10 ways to beat the rising cost of Health Care

Deductibles, co-pays, and drug prices keep going up, up, up. These 10 smart moves can lower your expenses - but not the quality of the care you get.

1. NEGOTIATE: Most of us still aren't used to the idea of talking money with a doctor. But you won't be shocking his delicate sensibilities. "The uninsured frequently ask for a discount or a payment plan, but most insured consumers don't realize that they can negotiate," says Ruth Levin of Continuum Health Partners, a New York City hospital system.
2. SAY NO TO EXPENSIVE PRESCRIPTIONS: Health plans have gotten picky about pills. About 77% of workers with a drug benefit face three or more price tiers - one cost for generics and higher charges for "preferred" and "nonpreferred" brands. If Prevacid isn't on your preferred list, it could easily cost you $300 a year more than a generic version of Prilosec.
3. Get your free money. Sign up for that FSA: Need any more proof that humans aren't as rational as economists assume? Look at flexible spending accounts, a benefit that can put hundreds of bucks in your pocket. About 80% of large employers offer FSAs, but a mere 22% of their workers enroll, according to the consultancy Mercer.
4. Look before you leap into a high deductible: Wish you could pay a lower monthly premium? Many firms offer you a choice between a traditional plan and one with low monthly costs but a much bigger annual deductible. But high-deductible plans aren't a good fit for everyone.
5. Max out an HSA (but use it wisely): If your family's insurance deductible is higher than $2,300 you likely qualify for a health savings account, or HSA. Like FSAs, these accounts let you save pretax dollars for health costs. The key difference is that you get to keep your money there as long as you want. And so long as you use it to buy health care, you don't pay taxes when you withdraw it either.
6. Get in, get out, and pay a whole lot less: Physicians jam so many appointments into a day that it can be hard to squeeze in on short notice. And if you have to take your kid to an emergency room for a weekend illness, it could cost you a co-pay of $100 or more, especially if the insurer deems it a nonemergency. But there are easier, cheaper ways to get treatment for minor ailments.
7. Have an insurance game plan if you lose your job: You already know that you should have a cash emergency fund that covers six months' expenses. That figure should include insurance costs, because you don't want to let coverage lapse. Not only would you be vulnerable to huge costs if you fell ill, but if you let coverage slide for 63 days or more, your next employer doesn't have to immediately cover preexisting conditions.
8. Live healthier ... Or else: Employers want you to be healthier, and not because they love you. They're trying to control their health costs, says Kathy Harte, a consultant at Hewitt.
9. Avoid Medicare mishaps: Medicare has become a bit baffling. Besides traditional coverage, you can choose private plans called Medicare Advantage. And then there are all those new drug programs.
10. Cut vision and dental costs too: Your company may offer you optional vision benefits, which might seem pretty attractive. But run the numbers before you sign up. Add up the amount you spend on contacts, glasses, and optometrist visits each year. Then calculate how much you'd save with the plan's benefits. Some people find that the coverage costs about the same, or sometimes more, than they save. And remember, you can also pay for vision through your FSA or HSA.

(Source: CNN Money, Link:http://money.cnn.com/magazines/moneymag/moneymag_archive/2009/07/01/105825492/index.htm)

Tax Break for Savers in Retirement Plans

As a financial advisor, you may be looking to motivate retirement plan sponsors and participants to stay the course. Here's a little extra motivation: the Saver's Credit.

Saving in a 401(k) plan can be a great way for low and moderate income employees to save on taxes - and they may be eligible for the Saver's Credit. The maximum Saver's Credit is $1,000 ($2,000 for married couples), and is taken in addition to any other tax benefits available to people who save in qualified retirement plans or traditional IRAs.

The Saver's Credit can provide additional motivation for companies looking to boost plan participation. It's an effective way to help eligible employees save for the future, and receive a tax benefit.

As always, I welcome the opportunity to help you grow your retirement book of business. If you would like to discuss a prospective client or would like to request a proposal, please give me a call.

(Source- TransAmerica, Link- http://www.irs.gov/newsroom/article/0,,id=200742,00.html)

Payroll Tax Credit available for Employers who pay for Recovery Act's COBRA subsidy

The IRS recently issued helpful guidance for employers abiding by the American Recovery and Reinvestment Act of 2009's (the "Recovery Act") attempts to aid employees who are involuntarily terminated. One provision of the Recovery Act provides that a 65% COBRA premium subsidy must be made available to such employees – i.e., once the employee has paid 35% of the premium, the group health plan must treat the employee as having paid the full premium required for COBRA continuation coverage.

The IRS has now explained how employers who have provided (paid for) the 65% balance of the terminated employee's premiums can file for a credit for the subsidy amounts. After receiving the 35% premium payment from the employee, employers should use newly revised Form 941 to claim their subsidy credit. Line 12a, COBRA premium assistance payments, has been added specifically for this purpose.

(Source: Ireland San Filippo, Link: http://www.isfllp.com/knowledgeseries/newscasts_005.asp)