Finance Assistance

To promote cleaner energy production and conservation, Congress has enacted a series of “green” tax credits for purchases of qualified vehicles and home improvements. These credits have some caveats. Many of the credits related to specific cars and trucks will be phased out as automakers reach pre-determined sales goals. The home products must be placed in service by January 1, 2008. If you qualify, says Mark Luscombe, a principal tax analyst at CCH, a publisher of tax information, calculate your credit with a tax preparer. Green tax breaks:

HYBRID VEHICLES

For alternative fuel.
Take a tax credit up to $2,400 when purchasing an alternative fuel vehicle with a fuel efficiency of 250 percent of a 2002 gas-only powered vehicle.

For fuel conservation.
Buyers of hybrids also are eligible for a conservation credit that’s calculated using the lifetime fuel savings of the vehicle. This credit ranges from $250 for savings of at least 1,200 gallons of gas to $1,000 for 3,000 gallons.

OTHER VEHICLES

For non-gas vehicles.
Credits are available if you buy a car or lightweight truck that operates on fuels other than gas or diesel, (electric vehicles are no longer eligible). For alternative fuel vehicles, credits range up to $4,000 for a car weighing up to 8,500 pounds. For a fuel-cell vehicle, two credits are available—up to $8,000 for vehicles up to 8,500 pounds and a fuel-economy credit of up to $4,000.

HOMEOWNERS

For insulation.
Take a 10 percent credit when you install insulation materials or systems that reduce heat loss or gain, exterior energy-efficient windows and doors, and certain roofing materials.

For heating/cooling.
Install energy-efficient electric or geothermal heat pumps and/or an energy-efficient central air conditioner and take up to $300 for the cost. You also can take up to $150 for natural gas, propane, and oil or hot water heaters. This credit and the insulation credit above are capped at $500 combined, and no more than $200 of the credit can be attributable to window expenses.

For solar power.
If you buy and install residential solar water heating and photovoltaic electrical equipment, you can take a tax credit on each for 30 percent of the cost up to $2,000. A 30 percent credit is also available up to $500 for each 0.5 kilowatt of capacity when you install fuel cells to supply electricity.

If you don’t take the time to review doctor and hospital bills for errors, you could wind up paying outrageous or mistaken charges, notes the Medical Billing Advocates of America, an association that focuses on spotting and adjusting billing errors and insurance underpayments (www.billadvocates.com). What to do if your medical bills seem unreasonably high:

Seek a review.
If you disagree with your insurer’s decision not to approve a claim or pay a bill, you can ask for an internal review.

Get an advocate.
If a medical bill seems unfairly high and your insurer refuses to cover it, consider consulting a billing advocate. Advocates charge hourly or base their fee on the amount recovered. Ask for an assessment of the problem at the outset and decide if it’s worth the potential savings to proceed.

If you find yourself shopping for health insurance in the private market, here are some guidelines:

Check online.
Start by looking at policies offered on www.ehealthinsurance.com. Or ask friends who have purchased policies on their own about their coverage.

Tap a pro.
Consider hiring a licensed health-insurance broker to find a policy for you. To locate an agent, visit the site of the National Association of Health Underwriters (www.nahu.org). Most members are independent agents representing several plans.

Compare policies.
List your key questions so you can compare potential policies. You want to compare premiums, deductibles, co-pays and coverage for out-of-network providers, which medical services are covered and which are excluded, and limits on annual or lifetime visits to mental-health professionals and other specialists.

Know the risks.
You can lose your coverage if you lie on an application or do not pay premiums, or if the insurer decides to no longer operate in your state.

There are many ways you can lose your health insurance—including getting fired or laid off, early retirement, death of a working spouse, and divorce. Before you consider buying health coverage on your own, here’s what you’re legally entitled to:

COBRA.
Under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), you must be offered temporary coverage at group rates through your employer’s plan if you lose your job—generally up to 18 months for you and eligible dependents. But you have to pay the full premium yourself

HIPAA.
If your coverage changes from one employer to the next, the Health Insurance Portability and Accountability Act of 1996 protects you from being denied coverage by the new employer for preexisting conditions. HIPAA will not help you, however, if your gap in coverage exceeds 63 days.

POOLS.
In most states you can now get coverage in a high-risk pool if you are sick and no private insurer will accept you for individual coverage. Eligibility requirements vary by state. Call your state department of insurance for more information.

MEDICAID.
If you are facing a serious health problem, you may be able to turn to this state-federal program. Medicaid provides coverage for people with few assets and low income based on federal poverty guidelines. Some states waive the income guidelines for those who are “medically needy.” To enroll in Medicaid, you must apply to your state department of social services.