Medical expenses are not wholly covered under some health insurance packages. Several medical expenses are excluded, such as ambulance rides, medications, certain testing, medical devices, etc.
This can amount to hundreds of dollars – and sometimes thousands. You can easily be plunged into debt if you do not have a definitive plan and budget for handling a medical expense. Don’t let an outstanding medical bill follow you around.
Here are some essential tips for handling medical expenses.
Understand Your Private Health Insurance
If you are fortunate to have private health insurance, read your policy in detail to know what is covered. Ask your insurance provider to explain unclear terms, if there are any.
Request an Itemized Bill and Negotiate
Obtain an itemized bill. If you discover any incorrect charges, dispute them. Ask your provider if there are alternatives to what you are purchasing, such as less expensive equipment or a more affordable but similar medication.
Withdraw from Savings Accounts
If you have savings, handling medical expenses is an excellent reason to withdraw those funds. While you don’t want to run your savings down to zero, a little help from your funds is where many start budgeting for medical costs.
Freeze Your Spending and Expenditures
Wherever you receive funds to cover your medical costs, it will take time to repay. Freeze unnecessary spending. This means combining your list of expenses and spending and examining where you can shave off some of it to redirect those funds into repayment.
Make Budget-Led Lifestyle Changes
If these medical expenses will be ongoing, consider long-term lifestyle changes, such as moving somewhere you can rent for less money, settling on utility plans that cost less, and appealing to utility companies to see if they offer any assistance for financial hardship.
Explore Medical Expense Payment Plans
Ask if your hospital, clinic, or medical company offers a payment plan. In some cases, you can secure interest-free payments. Ask about terms and conditions before committing to any medical expense payment plan.
Ask for a Payday Loan
Applying for payday loans online is all about providing a borrower with short-term cash when they need it most. Applying is easy and can be done online or in person. The funds can be provided within 24 hours.
Repayment is taken from your next paycheque, or you can opt for a repayment plan with some payday loan companies. This is an excellent and independent way to manage a medical expense without leaning on family, friends, your bank, or anyone else.
Avoid High-Interest Personal Loans
A high-interest loan for medical costs will only put you in a bad situation in the future. Avoid these at all costs unless your financial institution can dramatically lower the interest rate on a medical loan.
Apply for Zero-Interest Credit Cards
If you do not have any money, a much better approach to paying medical expenses is to apply for a zero-interest credit card. Ensure the monthly minimum payments are manageable. Structure it to cover the medical cost before the promotional zero-interest period ends.
Sell Unused Items for Fast Cash
If you have things you can sell for quick cash, it’s a great way to make that extra money you need to help with a medical expense. Instruments, electronics, jewelry, and/or furniture are high-priced, in-demand items that will likely cost you a few dollars.
Ask for an Advance from Your Employer
Ask your boss if you can obtain an advance from your next paycheque to cover a medical expense. If this isn’t possible, ask them if you can pick up some extra hours or work overtime if that’s manageable, given your mental and/or physical condition.
Strategize with a Debt Consolidation Loan
Another strategy for paying for an unexpected cost like this is to put it on a credit card or personal loan, even if it’s high interest. Then, with good-to-excellent credit, you can use a low-interest debt consolidation loan to pay off those debts and then be saddled with manageable payments.
Ask for Help from Family or Friends
If you are lucky enough to have a support system of friends and/or family that you believe you can lean on financially, this is a situation where you may want to take the initiative to ask. The worst they can say is no. While it’s not a nice feeling to be in debt to friends or family, as a last resort, consider it. Especially if you’ve been kind to them over the years, you may be surprised at how quickly some will jump to offer help in whatever way they can.
Leverage Tax Deductions
Many out-of-pocket medical expenses are tax deductible. Don’t forget to include them when you file your income tax, as they will contribute to paying less taxes and allow you to recoup some of the costs you had to cover.
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