How to Pay Off Medical Debt With a Savings Account
Even for those fortunate enough to have health insurance, it doesn’t necessarily cover all your costs. Depending on your policy (or if you don’t have insurance at all), large medical bills can make a real dent in your personal funds. Some people have a savings account they can tap into, but many people do not, and trying to figure out how to pay off medical debt is a common struggle.
Step-by-Step Medical Debt Payment Plan
So, what can you do if you’re hit with a big medical bill? First, take a deep breath, and then, take a few proactive steps:
- Don’t ignore the bills. That doesn’t mean pay them immediately upon receipt, but open them up, and set up a folder for each bill that comes in.
- Scrutinize the bills. They can be long and confusing, but the details and charges could be inflated. Look for mistakes, like billing you for more days than your stay or for medications you didn’t receive. Also, look for double billings.
- Reconcile with your policy. If you have coverage, make sure your insurer has paid for everything they’re supposed to.
- Set up a payment plan. If you can’t afford to pay the balance, contact the biller and request a payment plan. Pay whatever you can afford while you explore other options.
How An Emergency Savings Account Can Help With Medical Debt
Medical debt horror stories appear in the news all the time. People have even had to sell their homes or declare bankruptcy. The dollar figures that bring them to this point are often enormous, and the idea of saving that much money can be overwhelming. You think there’s no way you can put aside that kind of cash.
If designating a savings account strictly for emergencies seems like an unattainable goal, it might be time to change your perspective. Saving a little bit of money is better than failing to save any at all. The sooner you get into the habit of saving for emergencies, the better off you will be. One great option is an automated savings plan; another is a health savings account, or HSA, where you set aside money on a pre-tax basis to pay for qualified medical expenses.
Get Expert Advise
It always helps to have a professional available to offer support and advice when you need it. Why not turn to the best credit union in Las Vegas for help? To learn more about how to set up a savings account for emergencies like medical expenses, contact us at 702-228-2228 today.