Beating Broke

Personal Finance from the Broke Perspective

Will Health Insurance Rates Rise Now?

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I’m not an expert on health care, health insurance, and certainly not on the way that government works.  But, I like to think that I have some modicum of common sense.  So, it’s with great trepidation that I see this health care bill.

My biggest concern is the cost of health insurance.  My company covers a significant portion of our health insurance, but if rates rise, they very well could pass that expense on to us.  If that happened, I don’t know if we could afford it.

Many people are lauding this bill and saying how great it is that people can’t be denied because of pre-existing conditions and that there is no more cap on payouts.  Yes and no.  Yes, I think there should be something available to even those with pre-existing conditions.  But there already was!  Now, the insurance agencies are going to be forced to cover them just the same as their low risk customers.  I don’t have any solid numbers, but my math says that will make my rates go up.

Does anyone else understand any of that differently?

Adjustments to Make (Price Checking)

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I’m making this post in part to share with you, but also to make a reminder for myself of the things that I need to look into.  One of the mistakes that I and many other people make is not shopping around enough.  While you may have found the best deal when you bought something, if you are still paying for it, you might not be getting the best deal still.

The most obvious place where this could be true is with insurance.  I’ve been with my insurance company for about 10 years.  When I first purchased the insurance, I did a fair amount of shopping around and comparing and bought the insurance that was the best fit.  Since then, many things have changed.  I got married.  We’ve had two children.  We bought a house.  We both turned 25 several years ago.  All of these things could easily cause some drastic changes that really warrant a new comparison.  But, we never did that.  It’s time we did.  Over the next few weeks, I’ll be doing a bit of shopping around for better insurance rates and coverages.  In particular, our home owners insurance seems much higher than it should be, and consequently, I am now in the market to find cheap home insurance cover.

The other thing that I really need to look into (and should have a while ago) is the mortgage on our house.  We managed to buy our house when rates were good.  We’ve since added a second mortgage that is about 25% of the original mortage’s size.  The rate on that is not as favorable.  (9% ish)  So, I need to look into whether refinancing the whole thing and rolling the two together might help us out with a lower overall rate and maybe even a lower payment.

That’s just the two things that came up recently.  I’m sure there are plenty of other things that need to be checked regularly that I and others do not.  What are the things that you check regularly to save money?

My Wife Quit Her Job: End of Year Update

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Last update, I told you that the COBRA health insurance plan premium went through the roof and we were deciding whether to continue paying for it, or to switch over to the plan that I get at work.  In the end, we decided to remain on the COBRA plan.  The difference was about $350 a month, but we figured that if we had only one or two medical mishaps, it would easily pay for itself with the 100% coverage.  And, as luck would have it, it turned out to be a good idea.  Both my wife and I ended up having issues that required several weeks of physical therapy.  Hers stems from an accident she had a few years back that seems to have thrown a few things off.  Nothing some pt and a pair of orthotics won’t fix.  Mine is from my football days.  Arguably, not completely necessary, but was something that would need to be fixed one way or the other, so decided to get it taken care of.  Then, to make our decision look even smarter, my wife fell in the ice and snow yesterday and severely sprained her ankle and knee and prompted a visit to the ER.  We got a nice new pair of crutches and what will likely be a very expensive pair of athletic wraps.  Of course, all paid for by our insurance.  The extra money has easily paid for itself.  But, that all ends on the 1st, so we’re switching back to the coverage that I get at work.

The business that my wife and her friends started continues to do well.  They received a very important certification from the state that will allow them to pick up another line of business and expand even further.  My wife continues to be the only one getting a regular paycheck from the company, but with this new certification, that will likely change very soon.  Luckily, the people that she’s working with are both very qualified for the business that they are in and have plenty of experience (my wife does to) so they don’t have much in the way of learning curves for the actual service that they provide.  Their biggest learning curve has been the actual running of the business.  They were smart and got a lawyer and an accountant right away though, so they’ve had excellent guidance along the way.

Also, I did receive a small raise this year which should help.  However, between the insurance and some increases in medical flex and childcare flex, my checks will likely be smaller than they were in 2009.  Most of that should come back through the flex accounts.  Tax free money for the win.  Especially on things like childcare that you’re going to spend money on anyways!