Trending
Are you concerned about the rising cost of medical bills?
You’re not alone! In the latest episode of the Money is Emotional podcast, I discuss the significant impact of medical bills on personal finances.
Here's a summary of the important topics covered:
Question everything!
Ask your medical provider lots of questions!
Is this test, procedure, or medication necessary?
How is it going to help me?
What are my other options?
Is there a generic form of this Rx or a similar drug that’s less expensive?
This isn't about arguing with your healthcare professional because you did some research on WebMD. It's about discovering all of your options. Unfortunately, the healthcare system is set up so doctors are incentivized to bill for more procedures and tests.
Asking good questions is good for your health and your wallet!
Understand your financial responsibility before your medical appointment
Usually, the doctor or hospital will give you an estimate for any visit outside of routine care. You don’t have to pay anything beyond your co-pay at the time of treatment. They might encourage you to pay your estimated portion upfront by offering a discount. However, you might not owe that much after your insurance pays its portion. Wait until you receive your EOB (Explanation of Benefits) from your insurance company. Check to see that the amount your doctor is charging matches what’s on the EOB.
Be familiar with your insurance plan! Know your deductible, out-of-pocket, co-pays, etc. 60% of hospital bills contain errors – usually not in your favor! Always ask for an itemized statement. Most hospitals offer interest-free payment plans if you can’t pay the balance in full (much better than putting it on a credit card.)
Knowing what you owe will ensure you don’t overpay.
Use tax-free money to pay for medical care
Fund your H.S.A. or F.S.A.! The Health Saving Account accompanies a high-deductible health insurance plan. You can put in (tax-free) $4,300 for an individual or $8,550 for a family in 2025. You can then use this month to pay your health-related bills. For the H.S.A., you can carry unused money forward into future years. It’s NEVER taxed if you use it for medical expenses.
The F.S.A. can accompany other health insurance plans. You can put pre-tax money in it but must use it in that calendar year. So, only put it what you know you’ll use!
Taking advantage of tax-free medical accounts can save you 20-30%!
Shop around and ask for discounts
Medical tests, procedures, bloodwork, and medication can vary drastically by provider or store. Usually, the hospital is the most expensive place to get bloodwork or tests. That might not be the only place to get what you need! Sometimes, the Good RX app is cheaper than using your insurance! Ask the pharmacist if there’s a coupon. Ask your doctor if there is a generic equivalent for your prescriptions.
Medical test and prescription prices vary, so shop around.
The best way to keep medical bills low is to… stay healthy!
You already know this, but are you doing it? All health insurance plans must offer you preventative care at no out-of-pocket cost. So, there is no excuse not to get your annual check-up, mammograms, colon cancer screening, and other preventative care.
Even if you have to pay for something like a yearly skin cancer screening, finding problems early means less physical and financial pain later. Cultivating healthy habits like exercise, eating fresh, unprocessed food, and limiting environmental toxins, alcohol, and caffeine will pay dividends. I love it when my clients invest their money in improving their health!
“An ounce of prevention is worth a pound of cure.”
Related: When to Fire Your Financial Advisor