How to Manage an Unexpected Medical Expense?

Unexpected medical expenses can be stressful, but they don’t have to put a strain on your finances. Start by reviewing your medical bill for errors and negotiating the expenses before considering a payment plan. You can also save money through particular programmes that provide health insurance benefits. Use your emergency savings or apply for medical loans and claim reimbursement. Relying on a Health Care Savings Account (HSA) or Flexible Spending Account (FSA) can also prove useful. Lastly, effective financial planning services can help manage any future medical expenses.

Steps to Handle Unexpected Medical Bills

Follow these steps to handle unexpected medical bills:

1. Check Your Medical Bill for Errors

Get a bill from your healthcare provider and analyse it before paying. Chances are that you will encounter errors like duplicate charges, wrong procedures, or services not provided. Contact the billing department to correct any mistakes and compare your bill with your insurance Explanation of Benefits (EOB).

2. Negotiate

Most people are unaware that it is possible to negotiate medical expenses. If the cost seems high, contact the hospital or clinic’s billing department to see if they offer any discounts. Depending on your income, some providers offer discounts for upfront payments, financial hardship, or sliding scale rates. 

3. Establish a Payment Plan

You can set up a payment plan if you cannot pay the full amount at once. Many doctors and medical institutions offer patients the option to make multiple payments over an extended period and interest-free. Spreading out the payments can ease the financial burden, especially if paying in full would disrupt your monthly budget. Check if there are any fees or interest charges associated with the payment plan.

4. Health Insurance and Assistance Programmes

Use your health insurance to maximise its benefits. Look into your policy to determine which health conditions have coverage. If you don’t have insurance or have limited coverage, check if you qualify for financial aid, Medicaid, or hospital charity programmes. Some state programmes offer financial assistance to those struggling with medical expenses.

5. Use Your Emergency Money

Financial advisors recommend setting aside money for a medical emergency. Take a specific amount from your monthly budget and save it as emergency funds.

6. Medical Loans or Credit

Some providers offer medical credit cards, allowing you to pay with little or no interest over a certain time. It is important to read the terms carefully because interest rates can be extremely high. You can also consider personal loans or using a credit card if you do not qualify for medical financing. 

7. Donations

Throughout the world, non-profit foundations and religious charities constantly offer financial help to those needing medical assistance. Instead of giving money to patients, they might provide grants and contracts with medical facilities directly. Additionally, some employers have allocated spending accounts or donations for emergencies. Use these accounts or donations for unexpected healthcare expenses.

8. HSA or FSA

If you hold an HSA or FSA account, use those funds for medical expenses. HSA and FSA accounts are great ways to save on taxes, allowing people to pay for medical expenses with pre-tax dollars and lowering overall financial costs. 

9. Planning for Future Medical Expenses

After handling the present medical needs, save for future emergencies. Add more to your emergency funds, or consider opening an HSA. Reviewing your insurance coverage and monthly expenses will help you make informed choices in the future. You can prepare for unexpected medical expenses without straining your budget. Carefully evaluate different options, negotiate as much as possible, and seek financial assistance.

How To Reimburse Medical Expenses?

To file a claim for reimbursement under medical insurance, follow these steps:

• Informing the Insurance Company: Notify your insurer at least 48 hours before a planned hospitalisation or within 24 hours in an emergency.
• Start Treatment: Be patient and focus on getting better while you receive the necessary medical treatment. 
• Paying the Hospital Bill: Pay the complete hospital bill at your time of discharge from the hospital.
• Gather Medical Papers: Collect all the required papers, such as discharge summaries and bills. 
• Completing the Claim Form: Download and complete the claim form from the insurer’s website.
• Send Documents: Within 15-30 days, send your relevant documents to the insurer. 
• Claim Assessment: The company will evaluate the documents and process the claim within 30 days. 
• Claim Settlement: If approved, the insurer will reimburse you.

Conclusion

Planning for unexpected medical costs can go a long way in ensuring financial stability. Carefully verify each bill received, negotiate the cost, and consider setting up a payment schedule. While insurance and other savings programmes can help mitigate these costs, investing in HSAs or FSAs is also helpful for better budgeting. As a general rule, try staying proactive with your financial planning to avoid similar situations in the future. With the right planning, you can successfully reduce the burdens of unexpected healthcare expenses.