Health Care = The Culprit in Budget Problem

**disneysteve** · 09-01-2009, 01:03 PM

You need to move. Either that or your wife needs to get a job. Why isn't she working currently?

Your rent is almost as much as my mortgage payment including taxes and insurance, but you earn 1/4 of what we earn. You can't sustain that housing cost on your income.

Healthcare costs are certainly an issue, but your "culprit" is housing.

**Professorshak** · 09-01-2009, 03:09 PM

Move to the 1k apt? Would help but not enough. She was laid off, looking for work for 8 mos unsuccessfuly regardless of how low she's willing to take a cut. She's going to school now to change careers and doesn't allow time for work.

**jeffrey** · 09-01-2009, 11:25 PM

Many schools offer low cost insurance for their students. She should see what's available from them. Also if she is a graduate from a college or university, that is another place to check. Many have plans that will cover alumni that may be less expensive and give better benefits than on the open market.

**zetta** · 09-02-2009, 01:19 AM

Have you looked to see whether her school offers graduate student housing?

**disneysteve** · 09-02-2009, 04:43 AM

Originally posted by Professorshak View Post

She's going to school now to change careers and doesn't allow time for work.

What kind of school program doesn't allow time for work? As long as she will have set class hours, couldn't she find work that she could do during the time she isn't in class?

As for moving not helping much, I think $250/month is significant. That's a 20% reduction in your housing costs and a savings of $3,000/year. I would keep looking, If this is a college town, there must be some less expensive housing around for students. Have you considered sharing housing? Maybe you could find a roommate or two to share with until she's done school.

**disneysteve** · 09-02-2009, 04:52 AM

OP, I just saw something you posted in another thread:

My grandmother, who has a giant house and only uses the first floor, has offered us the second floor to use until we get ourselves back on track.

This is a HUGE deal. You need to snap up that offer before she changes her mind. Definitely pay her something for the privilege. If she won't accept "rent" then at least buy groceries, do work around the house (mow the lawn, etc.) or something to help reimburse her for you living there.

That will free up plenty of money. You can then afford health insurance and still have plenty left over to boost savings.

**Scanner** · 09-02-2009, 05:36 AM

I am not sure how old you are but I am going through a divorce and I will be losing my wife's employer based coverage. I live in the most expensive state for health insurance (or top 10 - NJ).

I priced out an individual plan for a 40 year old male at $188/month.

Now, this was a relatively high copay ($30) and it had no prescription coverage. If I wanted prescription coverage, it was $240/month which gave me $15 copay for generics (which never really being one for meds, I can't figure that one out if Walmart charges $6).

The other weakness in both plans were that x-ray/lab was maxed out at $500/year. . .which could be eaten up quickly. . .but. . .but. . .if I needed let's say 3 MRI's in a year, I would pay the contracted rate vs. the cash rate (about $1500 a scan).

Pre-existings were excluded for 12 months but I really don't have any.

I figured I am going to have to escrow/earmark $5000 for "uncovered services" throughout the years (dental, copays, extra diagnostic tests). Luckily though, having a healthcare background, and being a type of physician, I can have intelligent discussions with my provider on whether a certain test is really necessary or just defensive medicine. I realize most of the public is at a disadvantage when it comes to that.

I found this at esurance.com

I can't really complain about $188/month (or $240) when my car insurance costs about $150/month.

Now. . .maybe I am missing some other catches. . .it's a small network perhaps (didn't look like it), maybe DME is excluded. . .but I must say I was pleasantly surprised at the rate.

**disneysteve** · 09-02-2009, 06:35 AM

Originally posted by Scanner View Post

$15 copay for generics (which never really being one for meds, I can't figure that one out if Walmart charges $6).

This is OT but I just wanted to clarify/explain something here.

WalMart, Target and others have a $4 (not $6) generic drug plan BUT that price only applies to a select list of generic drugs. There are many, many generic drugs not on those plans that cost a whole lot more than $4.

Even if you have a prescription plan, it pays to check if the med you are taking is on the $4 lists. If it is, it can be cheaper to skip your insurance and pay cash. Otherwise, that $15 copay could be quite a bargain.

**Scanner** · 09-02-2009, 07:22 AM

DisneySteve,

Yes, I see what you mean. And beleive me, I am not so brazen to think I am invincible or the samples will run forever. My sister is on thyroid medicine, my parents have a virtual pharmacy behind their medicine cabinet. . .heart disease does run in my family with males so to be honest, I could see an arrthymia develop, whatever - you never know.

I am not sure whether to self-insure and just carry one of those discount cards or go with the insurance plan.

**disneysteve** · 09-02-2009, 07:29 AM

Originally posted by Scanner View Post

I am not sure whether to self-insure and just carry one of those discount cards or go with the insurance plan.

Going uninsured is worse than playing the lottery. At least with a lottery ticket, the most you can lose is the $1 you spent. With no health insurance, you can lose everything you have. One hospitalization can set you back $50,000 or more. My wife had gallbladder surgery a couple of years ago. The bill was about 30K as I recall. With insurance, our share was only a couple thousand which we could handle.

There are a lot of things I would give up before I gave up health insurance.

**wincrasher** · 09-02-2009, 07:52 AM

Health care is bankrupting American families, but it looks like the opposition is going to win and leave us with the status quo.

You can save money with a private insurance plan and raise the deductable. Put that amount in an HSA to take care of the small stuff on a before tax basis.

Invest in your health - stay fit and eat right. It will cost you less in the long run.

Whatever you do - don't get pregnant right now. Live with Granny and save your pennies.

**Scanner** · 09-02-2009, 07:57 AM

DisneySteve,

No, I meant self-insure on the pharmaceuticals - not hospitalization and such.

**Professorshak** · 09-02-2009, 08:04 AM

Thanks for replies everyone.

She isn't in graduate school. She already has a BA and is considered non-matriculated. The college doesn't have any housing, and the future dormatories are reserved for BA programs. The insurance the school offers doesn't cover for pregnancy and pre existing conditions. She has a pre-existing condition. The only solutions for her would be my insurance, which is hefty $$$ and see if we could qualify for Medicaid.

We are considering my grandmothers offer, but it would still have some conflicts when it comes to food and cooking (theres only 1 kitchen and grandma is always there)

We're gearing more towards the move, but even if we're saving money, We still wouldn't have enough to cover expenses.

**disneysteve** · 09-02-2009, 08:17 AM

Originally posted by Professorshak View Post

see if we could qualify for Medicaid.

We are considering my grandmothers offer, but it would still have some conflicts when it comes to food and cooking (theres only 1 kitchen and grandma is always there)

We're gearing more towards the move, but even if we're saving money, We still wouldn't have enough to cover expenses.

I can't imagine you will qualify for Medicaid with a household income of $33,000 but rules vary by state so it can't hurt to check.

Sure there will be conflicts and inconveniences if you move in with your grandmother, but the bottom line is that you can't afford to pay $1,250 or even $1,000/month for rent on your current income.

Is there some reason why your wife isn't able to work while in school?

Health Care = The Culprit in Budget Problem