Banks had time to make changes

Ever since Congress passed a bill this year aimed at getting credit card companies to clean up their act, they've been doing anything but.

For instance, the law's consumer-friendly regulations included putting restrictions on raising interest rates. So what did credit card issuers do? They immediately jacked up rates and added new fees to beat their February deadline.

This upset some members of Congress, but apparently not Virginia Foxx, the Republican from Banner Elk. Last week, the House passed a bill to move up the deadline for the new regulations to Dec. 1. According to The Associated Press, Foxx called the bill unnecessary and said "people who take out credit cards don't have a gun to their head. If you don't like the rate, get another credit card."

The Senate has its own bill dealing with the issue but has not voted yet.

Foxx is right, no one forces anyone to get a credit card, but that's not the point. Credit card insurers have been allowed to raise rates willy-nilly -- even on customers who pay their bills on time.

A recent Pew Charitable Trusts study looked at nearly 400 cards advertised by banks and credit unions and found that 99.7 percent allowed the issuers to change rates at any time.

As for Foxx's suggestion to "get another one," well, that's not always a good idea. Closing an account has the potential to hurt your credit, and getting another card isn't that easy if your credit has been hurt.

So would moving up the date for the card reform actually help?

Yes, says Bill Hardekopf, CEO of LowCards.com and author of "The Credit Card Guidebook."

"Starting these provisions on Dec. 1 would be great for consumers since that is the beginning of the holiday shopping season when credit card spending is highest," he says.

Of course, the credit card companies say Dec. 1 doesn't give them enough time. Even Federal Reserve chairman Ben Bernanke says speeding up implementation of the law could cause problems.

Hmmm. The card act was passed in May, and instead of working toward those changes, the card companies spent the past few months raising interest rates and adding fees.

Seems to me they've had plenty of time.

Phil Johnson of Charlotte read last week's column about health care and open enrollment, and shared his own experience with Aetna this year.

Johnson is self-employed and has Type 2 diabetes, which he says he controls with diet and exercise, and doesn't need to take medication. Still, his premium is jumping -- to $1,005 a month from $743.

As Johnson put it, rather than getting worked up and raising his blood pressure, he worked out his own solution: drop the insurance and start a savings account.

He's putting the $743 he used to give to Aetna every month into savings to cover doctor bills and any prescription drugs he might need.

He also talked to his doctors. Knowing that many doctors and hospitals negotiate fees with insurers, Johnson did some negotiating of his own. As a result, he's down on their books as a "self-paying patient" and will get 25 percent off his bills. His pharmacist is trying to help as well.

Johnson is betting that his good health and good fortune will continue, and that's a gamble many make each year. Some of us do it when we check the routine care box in our open enrollment package. Some do it with health savings accounts and high deductibles. Some do it by going without insurance entirely. Johnson's solution is forced by necessity, and I wish him well.

The lesson I take from it is this: We need to be proactive. We need to talk to our doctors about costs as well as cures. Obviously, we want the best care for ourselves and our families, but that's no reason to break the bank. In the Triangle, there are enough doctors and hospitals that we can shop around.

If you've come up with a different solution for your health care needs, I'd love to hear about it. Send me a note at the e-mail address below.

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