online Account

Create an account that will enable you to apply for thousands of jobs. When you spot something that interests you, follow the instructions on the announcement to apply. You must be completely registered to be able to see the application instructions.

Stay Current

Check on your applications frequently to learn your status and update your account regularly.

Be Available

Be certain that you are available to respond if a prospective employer is interested in your application. Remember, he has plenty of choices.