Medical debt can be overwhelming to deal with. Besides the stress of dealing with owing someone money, it is frequently accompanied by a sickness or illness, making it all the more stressful.

Unlike other types of consumer debt, many people get into medical debt without having a choice. Even with heath insurance, the deductibles and co-payments can add up quickly, causing medical bills and subsequent debt to quickly spiral out of control. Many causes of medical debt are hard to avoid- most people don’t get into trouble with hospital bills because they want to, but because they have to to. According to this article from cnn.com, over 60% of all bankruptcies were attributable to medical debt, with the majority (over 75%) of those people having health insurance. Here are 5 tips for avoiding and dealing  with medical bills and debt.

If possible research treatments and costs ahead of time-i.e., educate yourself- It’s not always possible to research costs, treatment options, or prescription prices ahead of time, but if it is possible, try to educate yourself on the potential treatment options or drug/prescription options available. Doctors won’t always give you a choice, so if you are educated on the particulars of your sickness or ailment, you can bring them up and discuss them with your doctor.

Review your bills carefully- This one seems like a no-brainer, but when dealing with poor health it can be even more difficult than usual to remember to check the hospital or doctor bill carefully.

Negotiate your medical bills- For some reason, unlike negotiating buying a car, people see doctors and hospitals as “above” negotiation and haggling. The truth is,  hospitals, even non-profits, as with doctor’s offices, are a business. They are in business to make money, and they do negotiate with patients all of the time. Don’t be afraid to ask them to lower the bill to something more reasonable or to reduce the total of your bill.

Offer a lump sum reduced payment, especially cash if possible- Even if you can negotiate a lower total bill, offering a cash payment for a reduced amount can possibly reduce your bill even further. I have a friend who, after the birth of each of his children, went to the hospital billing office with cash in hand and successfully reduced each bill several hundred dollars on a bill of $1000, which was his portion after insurance covered everything they were going to cover. It never hurts to ask, after all.

Always make some payment, even if it isn’t for the full amount- One thing you definitely want to avoid if possible, is having your bill go to a debt collector or debt collection service. Once that happens, the hospital or doctor has already agreed to take a lower amount than the total, only the debt collection agency will try to get the full amount from you in order to keep the rest for themselves and make a profit. Discuss payment arrangements with your doctor or hospital before it gets to that point, they are very likely to be willing to work with you. In each of the several times  I  have had a hospital bill of more than $1000, the hospital was willing to let me pay it off over several months- most of the time, they will not even charge you interest or fees- they never did to me.

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• Lower Your Medical Bills Through Negotiation, Cost Comparison, and Haggling
• Negotiating a Deal and Tips on Becoming a Better Negotiator
• The Health Savings Account (HSA) and Can I Do Better Than a Health Insurance Company?
• 31 Ways to Save on Health Care and Medical Costs
• How Did My Health Savings Account (HSA) Perform Last Year?

2009 is almost over (only 2 days left!), so it is time to remember to use up any remaining money you might have left in your flexible spending account (FSA) before the year is over.

An FSA account is a “use it or lose it” tax-advantaged medical savings account, so if you don’t use it all up by the end of the calendar year, you stand to lose any remaining money you have left,

Most FSA accounts allow you to claim or file for reimbursement until the last day in March of the following year, but the expenses must have been incurred by the end of the previous calendar year.
So for calendar year 2009, you must incur the expenses by December 31, 2009, and you should be able to file for reimbursement (if your plan does not have a debit card tied to it, in which case you can just use it directly) until March 31, 2010. Be sure to check your FSA account details to be sure of the final date for reimbursement.

I have had a Health Savings Account for the last two years, and am quite pleased with it thus far, but I had an FSA account for several years before that, and a couple of times I had money left over come the end of December and mad a special trip or two to stock up on meds, contact lens solution, etc.

No one would want to get sick or have to go to the doctor just to use up their money of course, so if you have money left over you can stock up on items you might need in the coming months such as:

• Contact Lens Solution
• Over the Counter (OTC) Medicine- Sinus & Allergy meds, Cough Syrup, Aspirin, Tylenol, or Advil, etc.
• Glasses or Contacts- new glasses, or even new prescription sunglasses
• Birth control pills
• Stop- Smoking Aids such as nicotine gum

Check out the following link for a list of eligible as well as ineligible FSA expenses

Of course, if you feel you have too much money left over this year, be sure to consider adjusting (if still possible) how much money you are saving during 2010 and keep track of your spending throughout the year so you do not have so much money left over come the end of December 2010.

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• Flexible Spending Account (FSA) Reminder for this Year and Planning for Next Year
• How Did My Health Savings Account (HSA) Perform Last Year?
• The Health Savings Account (HSA) and Can I Do Better Than a Health Insurance Company?
• Not Going to Finish Your Taxes by April 15th?- How to File For An Extension
• The Easy Way to Budget for Irregular Expenses Using A Separate Checking Account

As I posted about a couple of times last year, I switched over from a traditional health insurance plan to a High Deductible Plan with a health savings account ( HSA) for the 2008 calendar year. I had grown tired of paying large premiums year after year, so I decided to give it a try. How did it work out for me and my family in my first year? Pretty well, as far as I am concerned.

A little background information

Since my wife and I have 2 children, I was a little unsure of how it would work, as far as the numbers go. Kids get sick all of the time, and since they are in preschool and daycare, respectively, there is always a chance they can catch something from one of their classmates. I would be responsible for the first $2500 directly out of pocket (using the HSA account, though), and 10% from $2500 to $4000. I decided, since I had a chance to come out ahead, to go ahead and try it out.

The numbers from 2008:

I put in about $4000 last year, of which about $2500 was the difference in monthly premiums, so I would be “even” with the year before (what I spent on premiums only) with that amount. I had also put in about $1000 into my flexible spending account in previous years, so that got me up to $3500. I increased my contribution another $500 to hit the $4000 max out of pocket.

At the end of the year, (or actually, after I got all of the bills from the kids going to the doctor in December-they both got sick multiple times and made several trips), I had about $2800 left in the account, which means I spent about $1200. If you add in the extra $500 I put in (which was above what I spent the year before), I still came out about $2300 ahead, which was more than I had anticipated. I can say that my family and I were pretty lucky, and it is probably true, but it was also probably somewhat of a typical year.

Some of the things I learned over the year:

• Some drugs are real expensive, like $150 for eye drops. Others, if there is a generic available and the doctor prescribes a generic, can be really cheap, like $5.
• Doctor’s visits and others are not as expensive as I would have thought when you pay the bill yourself. Now this is because the insurance company still uses negotiated rates, (as opposed to if I was uninsured), but the negotiated rate was about $75 when my kids went for an office visit, and if you subtract of the $20 co-pay I used to have to pay it dropped it to about $55 difference from the year before.
• It did not, as some people might worry about, make me  or anyone in the family “not” want to go to the doctor if we thought we needed to.
• It did make me think more about my health care costs, and think about cheaper alternatives, mostly with prescriptions or other medicines.

Now I know there is always a chance I will max out on my expenses every year, but I do think an HSA health plan gives you the opportunity, at least, to keep a little more money in your pocket than a  traditional health insurance plan. The HSA has some outstanding benefits as well, for long term savings and investing.

If you want to learn more check out my first post about HSA Plans or the 2nd one on the status of my HSA after about 6 months .

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• The Health Savings Account (HSA) and Can I Do Better Than a Health Insurance Company?
• Mid-Year Update on My Health Savings Account (HSA)-How is it working?
• 31 Ways to Save on Health Care and Medical Costs
• Your Health and Money- Save Money by Living Healthier
• Use 2008 Expenses and Spending to Plan for a More Financially Successful 2009

If you have a Flexible Savings Account (FSA), the end of the year means it may be time to use it or lose it, if you have money left in your account. I had a FSA account for several years, before switching over to a HSA account with a high deductible medical plan. (The HSA is similar to the FSA as far as what you can use it for, but it does have some additional benefits- if you want to learn more about it, you can read my post on my HSA account.)

By law, companies are permitted (but not required) to let their employees use the previous year’s FSA account balance until March 15th of the next year, but many do not. If you are not sure what your employer’s policy is, find out now so you don’t lose out. If you do need to use it by the end of the year, make sure you do so so you don’t lose money!

Items or services you can use your FSA account for to use up the remaining balance:

• Medical expenses, including co-payments
• Prescriptions
• Dental expenses
• Vision expenses, including saline solution, contact lenses, glasses, or even prescription sunglasses.
• Over the counter medications (OTC)

Check here for additional FSA eligible items

Using up Your FSA This Year

If you need services, like an eye exam, dental cleaning, etc, you should try to schedule it before the end of the year. I have also spent remaining FSA money at the end of December by stocking up on saline solution and over the counter medicines for the coming year. Assess what types of medicines and other eligible items you use regularly, and stock up on them if you still have a FSA balance you need to use up.

Planning your FSA Deductions for Next Year

The problem with the FSA is that it is “use it or lose it”, so you usually have to be conservative with your projections and FSA withholding for the upcoming year. Look at the previous year’s medical expenses, and whether or not you used up your FSA early in the year, for example. Do you have any additional expenses coming up next year, like expecting a child or getting Lasik surgery to correct your vision? Add the additional amount to your FSA as well.

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• Flexible Spending Account FSA Year End Reminder
• The Health Savings Account (HSA) and Can I Do Better Than a Health Insurance Company?
• 31 Ways to Save on Health Care and Medical Costs
• Negotiating a Deal and Tips on Becoming a Better Negotiator
• How Did My Health Savings Account (HSA) Perform Last Year?

Just like the price of everything these days, the cost of health care, medical treatment, prescriptions, and other health-related services continues to skyrocket, as it has for some time now. Educating yourself about your health and saving money on health care costs can really make a difference, especially if you have a family and are responsible for paying the expenses for more than just yourself. Below are some ideas for saving when it comes to your health and medical costs. Some will put money in your pocket right away by reducing expenses, others will keep you healthier and keep you from having to spend as much money.

1.) Ask for generic prescriptions- Asking your doctor if there is a generic alternative can save you money. While he or she may not always prescribe one, most of the time if one is available they will.

2.) Eat a healthy diet-Your diet is something you can control, unlike heredity, that can have a positive effect on your everyday health. Eating fruits and vegetables, taking vitamins, and avoiding unhealthy foods can make you feel better and keep you in better health.

3.) Play the drugstore game at CVS, Rite aid, and Walgreens- Look for rebates, coupons, and freebies by checking their ads in the Sunday paper.

4.) Look for gift card deals for transferring prescriptions- Many pharmacies will offer gift cards of $20 to $30 for transferring your prescription to them. Make sure they are not charging more than you are currently paying, or you may not reap any benefits.

5.) Use Walmart’s $4 prescription program- Walmart has a list of over 350 prescriptions available for $4, and recently added additional women’s health prescriptions for $9. Target has a similar program. Check the list for medications you may take, and consider taking it to the doctor’s office when you go.

6.) Quit smoking-As I’ve mentioned before, no explanation necessary here- quitting smoking is good for you and can save you money.

7.) Cut back on alcohol- A few drinks now and again is OK, but if you find yourself going out for drinks several times a week, cutting back can save you money and improve your health.

8.) Cut back on fast food- While fast food can be convenient, most of the time it is unhealthy, although there are a few choices here and there that aren’t so bad. Look for healthier alternatives, and cook and eat at home more to save money and improve you health.

9.) Exercise- Everyone should get regular exercise, and the lack of exercise and the corresponding obesity problem in the US is a big part of us being unhealthy. Try to exercise several times a week.

10.) Ditch the gym membership- While this might be blasphemous to some, if you aren’t going to the gym like you used to, consider dropping it and take up walking, running, biking, or other “free” form of exercise.

11.) Get regular checkups- Regular check ups can identify chronic health issues that are treatable before they become serious, and can keep small health problems from turning into bigger ones.

12.) Use a flexible spending account-If you have a flex spending option at work, take advantage of tax-free spending on your health related items including co-pays, prescriptions, and even over the counter items. Check out this list of flexible spending eligible items to see what items are eligible.

13.) Consider a health savings account (HSA) medical plan-I switched my health insurance plan to an HSA this year, and so so far it has been great. I have over $2000 saved, almost all of which would have been spent on premiums for health insurance with an HMO or PPO had I stayed with one of those plans.

14.) Ask for samples from your doctor-When your doctor starts talking about prescriptions, ask if he has any samples available for you to try. Often, he will give you enough to sue so you don’t have to pay for a prescription.

15.) Ask about alternative treatments, etc.- I’m not talking about anything new age here, but discussing your condition and educating yourself about the treatment options. No one knows your body better than you do, and some alternatives may be less costly.

16.) Use a discount card at pharmacies, if available-Some pharmacies offer a discount card if you are a regular customer or don’t have other prescription coverage. Ask if your pharmacy has a program and take advantage of it if they do.

17.) Take advantage of your medical plan’s additional services- Many insurance companies offer tips on diet, weight loss, smoking cessation, etc. from a registered professional. Take advantage of these services if they are available to you.

18.) Argue with your insurance company-if they deny coverage or won’t pay the bill. As I mention below, mistakes can and do happen.

19.) Read medical bills carefully-Several times over the last few years I have had a mistake on a bill where something that should have been covered was initially denied. Check your bills carefully for errors, they do happen.

20.) Use all the services you pay for- Dental, vision, etc. Don’t be lazy and skip check-ups or regular exams.

21.) Wash your hands.- Most germs are spread from your hand to your mouth or eyes. Keeping your hands clean can reduce this risk.

22.) Keep house and work area clean and germ free- Paying attention to cleanliness can help you and your family avoid germs that can make you sick.

23.) Try urgent care facilities instead of ER-When you can’t make a doctor’s appointment, or you have something that requires immediate care but does not reach the level of requiring an emergency room visit, consider going to an urgent care facility, which is usually much cheaper than going to the emergency room.

24.) Don’t wait too long to see a doctor- When something is wrong or doesn’t feel right, get it checked out. Waiting will likely make it worse, and potentially more costly.

25.) Use safety equipment when required- Helmets for kids, safety glasses when using power tools, etc. are good habits to adopt to avoid injury.

26.) Educate yourself about your health-Learn as much as you can about your illnesses or chronic conditions. It can help you determine what treatments are available, and you can also learn ways to keep yourself healthier.

27.) Consider using medical or dental schools- dental schools often offer discounted teeth cleaning, orthodontics, and some medical school clinics even medical treatment or exams.

28. Make sure you stay in network- Before you go to a specialist or get a referral, make sure the new doctor is in your health insurance network, or you could risk coverage being denied.

29.) Double check with insurance companies for coverage- Before you go in for a scheduled procedure, check with your insurance company to verify coverage, as well as the amount covered, as sometimes there are limits.

30.) Spread medical/dental work out over 2 calendar years- Some dental plans have a yearly limit based on the calendar year. If you have several things to take care of that can wait, spread it out over more than one year.

31.) Floss, Floss, Floss- Your dentist and your teeth will thank you.

While this is a pretty long list, do you have any other tips or suggestions for reducing your health care and medical costs?

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• Your Health and Money- Save Money by Living Healthier
• 5 Tips for Dealing With Medical Debt
• Lower Your Medical Bills Through Negotiation, Cost Comparison, and Haggling
• The Health Savings Account (HSA) and Can I Do Better Than a Health Insurance Company?
• Flexible Spending Account (FSA) Reminder for this Year and Planning for Next Year

When I was younger, I was quite the picky eater. I did not eat pasta until I was about 10 or 12, and salads, eggs, and a few other things until I was about 18-20. (Maybe college turned me into a hungry student-I don’t know) Over the last 10 or so years, my taste buds have really expanded, and nowadays I eat just about anything, and am willing to try just about anything. One thing I have discovered over the last few years, is that eating at ethnic restaurants can be quite a bit cheaper than your standard, run of the mill fare, and usually even cheaper if you get something to go-since you aren’t paying for beverages and don’t have to tip on the total bill. Here are some of my favorite places to get ethnic cuisine these days, usually at prices only slightly higher than fast food combo meals.

Chinese

- The old standby, but one I still like. You can usually pick up a couple of meals to go for $12 or so.

Vietnamese

- I have been a big fan of Pho, a Vietnamese beef-based soup (see photo above), for quite a few years. You can get it in all kinds of variations, but I usually just stick with the sliced beef version. For around $6, or about $1 more than an extra value meal, I can get a big, hearty bowl of soup that leaves me just as full but tastes much better.

Indian

- There aren’t too many Indian restaurants where I live, but I am a big fan of tandoori chicken, basmati rice, and curries. Some can be quite spicy or hot, but very tasty.

Central/South American

- Different than Mexican, south or central American do have similar themes, like rice and beans, but you probably won’t find the American version of the taco. Central American cuisine incorporates other delicious items such as plantains, and one of my newly discovered favorites, the baleada, a flour tortilla filled with beans, and sometimes egg, meat, avocado, and cream.

Experimenting with different cuisines can be beneficial in two ways, you can discover great new food, and you may save money as well.

Image by VirtualErn

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Bringing your lunch to work can save you quite bit of money. If you save $5 to $6 a day x 5 days a week x 50 weeks a year, you can save $1250+ per year. But have you considered the non-monetary or indirect monetary benefits of brown bagging it?

Save time

Instead of spending an hour fighting crowds, you can easily eat your lunch in 20-30 minutes (or less), and have 30 minutes plus to do other things, such as:

• Read- Catch up on your reading, whether books or on the ‘net.
  
• Work more- Work on that project if you have a tight deadline, and if your employer allows it, you might even get paid for it.
  
• Make phone calls- Work or personal calls
  
• Run errands- Pick up your dry cleaning or run to the grocery for non-perishables, and you won’t have to cut into family time later.
  
• Take care of other personal business- Like paying bills, scheduling appointments, etc.

Save gas

While you may be within walking distance of places to eat, a lot of people hop in the car every day to go to lunch, probably sitting in traffic.

Reduce the chance of wasting leftovers

How many times have you run across something in the fridge that would have been great to take to work for lunch, but has now been there a little too long. Even if you are careful, this can happen on occasion. Bringing leftovers reduces the chances of this happening.

Improved health

Unless you pack a lunch bag the size of a knapsack, you probably will eat healthier and consume less calories than if you go out to eat.

Avoid afternoon drowsiness

An added bonus of not consuming so many calories is that you will likely be more alert than if you stuffed yourself at the all-you-can eat Chinese buffet again.

The environment

Even though big macs no longer come in the styrofoam container, your homemade packed lunch will likely produce less waste, you can re-use your brown bag or grocery bag, or use tupperware over and over again.

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• Tips on Practicing Smart Personal Finance

The year is half way over, so I thought it would be a good time to take a look at my Health Savings Account (HSA), which is coupled with a high-deductible insurance plan. I switched from an HMO plan to the HSA plan with a high deductible at the beginning of this year, 2008. It has been a little over 6 months, and overall I am quite satisfied, even pleased. My two small children started off January/February with several doctor’s visits each, so I was a little worried in the beginning. I also did not get the payroll deduction linked to my HSA bank account before the beginning of the year, so I actually missed my 1st two deductions, and it just went into my paycheck. Here are the numbers for the year so far:

Amount deposited into HSA from payroll deductions: Appx. $2250

Amount spent from HSA account and applied to deductible: Appx. $750

Amount currently in HSA account: Appx. $1500

If you go back and read my earlier post regarding my HSA account, I am saving about $200 a month in premiums, and I previously put about $1000 in a flexible spending account (FSA). Adding the two together allowed me to put appx. $3500 into the account without any additional expenses than last year. I increased my HSA witholdings about another $83/mo., in order to put in $4500 for the year (although I missed the 1st 2 deductions for the year, so it will end up being a little over $4000.) I don’t necessarily think the second half of the year will go as well as the 1st, but to have $1500 saved after 6 months is pretty good as far as I am concerned. Some of the benefits of a HSA account can be found in my first article as well.

A few notes from being in the plan so far:

• I have not had any problems with paperwork or claims, a problem I have heard can happen, even a few of my fellow employees who were in the plan previously mentioned having some issues.
• The price of doctor’s visits through my insurer, which are charged to me at a negotiated rate, are not as high as I would have thought. Most have averaged $75 to $100. When you subtract out the $20 copay I don’t pay anymore, this drops to $55 to $80 per visit, which is quite a bit lower than I would have guessed.
• The cost of prescriptions can vary widely, and I have paid for a couple for the kids that were over $100. But many generics cost $5, and you can do a little research and use the $4 prescription programs at Walmart or Target to find very cheap prices on some prescriptions.
• Educating yourself and talking to your doctor can help you save money. Twice, after a little research, we have requested a generic equivalent from the doctor, and it saved us $$.

So far, after 6 months, I really have no complaints about the HSA plan I am in. I do believe, in the long run, it will allow us to save money and make our own choices regarding our family’s health.

Note: All HSA plans will likely be slightly different, so you will need to research your company’s or the insurance company’s HSA plan details to see the exact plan details and how it may work for you.

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• How Did My Health Savings Account (HSA) Perform Last Year?
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• I Bonds to Earn 0.0% From May to October, 2009
• Credit Card Debt Elimination Using a Zero Percent Balance Transfer

Health care and health insurance premium costs have been going up rapidly for many years. While it’s certainly not the biggest problem with health care in this country, one problem is the fact that, for many people, they use their health insurance infrequently, and feel like they are paying into a system (skyrocketing premium costs) without taking any of the benefits. After seeing how much my health insurance premiums were going to be going up this past December, I decided to go with a High Deductible Medical Insurance Plan this year, combined with a Health Savings Account (HSA). A HSA account is part of a “Consumer Driven Health Plan”, which supposedly allows the consumer to make more choices regarding their medical treatment and more control over how their medical dollars are being spent.

 Here’s how they work, and what I think will be the benefits of using this plan.

A health savings account is only available if you are in a High Deductible Health Plan. To qualify as a High Deductible Plan, the minimum deductible for a single person is $1,100, and $2,200 for a family in 2008. You are allowed (by law) to put up to $5,800 for a family plan, $2,900 if single. For me, this means I can put more than my max. out of pocket ($4000) in per year. Premiums for an HSA plan are normally lower than other types of plans. Contributions can be made pre-tax, if your employer has the option available, or post-tax and then deducted from your tax return. In general, you are responsible for all out-of-pocket expenses until you meet the deductible, and then there usually is a co-insurance portion. For me, the first $2500 comes straight out of my pocket. (i.e., no co-pays, I pay the entire bill) Between $2500 and $4000 worth of expenses, I pay 10%, the plan pays 90%. So for me to reach the max out of pocket, my total expenses have to exceed $2500 + $15000= $17500. After I hit $4000, the plan pays 100%.

Beneficial Features of an HSA Plan
• You can have the money to fund your HSA put into a bank account, which you can draw from to pay medical bills. Normally, your employer will set this up so the money comes out pre-tax.
• I can keep any money left in the HSA account, it rolls over to the next year, and I can take it with me if I leave my employer. (I can then still use what is left, but cannot contribute to it unless I get into another high deductible medical plan.)
• The HSA account available to me pays 4% interest per year. (This will vary based on your plan and the bank they use)  After reaching a certain limit, $2500 I believe, I can invest in a variety of mutual funds.  You will need to have a cushion, though, because should you need the money you have to sell your investments. But, using my situation as an example, after I have amassed my max yearly out of pocket, I could begin investing that money.
• If I do leave my employer, I can use any money in the HSA plan to pay Cobra premiums, if necessary. You may use your HSA to pay for COBRA premiums and Medicare premiums.
• Similar to an IRA, if you use the funds for non-medical expenses, you pay a 10% penalty plus income tax. However, once you reach 65, the penalty portion disappears, and you basically have a tax-deferred account you can use for medical or non-medical expenses.
• Similar to a flexible spending account (FSA), you can use the money for vision, dental, or over-the-counter medical expenses.

Criticisms of HSA plans
• Several health related groups feel HSA’s only benefit the healthy, and this will cause an increase in less healthy people’s insurance premiums. Although it can limit maximum expenses as well, so I am not sure if this is valid. Because prescriptions count towards the max. out of pocket, people who take a lot of expensive medications may end up paying less than they normally would.
• Many people also believe that because people have more choice, they may choose not to seek medical attention because they may have to pay out of pocket, and this may have a negative effect on their health.

Why did I do it?
Because after looking at the plan details and crunching the numbers, I have decided if I come out $1.00 ahead at the end of the year, it is a moral victory. I am hoping to do better, of course. The savings in premiums for me ($2400) is basically equal to my deductible under the previous HMO plan I was in, so I am “even” up to that point. Since I normally put about $1000 in my flexible spending account, I am now up to $3500, only $500 less than the total max out of pocket for the year. 

Now, if I were a healthy, single person, in my early 20’s I think this would be a no-brainer, at least for me.  But I am in my mid-thirties, and married with two small children. Have I made the right choice? I think I have, but only time will tell. So far this year, things have gone pretty well. I will keep you updated.

HSA Resources:
US Treasury 
Council for Affordable Health Insurance

Credit Crisis Concerns? Get 20% off FICO credit scores now

• How Did My Health Savings Account (HSA) Perform Last Year?
• Mid-Year Update on My Health Savings Account (HSA)-How is it working?
• Flexible Spending Account (FSA) Reminder for this Year and Planning for Next Year
• Lower Your Medical Bills Through Negotiation, Cost Comparison, and Haggling
• Your Health and Money- Save Money by Living Healthier

The April 2008 Edition of Smart Money Magazine contains an article entitled “Under the Knife: Cutting Medical Bills”, by Angie C. Marek. The article describes how “haggling” for better deals on medical costs is on the rise, and similar to finding the best price for airlines and hotels, those who search out the best deals will get better rates than those that do not.  The article describes 6 ways to get better deals and lower your medical costs.

 Ask for it early- Ask for a price break before the procedure, not after the bill comes in. Surgeons may offer a discount on the surgery fee, or a “two-fer” if you are getting more than one procedure done, such as with  plastic/cosmetic surgery. The author was also successful in getting 8 out of 10 mental-health professionals to offer some sort of discount on therapy sessions by approaching them and asking for a break on the price.

Pay in cash up front- Not surprisingly, paying in cash was the number one incentive to offer a discount, according to doctors questioned.  Ask the doctor or medical care provider up front for a discount for paying cash in advance, you certainly have nothing to lose.  Another good reason not to use a credit card, I would think!

Do your homework- The article describes how it can be difficult to bargain when you are not sure of the real cost of something.  One web resource listed was www.nahdo.org, where you can search for medical care cost data by state.  Another technique I have used is to use my health insurance provider’s member website, which can offer prices for drugs and other services as well. Also, I have found a simple Google search can often turn up information.

Butter up the billing staff-It is the people in the back office, running the business side of things,  not the doctors’ themselves, who often hold the power to reducing your medical bills.  Just by speaking with the office coordinator and fretting over the bill, the author was able to get a 66% price break on a skin tag (small growth) removal procedure.

Go at an off-peak time- Go to a plastic surgeon after the summer bathing suit season, and you may be able to score an “off-season” deal.  Also, offer to fill in for a cancellation at the last minute, or schedule an appointment at lunch time and they may cut you a break as well.

Hire an advocate- Hiring a professional to review your bill and negotiate a better deal for you may save you money, even after paying their fee.  A “Health Care Advocate” may have experience in health care billing which may result in savings for you. Do your homework before hiring one though, checking references and with the Better Business Bureau.

In these times of soaring medical costs, it certainly never hurts to ask for a discount, especially if you are underinsured or do not have health insurance, and the more informed you are about any medical costs you may incur, the better off you will be. This past January I changed my family’s health plan to a high deductible plan with an HSA (which I will discuss in the near future) where I pay a the first $2500 in costs out of pocket up front, so over the past few months I have been trying to educate myself on medical and prescription drug costs.  I will certainly be trying out some of these tactics when the situation arises in the near future.

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With health-care costs rising even faster than the rate of inflation over the last few years, its no wonder that one of the key issues of the presidential campaign season is health-care reform. Many people are worried about whether they will continue to be able to afford health-care premiums, prescriptions, or other medical needs in the coming years. Similar to investing for your retirement as early as possible, by taking care of yourself and your body as early in your life as possible, you can potentially avoid health problems later in life. Here are some ways to start living healthier now.

Get regular medical checkups-While you may have to pay a co-pay for an office visit, it makes no sense to spend hundreds of dollars a month on your health-care premiums only to skimp because you don’t want to pay a co-pay for a visit.  A lot of people, myself included, don’t really like going to the doctor, especially when we don’t feel ill, but getting a checkup ever year or two, even if you are young and healthy, (or more often if you are older) can alert you to potential problems such as high cholesterol, high blood pressure, or other conditions which can develop into lifelong chronic illnesses if you don’t take preventative measures early enough.

Get enough sleep-The amount of sleep an adult needs every night is debatable and varies from person to person (many experts recommend between 7 to 8 hours a night), but you generally know when you are not getting enough. 

Get your teeth cleaned regularly-This is another area where people like to put off regular visits.  But putting off regular cleanings and exams can turn small problems, such as a small cavity, into larger ones such as a crown or other dental work.  Again, if you have any sort of dental insurance, use it. You should also brush twice a day and floss your teeth.

Take Vitamins- The argument against taking vitamins, which some people even consider a waste of money, is that you can get all you need from a well-balanced diet.  If you are lucky enough to eat a well balanced diet every day, then maybe you don’t need to take them.  But I would guess that a lot of people don’t eat as healthy as they would like, and taking a generic multivitamin everyday is pretty cheap insurance that you are getting at least the RDA of important vitamins and minerals.

Get regular exercise- Simply adding 15 to 30 minutes a day of something as simple as walking can improve your overall health, and exercise is a great stress reliever as well.

Drop your Bad Habits- Smoking, excessive alcohol consumption, and unhealthy eating habits all work against you living a healthier life and lifestyle.  By giving up your bad habits, or at least cutting back, you will feel better, become healthier, and potentially live longer.

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