Medical costs can show up suddenly and stick around for a long time. A single visit to the doctor can turn into multiple follow-ups, prescriptions, and bills.
Some ways to manage medical costs include comparing prices ahead of time, negotiating medical bills, setting up payment plans, taking out medical credit cards, or considering medical loans. Read on to learn about practical ways to manage ongoing medical expenses.
Compare costs beforehand
If you know you may need ongoing medical care, it can help to compare prices before choosing a provider. Costs can vary depending on where you go, even for the same type of visit or treatment. Search the average cost of a specific procedure or specialist visit in your area and get an idea of what the typical price range is. You can find this information by calling healthcare provider offices directly, checking online pricing tools, or asking your insurer for an estimate.
Negotiate medical bills
If you’ve already received care and are looking at a bill, the total may feel overwhelming at first. In some cases, medical bills can be adjusted, and around 75% of people who challenged an unaffordable bill were able to get financial relief.1 Consider calling your healthcare provider’s billing office to explain your financial situation and see if they can work with you to reduce the total payment amount.
Ask about payment plans
A payment plan lets you split one large bill into smaller, more affordable payments over time. Especially if you’re underinsured and received non-emergency care, payment plans are a very common billing option that 97% of hospitals offer.2 Contact your healthcare provider to negotiate the payment plan terms and review the interest or fees that you might need to pay.
Get support from Medicare or Medicaid
If you’re over 65 and on Medicare, many states offer programs that can help lower your medical expenses. You might be able to lower the costs of your health plan or some of the prescriptions you’re on. On the other hand, if your income is limited, you might qualify for financial support from Medicaid, a joint federal and state program that helps to cover medical costs. If you’re on Medicaid, you can benefit from free or discounted hospital services, doctor visits, X-rays, home health visits, and more.
Hospital charity care
Any hospital that is registered as a non-profit is required by the government to offer charity care in exchange for maintaining its tax-exempt status. Charity care means the hospital provides its services at a free or discounted rate to people with a low income. Most of the time, you need to apply for charity care within 240 days of receiving the medical bill, but if you qualify, then you may even be able to receive a refund for any payments you’ve already made.4
Medical credit cards
A medical credit card is a card specifically designed to cover the costs of healthcare services. Many medical credit cards offer attractive 0% APR introductory rates, but they can charge deferred interest, which means if the balance isn’t paid off in time, interest may be added to the full amount. Medical credit cards sometimes only cover certain treatments or providers within a specific network, so review the credit card terms and conditions carefully.
Medical loans
Another way to cover medical expenses is through a medical loan, or personal loan. Personal loans can be used to cover emergency medical procedures, bills, prescriptions, and even cosmetic treatments. A benefit of personal loans is that you can access the funds relatively quickly and without worrying about what exact services and providers are included. Personal loans can help reduce the administrative burden that can be significant when dealing with hospitals, health insurance, or other medical providers.
The bottom line
A little planning and research can help make ongoing medical expenses more manageable. Finding the right approach for you can help you feel more in control and protect both your finances and your peace of mind.
Sources:
1 Time – How to Negotiate Your Medical Bills
2 Health Affairs Scholar – Financial assistance and payment plans for underinsured patients shopping for “shoppable” hospital services
3 KFF – Hospital Charity Care: How It Works and Why It Matters
4 Dollar For – What Is Charity Care?
