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How to Avoid High Healthcare Costs While Traveling

It’s summertime, which means we’re seeing “out of office” messages galore and an influx of requests from family and friends to “water the plants” or “feed the cat” while they’re traveling and vacationing. Whether you’re taking a well-deserved vacation or visiting family, there are some important pieces of advice we’d like to share. Although it’s not a thrilling topic and certainly not at the top of things anyone thinks about when vacationing, it is important to know the answers to questions like:

  • “How does my healthcare coverage work if I’m out of state? Or out of the country?”
  • “I’m not familiar with the area, how do I find a pediatrician for my toddler’s earache?”
  • “I forgot to pack my prescription medication, how do I get a refill if I’m not anywhere near my pharmacy? Or if I’m not technically due for a refill?”

If you’re not prepared for the healthcare issues that could arise during your vacation, you may find yourself paying an expensive medical bill and dealing with a lot more stress than needed. So, bookmark this blog for when you might need it, and let’s dive in.

Proactive steps to take before your vacation to avoid unnecessary medical costs.

It’s always better to be proactive than reactive. You can’t prepare for every single possible medical situation that may or may not arise before traveling, but there are a few simple and common things you can do before your trip to avoid unnecessary medical costs.

Medications

This is a big one! In the midst of packing, it can be easy to forget medications. Try creating a list of all the medications and/or medical equipment you need to pack so you’re less likely to forget. If you do forget to bring an over-the-counter medication, that’s a pretty easy fix. Just go to the nearest store that sells the medication you need. Forgetting a prescription medication isn’t quite as simple. A proactive step you can take is to request a vacation override or travel supply for your prescription. It’s best to request a vacation override on a prescription at least two weeks before your trip. This is a form you can fill out at your pharmacy that allows you to have a prescription filled early or for more than a 30 or 90-day supply. Exact rules and coverage vary depending on your insurer, pharmacy, and state.

Research

Another way to avoid unnecessary medical costs if you need healthcare while traveling is to research if your pharmacy has locations in the area you’re traveling to. It can also be helpful to do a quick search on your health insurer’s website or member platform to see in-network providers, pharmacies, and clinics that exist in your travel destination. You can also check what your health insurer’s policies are on covering healthcare expenses incurred outside of your home state.

Travel medical insurance

If you’re someone who travels outside of the U.S. for extended periods of time or frequently throughout the year, it might make sense to look into travel medical insurance. This is because many health insurers, like Medicare, do not cover medical expenses that you incur outside of the U.S. Make sure to discuss this with your insurer, financial advisor, and travel agent. If you don’t travel often or for long periods of time, you may decide paying for this additional insurance isn’t worth the money. It will depend on your unique situation.

Where to go depending on your medical situation.

Let’s say you’re at a beach with your family and one of your kids goes sideways under the water. They get a painful earache, and you can’t seem to fix it on your own. They need medical attention, and since you’re not at home, you might feel tempted to rush them to the nearest hospital. Or, maybe you and your spouse are on a hiking trip and you fall. Your ankle hurts pretty bad, but you’re not sure if it’s a sprain or something more serious. Again, you might be tempted to go to the nearest hospital. However, a surefire way to get an expensive medical bill is to go to the E.R. Even if you’re medical situation isn’t an emergency and you only receive minor medical care, the hospital may charge you a high amount for simply being in the E.R.

Generally, taking yourself or someone else to the E.R. is necessary if one or more of the following is present:

  • Uncontrolled bleeding
  • Chest pain
  • Acute respiratory distress
  • Medication overdose
  • Large, open wounds
  • Severe head injury
  • Loss of normal function (e.g. inability to move an arm, unable to speak)

This is not an exhaustive list of E.R. scenarios, but it gives you an idea of what is an emergency and what isn’t. And of course, if someone’s life is in danger, call 911.

The two examples we gave earlier, an earache and a potentially sprained ankle, are situations where it would be more appropriate to receive care at an urgent care clinic or a walk-in clinic. These facilities are generally much more affordable than E.R.s and large hospital systems. The following are some medical situations that urgent care clinics can take care of:

‍Common illnesses (e.g. colds, the flu, earaches, sore throats, migraines, and low-grade fevers)

  • Rashes
  • Minor injuries (e.g., sprains, back pain)
  • Minor cuts and burns
  • Minor broken bones
  • Minor eye injuries

‍Knowing where to go for different types of medical care can mean the difference between a $75 co-pay and a $3,000 medical bill.

‍A quick recap before you jet off to your next destination!

Before you take some much-needed R&R this summer, bookmark this blog so you can access it quickly in case you need it for yourself or someone you’re traveling with. The hope, of course, is that you’ll be perfectly safe and healthy while vacationing and won’t need these tips, but having this information on hand can give you some peace of mind during a potentially stressful event and may save you money in the long run.

‍If you’d like to further discuss this article, please reach out to an advisor at CapSouth Wealth Management at 800.929.1001.  To learn more about CapSouth and how we can serve you, visit our website at https://capsouthwm.com/what-we-do/

Happy travels!

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from this article. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

Your Account is Open

April takes its name from the Latin word Aperire, meaning to open.  Naturally, my mind goes to the opening bell of the NFL draft at the end of the month, or maybe the opening of the tomb at the beginning of the month, or maybe in a moment of sensitivity (sensitive in a manly way of course), the opening of flowers and such.  Lest we forget, there are things that absolutely should not be opened – Pandora’s Box, for example. We certainly don’t need any more evils flying over the Earth now do we. Or maybe that can of worms often sitting on the tip of your tongue. Nope. I’ve opened that can more than a few times, sadly.   

While we’re on the subject, here’s a quick list of things that you might consider in this season of opening:

  1. 529 College Savings Account: A 529 account for your kids and or grandkids – Some offer some pretty nifty state tax deductions and a plethora of investment options. And when you withdraw the money for qualified educational purposes, you don’t pay taxes on the gains. Anyone can contribute to one on behalf of the beneficiary, and there are no age, income or residency limitations for the beneficiary. Beneficiary not going to college? No problem. You can change the beneficiary to another member of the family. For a more comprehensive review of such an account, check out:  https://www.collegecounts529.com/
  • Two-eth by Checking and Two-eth by Savings:  For checking, consider one checking account just for your bills and another just for spending money. For savings, maybe you have one account serving as an emergency fund and another for long-term savings goals.  The goal being to make your financial life easier to manage. Of the above, I strongly recommend an emergency fund. (It is what it is, and not everything is an emergency, now is it.)
  • Roth IRA Account:  Offers tax-free growth and tax-free qualified withdrawals in retirement.  Because none of us know what the tax code will look like in the future, Roth accounts offer some diversification in retirement as not all your retirement accounts would be tax deferred.  Speak with your financial advisor about your particular situation to see if the Roth IRA is a good option for you.
  • Health Savings Account (HSA):  Are you covered by a High Deductible Health Plan (HDHP)?  If so, you may want to investigate a Health Savings Account. An HSA allows you to make annual pre-tax contributions to pay for qualified medical expenses, and in some cases, it offers significant tax advantages.  
  • Investment Account: 401(k) opened and contributing to? Check. Roth IRA opened and contributing to? Check. Emergency Fund opened and maintained? Check. Consider a (non-retirement) investment account. This may be in the form of an individual or joint account that you contribute to, and it serves as your “do life out of “account. It’s funded with after-tax money, invested how you please and with no contribution limits. If there was a trinity of financial accounts, it may be the third. 1) The Tax Deferred Account. 2) The Roth Account. 3) The Taxable Account.  Speak with your advisor to see how this may fit into your financial plan.  

Your particular situation may or may not lend itself to one or more of the above. And for some, the above may just be scratching the surface. Speak with your advisor on how they may fit into your financial plan.

To learn more about CapSouth Wealth Management and the services we offer, visit our website at www.capsouthwm.com or www.capsouthwm.com/what-we-do/

Now, here’s a freebee for April readers. It’s very likely that you’re reading this article prior to Mother’s Day. That means – it’s still not too late!  Remember the can of worms reference from above? Avoid one altogether by remembering that Mother’s Day is May 14th .  Here’s a little something to get your juices flowing – and don’t say you weren’t warned!

Just How Does

It’s just after Mother’s Day

And all through the house,

The messes are so many

And I feel like a louse.

I had given my best shot

And used all of my might,

To keep the messes un-messed

And the fallen upright.

With dog hair in the hallway,

And my undies on the floor,

Reality sets in…

It’s Mother’s Day no more.

The kids run in from playing

While discarding shoes and socks,

With none of them landing in (or near)

The laundry basket box.

“This ain’t mommy’s job!” I bark,

“Come pick up all this mess!

Who did you think would get it?

Never mind. Let me guess…”

“Keep cleaning till you’re finished!

She’s on her way just now!

And when she passes through that door

She’d better be like, ‘Wow!’

Cause this year will be different!

And all the world will know,

That Mother’s Day in this one house

Is a twenty-four-hour show!”

So…

Dishes were cleaned and mostly put up.

That’s almost every plate and almost every cup.

Brooms were swishing and mops were swashing,

And most every elbow in the house was washing.

Many things needed doing.

A lot of straightening and even some gluing.

Then…

“The garage door just opened!

And soon she’ll be inside!

To witness what we’ve done!”

(As we all just beamed with pride.)

She passed right by the dog hair

– A little less now in the corner.

Over the damp and freshly mopped floor

 – Before we thought to warn her.

She scooted by the laundry,

And the sink which held no dishes,

And saw NOT the broken vase

As had been ALL our wishes.

She then plopped herself down

On the couch (once) covered with stuff,

And noticed not the pillow

And its lack of fluffy fluff.

She cared not about the mess

That once had covered the house,

Or the peanut butter stain

That was hiding on her blouse.

She cared only to be home

With the family she surely loves.

For whom she does so much for

Despite the mess and shoves.

She was gone but for an hour

And you’d think it was for days,

By all the attention that she got

In lots and many ways.

“But mommy did you notice?”

“And mommy did you see?”

“All the special things we did?

“All for you, all by me!”

And as they went on and on,

Telling tales of all their deeds,

I sat and wondered just how does

She attend to all our needs?

She is, after all, one person

Who’s the primary for all six,

Just how can she do it all

With such chaos in the mix?

She’s the mother of four boys

And the husband of this one.

She’s been given special gifts,

And we’re blessed by everyone.

So I left them to their gushing

For she’s deserving of every word.

And I wandered down the hall,

Twas their laughing that I heard.

No mention of the messes

That still lingered all around.

For with just the slightest glance 

One was certain to be found.

Every day should be for mom.

 A day for just – receiving.

A day where our love for her

 Is right there for – believing.

Show mom each and every day

That you don’t need a date,

To show how much you love her,

 And do appreciate

Everything she does for you

Things so big, things so small.

And show her that you love her

Everyday. One and all.

April, by the way, just happens to be National Poetry Month, as well.

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. Any performance data quoted represents past performance; past performance is no guarantee of future results. This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth). CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from this article. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

Exercise Financial Muscles to Get Financially Fit

“Those who work their land will have abundant food, but those who chase fantasies have no sense.” This ancient advice from Proverbs illustrates the importance of financial fitness.

What is financial fitness? Well, we are all familiar with the term physical fitness. If pressed for a definition, we might define it in terms of our own ideas and circumstances.

When it comes to an explanation of financial fitness, the same applies. A lot may simply depend on the season you are in. Financial fitness might mean something different to someone who is single versus a couple with young kids, an empty-nester or a retiree. Even within those demographics, one’s perception could be colored by personal circumstances. Are you saddled with debt, debt-free, renting or a homeowner?

There are many ways to get ahold of your finances; you can increase earnings, lower spending, start saving more (short-term and longer-term) and implement debt management. For many, earnings are difficult to influence in the short-term.  For most, tackling the spending side of the equation will yield the quickest results. Below we consider six principles that will help you get into financially fit shape wherever you find yourself in life.

6 principles for financial fitness

 “An investment in knowledge pays the best interest.”—Benjamin Franklin

  1. Set goals. If you don’t have concrete financial goals, both shorter term and longer term, reaching some level of financial fitness becomes much more problematic. Simply put – you don’t have a destination. You are financially adrift. As George Harrison has noted, “If you don’t know where you’re going, any road will take you there.”

Short-term goals you might consider: Establishing three to six months of cash in an emergency fund, saving for a down payment on a home or auto, or saving for a vacation.

Long-term goals you might consider: College savings for your kids or saving 10-15% of your income for retirement.

  • Do you know what ‘buckets’ your income lands in? How do you spend your income? If you aren’t tracking expenditures, you won’t have a holistic picture.

You might be surprised at how much you spend on eating out, on entertainment, and even on a daily habit of barista-prepared lattes.Unnecessary spending can be diverted into savings or paying off debt, especially high interest rate credit cards. Make timely payments. This will not only prevent you from accruing needless fees, but it will raise your credit score.

Once credit cards are paid off, channel the excess funds into savings. When you accomplish shorter-term goals, reward yourself. It need not be extravagant, but accomplishments should be celebrated.

Finally, you will struggle to follow a plan that is too draconian. Trim frivolous spending but leave some room for fun and hobbies.

  • Your lifestyle shouldn’t exceed your income. If it does, you are burning through savings or taking on debt, and your stress level will likely reflect it.

Excessive spending is not a path that leads to financial fitness. You want financial space in your life. You want ‘money at the end of the month,’ not ‘month at the end of your money.’ A budget is your blueprint that helps achieve this goal.

  • Invest wisely. Among various factors, your financial goals, both shorter and longer term, will greatly influence the proper mix of investments. A diversified portfolio that crosses the spectrum can reduce risk and enhance your return over the long run.

“Don’t look for the needle in the haystack. Just buy the haystack!” advises John Bogle, founder of Vanguard. In other words, diversify!

We are here to assist you with that. Our recommendations are tailored to your financial goals and your unique circumstances.

We avoid get-rich-quick schemes, which are usually nothing more than schemes minus the riches. Accumulation of wealth over a longer period is our goal. We believe it should be yours, too.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” says Paul Samuelson, the first American to win the Nobel prize in economics.

  • Enjoy your retirement. Many enter retirement after accumulating wealth over decades. They have learned how to save. For some, suddenly relying on that savings rather than earning income from labor seems like a daunting leap, one they may be ill-prepared to make. It doesn’t have to be that way.

Your financial plan continues to be a valuable resource in retirement.  Your level of spending in retirement, both regular expenses and those planned extras along the way, along with how much risk you should be taking, when and how to draw Social Security and other sources of income…these factors and more should be considered within a sound financial plan. 

Clients are often surprised when we encourage them to spend more money.  As you work to identify your values and what is important to you, we want to see you realize those dreams and enjoy your life to the best of your ability.  Your plan serves as an outline that arms you with knowledge of necessary guardrails and enhances your financial fitness.

  • Protect your assets. Do you have life insurance, health insurance, and personal liability insurance? Do you have a will and estate plan? Who are your beneficiaries? What happens if you become disabled? Do you have a trusted advisor to handle your affairs? What about a back-up?

If you own your home without a mortgage, do you have homeowners’ insurance? Surprise, not all do. If you rent, renters’ insurance is cheap. It’s a must-have item in our opinion.

Absorbing the fundamentals—the foundation for success

Those who fail to put sound principles into practice are like those who build their homes on sand. The rains come and the winds blow, and financial misfortune overtakes them.

Wisdom encourages us to build our homes on a solid financial foundation. Though the rains come and the winds blow (and they will), the house and foundation are designed to withstand financial storms. In the words of Maren Morris, “If the bones are good, the rest don’t matter!”

Every situation is unique. You may have mastered the fundamentals, and only need to apply the principles we highlighted selectively, plugging small holes and shoring up your finances. Or a more aggressive approach might be in order. Focus on one theme at a time. Some may apply. Others may not.

Having said all that, we never want to give the impression that you are all alone on a financial lifeboat. We are always here to assist.

To learn more about CapSouth Wealth Management and the services we offer, visit our website at www.capsouthwm.com or capsouthwm.com/what-we-do/

By:  Scott F. McDowall, CFP® | Wealth Advisor

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. Any performance data quoted represents past performance; past performance is no guarantee of future results. This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth). CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from this article. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

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