2 FREE Webinars to be hosted by the Center for Finanical Social Work in June:
w Financial Social Work: What's in it for YOU; What's in it for your clients!
Wednesday, June 10th @ 2 PM Eastern Click the above webinar title for details & to register.
Wednesday, June 17th @ 2 PM Eastern Click the above webinar title for details & to register.
Register for one or for both. As the webinar(s) approach, you will receive reminders of the date(s) and time(s).
Managing Medical Bills by Juliet Keeler LeBien
Medical bills account for some of the most anxiety provoking mail that people receive. Even before this recent economic crisis, medical related expenses and debt were among the top reasons why people sought credit counseling, or declared bankruptcy. Now, in light of the drastic downturn in the economy, I’m seeing many more people come in to my office seeking help with their medical bills. The following tips are not only for social workers helping people manage their medical expenses and debt but for anyone. After all, in good economic times and bad, people still require quality medical care.
Know what you are being asked to pay for and why: Medical bills are often cryptic and confusing, using ICD and diagnostic codes rather than simple language. The bill should always have a number you can call and ask questions to find out what exactly the charge pertains to. Perhaps it is for a co-pay, or the bill you received was an error and should have been forwarded to your insurance carrier. Always remember to get the name of the person to whom you speak and to write it down and save it.
Investigate help and options: Hospitals and doctors’ offices often have “charity care” help for people who are not only uninsured, but also “underinsured”. Check to see if this is an option.
Negotiate: In these tougher economic times, hospitals and doctors’ offices often cannot simply write off debt, but perhaps they would be willing to negotiate or lower the expense. For instance, if a patient was charged $400 for a procedure but can only pay $250 up front, would the hospital consider that as payment? In some instances the hospital may say yes.
Work out a plan: Many hospitals and doctors’ offices are willing to work out a payment plan. It is imperative, however, that the patient understand that he or she must honor the plan and make every payment in a timely fashion. Therefore, making a feasible and realistic payment plan is necessary. Social workers should be careful to advocate on their patients' behalf so that people do not agree to try and pay more than they can afford.
One of my patients required an emergency MRI-a very costly procedure-and she had no insurance and was unemployed. When she received the bill of over $2,000, she and I worked with the hospital billing department to come up with a realistic payment plan. When asked what she could really afford monthly, my patient stated she could only afford $10.00, but she would make that payment every month on time. The hospital agreed, and she kept her agreement-and her credit in good standing.
Juliet Keeler LeBien received her MSW from Columbia University in 2005, and certified in FSW in 2006. She is currently a medical social worker affiliated with New York Presbyterian Hospital. Along with Financial Social Work, she specializes in Social Work issues in long term chronic disease, pregnancy, and infertility. She maintains a blog at www.pregnantgreatexpectations.blogspot.com
What is a FICO Score? by Robert Shuman
The world has changed drastically over the past couple of years as the financial system has been in a meltdown and the credit crunch is affecting the daily lives of just about everyone. Instead of the standard greetings “what do you do” or “what’s your sign” we now ask “what’s your FICO score”?
This article tries to unravel some of the mystery behind this all important acronym that touches every area of our lives.
FICO is short for the Fair Isaac Corporation, the company that developed the first credit scoring system back in 1970. This is the company behind the consumer credit reporting agencies such as Equifax, Experian, and TransUnion. The company was founded by an engineer and a mathematician and develops software and decision management systems.
In the early 80’s all three of the major credit reporting agencies worked with Fair Isaac to develop a rating system based on people’s behavior. Given that the companies all derive their system from the same source - Fair Isaac - why do the scores differ?
All three agencies use the same range designated by Federal law : 350-850 but the scores are not identical for a given individual. This is because not all three receive reports from every creditor and therefore a debt may show up on one report and not on the other. In the past this could cause a large discrepancy in scores, but today most scores are within ten points of each other.
The timeliness of your payments is the largest determining factor of your score: 35%! How much you owe versus your available credit is 30% of yours score - the less cushion you have the lower your score; this is why when credit card companies reduce the amount of available credit, people’s scores are affected. The length of your credit history accounts for 15% of your score, so it is beneficial to keep cards as long as possible.
Believe it or not, credit scoring agencies suffer from anxiety. If you submit a lot of applications for credit, it makes them nervous and they will lower your score. Having debt is generally frowned upon, but in fact, we’ve always been encouraged to build a credit history and credit agencies like to have a mix of types of credit such as a credit card and a car loan. This is the final 10% of the calculation that makes up the FICO score.
So the next time you’re in a bar and someone says “you look familiar” and “what’s your FICO score,“ you’ll feel confident with the subject even if you’re looking for the nearest exit.
Robert Shuman has been Licensed Clinical Social Worker in private practice for over 20 years. He earned his Masters in Business Administration (Finance) from San Diego State University and worked in business for 10 years.
Financial Social Work Up Close and Personal by Heather Jones-Taylor
I
n this issue I am delighted to introduce Heather Jones-Taylor who is now working with us. We at the Center for Financial Social Work are incredibly fortunate to have her join us and to have her help and support in moving FInancial Social Work forward.
Heather has an extensive background in real estate which she will be sharing with us in future newsletters and webinars. Reeta
I’m new to Financial Social Work, and when I started this course I thought it was amazing that instead of focusing on where you are with your money, it focuses on where you came from to help you to realize why you act the way you do. Officially, it is called behavior modification; I call it “the real you.” I didn’t even know the real me…heck, I never even looked for the real financial me…I didn’t realize I was even missing!
While I was working through the section on how I thought of money as a child, I discovered that I treat money the same way I saw my mother treat it while I was growing up. My mom was a survivor. She was a single mom raising two kids on almost nothing. Don’t get me wrong, my mom could do amazing things with government cheese, and we absolutely loved how creative she could get with it because my mom could cook like nobody else-using almost nothing!
But we didn’t have enough money to really survive, so every penny we had went to things we needed the most. My brother and I learned to be happy with, and live on, what we had. My mother did "without" most of the time so that we could have what we needed, and at times what we wanted. I never realized how much this affected how I deal with money today.
I am a survivor-just like my mother. If I have five dollars, I can live on five dollars. If I have a thousand dollars, I can live on a thousand dollars. I was never taught about saving while growing up; it wasn’t an option then. I also find myself spending on my children for things they want, even though there are many things I know I need. I don’t want them to have to do without like we did, and I get great pleasure from seeing my children happy. But they don’t need things to be happy.
Now I am learning that I owe it to them and myself to learn why I am the way I am with money. They and I deserve to have healthy financial lives. I am not saying it is bad to do for your children or to be a survivor. I am saying that the life I have today is not the situation or life I was in 30 years ago. This discovery was a true “AHA” moment for me. Now, for the first time I have one of the answers to one of the biggest frustrations in my life…and one of the biggest worries. Now that I understand why I have so much difficulty saving, and why I feel like I shouldn’t do things for myself, and why I try to do so much for my children, I can start to take the necessary steps toward long-term financial behavioral change!
