Illness doesn’t have to mean a financial disaster
Even if you rarely get sick, at some point, everyone has medical expenses. Those medical expenses can be costly and can quickly put a strain on budgets, which for many are already tight. But, medical care is a necessary expense, so how do you get the treatment you need without creating a financial disaster?By: By Joe Harrison, Superior Telegram
Even if you rarely get sick, at some point, everyone has medical expenses. Those medical expenses can be costly and can quickly put a strain on budgets, which for many are already tight. But, medical care is a necessary expense, so how do you get the treatment you need without creating a financial disaster?
To help manage medical debt now or in the future, consider the following:
Prepare for the unknown: Since we know an illness can strike without warning, getting ready now is important. Start a savings account that is strictly for medical expenses. Set up an automatic transfer from another account so each month, it gets treated like every other bill. As the account grows, talk with a financial representative to learn about options that may help your money work smarter for you. But remember to keep this account as accessible as possible, since illnesses can happen when we least expect it.
Evaluate bills: Billing errors do occur, so review your bills as soon as you get them to make sure you weren’t billed for something that should be covered by insurance or that you weren’t billed twice for the same thing. If there is a mistake on your bill, contact your health provider or insurance carrier immediately.
Get insurance and utilize it to its full potential: If your employer doesn’t offer insurance, take time to look into having some sort of insurance plan. Also, learn about programs such as Medicare or Medicaid, as these programs can offer big discounts to those who qualify. While insurance can be costly, you’ll be very happy you have coverage if an emergency happens.
Be careful when trying to find ways to pay off medical bills: If you need assistance with medical bills, talk with a local bank that offers competitive consumer loan rates. Try to steer clear of using your home or retirement fund to pay medical bills. Using a home loan to cover medical expenses could become a problem if you can’t make the payments, as you could end up losing your home. If you don’t think you can pay a bill, talk with your health care provider immediately to see if there is a payment plan option. Like every other expense, an unpaid medical bill can get turned over to a collection agency, which can hurt your credit score, making it harder to get loan assistance in the future.
While you may not be able to avoid some medical debt, by being proactive, asking questions and seeking help early on, you may at least be better able to avoid a financial disaster. Plus, if you do come down with an illness, you can focus on getting healthy again instead of worrying about bills and insurance.
Joe Harrison is the branch manager at Citizens Bank in Superior.
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