Client Newsletters at GreenPath Debt Solutions, December 2008

GREENPATH CLIENT NEWSLETTER
DECEMBER 2008

Back to School:
"Turning a Lemon into Lemonade"

By Steven Wieckowski

Tough times hurt. And it's no secret that, with financial uncertainty, come stress, fear, loss and - this may surprise you - opportunity! As the current job market becomes more difficult and more competitive, adults - employed and unemployed, alike - are returning to school in droves.

The Association for Nontraditional Students in Higher Education reports that students who are over 25 make up 47 percent of the new and returning student population at many of today's two- and four-year colleges. It's a common, and growing, scenario because it's a way to take some control over your future during uncertain times. Retraining can help you increase your pay, retain your job, prepare for a better job, or upgrade your skills for a new economy. It's self-improvement as a strategy for a brighter financial future. If you're planning a return to school for your own financial success strategy, consider your goals carefully and make certain to re-work your budget accordingly.

GreenPath recommends giving it a lot of thought. After all, balancing your home responsibilities with your re-education initiative will be complicated - emotionally, intellectually and financially. Whether you care for just yourself or for a whole family, you still have bills to pay. Therefore it is imperative that you create a budget that allows for the maintenance of your household and for the funding of your education. Making it work will take some extra planning, a great deal of commitment and, likely, a certain amount of sacrifice. How to start? GreenPath counselors recommend that you:

Establish goals: Are you looking to take a night class to enhance an existing degree, certificate, or capability? Or are you reinventing yourself completely and seeking a new career? If so, know it is a substantially greater time and financial commitment.

Find the Right Fit: Shop for programs that are right for you and that will actually help you achieve your goals. While your local community college might provide valuable vocational courses and enhance your capabilities, a four-year program might be better suited to your needs for increasing your "hire-ability" in your chosen field. Also, while online programs are becoming increasingly popular, Internet education can be pricey. Unless a degree is necessary, you may be better off financially if you take just a course or two, or pursue a certificate program. Be sure to find out about low-cost or free offerings from community colleges, local groups and employers, too. And don't forget about extension classes. They are often very reasonably priced and still very useful in increasing your skill set.

Find the Money: Going back to school is costly. For the 2007 fiscal year, in-state tuition and fees averaged about $5,807 at public four-year institutions and at least 21 states were above that 50-state average - some by almost 70 percent.

You'll need to budget carefully, finding areas to reduce spending, or to increase income, in order to afford the education and related expenses. In developing your budget, make sure you have included all of the costs of your education. Consider fees, books and supplies, gas and transportation costs, and, if necessary, child care. Consider, too, every possible variable or unnecessary expense you can cut.

Turn over every stone: Internet searches for local, regional or specialized grant, scholarship and loan programs are very helpful, and your college's financial aid office is a critical tool. That office can help you start the application process for grants, scholarships and loans, beginning with the Free Application for Federal Student Aid (FAFSA), also available online at www.fafsa.ed.gov. The American Council on Education (www.acenet.edu) can help you find additional financial support. If you qualify for them, there are plenty of grants available and you should definitely apply for all and any! With credit tightening in the current economy, it will be more difficult to qualify for student loans.

Make the most of it: Ensuring your return to school is worthwhile requires a lot of time, study, devotion and support. You may have children, a full-time job and/or other responsibilities that require your attention, as well. Do what you can to make sure nothing falls by the wayside…or, at least, that what does fall isn't critical to yours or your family's success. Best of luck!

Tips for Negotiating Medical Bills

Find the right person: Doctors, themselves, may or may not be involved with patient billing. Start with the office manager.

Work up the courage: You can't get something you don't ask for, right? Be firm, courteous and respectful when you ask. You don't want to damage your relationship with your care provider.

Clarify with your insurer: Getting a detailed explanation of your coverage - or the billing issues - from your health insurer can be immensely helpful.

Offer cash: Your negotiation is very powerful if it is accompanied by an actual promise to pay the reduced amount in full immediately, rather than make payments.

DID YOU KNOW? According to the results of a 2007 survey from Consumer Reports National Research Center, only 31 percent of Americans have ever tried to negotiate the price of medical bills, but of those who tried, 93 percent have been successful at least once.

From the Trenches:
An Amateur Negotiates a Medical Bill

By Eve Pidgeon

"If I can do it, you can do it." It's something I say to my children frequently. When they're afraid to jump off of the diving board, when they hesitate before climbing on the back of a rental horse at the beginning of a trail, and right before we jump off the tallest zip-line platform... eventually, though, we all agree: We can do it - all of us. And then we do it.

I'm reminded of this today, as I write from the "trenches" of having recently negotiated with a doctor's office. It was an unexpected, poorly timed bill for $249 - at a time when I absolutely did not have $249 to spare. I started out with my health insurance provider. "Why didn't you cover this expense?" Their answer was fair: I had exhausted the maximum coverage on that benefit. So, seemingly stuck with the bill, I took a deep breath and broke through the fear factor: I called the doctor's office.

After blabbering ineffectively (practicing, I like to say, now) to several of the wrong people, I finally connected with the office manager, a person of great power in a doctor's office! I then took another deep breath, and asked for at least a 25 percent reduction in the bill. I spoke calmly, kindly and firmly, explaining that I did not have the resources to cover this expense and that I needed them to work with me. I also mentioned that the cost was something they might have considered discussing with me before I accepted the service. We bantered a bit and the "O.M." went off to confer with the doctor. In the end, after two days of waiting, they found fees to eliminate and even a different way to bill the service. The bill magically went away - in its entirety. Turns out I can do it, after all! And so can you.

Even if your bill is large, for a major procedure that took place in-hospital, know that everyone in the medical profession is in the business of helping people. They are also used to billing things differently, operating with multiple billing and negotiation policies (for hospital, clinic and/or office, etc.). Additionally, almost every health plan has a different rate. It all comes together to mean almost every charge has room to wiggle and every doctor's office has a heart. The worst that can happen is that they say "no," but if you don't ask nothing will happen. It's worth a try.

Comment? Suggestions?
Write to the editor at editor@greenpath.com