Your Money: Dec. 21, 1998

Health Plans Are Pricier

Americans may get a sick feeling when they see how much health-insurance premiums will increase in a few weeks. While prices have barely risen in recent years, the average cost of health plans will go up 7% in 1999, thanks to money-losing managed-care companies and high drug prices. Some premiums may rise 20%, and the self-employed face jumps of up to 40%. One possible remedy: before the current open-enrollment season ends, earmark part of each paycheck for a tax-free medical savings account.

Your Own Social Security

Politicians in Washington last week discussed how to save Social Security, but Americans are trying to see if the numbers add up. During the next year, every adult will receive a statement that shows how much she pays into the system and how much she should get back upon retirement. Without Social Security reform, the young will be big losers.

Direct Shares on the Web

Watch out, online brokerages: the quickest, cheapest way to invest on the Net may soon be by trading with companies directly. In the next few weeks brand names like Home Depot and Compaq, with the help of a firm called Stockpower, will start selling stock directly from their websites, offering cut-rate commissions and low minimum purchases. And for more info on the old-fashioned form of low-cost, direct stock buying, dividend-reinvestment plans, check out www.dripcentral.com

–By Daniel Eisenberg and Kathleen Adams