Do's and Dont's: Saving in Medical Expenses

The following link is to an article found at www.tucsoncitzen.com titled, "Some skipping much-needed health care to save money: Economy forcing many to make decisions on health". The article discusses what some Phoenix doctors are noticing their patients deciding to do to save money. This article offers some "do's & dont's" to save medical costs in a stressed economic time.
http://tucsoncitizen.com/daily/breakingnews/112650.php
I would like to thank my faithful blog follower for forwarding me this article.

The Trap!

Currently 47 million Americans are uninsured

&

9 million of those are children!

Are you at risk to being caught in “The Trap”? I was reading the March 2009 issue of Parents magazine when I came across an article under the “Solutions: Family Values” section titled, “The Trap: Not Being Prepared for A Medical Crisis”. Of course, this grabbed my full attention. I have read similar articles elsewhere in the recent past and felt obligated to share the general topic with you, especially if you have not already read something about it.

The Parents magazine article indicates that most young families are healthy and most visits to a doctor’s office are for routine services or minor illnesses. But what happens when a family member develops a serious illness or gets injured? Well…that is when medical treatment can get costly and can put a family into a financial crisis if they are not adequately insured. I have read that financial experts, university medical/law schools, and advocacy groups have stated that illness and/or medical bills are a leading cause of bankruptcy.

It is important to never skimp on a health insurance policy. You must be sure to purchase the most benefit rich plan that provides the most coverage you can afford. It is my personal practice to start at the top of the plan options and move backwards with clients. This allows my clients to make an educated decision based on plan benefits, potential out of pocket costs, and monthly premiums. After we review medical history, discuss potential financial loss, and the available options; we are then ready to apply with the appropriate insurance carrier.

Many of my clients are purchasing a High Deductible Health Plan (HDHP) that is qualified for the Health Savings Account (HSA). This type of plan is excellent for predicting a potential financial loss, offers an affordable premium and has the savings account component as an added benefit. I think Parents magazine offers good advice: “Since you’ll have to pay that deductible yourself, you should at least have a plan in mind where the money will come from”. I suggest setting up the HSA at the time your policy takes effect and fully funding it this year with the $3000 maximum for an individual or $5950 maximum for a family. You have the option to fund a HSA with pre-tax dollars and many employers are offering contributions as well. A HDHP is worth the time to see if it is a good fit for you and your family as it offers a couple of avenues to save money.

Annually the majority of health insurance carriers make adjustments to their benefit structure. This can occur at the time of renewal for an individual plan or an employer plan, or at a designated time to the insurance carriers choosing. It is beneficial to investigate what new benefits may be available to you and if medical underwriting guidelines have changed to your advantage.

The bottom line is you are your own advocate. It is important to have full knowledge of what your health insurance plan covers, how much financial risk is involved, and how you are going to pay for potential medical expenses. Parents magazine suggests being proactive: “Don’t skip well-baby and adult wellness visits. It’s much cheaper – and wiser – to prevent health problems or to find them early than it is to treat them later.” I could not agree more.