There is nothing that makes your wallet squeal louder today than pulling into the gas station and dropping $50. Gasoline prices have risen more than 12 percent over the past 12 months, and some experts are predicting they'll reach $5 per gallon in the next six months.

The average household now spends $50 per month more on gasoline than last year, notes financial planner Rick Rodgers, author of The New Three-Legged Stool: A Tax Efficient Approach To Retirement Planning (www.TheNewThreeLeggedStool.com).

"But that's not the whole picture," Rodgers says. "Higher fuel prices affect a lot of other expenses in the family budget, from heating to food. The government estimates the average household is spending $150 per month more this year because of higher oil prices."

You can try to ease the pain at the pump by using your car less, but you should also look for other places to offset that extra $150. Car insurance is a good place to start.
According to the Insurance Information Institute, the national average auto insurance premium is $850 per year. Can you reduce that? Rodgers says you probably can. He offers six ways:

• Shop around regularly. Your insurance agent doesn't have a lot of incentive to reduce your premiums.  I recently met a consumer who told me he had been with the same agent for 15 years. After he shopped his insurance with another agent, he saved $1,600 on his premiums for all his coverage. The internet makes it easy compare costs for the same coverage, or you can get an independent insurance agent to shop for you. Contact the Independent Agents Association at (800) 221-7917. (Be sure the company you go with has a good credit rating and claims-paying history.)

• Bundle your coverage. Bundling is combining different types of policies (auto, homeowners, liability, etc.) with the same company. The theory is that the company will discount the premiums if they have all of your business. The most common combination is packaging your auto insurance and homeowner's policies together.  Or, find companies that will bundle auto insurance with renter's or tenant's insurance.  Bundled packages usually result in a 10 to 15 percent savings.

• Ask for discounts. You may qualify for discounts, but you won't know until you ask. They're commonly offered for good driving records, anti-theft devices, vehicle safety features (anti-lock brakes, air bags, automatic seatbelts), low annual mileage and insuring more than one car. The spunky Flo from Progressive claims discounts are also available for buying your policy online, paying in full up front, and being a loyal customer.

• Take a defensive driving class. Even if you've been driving for years, you can learn a lot from driver education and most insurance companies recognize the value of a refresher course, which can help you avoid accidents. The amount of discount varies by insurance company and from state to state, although most insurers offer a 10 percent discount on your premium for three years.  AARP offers a driver safety program for those over age 50, and it's available online.

• Increase your deductible. Do your auto and homeowners policies have low deductibles?  If so, you may be able to reduce your premiums 15 to 30 percent by raising the deductible on your collision and comprehensive coverage.  Make sure you have an emergency fund set aside to cover the cost of repairs before you make the change. But your homeowners policy may be the first place to consider raising the deductible, since statistics show the average homeowner files a claim only once every nine years. Be sure to check with your mortgage holder first; some specify maximums.

• Change Cars. This is probably the most difficult savings tip to implement but may have the largest impact on your premium.  Used cars are cheaper to insure than new ones (excluding antiques); sports cars are more expensive to insure than minivans. Insurance companies like cars with safety features and low repair costs.  Insure.com surveyed 900 vehicles in the 2012 model year and lists the rankings from the most expensive to least expensive on their website.  Six of the 10 cheapest were minivans.

About Rick Rodgers

Certified Financial Planner Rick Rodgers is president of Rodgers & Associates, "The Retirement Specialists," in Lancaster, Pa. He's a Certified Retirement Counselor and member of the National Association of Personal Financial Advisers. Rodgers has been featured on national radio and TV shows, including "FOX Business News" and "The 700 Club," and is available to speak at conferences and corporate events (www.rodgersspeaks.com).

Proposal Saves Medicaid System for Millions

SPRINGFIELD - April 19, 2012. Governor Pat Quinn today announced a plan to stabilize Illinois' Medicaid system and prevent collapse of the program, one of his top priorities this session. The Governor's plan creates $2.7 billion in Medicaid savings - which includes more than $2 billion in Medicaid reductions and federal matching funds from additional revenues on tobacco products. Today's proposal follows weeks of productive talks led by the governor's office with a working group comprised of members from all four legislative caucuses, as well as meetings with numerous provider groups.

"We must act quickly to save the entire Medicaid system from collapse, and protect providers and the millions of Illinois residents that depend upon Medicaid for their healthcare," Governor Quinn said. "This proposal will fundamentally restructure our Medicaid system, alleviate the pressures on the rest of our budget, and ensure the program is sustainable for years to come."

Medicaid provides healthcare to 2.7 million people in Illinois and coverage for half of all births. In his February budget address, the Governor highlighted the urgent need for a $2.7 billion reduction in the Medicaid program to prevent systemic collapse. At the end of the current fiscal year (FY 2013), Illinois will have $1.9 billion in unpaid Medicaid bills. The Civic Federation projects $21 billion in unpaid Medicaid bills by 2017 if Illinois' Medicaid system is not fundamentally and immediately restructured.

The Governor convened a working group - comprised of members from each of the four legislative caucuses - to explore all options and develop a framework to save our Medicaid system. The working group met with and incorporated suggestions from many provider groups, including: hospitals, podiatrists, durable and disposable medical equipment companies, long-term care providers, dentists, pharmacists, and hospice providers.

Governor Quinn's proposal reduces Illinois' Medicaid liability by $2.7 billion, with three-quarters of the plan comprised of cuts, reductions and efficiencies, one-eighth in state revenue, and one-eighth in federal matching funds:

·         Cuts, reductions and efficiencies to 58 separate items totaling $1.35 billion (50 percent)

·         Rate reduction to providers totaling $675 million - (25 percent)

·         Additional revenue through a $1 per pack increase in the cigarette tax totaling $337.5 million (12.5 percent)

·         100 percent federal match funding from the increased cigarette tax totaling $337.5 million (12.5 percent)

"The status quo is not an option, and I want to thank the members of the working group, who have worked diligently with us to find real solutions to this problem, "Julie Hamos, Department of Healthcare and Family Services director, said. "What we are presenting today is a balanced approach that targets fraud and abuse, continues our move to coordinated care for Medicaid clients, and takes advantage of federal matching funds to make every dollar go further."

The cuts, reductions and efficiencies across 58 separate items in the Governor's proposal include :

·         Program integrity to prevent client and provider fraud

·         Elimination or reduced coverage of certain optional populations and services

·         Controls on use of Medicaid services to prevent over-use or waste

·         Adjustments to rates that are outdated or do not reflect budget realities

·         Expanded cost-sharing by clients

·         Redesigned healthcare delivery system through Coordinated Care

·         Complete implementation of all reforms in 2011 Medicaid reform law

To access more funds from the federal government, the Governor's plan to limit Medicaid liability includes a tobacco revenue increase. By including a tobacco revenue increase, which amounts to just one-eighth ($337.5 million per year) of the $2.7B savings we must find in the Medicaid program, the state will be eligible for an additional 100 percent in federal matching funds ($337.5 million per year).

In addition to the direct revenue, raising the cost of cigarettes by a dollar will improve the health of the people of Illinois, reducing tobacco-related Medicaid and health care costs over the long-term. According to the American Cancer Society, tobacco use cost Illinois $1.5 billion in Medicaid spending last year. Increasing the cigarette tax by a dollar a pack will prevent more than 70,000 children from becoming addicted adult smokers, decrease youth smoking by 11 percent and save more than 38,000 Illinois residents from premature, smoking-caused death.

"The American Cancer Society is pleased to see the Governor combining smart fiscal and public health policy with this proposal," said Katherine L. Griem, M.D., President of the American Cancer Society, Illinois Division. "Smoking remains the leading cause of cancer and this proposal will not only reduce the burden on the state's Medicaid program for years to come, but more importantly, it will save lives and improve the health of people across Illinois, particularly in curtailing youth smoking."

WEST DES MOINES, IOWA - April 19, 2012 - Beginning and young farmers face many challenges as they start their farms and work to expand their operations; from rising costs of land and feed to changing regulations and rules. But many are excelling at their careers in agriculture and the Iowa Farm Bureau Federation (IFBF) honors the top young farmers in the state at the organization's annual meeting each December.

IFBF encourages young farmers, ages 18-35, to apply for the Young Farmer Achievement Award, which recognizes successful young farmers who excel in managing their farms and demonstrate outstanding leadership in their industries and communities. The Achievement Award is sponsored by John Deere. Applications for the award must be submitted to the Iowa Farm Bureau Federation by May 11.

The winner receives a year's lease for a John Deere Tractor/loader combo or a TX Gator, John Deere Financial certificate, video, plaque and trips to the annual meetings of the American Farm Bureau Federation, GROWMARK and the IFBF Young Farmer group. All applicants receive up to three hours of farm financial planning assistance.

"Being recognized with this award was so gratifying for my wife and me," explained Justin Dammann, a Page County farmer and 2011 award winner. "I knew that we were on the right track with our management, environmental practices and balancing work and family. Farm Bureau has been an important part of our professional development and we wanted to strive for this recognition."

Applications can be downloaded at www.iowafarmbureau.com in the Young Farmer section. All applications are confidential.

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About Iowa Farm Bureau

The Iowa Farm Bureau Federation is a grassroots, statewide organization dedicated to enhancing the People, Progress and Pride of Iowa.  More than 153,000 families in Iowa are Farm Bureau members, working together to achieve farm and rural prosperity.  For more information about Farm Bureau and agriculture, visit the online media center at www.iowafarmbureau.com.