It’s easy to focus on the personal policies that help improve your net worth immediately. Saving money, investing thoughtfully, and earning income affect your bottom line immediately. This view can be shortsighted occasionally. Focusing effort on your personal human capital can have a greater affect on your net worth over the course of the rest of your life. There are certain things anyone can do to improve the probability of being financially secure in the future. Focusing on your health can ensure you’ll have many income-earning years in the future.

There is much about your finances you can control, but some circumstances, while they can be prepared for, are difficult to predict. The same is true about health. The best anyone can do is take good care of his mind and body to reduce the chance that health will be a major concern.

Get health insurance. If you do not have a job that offers group health insurance and do not have access through a family member, finding coverage can be expensive. When I left my corporate job last year, I investigated prices for individual health coverage in New Jersey, and coverage similar to what I had at the company cost over one thousand dollars a month. Basic coverage was significantly less, but the benefits were not as comprehensive as what I had with my prior HMO plan. When I left the job, I had access to COBRA coverage, which extended the same coverage I had, but the premiums were no longer subsidized. The monthly fee was expensive, but manageable.

Don’t make any insurance payment mistakes. If you are paying for health insurance coverage on your own, create an automated payment plan. One missed payment can give the health insurance company cause to cancel your coverage.

Reduce your intake of unhealthy food. You don’t have to be a health fanatic. You can make some easy changes to your diet that should improve your health over the long term. For the most part, I no longer drink soda, opting for water instead. I don’t consider myself a health expert, and there are still many improvements to my diet that could result in increased health, but my plan for now is to be more conscious about the food I eat.

Stay active. If you’re not an athlete, there’s no need to undertake a massive campaign for exercise. If you have a job that keeps you sitting at a desk for most of the day, though, consider compensating for a sedentary lifestyle by taking some time to keep your muscles active. I joined a gym recently and I’m still looking to find a routine that works for me. I have lost some weight and I feel healthier in general. The challenge is maintaining this with a work and travel schedule that keeps me busy, making it difficult for me to set aside regular time.

I don’t always recommend joining a gym, though. Some people may find the environment motivating, but for others, it will cost less money in the long run to exercise independently, without a monthly fee. The most important aspect is to stay active, regardless of how it’s accomplished. Even if you find the best way for you to stay active is to join a gym, spending that money now to stay in shape could pay off in the future through improved health.

Get good sleep, quality and quantity. I combined a good mattress, good sheets, and good pillows and was halfway towards improving my sleep. Throughout my life, I had never really achieved quality sleep. As far back as middle school, I often stayed up late at night computer programming and running a bulletin board system. This lasted throughout high school. In college, I spent my days in class, studying, and practicing, while spending many nights designing and maintaining websites. Later on, my time outside of my day jobs was also spent working on websites. All of this left very little time for sleep, and the sleep I did get wasn’t comfortable.

I didn’t have to spend a lot of money to fix this problem. Finding the right mattress took some time, but I’m satisfied with the one I have now. I discovered that “memory foam” pillows don’t bother my neck and back as other pillows. Someone introduced me to cotton jersey knit sheets, and I find these much more comfortable than other cotton or satin sheets. Once I was able to combine this with seven to eight hours of uninterrupted sleep every night, I wake up refreshed and I can get through everyday without becoming exhausted.

From Forbes:

Talking of getting a good night’s sleep — critical for boosting memory — the key is to let melatonin do its trick. That’s a versatile hormone produced by the brain. It synchronizes the biological clock, regulates sleep and is a powerful antioxidant. Scientists believe it strengthens the immune system and has a strong link to preventing depression, cardiovascular disease, some cancers and sexual dysfunction.

Visit your doctor and dentist. Just having insurance isn’t enough. Visit the doctor twice a year for check-ups and get any tests appropriate for your age. The same applies to the dentist. When I was in college, I don’t think I visited a dentist once. I returned to my home state of New Jersey several months after graduating to work at my new job, and after receiving insurance, I made my first appointment with a dentist in years. It was a good thing my teeth and gums weren’t in worse shape than they were. Flossing and brushing keeps gums healthy, and healthy gums help increase the chance of maintaining the health of the rest of your body.

Quit smoking (or don’t start). While everyone seems to have an anecdote to share about a two-pack-a-day smoker who lived beyond 100 years, this isn’t the norm. You can improve your health — and your short-term finances — by quitting smoking. You’ll save money today, you’ll be healthier so that you can continue earning money, and you’ll feel healthier. Quitting may not b an easy feat, but all ex-smokers I know are happy they made the decision.

Manage your stress. I’ve never been more stressed in my life than I have been as a business owner. I’ve made my way through my life until this point generally avoiding stress, not letting myself get too emotionally involved in my work. It’s different when it’s my own business, and dealing stress has been difficult for me. I use relaxation techniques to help deal with stress, particularly when I know the situations that cause stress can’t be avoided.

Staying healthy can reduce your downtime at work and help you make the most of your income-earning years. Your health might help you extend those years, as well. While I get the impression that the media emphasize health too much, to the point at which unhealthy individuals as marginalized. In order to be healthy, you don’t need to look like an actor or athlete, but paying attention to these few core health principles can be worthwhile for anyone interested in being financially secure. A good attitude towards health and a few healthy habits can increase your human capital.

Photo: mikebaird

The original version of this article, Boost Your Human Capital: Stay Healthy, is copyrighted by Consumerism Commentary.

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After years of failed self-improvement in a number of aspects of life that most people tend to consider important, like organization, time management, and self-motivation, I’ve come to accept some of my flaws while taking advantage of my strengths. I haven’t completely given up on the strive to improve facets about myself that could lead to being a better all-around person, whatever that happens to mean at the time. I just realize that it isn’t in my nature to excel at certain things.

I’ve been trying to motivate myself to get in shape for several years. After college, my stomach assumed a rounder form, and I’ve never found the right combination of motivation and activities to fix this. Over the years, I’ve resigned myself to the idea that I would succeed much better if I had a partner interested in the same goal, sharing the journey towards a healthier lifestyle. But then again, perhaps that’s just an excuse.

At the beginning of the year, I got in the habit of using RunKeeper on my phone to track my outdoor runs, but several weeks of snowstorms prevented this three-times-weekly activity from becoming a long-term habit. When the weather improved, I considered myself too busy with business to take the time to get back outside for a workout.

And then I saw photographs of myself at the Financial Blogger Conference. I decided — again — I needed to do something about my waistline, and this time I was determined to find help. Although it’s not cheap, I decided to join the gym nearest to me. Before doing so, I took a tour. It’s exceptionally clean, and it doesn’t seem to ever be too busy. The equipment is nice; it’s nicer than the equipment I would have purchased for myself was I was considering taking up space in my apartment for an exercise area.

Check out these fees, though.

• Enrollment fee: $69 (but they gave me a “discount” at $49)
• Monthly fee: $19 (first and last months’ payments due immediately)
• Processing fee: $25
• Club enhancement fee: $29 (paid once a year)
• Early cancellation fee: $150 (or balance of the year’s monthly fees, whichever is less)

Although there is an early cancellation fee, it sounded like this fee could easily be waived at the manager’s discretion, particularly if the cancellation is due to moving away from the area.

The typical rationalization for moving forward with the membership despite these fees is that the knowledge of the monthly charges to my credit card account would motivate me for using the service I’m paying for. It’s the same rationalization that parents use for not paying for their kids’ education — the children will be more responsible if they have “ownership” of their education by working to pay for it without assistance.

I also signed up for a free session with a personal trainer. I’ll use the free session to determine if there’s something I can learn from someone else leading me through a plan that would help me reach my goals.

For the most part, gym memberships are traps. People spend a lot of money to join and maintain a membership but often don’t take advantage of the benefits. Did I make a mistake by joining a gym? If you’re a member of a gym, how do you make the expense worthwhile?

The original version of this article, My New Gym Membership: Good Idea or Foolish Move?, is copyrighted by Consumerism Commentary.

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My dentist’s office is changing billing procedure. I should note that my dentist is not part of an insurance network. It may be a cliché, but I have heard people who say that any dentist who aligns his office with insurance carriers is one you want to avoid. That doesn’t mean that I have to pay the full cost of my visits; my insurance (currently Aetna with COBRA through my former employer) still covers almost all of what my dentist charges for semi-annual maintenance. I haven’t had any problems come up, but the insurance company would cover most of that cost, as well.

As long as I have been a patient of my current dentist, the office calculates what it expects my insurance to cover before I leave the office. They submit the bill to my insurance company, and I pay the estimated remainder. It’s often not much. Occasionally, the estimate is off, and the dentist credits my account or bills me for their underestimation of the insurance company’s reimbursement. This system has worked well, at least for me. It’s less money out of my pocket than if I had to pay the full bill myself and submit the claim to my insurance company after the fact.

Starting with my next visit, approaching within the next few months, this will be the new procedure. The office has decided that rather dealing with the insurance companies directly for payment, this will be the patients’ responsibility. Before leaving the office, I will need to pay the full amount on the bill, and when I get home, I’ll need to submit a claim to my insurance company. I’m not particularly happy about the change.

I’ll need to pay more out of pocket. While the dentist office has claimed that insurance payments come within just a couple weeks, now that payments are going to a patient rather than the dentist, the claims could take longer to process. If there are any disputes, I may have less leverage than a dentist, though I have more motivation to pursue the case. I don’t like the idea that more paperwork will be my responsibility, but it’s always my responsibility to ensure I’m paying no more than I need to.

I was reminded of my dentist’s procedural change by Cameron Huddleston’s article in Kipligner. She received a bill from her doctor that was higher than she expected. She called the office to confirm that the doctor did not submit a claim to her insurance. I would imagine that some patients blindly pay any bill they receive from their doctor’s office, assuming the amount listed is what they owe after the insurance company has already covered part of the bill. It’s good to be aware of the costs of services and to review the bills.

Kiplinger

The original version of this article, Look At Your Medical Bills Before Paying, is copyrighted by Consumerism Commentary.

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Earning or having more money might not universally increase happiness or health. Wealthy people can be sad or sick just like those who are less financially fortunate. More money does provide more access to “stuff,” though, and people often like that “stuff.” Businesses that cater to the rich with services for which they might be willing to pay extra often thrive. In economic downturns, rich consumers often stay rich and save more of their money, but they’ll likely return to their luxury items.

One of these services is medicine. Concierge doctors, doctor to whom you can pay a retainer to ensure personal attention at any time, have increased in number over the past few years. Not all of the popularity increase can be attributed to the entertaining television program Royal Pains, in which a doctor whose career abruptly ends due to his positive ethics that conflicted with the medical establishment moves to the Hamptons to seek out a wealthy clientele while also treating the residential underclass for free. More doctors are turning to this style of business because medical school was expensive, they have bills to pay, general practice doesn’t provide great salaries, and the thought of higher income beckons.

This doesn’t necessarily mean that the wealthier one is, the greater the quality of medical care one might receive. Doctors are ethically bound to treat everyone to the best of their ability, regardless of financial situation. Paying for membership to a private doctor might increase availability for appointments but won’t increase the quality of your medicine or advice. It can, however, provide the feeling that one is well cared for and reduce the anticipation of stress during a hypothetical emergency. If one has little faith in the healthcare system — a system that works well for the most part — concierge medicine provides an alternative option if you have $1,500 to $25,000 to spend per month (according to the New York Times).

Even if the only benefits were easier access and less stress, is it fair that only those who can afford sizable monthly fees can take advantage of these services? The medical industry will continue to mutate as market forces pull it one way or another. The concept of the health maintenance organization (HMO) began around one hundred years ago when society faced the same question: how to bring quality medical care to more people. While the HMO may now be a symbol for bureaucracy and inefficiency, the system has helped keep society healthier. If traditional medicine eventually falls by the wayside in favor of more lucrative business plans, the system will continue to change to accommodate the needs of the many.

Do you think concierge medicine will help or hurt the medical industry? Is it a problem that a certain selection of medical professionals want to cater only to the rich?

The original version of this article, Concierge Medicine: Differentiated Healthcare for the Rich, is copyrighted by Consumerism Commentary.

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The Health Insurance Reform Bill was signed into law a year ago. It’s already having an effect on the state of the medical profession. Thanks to some incentives, general practitioners or family doctors, typically the best choices when one is selecting a primary care physician, are becoming attractive jobs. It’s easy to see why, for a long time, early doctors choosing their residencies haven’t been attracted to these jobs.

Graduating from medical school, a student is likely to be in a significant amount of debt. With that in mind, consider the options. The student could choose to focus on family medicine and earn $150,000 to $180,000 or choose a specialization and earn twice that amount. The choice from a financial perspective is obvious. While many young people decide to become doctors not because of the salary, the financial reality is hard to ignore.

Choosing a high-paying first job can set the pattern for earning a higher income throughout your life. Many people believe that they will take a high-paying job first, until they pay off debt and become financially comfortable, and then shift gears to a lower-paying job about which they’re passionate, fulfills a deeper need, or provides meaning to their lives. That shift, if it ever happens, will often come later than they expected. Meanwhile, on average, those who choose the lower paying job out of school are often doomed to earn less than they could have throughout their entire lives.

For those who are taking the government’s incentives as the factor that tipped the scales in favor of general practice, and the number of those swayed must be significant considering the increase of family practice residencies this past year, there could be danger. Lawmakers are considering parts of the health insurance reform law.

How should money influence your career choice or initial job choice within a career?

Photo: gwire

The original version of this article, Potential Doctors Attracted to Primary Care Physician Jobs, is copyrighted by Consumerism Commentary.

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I started the year out right. I didn’t join a gym for my exercise, but I signed up for a “class” using RunKeeper, a mobile application that tracks my progress as I run, walk, or get any physical exercise, and posts my results publicly. It ties into my philosophy well, using the same tricks I used to help improve my finances.

Unfortunately, the icy weather and a tricky travel schedule have assisted my downfall. Although I’ve lost between five and ten pounds since the beginning of the year, I haven’t made any progress with my physical exercise within the past week. It may be time to purchase a treadmill.

It might be more effective to introduce a new motivation strategy based on behavioral economics, as a couple of Harvard graduates (is that important?) are doing with a program they’re calling “Gym-Pact.”

The Gym-Pact team has become a partner with several gyms in the Boston area. The team will pay gym membership fees, and those who sign up for the program have the opportunity to work out in the gyms four times each week for free. Gym-Pact recovers the membership through penalties. There is a $25 penalty for any week with an incomplete schedule and a $75 penalty for dropping the program for any reason other than injury or illness.

Following this concept, I would need to penalize myself every week I don’t complete my planned running activities. But what would be the right penalty? Taking money away — transferring it into another account, for example — won’t be effective because I still would have that money. Donating money to a charity for each week I miss isn’t a penalty because charitable giving is good.

The key is to find a financial penalty that is immediate enough and will hurt enough so that it motivates me to complete the exercises as planned.

How do you use your finances to motivate you?

The Boston Globe

The original version of this article, Financial Motivation to Get in Shape, is copyrighted by Consumerism Commentary.

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Through most of my four years of high school, I had braces on my teeth. The braces helped to correct an overbite, and I wore them longer than most kids my age most likely because I wasn’t consistently wearing the head gear during the night as prescribed. It’s hard for me to weigh the cost versus the benefits because my parents paid. My guess is the cost was between $2,000 and $5,000 for me, and probably a similar amount for my younger brother, who also wore braces for a few years. I can speak to the benefits: I’m quite happy my teeth are straight and healthy today, and if they weren’t, at this point I would have visited an orthodontist on my own.

The option to take advantage of orthodontics to fix an overbite or crooked teeth is mostly a privileged problem. For families living paycheck-to-paycheck, major work like this, often seen as cosmetic only, is an unaffordable luxury.

Families living with an income that puts them below 200% of the poverty line can qualify for free braces through a non-profit organization called Smiles Change Lives. Participating orthodontists will see patients who qualify through this program for free, but the application costs $25, and if accepted, there is a $500 fee. That fee can be partially waived for some families living below the poverty line, but even paying $500 for straight teeth can save thousands of dollars in dentist and medical bills throughout the course of a life.

As an adult, I witnessed an amazing transformation of a former co-worker thanks to orthodontics. When we first met, her teeth were crooked. Although she never appeared self-conscious, I knew from talking to her that she wasn’t happy. Her twin elementary-school-aged children began treatment with braces, and she decided to get braces with them, partly as a sign of solidarity, but mostly because she needed the work more than they did. With colorful elastics relating to a timely holiday or the Philadelphia Eagles, she came to work, now more self-conscious about whether food was hiding among the metal. A little over a year later, her orthodontist removed the braces and her teeth looked great.

The cost of taking care of your teeth is never too high — and when it is unaffordable, don’t stop until you’ve researched every possible way to pay for the services.

Photo: mseckington

The original version of this article, Braces and Orthodontics: Costs and Benefits, is copyrighted by Consumerism Commentary.

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This is a guest article by Philip Taylor, the owner of the blog PT Money. Philip created PT Money to share his own experiences with successfully managing his money.

It’s no secret that our money and our health are connected. More people want to excel with these two things for their lives more than any other two things combined. Year after year, two of the most common New Year’s resolutions are to lose weight and save money. In fact, if you go to 43 Things right now, a website where over 3 million visitors share their goals, you’ll see that these are trending in the most popular resolutions section of their site. For many people, including myself, the path to happiness involves having a healthy body and a healthy financial life.

Money and health are also connected in their elusiveness. A few of us are lucky to be born with the ability to print money or with a superior metabolism, but the majority of us have to make a real effort to maintain good health and the proper financial situation. It doesn’t come easy. Let’s take a look some other ways that money and health are connected in our lives.

Hidden costs of poor health

When I left the corporate world earlier this year I had to get my own health insurance, unlike Flexo who chose COBRA coverage. I quickly discovered that my excess weight would cost me hundreds of dollars more each year in individual health insurance premiums than I would pay had I been in a more ideal weight range. I’m simply more of a risk to the insurance companies, so they need to charge me more for the increased risk. Life insurance premiums are handled in the same way. The more you weigh, the more you pay.

A recent study on the costs of being obese in America reported, “The overall, tangible, annual costs of being obese are $4,879 for an obese woman and $2,646 for an obese man. The overall annual costs of being overweight are $524 and $432 for women and men, respectively.”

The expenses adding to the costs included direct medical costs, absenteeism, and employer costs, as well as personal costs such as clothing, daily needs, gasoline, and others. The big difference between women and men is due to the connection between obesity and lower wages in women. Basically, obese women face much more wage discrimination.

Dining out “double-up”

Eating outside of my home has easily been the biggest culprit in my efforts to reduce unecessary spending in my monthly budget. It’s also been a big part of the reason I’m carrying around a few extra pounds. I believe that too much dining out will leave you fat and broke. The problem is that the portions at today’s restaurants are just too big. Most dinner plates I see easily contain two times the recommended caloric intake for a meal. Not only are you paying for the convenience of having someone prepare the meal for you, you are paying for more meal than you actually need.

One of my goals for 2011 is to eat more meals at home. These meals generally cost less and I can control the portions and calories (without resorting to doggie bags, as I do at most restaurants). Also, contrary to popular belief, meals at home take less of your time. Time is money.

The health benefits of wealth

While poor health choices seem to create a negative financial situation, there is also evidence that as your wealth increases, your health tends to improve. When your finances are in order, it will likely mean that you can afford to do several things to improve your health: afford a gym or trainer, eat more fresh fruits and vegetables, afford more preventative healthcare, eat better when you do eat outside of the home, and afford more vacation and recovery time. Improved finances aren’t a guarantee of health, but they definitely help.

Using money as a good health motivator

Because we desire both health and money, we can use one to help influence the other. My very frugal wife once told me that back in her early 20s she used to sign up for marathons and 5Ks well in advance of race day. Not only did she do this to pay a lower price for registering in advance, she liked how it put her on the hook financially. The last thing this girl on a teacher’s salary wanted to do was show up unprepared for the event and feel like she was wasting the money she had invested. So, more often than not, she showed up properly trained and ready for the race.

Another tactic is to make a bet with some friends regarding your health-improving efforts. The website stickK will help faciliate this financial wager around the goal of your choice. If your goal is to drop a few pounds or quit smoking, you’ll be putting your money at risk for the sake of your health. Sounds like a noble wager to me. One other resource you might want to check out is HealthyWage. It’s a site that will actually pay you or your team members to lose weight.

Inexpensive ways to get healthy

Finally, here are some ways for you to get healthy that won’t empty your wallet:

1. Walking in your neighborhood, local mall or school gym. Walking is the easiest way for anyone to get started.
2. Working out in your apartment or condo community center gym. I once trained for a half marathon on a treadmill.
3. Renting exercise DVDs from the library or using your Netflix subscription. Everyone has time for a 20 minute free workout routine in front of the TV.
4. Searching for used exercise equipment on craigslist. Dumbbells, resistance bands, jump ropes can all be found online for less than full price.
5. Making your daily activities a workout. Park further away from your office, take the stairs, or actively play just 30 minutes longer with your kids.

What other connections do you see between money and health? How are you planning on improving both in the new year?

Editor’s note: This is a timely article! I’m working hard to reduce my waistline, one of the few numbers I have not been happy about an increase over the past ten years. I’m working on achieving a 5K but healthier eating is one of my goals, as well. Thank you, Phil, for sharing this article.

Photo: Pink Sherbet

The original version of this article, Why You Should Care About Your Wallet and Your Waistline, is copyrighted by Consumerism Commentary.

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One of my goals for 2011, like most people who make New Year’s resolutions, is to lose weight. Earlier this week, I started a training program that will lead me to be able to finish a 5K. To track my progress and to assist with training, I’m using an application for my phone, RunKeeper.

RunKeeper Pro is free during the month of January, and I used the opportunity to enroll in one of RunKeeper’s 5K fitness classes. The fitness classes are an organized way to train, with people following the same instructions on the same days. The social aspects of the application allows people to communicate with others in the class.

With GPS, the application tracks your speed, pace, distance, and elevation, and presents a number of charts that are shared with friends or with the public.

My class calls for alternating periods of running and walking three days a week; today will be my third day. Because I don’t have a treadmill indoors, I’ll be running outside in the snow.

Here are some articles for weekend reading.

How to Take Control of Your Money in 2011. The steps I’m following for my fitness mimic this philosophy for financial success, and are based on what has worked for me financially.

Congress Can’t Beat the Market, Even When it Cheats. You would think that the insider information that public representatives receive, they’d be able to invest their money in companies they know are going to skyrocket, growing their investment substantially. That is apparently not the case.

An Introduction to High-Deductible Health Plans. I’ve decided to continue my HMO coverage under COBRA rather than switch to a lower-cost high-deductible health plan. For me, the point of insurance is to cover unforeseen (or unfortunate) expenses, particularly those that would beyond the ability to pay without going into debt. I’d prefer not to pay a premium for the privilege of paying more money when medical coverage is needed. HDHPs can be good ideas for some people, though.

This week, Consumerism Commentary participated in the Carnival of Personal Finance hosted by Sustainable Personal Finance.

The original version of this article, Running in the Snow, is copyrighted by Consumerism Commentary.

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One month ago, I notified my boss at the corporation where I worked that I would be leaving. I was headed for the new frontier. Leaving my salary and benefits behind, I looked to the horizon and contemplated what I needed to do in order to keep my life secure. My biggest concerns besides maintaining my income were health insurance, structure and motivation, saving for retirement, and the human connection. I’ve taken some steps to keep myself moving forward already; the first step has been regarding my health insurance.

Last month, I didn’t know what to expect regarding COBRA coverage. My notice arrived last week, and with the cost in hand, I’m ready to decide whether to continue the same coverage I had from my former employer through COBRA or to seek opening a plan from New Jersey’s list of providers. The same plan (Aetna HMO) costs about 10% less when enrolled through COBRA compared to the state’s price. Apex was spot on with his comments. My state does regulate the pricing scheme, but my expectations for COBRA’s prices were way off.

I like the plan I had at my company (or would have had in 2011 — there was a slight change to include a low deductible), so rather than shopping for something new, even if something else would be less expensive, I’ve accepted COBRA coverage.

The tougher question is whether to continue my dental insurance coverage. For $575, I can continue my coverage, which paid for 100% of the negotiated rates for covered services. My annual expenses, consisting of the co-insurance I’ve paid at each dentist visit, add up to about the same amount each year. I could reduce some of the services I get. Yet, I prefer having the peace of mind that if something were to go wrong with my teeth that would not be covered by medical insurance, I would still be covered. I’ve accepted dental coverage through COBRA as well.

The process of accepting coverage was surprisingly easy. I logged into a website administered by the third party company acting as a firewall between the insurer and me. The site confirmed my identity using just my Social Security number and I was able to create yet another account on yet another website. There are options to accept coverage my mail or by phone, as well.

Even though the choice of continuing my coverage under COBRA was an easy decision to make and the process for making that choice was easy, it seems to be the best option out of the choices offered by the insurance companies directly to consumers in New Jersey.

Photo: The Bode

The original version of this article, Life After Salary: COBRA vs. Individual Health Insurance, is copyrighted by Consumerism Commentary.

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Although I’ve always been a proponent of the value of getting a full night’s sleep for health, this is something that I haven’t been able to do for myself for many years. The people I know who are most committed to their careers and those for whom anything other than success is unacceptable have had a bad relationship with sleep.

I’ve heard some CEOs say that there will be time to sleep when they die, and other managers who expect their employees to forgo a good night’s sleep during the most important times of the year when presence at work is required for nearly twenty-four hours a day. I had a boss who, even during slower times, often worked in his office twenty hours a day and slept at his desk for the other four hours. This was many years ago, but I wouldn’t be surprised if he still does.

Studies have long shown the benefits of getting a full night’s sleep, and seven to eight hours each day seems to be the magic amount. Researchers continue to study sleep. A few years ago, sleep deprivation was linked to serious illness, and now it’s been found that there are superficial benefits, too; sleep makes people more attractive. There’s truth behind the phrase, “beauty sleep.”

It seems somewhat intuitive, but now we have the data to back up our assumption. Getting a full night’s sleep keeps you looking good. Anyone who is interested in earning more money should be interested in doing anything possible to seem more attractive to others because other studies have shown that, on average, people considered attractive earn more money.

As I’ve been basically working two full-time jobs for the past few years, I have not been able to live by my philosophy of the importance of a full night’s sleep. As of today, however, I am making my own hours, dedicated solely to the projects that I want to work on (such as Consumerism Commentary).

I don’t think I need to force myself to remain awake in order to build a successful business. In fact, I seem to have better ideas when my brain is operating well-rested. As I design and schedule my life without a corporate job in addition to the work I want to do, I will try to incorporate a good night’s sleep. I’m primarily motivated by the health benefits, but it wouldn’t hurt to lose the circles under my eyes, appear more attractive to others, and perhaps statistically earn more money.

Do you get a full night’s sleep? Do you think sleep has any noticeable effect on your attractiveness?

Want to look hotter? Hit the sack, MSNBC
Surprise! Pretty people earn more, CNN Money

The original version of this article, Make More Money By Sleeping More, is copyrighted by Consumerism Commentary.

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How often do you visit the dentist for preventive care? Since graduating college, I’ve been getting regular check-ups and cleanings twice each year. I’ve seen the results of neglect, and I have no desire to lose my teeth any time soon. I’ve also seen results of bad dental work, so it’s imperative not only to visit a dentist but to find one who comes recommended.

I have no training in dentistry, so I am left to trust the recommendations of the professional. Dentists are businesspeople, so part of their motivation should be to ensure patients are happy with their treatment and return. Just like any other business, there are some who make recommendations based not on what is necessary but on what will result in bigger spending for the customer.

1. Get a second opinion for any major expenditure. If your dentist is suggesting a root canal as a treatment for a cavity, you might want to shop around by visiting other recommended dentists.

2. Find a dentist that accepts your insurance. My dentist’s office is not a participant in any insurance plan. That means they are free to charge more than the negotiated rate a plan dentist might charge. While they submit my charges to the insurance company, I am responsible for any amount not covered. I could save some money by finding a dentist who accepts my insurance, but I prefer to stay with the same dentist I’ve been visiting for about ten years, and my insurance usually covers almost all of the cost.

3. Consider whether you need every recommended service. Insurance companies generally don’t pay for fluoride treatments for adults, for example. If your teeth and gums are in great condition, fluoride may be an unnecessary expense. Some dentists are more aggressive than others and are willing to suggest treatments at the first sign of a problem. Don’t be quick to dismiss treatment, but don’t be afraid to ask about other options.

In addition to improving your health, taking care of your teeth also improves your appearance. In today’s economy, your appearance could be the difference between getting a job after an interview and not getting called back in. It’s unfortunate, but appearance plays a role both in conscious and subconscious impressions.

With a quick search, it’s easy to find horror stories about dentists who suggest unnecessary treatments. One study by Readers’ Digest in Canada shows how 16 different dentists offered the same individual 16 different interpretations of a patient’s situation. Patients without a Doctor of Dental Surgery (DDS) degree or a Doctor of Dental Medicine (DMD) degree don’t have the training to analyze problems and must rely on the professional.

At least with auto mechanics, customers can have more than a basic knowledge of their own vehicle and with some focus can determine when professionals might be attempting to take advantage of their situations.

The original version of this article, Reducing the Cost of Dentist Care, is copyrighted by Consumerism Commentary.

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Aside from some procedural maneuvering in the Senate, the health insurance reform bill that Congress has been working on for the last year, now falling under the Reconciliation Act of 2010 (H.R. 4872) and the Senate health bill, will soon be signed into law. How is the new law going to affect your personal finances? Since there are so many different health and insurance situations in America, it’d be impossible to cover them all in one article.

Here’s a roundup of the more significant and wide-reaching parts, in a rough order of how likely each would impact you.

For everybody

If you itemize medical expenses on your taxes, the threshold will go up from 7.5% to 10% of your income (expenses will have to total above 10% before you can deduct them), though the threshold remains at 7.5% for the elderly through 2016.

Starting in 2014, individuals and small businesses will be able to shop around for state-based group health plans in addition to private plans. This is optional and should provide an ability to find lower premiums due to a large customer base and the natural effects of increased competition in the market. The Congressional Budget Office (CBO) expects the number of people getting insurance through the new marketplace to start around 8 million in 2014 and to grow to 24 million in 2019.

Health insurance premiums

Most working Americans get health insurance coverage through their employer or their spouse’s employer. Premiums will largely stay the same according to FactCheck.org, but you’ll get more “bang for your buck.” Insurance companies will be required to spend 85% of your premium on medical care in small markets and 80% in large markets, rather than spend it on other things like marketing, bonuses, lobbying, and other administrative expenses.

Kids

Dependent children will be allowed to stay covered under their parents’ insurance until age 26. According to Reuters, “Many health plans currently drop dependents from coverage when they turn 19 or finish college.” This increased coverage is optional, and parents who decide to take advantage of this can always ask their adult kids to pay for their own co-pays and deductibles.

This will go into effect six months after the president signs the bill into law.

Seniors

There is currently a “doughnut hole” in Medicare Part D, the program that many Seniors use to purchase medication. If you’re spending between $2,700 and $6,154 a year on drugs, you have to pay for it all yourself. The new law gradually closes this gap over time, starting with a $250 rebate, 50% discount on brand names starting in 2011, and it will be eliminated by 2020.

About 22% of Medicare enrollees use Medicare Advantage. Some add-on benefits of popular Medicare Advantage plans will be dropped, and money flowing from the government toward these plans will decrease. Medicare Advantage plan providers will have to spend at least 85% of revenue on medical costs or activities that improve quality of care, rather than profit and overhead.

Starting in 2011, Medicare beneficiaries will be able to get a free annual wellness visit and personalized prevention plan service. New health plans will be required to cover preventive services with little or no cost to patients.

Poor people

From Reuters:

Medicaid, the government healthcare program for the poor, would be available to everyone with incomes up to 133 percent of the poverty level, which stood at $10,830 for an individual and $22,050, for a family of four.

Federal subsidies for purchasing insurance will be available for those beyond the Medicaid limit, Americans with incomes between 133% and 400% of the poverty line.

If you get sick

This is why most people get health insurance in the first place. It’s the same reason we get car insurance. There might be a terrible accident. Here’s how the new law will affect your finances if you get seriously ill:

• You won’t be dropped from your health plan. In about six months, that will be illegal.
• If you try to purchase health insurance with an existing illness, you will be able to. Insurance companies won’t turn you away. This is true for children six months after it’s signed into law, and by 2014 for adults.
• There will be no limit to how much coverage you can receive in your lifetime.
• Similarly, annual limits on benefits will be restricted within about six months, and will be illegal by 2014.

The “Cadillac Tax”

If you have a “high-cost” plan, currently defined as one costing more than $10,200 for an individual or $27,500 for a family per year, there will be a new 40% tax starting in 2018. According to FactCheck.org, this new tax “falls on insurers, but would be passed along to policyholders one way or another.”

However, according to Reuters, “A higher threshold is allowed for plans covering mostly women, older workers and retirees as well as those in high-risk professions.” The dollar thresholds are indexed to inflation and the dollar thresholds are automatically increased in 2018 if the CBO is wrong in its forecast of the premium inflation rate between now and 2018.

As a result of this tax, the CBO and the Joint Committee on Taxation believe people will start choosing less expensive plans, and because of higher cost benefits, employers will be able to raise salaries. Time will tell.

Wealthy people

From Reuters:

The Medicare payroll tax is raised to 2.35 percent from 1.45 percent for individuals earning more than $200,000 and married couples with incomes over $250,000. The tax is imposed on some investment income for that income group.

This refers to adjusted gross income (taxable income), not total annual income. This will go into effect in 2013. In 2008, about 2% of American households had adjusted gross incomes greater than $250,000.

Update:“Investor Junkie” in the comments pointed out something I missed in this section. The Medicare tax which comes out of our paychecks is being modified to include net investment income (interest, dividends, royalties, rents, gross income from a trade or business involving passive activities, and net gain from disposition of property). As above, this does not apply if modified adjusted gross income is less than $250,000 in the case of a joint return, or $200,000 in the case of a single return.

Employers

Starting this year, there will be a new tax credit for some small businesses to help provide coverage for workers, but firms with more than 50 workers who do not offer medical coverage could face fines of $2,000 per full-time employee. The first 30 are exempted from the fine, so if the non-compliant business has 51 employees, the fine applies to 21 of them.

In addition, according to Reuters, “A temporary reinsurance program is created to help companies maintain health coverage for early retirees between the ages of 55 and 64. This also expires in 2014.”

People who can afford insurance but choose not to buy

If you’re not covered under your parents’ plan, and if your income is high enough to afford insurance, and if you choose not to sign up for it anyway, you will pay an annual penalty. The penalty will be either a flat dollar amount (for example, $325 in 2015 and $695 in 2016), or as a percentage of your income (for example, 1.0% in 2014, 2.0% in 2015 and 2.5% in 2016).

If you own a tanning salon

From Reuters, “A 10 percent tax on indoor tanning services that use ultraviolet lamps goes into effect on July 1.”

Further reading

This article focuses almost solely on the direct or indirect effects of the new law on your personal or family finances. There are many more aspects to the law, however, which I encourage you to familiarize yourself with, including the quality of care, how program effectiveness is measured, innovation, taxes on specific medical devices, how national programs are paid for, etc. The full list of my sources are below:

Factbox: Details of final healthcare bill, Donna Smith, Reuters, 19 March 2010
Factbox: Healthcare bill would provide immediate benefits, Donna Smith, Reuters, 19 March 2010
Factbox: Winners and losers in House healthcare bill, Susan Heavy, Reuters, 19 March 2010
A Final Weekend of Whoppers, Lori Robertson, FactCheck.org, 19 March 2010
H.R. 4872, Reconciliation Act of 2010, Congressional Budget Office, 18 March 2010

There’s also a handy calculator provided by the Kaiser Family Foundation where you can see specifically how you’ll be affected once the new law is signed. Make sure you choose “Reconciliation Proposal” in the dropdown menu near the top.

The original version of this article, The New Health Insurance Law and Your Money, is copyrighted by Consumerism Commentary.

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This article is presented by Kelly Whalen, Consumerism Commentary staff writer.

The costs of health care rose dramatically in the past year for many Americans. Hewitt Associates, a global human resources consulting firm, measured an increase in group insurance premiums of 6% percent in 2009, and that’s only part of the full health care picture.

While health care reform is stalled in Congress and will not solve all the issues with the behemoth health care industry, there are actions you can take to save thousands of dollars on health care expenses.

• An apple a day. The saying is still true, preventative care is really the best way to stay healthy. A yearly checkup with your doctor, dentist, eye doctor, and gynecologist can help catch illness or disease early as well as give your healthcare provider an understanding of what “normal,” is for you. For instance, one of my children has a normal temperature of 97.5°F, so a 98.6°F reading is actually a slightly elevated fever for her.
• Don’t delay. Some of the largest costs to insurance companies and hospitals are patients who delay treatment. While you shouldn’t run to the doctor every time you have a mild case of the sniffles, ignoring a problem could make it harder to treat. In some cases doctors aren’t quick to make a diagnosis or need multiple tests or opinions. In those cases waiting can be damaging or deadly.
• Avoid the emergency room. The cost of a visit to the ER is five times as expensive as a doctor’s visit according to national averages. Go to your primary care doctor, a Minute Clinic, or an Urgent Care Center instead. If you have health issues or get ill frequently look for a doctor that has weekend office hours, is available by phone, or who does house calls. (Yes, house calls do exist, Virginia.)
• Stay fit. The foundation of good health is being in good shape. Eating well, exercising,, and sleep have a huge impact on how quickly you recover whether whether from a common cold or surgery. Getting better faster means less time out from work, so you can use those vacation days for a real vacation.
• Clean your teeth. It sounds like something your mom would say, but keeping your teeth clean can add years to your life and reduce your medical and dental bills.
• Give yourself a healthcare checkup. Make sure you fully understand your health care benefits and its limitations. You may be paying too much out of pocket, or too much for a plan you don’t fully use. Talk to your HR department, or insurance broker for other options. Look into Health Savings Accounts. This type of account is like an emergency fund for your healthcare expenses. If you have a Flexible Spending Account make sure you are keeping track of the money you are spending and use it before you lose it. Make sure you understand all the benefits of your insurance package. Some insurance companies may cover or offer discounts on services such as massage, acupuncture, chiropractic care, nutrition counseling, smoking cessation, weight loss training, and gym memberships.

While you may be busy or think a visit to the doctor is too expensive, it could save you thousands of dollars and years of your life. Your physical health should go hand in hand with your fiscal health so you can enjoy the fruits of your hard work for as long as possible.

Photo credit: dmason

The original version of this article, Fitness: Physical or Fiscal?, is copyrighted by Consumerism Commentary.

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Flexible Savings Accounts (FSAs) are often offered by companies to help their employees save money by setting aside income from paychecks to pay for health-related expenses without being taxed. For many Flexible Savings Account holders, the deadline for using the funds set aside is the end of the calendar year. Medical FSAs usually provide the account holder with a debit card that can be used to pay for a wide variety of health-related expenses. Co-payments and co-insurance for visits to the doctor can be paid with the tax-free account, as can prescription and over-the-counter medications.

One unfortunate drawback from the employee’s perspective is the possibility of forfeiting the money set aside if left unused at the end of the year. I don’t have a Flexible Savings Account right now, but if I had been putting aside $100 each paycheck for myself, I would want to make sure I didn’t lose any of that money. Now that we’re approaching the end of the year, many people are likely in this predicament. FSA participants must find qualifying ways to spend hundreds or thousands of their own dollars.

Almost anything that the IRS considers a valid medical expense for tax deductions will qualify for FSA spending. Here are ten qualifying purchases that might surprise you.

• Travel and transportation. The miles you drive to and from necessary medical care qualifies for reimbursement from your FSA at the rate of $0.24 per mile. Keep a driving log and submit your details for reimbursement, as the debit card won’t come in handy for this particular expense. All travel expenses are considered. If you need to fly outside the United States for medical care, that is covered as well.
• Car modifications. If you’re looking to pimp your ride, you may be able to pay for the expenses with your pre-tax dollars in your FSA. There is a catch: the modifications must be approved by a medical professional in order to treat a condition. That leads me to believe adding accessibility features might be covered but if you’re looking for a Nitrous Oxide Systems upgrade, you may be out of luck.
• Lodging. Your FSA will cover lodging expenses incurred for required medical care. If you visit a hospital out-of-town for specialized care and need to stay in the area but not necessarily at the hospital, or if you visit a specialist with her own practice, your stay in a hotel can be paid with funds from your FSA.
• Abortions. Medical abortions are qualified medical expenses. Congress will be in heated debate soon about whether abortions should be eligible for federal assistance under the new Health Reform law. Meanwhile, you can continue to pay for an abortion with money you set aside to be exempt from income taxes.
• Over-the-counter cough syrup. This is a good option for end-of-the-year spending. Cough syrup most likely won’t expire for several years, and almost everyone suffers from colds once in a while. If you use cough syrup to ease your symptoms you can stock up now.
• Swimming lessons. If a doctor advises you to learn to swim for the treatment of a medical condition, use your FSA to pay for the expenses. Aquatic therapy is used to help with arthritis and joint stress and is also used to ease some symptoms of cerebral palsy and autism.
• Condoms. If you use condoms or other contraceptives, you can pay for these items with your Flexible Spending Account. Buy in bulk now for the future.
• Sunscreen. Not all sunscreen qualifies for payment from a Flexible Spending Account. Look for sun block with an SPF rating of 30 or higher as well as other sunburn creams and ointments.
• Viagra. Viagra and similar medications are prescription drugs, so they qualify as legitimate medical expenses for your FSA dollars. Combine this with some of the other items listed here, and you’ll be set for a good time.
• Weight loss programs. If a doctor suggests a wight loss program or drugs to treat a medical condition, then these expenses can be paid for with your FSA debit card. If you’re just looking to fit back into the jeans you wore in college, you are out of luck.

The good news is that your FSA will always cover Band-Aid bandages, even if you just plan on wearing them as fashion accessories. Have you used your FSA for any interesting expenses?

Photo credit: Mauricio Pellegrinetti
FSA Eligible Expenses, WageWorks

The original version of this article, Your Flexible Spending Account: 10 Qualifying Purchases, is copyrighted by Consumerism Commentary.

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A few years ago, we discussed medical tourism. Every visitor who expressed an opinion would visit or have visited a foreign country or territory to take advantage of reduced costs associated with procedures. In the past several years, medical tourism has been increasing.

I mentioned my health insurance expenses are increasing 10% in 2010, and the increase will be even greater for my employer’s portion of the expense.

If I were to face an expensive or complicated medical procedure, I would seriously consider options outside the United States. Thanks to the internet, due diligence is much easier and faster, regardless of where the doctors and hospitals are located. Employers and health insurers are starting to see the benefit of medical tourism, as well.

Medical care elsewhere is as capable

If I have the opportunity to prepare for a major medical procedure, as I would as long as I’m not dealing with an emergency situation, there is enough information available for me to feel confident about choosing a location. The process calls for working with a medical tourism facilitator. The Medical Tourism Association maintains a list of organizations they have certified although their certification process is still new and in development.

Medical care elsewhere costs less

If I can receive the same or better quality of care for less by traveling overseas, even when taking travel expenses into account, then the financially responsible decision is to consider medical tourism.

Here is a comparison of costs for surgery according to the Medical Tourism Association.

Even if individuals are not yet on the medical tourism bandwagon, employers and health insurers are looking at the cost savings offered by having procedures done outside the United States according to a recent DailyFinance article.

With Americans able to save 50% to 90% by going to places like India, Thailand and Costa Rica, the uninsured aren’t the only ones considering the medical tourism option. Increasingly, U.S. employers, faced with soaring health care costs that are expected to rise another 9% in 2010, are sending their workers overseas for care…

Insurers like Blue Cross Blue Shield are getting into the act, too. For good reason: Even when employers or insurers waive co-pays and deductibles and throw in airfare and spending money for the patient and a companion — some of the typical incentives offered to employees who have medical procedures done abroad — they can still save $40,000, $50,000 or $60,000 per surgery, depending on the procedure.

Medical care elsewhere increases competition

Global competition may be the market-based way to drive the domestic health care industry to lower costs throughout the entire system. Lately, the United States government has been focused on health insurance reform through new laws designed to increase care for more Americans, offer new options, and reduce costs.

I am interested to see how the industry reacts as more employers and insurance companies turn to medical tourism facilitators. I expect organizations representing medical professionals in the United States would try to limit medical tourism. The American Medical Association offers nine guidelines on medical tourism for employers and insurers, not quite discrediting the practice but helping to ensure patients remain educated.

The AMA advocates that employers, insurance companies, and other entities that facilitate or incentivize medical care outside the U.S. adhere to the following principles:

1. Medical care outside of the U.S. must be voluntary.
2. Financial incentives to travel outside the U.S. for medical care should not inappropriately limit the diagnostic and therapeutic alternatives that are offered to patients, or restrict treatment or referral options.
3. Patients should only be referred for medical care to institutions that have been accredited by recognized international accrediting bodies (e.g., the Joint Commission International or the International Society for Quality in Health Care).
4. Prior to travel, local follow-up care should be coordinated and financing should be arranged to ensure continuity of care when patients return from medical care outside the US.
5. Coverage for travel outside the U.S. for medical care must include the costs of necessary follow-up care upon return to the U.S.
6. Patients should be informed of their rights and legal recourse prior to agreeing to travel outside the U.S. for medical care.
7. Access to physician licensing and outcome data, as well as facility accreditation and outcomes data, should be arranged for patients seeking medical care outside the U.S.
8. The transfer of patient medical records to and from facilities outside the U.S. should be consistent with HIPAA guidelines.
9. Patients choosing to travel outside the U.S. for medical care should be provided with information about the potential risks of combining surgical procedures with long flights and vacation activities.

Like the international outsourcing that has changed the shape of a number of industries, medical tourism lowers the costs for businesses that can then pass those savings onto the consumer. With outsourcing, whether good or bad, Americans benefit by the lower standards of living across in countries across the globe. A surgeon can earn hundreds of thousands of dollars each year in the United States; the salary is high to offset the risk of malpractice suits. Surgeons in other countries may not have the same high risk, and with a lower standard of living, they can afford to be paid much less.

Would you consider traveling overseas for a medical procedure?

The original version of this article, Popularity of Medical Tourism Increasing, is copyrighted by Consumerism Commentary.

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I visit a doctor once a year at the most, and I hardly require prescription medicine. The cost of my health insurance premium is about $800 this year for my HMO plan. My employer pays a larger percentage of the total premium, but the prices increase each year by a percentage much higher than inflation. A similar HMO plan, if I were to quit my job and buy individual health insurance in New Jersey, I would pay more than $800 a month, though there are less expensive options.

I’m lucky I don’t have any dependents.

The more individuals in the world with access to good and affordable heath care, the healthier the world will be in general, so I am in favor in reform that brings better care to more people. While reduced costs for me would be nice, that would be just an ancillary — and selfish — benefit. Will any of the various sets of proposed legislation succeed? I don’t know anyone who can answer that question with any sort of definitive answer. Health care is a monster, a complicated system with many moving parts that won’t be fixed right away.

The Congressional Budget Office released their cost estimates for the version of the legislation that is up for a vote within the Senate Finance Committee, and the numbers look better than expected: The bill would could $829 billion over ten years and actually reduce the budget deficit by $81 billion over the same time period. This bill doesn’t include a government-run plan, but it also leaves more people uninsured than some would like.

This legislation has a long way to go. The version of health care reform offered by the Senate Finance Committee needs to be combined with the version being considered by the Senate Health Committee. The Senate then needs to vote on and pass a bill. The House of Representatives also needs to vote on and pass its version of the health reform bill (H.R. 3200). Eventually the bills that pass both the House and the Senate need to be combined, voted on, passed and presented to the President.

None of this will happen without more changes and compromises, and even then it may not gain the votes needed to succeed.

Please share your thoughts and join the discussion. What issues should health reform address? What are your experiences with health care?

The original version of this article, Friday Discussion: The Need for and Cost of Health Care Reform, is copyrighted by Consumerism Commentary.

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It’s been a while since I’ve taken the pulse of our readers on a hot topic, so I figured it was time. I’ve been paying closer attention than usual to the various proposals in Congress dealing with healthcare and health insurance reform, and I’ve made a list of the different things they’re trying to tackle. (You’ll notice there’s nothing in the list about assisted suicide or bureaucrats deciding who lives and who dies… that’s because nobody is proposing anything of the sort.)

So, press “Yay” on the things you want to see change in America, and “Boo” for those that aren’t important to you. If you think the state of healthcare in America is just fine the way it is, and you’re happy with healthcare costs rising three times as fast as wages, then by all means press “Boo” for everything on the list.

The original version of this article, What’s Important to You in Healthcare Reform?, is copyrighted by Consumerism Commentary.

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When I write about advocating for the consumer when he or she is in debt, I usually receive a good amount of feedback blaming the consumer for his or her situation. Yes, in many cases, households fall into debt because they buy more things they cannot afford, whether knowingly or unknowingly. In many cases, they ignore their own financial condition without worry for their future or while knowing that a declaration of bankruptcy can save them when life gets rough.

Not everyone falls into these categories, I remind the critics. Medical emergencies are expensive and cannot always be adequately planned for in advance. Credit card debt maybe the only option, or sometimes just a slightly better option that financing your bills directly from the hospital. Here is one example from the New York Times:

Mr. Kupka has multiple sclerosis. The Kupkas, who live in Lindstrom, Minn., have an annual income of $45,000 — a combination of her salary as an office manager and his disability payments. More than 20 percent of that income goes toward health care. Their annual insurance premiums total $5,400, and then there’s the $4,000 Mr. Kupka spends on drugs, doctor’s visits and lab fees before he fulfills his policy’s deductible.

In the three years since Mr. Kupka’s disability forced him to stop working as a mental health therapist, he has accumulated $12,000 in debt. “It’s frustrating,” he says. “We earn too much to qualify for state and county assistance, but not enough to stay ahead of the bills. I’ve thought maybe my wife and I should get divorced. But not only is it against our faith, it turns out it wouldn’t help…” [A]s Mr. Kupka’s situation illustrates, it’s not just uninsured patients who rack up large bills. Nearly two-thirds of those with debt problems… had health insurance.

The article offers tips for dealing with insurmountable medical expenses:

• Confront, don’t ignore, your situation. If you don’t pay your bills and the hospital decides to use a collection agency, your hardship will increase. Your credit report and credit score will be adversely affected.
• Review your bills. Health providers make mistakes on bills all the time, but many errors are not caught. Some procedures or services may have several names, identical is everything except price, so it helps to work with a medical expert if you have any questions. You can also resubmit your bills to your insurance company if coverage is denied. If you are still not satisfied, your bills may qualify for a third-party review.
• Hire an expert. The article suggests working with the Medical Billing Advocates of America to find a qualified mediator to negotiate between yourself and the health care provider.
• Don’t use a credit card. If you can help it, avoid paying your bill on a credit card if you can’t pay off the balance quickly. Interest charged for your use of someone else’s money will increase your debt. Watch out for credit cards offered by a hospital with immediate approval. These are like store credit cards; they might offer a 0% interest rate up front, but you might fall into a trap and owe much more interest than they’ll tell you when they’re busy saying, “You’re approved!”
• Don’t let debt collectors take advantage of you. Know your rights for dealing with debt collectors in your state. They may only call you during certain hours, they may not harass you, and they may not threaten you. If they break the rules, you can file a complaint with the Federal Trade Commission.

Situations deteriorate faster if you do not have health insurance. Find a way to get covered if you are not a member of plan yet.

The original version of this article, Medical Bills, Even if You Have Insurance, Can Cause Frustration and Debt, is copyrighted by Consumerism Commentary.

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A former high-powered, strongly motivated boss of mine did not believe in sleep. In order to be the best in the world at what we do — and this was the goal, no doubt — sleep is an obstacle to be overcome. I disagreed, as it seemed to me at some point, bodies and minds will find what they need whether or not you try to control them.

While he was in his office until four in the morning many nights, trying to work, I was getting the sleep I needed to be effective during waking hours. Our disagreements about this as well as some other philosophies of life eventually led to my departure from the organization.

Scientific studies have long proven the importance of a good night’s sleep, but there’s some new research that links sleep deprivation and serious illness.

A 2008 research project at the University of Chicago’s medical school kept young, healthy volunteers awake for all but four hours a night for six nights running. The result: The levels of subjects’ hormones shifted – in particular a hormone called leptin that affects appetite. They became ravenously hungry, scarfing down pizza and ice cream long after they would have felt full normally, and their blood sugar shot up to pre-diabetic levels – an ominous result after less than one week of inadequate sleep.

…[T]he World Health Organization (WHO) has gathered data from around the globe showing that sleep deprivation depresses the immune system, to the point where WHO is considering labeling chronic sleep deprivation a carcinogen, comparable to tobacco and asbestos.

Sleep deprivation also results in an overestimation of health; people deprived think they have more control than they do.

One experiment at U. Penn’s medical school kept subjects up until 4 A.M., woke them at 8 A.M., and then gave them a series of tests designed to measure memory, alertness, and the ability to react quickly to new information. The researchers were startled to find that subjects’ mental acuity declined markedly after just one night and kept dropping with each successive night of four hours’ sleep. Even more worrying: The study’s volunteers were unaware of their impairment. One woman, so fatigued that she could barely say her name, was nonetheless certain she was able to drive home.

In addition to these studies, entrepreneurs surveyed about their sleep habits have claimed to come up with many of their ideas while asleep. So it seems that sleeping is good for business.

Here are five free ways to improve sleep and five more free ways to improve sleep. Get Rich Slowly also has a brief guide to better sleep.

Make Sleep Work For You, Anne Fisher, Fortune Small Business, August 25, 2008.

The original version of this article, Sleep Makes You Healthier and Smarter, is copyrighted by Consumerism Commentary.

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Rather than firing up the central air conditioning, you can keep it off or lower its power in the heat of the summer by exploring some of these low-cost alternatives.

1. Use fans. While fans don’t change the temperature of the air, they increase air movement, which will make you feel cooler by a few degrees. Look for fans with large blades. In general, the large blades will move more air with less power and less noise.

2. Cool the air naturally. If you hang damp sheets in front of your window, air coming into your house or apartment will lower the temperature of the air as it enters.

3. Wear light colors. Black fabric absorbs heat while light-colored fabric reflects. Light-weight fabric allows your skin to breathe. Fashion aside, proper summer clothing can help keep you cool.

4. Install shades and blinds. By keeping your rooms shielded from the sun, you can avoid direct light and heat. Keep the blinds closed during the day and open the windows during the night. There are window coatings available that let in light while keeping out heat. Try searching Home Depot for heat and glare control window films.

5. Wear a cooling bandana. Here’s a stylish way to keep yourself cool. Cooling bandanas can be soaked in water and are worn around the neck. As the water evaporates your body remains cool. You can find cooling bandanas on Amazon.com.

6. Avoid chores. Forget about using the clothes dryer or the oven; these appliances emit heat, so your cooling system must work harder whenever you’re cooking or drying. While the weather is hot, eliminating strenuous chores will help protect your body from dehydration. Alcohol and caffeine should be avoided as well for the same reason.

7. Spray yourself with water. Never was a wet tee-shirt contest a better idea. Keep yourself wet with sprinklers outdoors or spritzers (water bottles with a spraying handle) indoors.

8. Leave the house. Take advantage of large businesses that must keep their air conditioners running to keep customers comfortable; take a trip to the mall. If you do stay in and run the air conditioner, however, keep the thermostat high and supplement the house cooling with fans.

Where I live, the temperature has been above 90 degrees lately, with the heat index over 100 this past weekend. I don’t have it quite as bad as those in Texas, for example, but heat makes everyone uncomfortable. As someone I knew used to say, you can only remove so many layers of clothing.

Beat the Heat Without Busting the Budget, Rodika Tollefson, LifeWire

The original version of this article, Stay Cool This Summer: Air Conditioner Alternatives, is copyrighted by Consumerism Commentary.

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If you’re moving into a new neighborhood, it’s usually easy to drive around (or walk around if the new neighborhood is a city) to find amenities and stores within walking distance. If you agree that walking is a necessary exercise, the ability to walk to destinations should be a large factor when deciding where to live.

Now you can find similar information with a handy web site called Walk Score. Type an address when prompted and Walk Score will provide a map containing local grocery stores, restaurants, schools, fitness centers, and more, including walking distance from the address. The web site uses an algorithm to develop a score, the “Walk Score,” for the neighborhood.

For example, here are the results for Princeton, NJ, not my neighborhood, but nearby.

The left column shows the closest location in each category, but is expandable to show all locations within walking distance. You can compare Walk Scores between neighborhoods to help determine an optimal place to live for your exercise needs.

As you can see above, Princeton, New Jersey has a Walk Score of 85. But what does that mean? The web site provides this guide to help you interpret the numbers:

90 – 100: Walkers’ Paradise. Most errands can be accomplished on foot and many people get by without owning a car.
70 – 90: Very Walkable. It’s possible to get by without owning a car.
50 – 70: Some Walkable Locations. Some stores and amenities are within walking distance, but many everyday trips still require a bike, public transportation, or car.
25 – 50: Not Walkable. Only a few destinations are within easy walking range. For most errands, driving or public transportation is a must.
0 – 25: Driving Only. Virtually no neighborhood destinations within walking range. You can walk from your house to your car!

My neighborhood’s Walk Score is 60, an accurate evaluation of my opportunities for ambulatory errand completion.

Walking should be a strong factor in your decision. According to the Walk Score website, walking increases your health, reduces greenhouse gas, increases your social capital, strengthens local businesses, and allows for more public transportation options.

I certainly don’t walk enough as I should. I have a grocery store practically across the street from where I live. Rather than making smaller shopping trips more often in order to walk, I usually wait and make large trips less often, requiring the use of my car to transport the bags of groceries required.

This is one habit I should change for my own benefit.

What is your neighborhood’s Walk Score?

Thanks to Julia_JJ for the tip.

The original version of this article, What’s Your Neighborhood’s Walk Score?, is copyrighted by Consumerism Commentary.

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In two short weeks, 2007 will come to a close. If you have money in your Flexible Spending Account when the new year comes around, and your company doesn’t offer a grace period, you will lose those funds.

A Flexible Spending Account is a savings plan offered by many employers that lets you put aside some money from your paycheck each week. The money is saved in an account held by your employer. With a Health or Medical FSA, the most common type of FSA, you can use the account for medical expenses. Either you can receive a debit card linked directly to the account for use when paying medical expenses or you can apply for reimbursement of expenses paid otherwise.

The primary benefit of these accounts is the money used for reimbursement will not be subject to income tax. However, you have to use the funds put aside by either the end of the year or by a date such as March 31, depending on your employer’s rules. Since you enroll in the FSA in the prior year, you have to predict your future medical expenses. If you have a pretty good idea of what your expenses will be, you can determine how much you’ll save through the use of an FSA account. It’s just a question of subtracting your used medical expenses from your gross income (upon which tax will be deducted) rather than your net income. This is a particularly good option if you don’t itemize your tax deductions or if your health expenses won’t reach the threshold of 7.5% of your Adjusted Gross Income to qualify.

A poor prediction means you’ll be leaving money on the table at the end of the year. If your prediction was not far off, there are still some options that will prevent you from losing the money you put away. Here is what I would suggest. Go to the pharmacist and pick up over-the-counter medication. I probably spend about $25-$35 a year on regular strength pain relief medication (naproxen). If I had a Flex account, I would stock up at the end of the year. Cold and allergy medicine qualifies as well, and the weather makes the end of the year a good time to stock up. First aid supplies qualify as well.

In many cases, the FSA can be used to cover expenses for your family members, as well. Make sure you have been reimbursed for every medical expense throughout the year by going through your receipts if you’ve kept them. Speaking of receipts, it’s important to keep documentation for all medical expenses you’ve paid, whether directly from your Flex account via a debit card or for reimbursement later. In many cases, you will be required to substantiate the qualification of your expenses.

By the way, if you end up leaving unused money in your FSA at the end of the year, that money goes back to your employer, not to you. Also, you will owe income tax on the remainder even though you won’t “receive” that income.

Note: This article is a contribution to the Money Blog Network Monthly Group Writing Project. This month, the focus is on year-end financial strategies. Here are the other articles included in the project, all with great ideas for things to think about as 2007 comes to an end.

* Time to Rebalance Your Portfolio
* Dumb Year End Money Moves
* Clearing Out Your House For Fun and Profit
* Jump Start Your Debt Reduction Using Christmas Gifts and Year End Bonuses
* Make Your Charitable Deductions Before Year End
* Grab Some Year End Bargains
* Paycheck and Witholding Calculators for Year End Money Moves

The original version of this article, Use Your Flexible Spending Account (FSA) Funds Before It’s Too Late, is copyrighted by Consumerism Commentary.

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My company was offering vaccinations today for any employees wanting to gain protection from the flu this season. By the early afternoon, they ran out of vaccine and added another date a week from now to the schedule for those who did not get a chance.

I’ve never opted for the flu vaccine. It has always been my method of operation to take my chances and deal with the flu (without prescription medication) if the virus finds its way into my system. Last year, however, I had a tough time, and was out of commission more often than I would have liked. I suppose this comes with the territory of having a girlfriend whose job is to spend 8 hours a day with twenty-five ten-year-old germ balls.

I’ve always held the opinion that I shouldn’t need to introduce any more medication into my body than absolutely necessary. Not only that, but the vaccine works only against specific strains of influenza but is not very effective overall. As a relatively healthy individual, I do not have a high risk of complications from the flu, so other than missing a few days of work feeling sick, I don’t think it will hurt to skip the vaccine. Doing so might even mean that there is one more shot available for a young child or elderly individual with high risk for complications.

How about you? Will you be receiving the vaccination?

For some interesting reading, take a look and compare the information presented in the Center for Disease Control and Prevention’s Seasonal Flu information page (strongly pro-vaccination), Wikipedia’s entry on the flu vaccine (somewhat neutral and scientific), and the British Medical Journal’s Influenza Vaccination: Policy Versus Evidence (strongly conclusive against vaccination).

The original version of this article, Do You Get Vaccinated Against Influenza?, is copyrighted by Consumerism Commentary.

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I’m following the CNN Money series focusing on five couples earning about the U.S. median income, $46,000 a year (couple one, two, and three). The fourth couple in the series lives in Ruidoso, New Mexico, a noisy town.

Brent Wheat is a self-employed contractor and Shawna Wheat is an office coordinator. Together, they earn the “median household income range.” With three kids and a three-bedroom house, they are doing okay according to Shawna. They have three cars, including a truck used for Brent’s business. Like the other couples, health insurance is a problem. Medical costs were high last year due to a son’s car accident, and will be high this year thanks to the same son’s braces.

Do the Wheats want to do better? While Shawna says they’re okay, she does wish they could take a trip. Looking at their expenses pie chart, they seem to be in control of most of their expenses. The pie chart in their case is based on a total of $50,000 in expenses. It’s not clear if that is the same amount as ther annual income.

It’s also not clear if the 3% ($1,500) they pay to credit cards will eventually pay down their debt, or if they build up more debt at the same time. The 9% ($4,500) of their total expenses earmarked for retirement is better than a good portion of this country. I’m sure they’d like to do better in that respect, but they could be doing a lot worse.

I think that once they get their health care expenses in check — they might have to wait until the kids are on their own — they can take that trip they’d like.

The original version of this article, Five Couples Living on $46k, Number 4: The Wheats, is copyrighted by Consumerism Commentary.

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I enjoyed Matthew’s guest post last week, Cutting Down on the Cost of Razor Blades. Several commenters, including MillionDollarJourney and Dimes, pointed out the cost advantage of opting to use a decent quality electric razor. Here’s what (a different?) Matthew had to say:

I’d agree with the above comments about electric razors. I’ve had two now, each cost about $80 and lasted about 8-10 years each. I’ve never had to replace the blades and I’ve learned that when the battery dies, I can just plug it in to use it. $10 a year for shaving? Not bad at all…

Back in high school and college, I was a die hard electric razor user. At some point in my life, someone — perhaps my father — mentioned that a standard razor would be better for my face. Most notably, no more random pimples.

I wouldn’t say that my face was breaking out often back then, but one was sure to rear its ugly head right before dates and job interviews. I made the switch to Gillette Mach 3, and I’ve been paying (for the blades) ever since.

I don’t particularly think the face is any smoother now; in fact, I believe the electric razor (Norelco) provided a closer shave. I’m also not sure that there’s been any difference in the pimple department, either. I don’t go on dates or job interviews anymore. At least, not recently.

I’m thinking of going back to electric. Do you have any tips for the best razor? Or do you think I’m crazy for going back? Please let us know.

The original version of this article, Men: Do You Like Electric Razors?, is copyrighted by Consumerism Commentary.

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After writing about the effect CitiBank’s new balance transfer fee has on balance transfer arbitrage, I received an email from a reader, Andy, who has an idea to take advantage of healthcare savings account (HSA) reimbursements. This is a summary of his idea.

A good way to make some extra money is to take advantage of expected reimbursements. Medical expenses are good examples. If your HSA is efficient and sends your reimbursement quickly after your claim is received, you can deposit the funds, pay the bill by credit card as late as possible, and earn interest until the bill is due later. Here’s how the time line works out:

* 1st of month. I receive a medical bill for $1,000 and immediately submit the claim to HSA.
* Likely before the 15th of month. Receive reimbursement from HSA and deposit into savings account.
* 15th of month (or first day of the next credit card statement period). Charge bill to credit card.
* 15th of following month (or several days after the end of the statement period). Receive credit card bill with $1,000 charge.
* 15th of third month (or credit card statement’s due date). Pay credit card bill using $1,000 from savings.

If you assume that you’re receiving a 1% rebate on your credit card, and your savings account earns 5% annual interest, here are Andy’s calculations, outlining two months of interest plus a rebate on the bill. None of your payments will be late.

Obviously, this is a best-case scenario and the actual return would be lower. Missing the credit card payment will negate any benefit. It’s interesting to note that if your card offers a 2% rebate, the annualized return increases to 18.25%.

What you can earn from this technique is limited by the maximum reimbursement you can receive from your HSA, but if you qualify for other employer reimbursements, you can use them to your advantage as well.

The original version of this article, Another Form of Credit Card Arbitrage, is copyrighted by Consumerism Commentary.

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Just when I’m considering becoming a member at a gym to help myself stay in shape, SmartMoney publishes 10 Things Your Gym Won’t Tell You. If you’re looking for a demotivator to keep you from spending money for a membership that many find a waste of money, this article has what you’re looking for. Here are ten things about gyms that will help keep you away.

1. Most new memberships in January will cancel by April. That’s a lot of New Year’s Resolutions gone bad.
2. There is bacteria everywhere, including on the equipment and in the locker room towels.
3. Gyms aren’t equipped to handle health emergencies.
4. People don’t need any type of certification to become trainers, and they may not know much more than you.
5. They make it very difficult to quit membership. If you don’t pay, they may report you to credit reporting agencies even if you claim you canceled your membership.
6. There are catches in the fine print of the membership contract.
7. Gyms aren’t required to maintain their equipment, so there can be a danger in operating the equipment.
8. You can negotiate your membership rates by paying attention to specials offered throughout the year.
9. The lockers in which you leave your personal belongings can be robbed, and the gym is not held liable.
10. By joining or even entering a gym, you generally sign a waiver that relieves the company of any liability.

Still want to join a gym? I think I’ll work on exercising with my own equipment at home this year.

The original version of this article, 10 Things Your Gym Won’t Tell You, is copyrighted by Consumerism Commentary.

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Alcoholism. Depression. Heart disease due to stress. Delusions of failure.

If you’re on the path to become an investment banker on Wall Street, this is what you have to look forward to. Yes, you’ll make tons of money and your materialistic friends will silently envy you while despising you, but what use is money if you’re killing yourself slowly?

The article seems to exaggerate the situation, but I don’t know any investment bankers. So, you tell me. What’s it really like to work on Wall Street?

The original version of this article, Want to Be an Investment Banker? Read This., is copyrighted by Consumerism Commentary.

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Over the weekend, I received the annual benefits enrollment package from my employer. Last year, the health benefits offered by the company changed significantly to take advantage of Health Savings Accounts and to raise prices. Even after the multiple sessions with Human Resources, there were some of my coworkers who didn’t know the difference between HSAs, PPOs and HMOs.

The publisher of Fred Brock’s new book, Health Care on Less Than You Think: The New York Times Guide to Getting Affordable Coverage, sent me an excerpt from this book, and I’d like to share it. Presumably the book will help the reader make the most out of health insurance options at the lowest cost possible.

The excerpt is a concise glossary of some of the most relevant health insurance terms.

Before selecting a policy from an employer menu (or shopping for an individual policy), you should be certain you understand the terms used by the health insurance industry. The meanings can vary slightly among insurers, so if a number or explanation doesn’t match up with the following definitions, press the insurance provider for more details; there may be costs or exceptions hidden in the differences in jargon.

Coinsurance is the amount you must pay after your health plan’s deductible has been met. It’s usually expressed as a percentage. For instance, you might have to pay 20 percent of every bill until the total of your own payments hits your out-of-pocket maximum.

Copayment is a flat fee you pay for health-care services, regardless of how much the doctor or hospital receives from your insurance provider. Some plans, especially HMOs and some PPOs, require a copayment, usually $10 to $30 for each office visit to a doctor and often higher copayments for emergency care.

Credit for prior coverage may be something you need to prove — normally with a letter from your former insurer — if you are switching employers or insurance plans and need preexisting conditions to be covered right away. This is especially important if you are buying an individual policy, which can have a waiting period for preexisting conditions.

A deductible is the amount you must pay for your medical bills before your insurance kicks in. Usually the higher the deductible runs, the less expensive the policy is.

EOB (explanation of benefits) is a statement from your insurance company showing what it has paid and not paid for a claim. Some companies resist supplying duplicate EOBs, so maintaining an organized file of your EOBs is important if you need to challenge a bill.

An EPO (exclusive provider organization) plan allows you to use any doctor or hospital within the insurance provider’s current network, without a referral. You have no coverage, however, outside the current network even if your doctor used to be included in the plan. There can be copayments similar to those for HMO and PPO plans.

A fee-for-service (indemnity) plan is the traditional kind of healthcare policy that allows you to go to any doctor or hospital you choose. Deductibles can range from several hundred to several thousand dollars. After you have paid bills totaling your deductible, the plan usually pays 80 percent of all bills; you pay the other 20 percent up to an out-of-pocket maximum that generally runs between $1,500 and $3,000. After you have reached the out-of-pocket maximum, the policy pays 100 percent of your medical expenses. In most states, fee-for-service is the most expensive health insurance you can buy.

An HMO (health maintenance organization) is essentially a prepaid health plan. For a monthly premium, the HMO provides comprehensive care. You likely pay a copayment for office visits, but most HMO plans have no deductibles. (The exception to the no-deductible rule is an HMO that is eligible for a health savings account.) There are usually no forms to fill out or bills to keep track of. You are, however, quite limited in your choice of doctors, hospitals, and other health-care providers. You commonly must get a referral from your primary-care physician to see a specialist; if you don’t, your treatment with the specialist is not covered. Though HMOs were designed to control costs, they have been the source of many consumer complaints. These complaints were often because of coverage limitations or the fact that some doctors were compensated for denying treatment or referrals to patients or punished for providing what was considered by the HMO to be excessive treatment, although both problems have lessened in recent years. Because of their comprehensive, deductible-free coverage, HMOs often compete with the most affordable health insurance options.

An HSA (health savings account) is a less expensive, high-deductible policy linked to a tax-free savings account that can be used to pay medical bills before the policy’s deducible is met.

Lifetime maximum is the maximum amount of covered expenses your insurance company will pay in your lifetime. Look for a policy with a lifetime maximum of at least $3 million.

Out-of-pocket maximum is the amount of coinsurance you must pay yourself before an insurance policy will pay 100 percent of your bills. It may or may not include the deductible. The term stop-loss is sometimes used to refer to the point at which you have met your deductible and paid your out-of-pocket maximum.

A POS (point-of-service) plan is like a PPO except that you need a referral from your primary-care physician to see an out-of-network doctor, for which you may have to pay extra. Without the referral, you will likely have to pay the entire bill for the out-of-network physician.

A PPO (preferred provider organization) plan is a cross between a fee-for-service plan and an HMO. You can see any doctor you choose without a referral, although if the physician is outside the insurance plan’s network you will probably be reimbursed at a lower rate. For network doctors, you usually have only a copayment for office visits. There can be varying copayments — as well as deductibles, coinsurance, and out-of-pocket maximums — depending on the policy. Most plans that are eligible for use with a health savings account are PPOs with a high deductible tacked on.

These terms, of course, aren’t exclusive to individual policies. Many employers offer a menu of plans for you to select from that usually includes HMOs, PPOs, and traditional indemnity plans. Increasingly, companies are offering HSAs and dropping indemnity plans because they are so expensive.

Reprinted from Health Care on Less Than You Think: The New York Times Guide to Getting Affordable Coverage by Fred Brock. Copyright © 2006 Fred Brock. Published by Times Books; October 2006;$15.00US/$20.00CAN; 0-8050-7980-7.

The original version of this article, Know What Your Insurance Protects, is copyrighted by Consumerism Commentary.

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I had written a long post on this topic, but DreamHost went down before publishing it and I lost everything. Anyway, the Christian Science Monitor has an article describing how more people are traveling out of the country for healthcare, where service is less expensive. Some small companies are suggesting, requiring, or providing incentives for their employees to avoid the expensive United States healthcare system. Here’s an example:

Garrett’s medical care alone may save [his] company $50,000. And instead of winding up $20,000 in debt to have the operations in the U.S., he may now get up to $10,000 back as a share of the savings… His two operations could cost $100,000 in the U.S.; they’ll run about $20,000 in India.

Money leaving the United States can leave hospitals without money for medical research and for services for people who cannot afford insurance. Despite this, there’s a possibility outsourcing healthcare benefit the world in the long run. Organizations like the American Medical Association might disagree.

Have you ever traveled outside the United States for healthcare? Would you consider it now? If not, what would it take for you to consider it?

The original version of this article, Would You Travel Overseas for Cheap Surgery?, is copyrighted by Consumerism Commentary.

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In January, I wrote about one of my goals for this year: getting in shape. Now that I’ve posted a recent photograph of myself, you can see that getting in shape is a worthwhile issue. My lifestyle is sedentary, involving a large amount of sitting at computers and driving (commuting). My girlfriend already expressed interest in a bicycle for her birthday, so before looking for apartments today, we shopped at Sports Authority and selected one for each of us.

I think solution has the best chance of being productive. I haven’t been able to motivate myself to work less at night and wake earlier to go running by myself. She would rather bike than jog or run, so I believe bicycling will be a way for us to motivate each other to get into shape. I’d still like to get in the habit of running before leaving for work in the morning, but I’m not convinced I can gain the time to do so until I finish my masters degree.

Two new bicycles, a trunk-mounted rack for my car, and a pair of locks: $500.

Could we have saved money buy buying bicycles from eBay or Craiglist? Probably. The store provided us with a wide selection. I have short legs so the chances are low that searching used listings would have yielded me something that fits me correctly.

We didn’t have time to finish shopping. We’ll still need helmets before we do serious riding; the protective gear looks to be about $20 to $30 for each of us.

The original version of this article, Buying My Way In Shape, is copyrighted by Consumerism Commentary.

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One thing that is important to remember is that parial sleep loss is cumulative. That means that if you get 30 minutes less sleeping time than your body needs each day during the week, your body will want to make up two and a half hours of sleep during the weekend, or whenever you can afford to sleep in.

In my case, there are times when I miss out on more than an hour of necessary sleep each night, building up a large deficit. When I let my body and mind recouperate, I’m missing out on time that could be spent working on projects, earning money, or doing chores that will free more valuable afternoon time when I can work efficiently later in the day.

The original version of this article, The Finance of Sleep Loss, is copyrighted by Consumerism Commentary.

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This is the second and last part of a short series on suggestions for improving sleep without spending a ton of cash. I published part 1 yesterday. We’re continuing with the second half of suggestions provided by Melinda Fulmer from MSN Money. Here are the remaining tips.

6. Set your thermostat between 60 to 68 degrees. A cool, but not cold, temperature helps most people to sleep better.

I always liked to sleep with the thermostat at 72 degrees. In college, my girlfriend liked it much cooler to snuggle under multiple layers of blankets. I preferred not much covering of any kind. I’ve grown to enjoy the layers but I still prefer “freedom.”

7. Use your bed only for sleep and sex. Don’t watch television, read or fill out paperwork in bed.

I moved the computer out of my bedroom a few years ago and I haven’t had a television in my bedroom since the time my only room was a dorm. I do read in bed occasionally, but that hasn’t caused much of a problem. I often just pick up the latest personal finance book I’m reviewing and in many cases a chapter or two gets me in the mood to doze off.

8. Eliminate as much as noise and light as you can from the room. Close the blinds, turn off the TV and tell that snoring spouse to roll over on his or her side. If you have a fan, turn it on to drown out street noise.

I don’t let my girlfriend snore, and hopefully I don’t snore too much, either. When my downstairs neighbors decide to party until 5:00 am, I get them to quiet down eventually.

9. When your head hits the pillow, imagine a relaxing setting or favorite memory, rather than thinking about sleep.

I have no idea what I’m thinking about when I fall asleep. My mind wanders, and it’s usually not relaxing.

10. If that doesn’t work, try a relaxation exercise, such as tensing and relaxing each section of your body from head to toe as you breathe deeply. Or try counting backward from 100.

The counting backward doesn’t work for me, but I have perfected a relaxation exercise. It’s similar to the suggested one above, but they have the technique reversed. You must start from your toes and go all the way to your head (including down your arms when you get to your shoulders). You must tense and relax each muscle twice and picture a relaxing scene. The scene I use for myself is a beach at night. By the time I get to the top of my head, I’ve lost my sensation of gravity. It can be a very relaxing and effective technique, and usually results in floating and sinking feelings. I’ve administered it to others with much success.

I really believe sleep is important to a full-functioning mind and body. In the past, I’ve had a boss who disagreed with me completely. He was happy sleeping 2 to 3 hours each day and believed that sleep was a waste of time when that time could be better spent working on great projects that help kids and save the world.

Since then, he’s discovered that balance is needed once in a while and humans are designed to require sleep.

What techniques do you use when you’re having problems sleeping, and how much would you spend to fix your sleeping habits?

The original version of this article, Ten Free Ways To Improve Sleep, Part 2, is copyrighted by Consumerism Commentary.

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I’ve never been a good sleeper. Even as far back as high school, I remember lying in bed for hours before finally drifting off and having trouble getting out of bed in the morning. This continued for a long time. College wasn’t much better, and after college it was more of the same.

I’ve used a sound machine that generates relaxing noises, such as waves or running water, and I’ve tried a sweet-smelling pillow spray. Neither of those helped.

Friends recommended melatonin. I never tried that, but I did move everything out of my bedroom except the bed. The bedroom became a room for nothing but sleep. That helped for a little while but it still wasn’t perfect.

I purchased a bed last year, and that did wonders for my sleep habits, although they are still not perfect.

Although that required spending a good (but not outrageous) amount of money, I haven’t forgotten about trying to improve my sleep further without spending much money. This article from MSN Money, has suggestions for inexpensively achieving better sleep. Their suggestions beat buying various pillows, comforters, “supplements,” and therapy, but all of the above can be helpful.

Here are the first five tips.

1. Eliminate all caffeine, chocolate and other stimulating substances in the afternoon and evening. Check with a pharmacist to make sure none of your prescription drugs are keeping you awake. Don’t drink alcohol or smoke cigarettes before going to bed.

I have heard that drinking a glass of red wine before bed will help you sleep, but this piece of advice is contrary. I would imagine drinking anything will likely activate your bladder and lead to uncomfortable sleep or waking up in the middle of the night.

2. Exercise regularly, but not within two hours of bedtime.

Excerise gets the heart racing and the blood pumping. This is better suited as a morning activity. If I could get better sleep, I could wake up earlier and get exercise. That’s one of my personal goals for the year.

3. Don’t watch loud, suspenseful television shows or troubling news reports before bed. Read a book, take a warm bath or have a glass of warm milk.

Relax your mind. Don’t go to sleep right after watching Jack Bauer blow up lots of stuff or crash planes.

4. Maintain a consistent sleep schedule. Go to bed and wake up at the same time every day. Eliminate naps.

The Sunday nap leads to sleep problems on Monday morning and Tuesday night for me. There’s not enough time during the week to even consider napping. Sometimes, after an exhausting week, I try to name a nap when I arrive home from work on Friday, but that has always turned into more of a mess.

5. Go to bed only when sleepy. Get up if you can’t fall asleep within 15 to 20 minutes.

This is a tip I picked up many years ago. The idea is to get used to getting in bed only when you’re absolutely ready to fall asleep. This works. I try to make it into my bed only when I’m sure I’m going to fall asleep within 15 minutes.

Those were the first five suggestions. For the remainder, read part 2 of this two-part series.

The original version of this article, Ten Free Ways To Improve Sleep, Part 1, is copyrighted by Consumerism Commentary.

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If you and your significant other retire right now, and if you represent the “average” couple, the two of you will need $200,000 to cover health care for 20 years. This is based on research by Fidelity, a company offering, among other things, investment products for those thinking about retirement.

This amount is up more than 5% over last year’s estimated cost. Assuming this health care metric continues to rise at 5.3% each year, someone who retires 30 years from now should expect to pay over $940,000 over the same 20-year retirement period. How much are you budgeting for health care in retirement?

There is good news for the economy as a whole, but not the good news you’re expecting. As mentioned in this CNN article, the new Health Savings Account (HSA) helps ease the pain of long-term health costs. There are some interesting findings — and here’s the good news: Those who have HSAs spend more money for the same care than those without, and they tend to avoid, skip or delay treatment. Over time, we may see the average lifespan decrease due to unaffordable health care. That may be good for the system as a whole, driving down the need for expensive elderly health care, but bad for those who would like to live longer and healthier.

The original version of this article, Prices for Healthcare in Retirement Up, is copyrighted by Consumerism Commentary.

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A while ago, I used to hear those “exposé” news stories present reports on the health hazards of cellular phones, usually with hints that extensive use of the devices leads to exposure to radiation (in the form of radiofrequency absorbed by the body) and possibly cancer. I was happy to see a CNET report on the issue with some details.

While research abounds and some tests have shown that cell phone radiofrequency (RF) could accelerate cancer in laboratory animals, the studies have not been replicated. Cell phones can affect internal pacemakers, but there is not conclusive or demonstrated evidence that they cause adverse health affects in humans. So in short, the jury is still out, research is ongoing, and we will continue to monitor its results.

CNET provides radiation data for around 200 phones, starting with the ten phones with the highest radiation absorption levels (Motorola is a winner here) and the ten phones with the lowest levels.

Where is your phone? My Motorola V710 is a little on the high side, with a rating of 1.4.

The original version of this article, Cell Phones and Radiation, is copyrighted by Consumerism Commentary.

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On the radio this morning listen to the report), the news anchor mentioned Bush would be proposing portable health care insurance in which workers can take your benefits with you from job to job. My gut says it sounds like a way to make insurance less costly for business and more costly for individuals.

The original version of this article, Portable Health Insurance, is copyrighted by Consumerism Commentary.

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One of my personal goals this year — the year I’ll be reaching the big Three-Oh — is to get into better physical shape. It’s been a goal of mine for a while, but working, driving, working more, sleeping, and seeing my girlfriend always seem to take precedence and leave me with precious little time. Since I don’t get myself out of the apartment most of the time, I’ve been considering purchasing a treadmill in order to save time by exercising while cooking.

The main problem with treadmills and other exercise equipment is that they’re big and expensive. I’ve been told that a “good” treadmill can cost more than one thousand — even more than two thousand — dollars. I was looking at a couple in the $400 – $600 range. Even at that price, I’m not sure I can justify the expenditure.

I could join the gym at work for $25 per month, but then I’d have to arrive earlier in the morning or leave later in the evening, and I already spend so much of my time there when commuting and working overtime are taken into account.

My best option might just be to concentrate on crunches and push ups — exercises not requiring equipment — and walking or jogging when the weather is nice. I’m not convinved that when I do crunches and push-ups, I’m doing them correctly.

If anyone happens to know of any great resources for starting a fitness program on a budget (money and time), I’d be happy to hear all about them.

The original version of this article, Getting In (Physical) Shape, is copyrighted by Consumerism Commentary.

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Many people take advantage of employer’s flexible spending accounts. These accounts allow you to defer income which can be drawn upon to reimburse you for medical expenses. The benefit is the funds in these accounts are not considered income for tax purposes.

In order to make the best use of these accounts, you have to decide at the beginning of the year how much you will spend for medical expenses even though it’s difficult to predict unexpected problems. You don’t want to overestimate, because any funds not used at the end of the year disappear. It’s similar to throwing money away or burning hundred dollar bills without the expenditure of a match or oxygen.

The good news this year is the government is giving you extra time to apply for medical reimbursement from a flexible spending account. In most cases, your employer will also offer the extended deadline, but you may have to check with your company.

If you have money left over, there are some things you can do to spend the remainder quickly but not thoughtlessly:

* Stock up on certain non-prescription drugs (not vitamins).
* Get a new pair of eyeglasses, contact lenses, or prescription sunglasses.
* Browse a list of all covered expenses to see if anything you missed this year is eligible.

The original version of this article, No Need To Panic About Flex Spending Accounts, is copyrighted by Consumerism Commentary.

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I had a frustrating morning with one of my bosses today. It was the kind of encounter where you have to get up and walk away for a few minutes to refocus. I stool in an empty conference room for some time, talking myself down from my crazy thoughts such as quitting before I had a solid offer somewhere else.

I came back to my desk after cooling down and was blessed with two things.

First was an email from the company’s automated job board with a new posting for a position I might like. I quickly fired off my resume. (There are many problems with the automated system; for instance, the listed contact person does not exist and I’ll have to find an alternative recipient for my resume. That’s just a minor snag.)

The second thing I came across was an article on Yahoo Finance called Is Your Boss Killing You? (Fast Company provided the story to Yahoo.) It’s about health, not about Executives With Knives. I can identify with some items from the article:

A study of 6,000 British male office workers over a four-year period, published recently in the Archives of Internal Medicine, found that employees who felt their supervisors treated them fairly had a 30 percent lower risk of heart disease, which is the leading cause of death in the industrialized world. Put another way, caustic, abrasive, and overbearing bosses just might be taking years off their employees’ lives.

The article suggests taking periodic short breaks to refocus, just like I had to do a little bit earlier. Generally I’m known around the office for my laid-back attitude. Stress rolls off of my like water off a duck, but only to a point. There are some things — certain attitudes towards me — that I will not tolerate. That is what made me walk it off earlier today.

Note: I don’t normally talk much about my work life. No one in my office can access this website without a browser cookie enabled, but they wouldn’t be able to find Consumerism Commentary armed with only by real name. If that were not the case, I wouldn’t be writing so frankly about the issue.

The original version of this article, Working Environments With High Health Risk, is copyrighted by Consumerism Commentary.

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This coming Friday, I’ll be the happy recipient of oral surgery. My third molars (wisdom teeth) have been slowly creeping towards the surface of my gums for the last ten years, and I’ve decided it’s time to get them yanked. My company’s health plan requires that these expenses are covered by dental insurance rather than medical insurance — usually surgery, even oral surgery, is covered under medical insurance.

Here are the details of the cost me of the operation. The surgeon recommended to me is “out-of-network,” and I’m under the impression I could have saved a lot of money by finding a different surgeon. I do have to pay for the entire procedure up front, and then wait to be reimbursed.

The columns are quantity, billing code, description of charge, the surgeon’s fee, the percentage of the resonable and customary fee covered by my health care provider (Aetna), what Aetna has determined the reasonable and customary fee to be for each procedure (as you can see, the surgeon charges higher than the R&C fee), the total charge for the procedure, the amount of that total which will later be reimbursed to me, and how much I’ll be stuck with in the end.

The original version of this article, Reasonable and Customary?, is copyrighted by Consumerism Commentary.

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Marketwatch reports that “Two out of three adults would rather have their employer pick a set of health plans than be given an employer-funded account so they can go out and buy it for themselves on the individual market.”

My company provides several options for health coverage, but the selection is getting more complicated next year. In 2006, the company will offer one point-of-service plan (provided by CIGNA, one national HMO plan (provided by Aetna, a consumer-directed health program with a health fund, a high-deductible health program with a health savings account, local HMOs, and an out-of-area medical program.

This year and in past years, the company has offered a “flex credit” to cover most of the health insurance expenses deducted from the paycheck, but this will no longer be offered in 2006. The cost of the programs have been lowered to compensate for the lack of reimbursement, but the 2006 plans still end up being more expensive.

I’m probably going to stick wih the national HMO plan ($552 per year). It’s not as cheap as the high-deductibe program ($132 per year) and only slightly more expensive than the consumer directed health program ($444 per year). Open enrollment begins later this month.

The original version of this article, Employee Health Plans, is copyrighted by Consumerism Commentary.

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Workers in the United States put in more hours on the job per year than those in other countries, according to the International Labour Organization, an agency of the UN. The survey finds that there is a higher level of worker stress in the U.S. With baby-boomers getting set to retire, a large portion of the work force will disappear, putting more burden on younger workers. Managing stress will become more important.

According to the American Institute of Stress, this issue has been described as America’s number one health problem. Psychology Today suggests work-related stress is as harmful as smoking. Stress can lead to strokes, heart attacks, diabetes, ulcers, back pain, and many other “diseases of civilization.” Often, people attempt to treat the symptoms of these disorders but the root of the problem is never addressed.

There are two major categories of treatment according to emedicine.com. While medical treatment if one option, some individuals can be treated by self-care at home:

If you can identify the source of your stress, remove yourself from it or address the situation. That may be all that is needed to resolve the situation and your anxiety. Even if you are only able to get away for a few seconds or minutes, the break is important and can help you on the way to a more permanent solution.

How can we prevent stress? The same resources recommends regular exercise, positive thinking, realistic goal-setting, time management, and self-reward. Some people might also have success with yoga, meditation, and other non-medical solutions.

On the job, human resources departments often have many options for dealing with work-related stress for company employees. At my company, massages are available at certain times during the year (for a fee). Many companies hold Stress Management seminars for their employees, as well.

More resources:
* About.com offers a comprehensive guide to stress, co-published with the Adam Healthcare Center.
* Want to evaluate your stress level? Take this online stress quiz, offered by the 4therapy Network.

The original version of this article, Stress Management, is copyrighted by Consumerism Commentary.

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CNN/Money asks, Is your job making you fat? This article stresses the importance of proper eating and exercise specifically for sedentary worker bees. Today for the first time in a long time, I had breakfast (bagel with cream cheese and orange juice) before heading to the office.

Not only that, but being overweight takes a toll on your wallet, both in terms of medical bills and career advancement opportunities which tend to favor non-overweight individuals.

The original version of this article, A Fattening Career, is copyrighted by Consumerism Commentary.

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