Personal Finance Advice

Of all unexpected expenses that people encounter, medical care can be a real issue.  If you have good health insurance coverage you might still wind up paying a hefty deductible when you have to seek medical treatment for an injury or illness, and if you don’t have any medical coverage then a trip to the emergency room can be disastrous to your finances.  How do you handle these unexpected medical bills that have the tendency to pile up really quickly?

1.  Have an emergency fund set up.  Most financial experts suggest that people have emergency funds sufficient to cover three to six months worth of expenses.  Unexpected medical costs certainly fall into the category of “emergency expenses.”

2.  Keep your insurance up to date.  Monthly health insurance premiums aren’t something you should pay late or forget to pay altogether.  You never really know when you might have to head to the doctor, but if you haven’t paid your monthly premiums then you may discover that your insurance card is rejected.

3.  Make it clear to the doctor that you’re paying cash.  If you don’t have health insurance and need to pay for your medical expenses out of pocket, tell the doctor beforehand.  Many doctors actually like cash customers quite a bit because there is no insurance paperwork to file.  Ask for a cash discount.

4.  Ask about assistance programs.  Most hospitals have assistance funds for patients who cannot afford to pay their medical bills.  You can also apply for county or state assistance if you have a low annual income.

5.  Work with the collector.  If you fall behind and wind up getting called by debt collectors regarding a medical bill, remain cordial and try to work out a feasible payment plan with the collector.  Yes, it may seem unfair that you have these unexpected medical bills, but the debt is yours and you’re responsible for paying it.  Most collectors will accept monthly payments that are small as long as the payment is made consistently, or you may be able to settle the entire debt for a smaller amount if you negotiate correctly.

6.  Stay healthy! Have you heard the saying an ounce of prevention is worth a pound of cure? If you can manage to stay as healthy as possible - exercising, not smoking, getting enough rest - then you may be able to avoid certain illnesses altogether.  If you’re trying to keep your medical costs down, staying healthy is a great way to start.

Unexpected medical bills can throw a huge wrench into even the most well-devised budget.  Plenty of people have found their personal finances thrown into a state of chaos because of an emergency trip to the doctor or a surprise diagnosis.  Like any other debt, medical bills shouldn’t be ignored but should instead be paid down as quickly and steadily as possible.