Wednesday, March 22, 2023

Avoid overpaying for health care by asking these 4 questions

If you’ve gotten sticker shock after dealing with a health-care provider, you’re not alone. Some 20% of Americans said they had received a surprise medical bill within the past year, according to a 2022 survey by Morning Consult. Among those folks, 22% were charged more than $1,000. 

Insurance, even if you have it, may not cover everything. Communicating early with your medical providers can help you avoid receiving a huge bill later on. Here are four questions to ask. 

1. What are my out-of-pocket costs? Use this instead of the more nebulous “Am I covered?” After all, you may be partially covered but still owe a significant chunk of the bill. Once you receive an estimate, run it by your insurer to confirm what’s actually covered. 

2. Is this diagnostic or preventative? Preventative care, that is, care for patients exhibiting no symptoms, is generally covered by insurance. Diagnostic care is much more likely to come with out-of-pocket costs. Talking with your doctors about diagnostic costs may help them limit, for instance, a series of tests they order to the ones you really need. 

3. Is there a generic? Name brand medications will nearly always cost you more than the generic versions. There may even be different formulations of the same drug that vary in price. Ask your doctor about all your options. 

4. What’s the CPT code? These codes are used to track and bill medical services and procedures. Once you have the CPT code, you can run it by your insurance provider to make sure the service is covered. 

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Money Tip of the Week: Move your debt to a 0% interest credit card

High inflation and rising interest rates are a double whammy for consumers.

If you make minimum payments on $5,805 in credit card debt (the national average) with a rate of 20.04% (also the national average), you’d take 17 years to pay it off and end up forking over more than $8,000 in interest, according to Bankrate. 

Instead, consider transferring your high-interest credit card debt to a balance transfer card, which offers no interest for up to 21 months. 

A balance transfer isn’t a silver bullet. You generally need a credit score over 670 to qualify, and you still have to be committed to paying back the debt. But using one can help you save big.

Divide what you owe by the number of months in the introductory period, and stick to a monthly payment plan, credit experts say. In the above example, paying about $275 a month in a 21-month zero-interest timeframe would wipe out your debt completely.

Next Gen Investing: Invest in crypto like a financial planner

The recent chaos in the banking sector has a lot of crypto backers feeling like their time may have come. 

“This is the perfect setting for bitcoin, ethereum and the rest of the decentralized-financial system to stand out as an alternative system,” wrote Bernstein analysts Gautam Chhugani and Manas Agrawal in a recent note. 

Even if you believe in crypto’s long-term potential, though, remember it too has had plenty of ups and downs, and take into account what the pros are doing. The CFP Board, for instance, advises planners under its banner to provide crypto-related advice “with caution.” 

The board outlined the following six risks for advisors to keep in mind before advising clients on crypto-related investment. You’d be wise to keep them in mind, too.

1. Crypto assets are speculative. Unlike traditional assets, which move based on changes to the underlying fundamentals such as corporate earnings, cryptocurrencies fluctuate based on investor demand. 

2. They’re hard to analyze. Stock and bond analyses are backed by decades of data. Even knowledgeable crypto investors can struggle with separating “facts from hype.”

3. They may present custodial risks. Sites where you store your crypto may come with a higher risk that you lose your investments or have them stolen.

4. They’re hard to value. That same lack of underlying fundamentals means it’s hard to know whether you’re overpaying. 

5. They may be unregistered. You may buy crypto-related assets from dealers that aren’t complying with government regulations. 

6. They could face more regulation. The government may change how crypto investments are regulated and taxed. 

The bottom line: tread carefully. Don’t invest more in a crypto-related asset than you’re comfortable losing.  

Worth the Money: The Work Tote

I needed the perfect work bag to fit all of my necessities in as I travel to and from the office, and “The Work Tote” ($118, at beistravel.com) was the perfect choice. Despite how much I put in my bag, its shape hasn’t changed, and the option to use a shoulder strap is a life saver during my commute. In addition to the things I need for work, I’m able to pack my lunch, a book to read while I travel and my chic water bottle.

—Renée Onque, Health and Wellness Reporter

Chart of the Week: