Guest Columnist
Avoid Debt From Medical Expenses
By
Nov 4, 2009 - 4:11:24 PM

(HealthNewsDigest.com) - Health care is in the headlines these days as President Obama and Congress attempt to make health care costs more affordable for Americans. The effort is for good reason: Medical bills are one of the leading causes of debt and bankruptcy.

While the politicians debate, you can take action for yourself and work to avoid being a medical debt or bankruptcy statistic. Here are 10 ways you can take action and begin saving on medical care right now:

Keep up to date with checkups - Don't skimp on care to save a few dollars, especially if a health condition requires regular monitoring. Also be sure children get all necessary vaccinations. Taking simple measures like these will keep you out of long-term debt. How to save: Many insurance plans cover well-child and preventive care visits with a low or no co-payment. Or look into health care clinics (such as those offered at some drug store chains) for discount exams and vaccinations.

Ask for a discount - Some doctors give patients a cash discount for paying out of pocket. Patients with health insurance should be sure the physicians they see are in the network for a deeper discount on fees. How to save: Talk to the manager of patient accounts about difficult situations. Many providers and facilities offer discounts (up to as much as 50 percent) to people who have lost their jobs or who can pay cash up front.

Save with a FSA - A flexible spending account (FSA) allows employees to have money deducted, pretax, from their paychecks for medical care. An employee who has $1,000 deducted annually for medical expenses might reduce his or her income tax bill by as much as $350 (depending on the tax bracket). How to save: Look at canceled checks, bills or credit card statements to determine how much you spent on medical care last year. Then request FSA withholding of about 80 percent of that amount. Be forewarned: If you do not spend the full amount deducted, you will lose it.

Save on medications – The cost of prescription drugs alone can send many people into debt. Ask your doctor if a generic medication will work as well as a brand-name one. Also take time to investigate any possible discounts, from insurance to AARP to AAA. Mail-order pharmacies sometimes allow customers to order several months of medications at a big discount. How to save: Look at all the options, including warehouse club and discount/chain stores, to find the best deal on prescription drugs.

Wear a helmet – One of the biggest causes of medical debt is an accident. Wearing a seatbelt while driving is common advice, but don’t forget to wear a helmet while on other wheels. That includes skates, scooters, bicycles, motorcycles and skateboards. Also protect heads from injury when skiing or snowboarding, horseback riding, rock climbing or engaging in other potentially risky activities. How to save: A safety helmet costs less than $30. The average cost of care for a moderate brain injury is nearly $1 million.1

Get the flu vaccine - For about $25, a flu shot or inhaled flu mist can avoid a bout of nasty illness, expensive medications, and days (or even weeks) of associated time off work. How to save: Save more by seeking out a local nonprofit organization offering the vaccine and counts part of the fee as a tax-deductible donation.

Review medical bills - Some experts estimate that eight of 10 medical bills contain errors or inflated charges. How to save: Ask for an itemized bill and read it carefully. Discuss any questions with the provider, and protest any erroneous charges.

Stay trim. A recent study found that obesity accounts for 9 percent of all U.S. medical costs. In addition, an obese person has $1,429 per year more medical costs, or about 42 percent more, than someone of normal weight.2 How to save: Eat moderately and exercise to keep body mass index at a healthy number.

Avoid the Medicare "doughnut hole" - Medicare-eligible patients with Part D prescription coverage must watch for the coverage gap, also known as the "doughnut hole," to avoid what amounts to crippling debt for some. After patients spend a certain amount on prescription drugs, they must pay all drug costs out of pocket until they reach a higher level of prescription expenses. Currently, Medicare Part D coverage stops at $2,700 and resumes when the patient's out-of-pocket cost reaches $6,154 per year. To make things worse, Medicare applies the entire retail cost of drugs -- not just the patient's co-payment -- to the coverage limits. How to save: Remember to ask physicians to prescribe lower-cost or generic medications whenever possible. Less-expensive drugs can postpone entering the coverage gap and make it more affordable.

Consider medical tourism - It sounds exotic, but it is no longer just for jetsetters. In 2007, 1.5 million people traveled to Thailand alone for medical care. Even some U.S. insurers are coming on board to allow Americans to travel overseas to receive more cost-effective medical care such as knee replacement or other costly procedures.3 How to save: Many insurance companies do not cover overseas procedures, so ask first. For those who must pay out of pocket, traveling might be worthwhile. Be sure to go to a medical facility accredited by the Joint Commission International. Medical tourism companies can help locate a reliable provider, but be sure to proceed very cautiously.

Even if health care reform comes through, each of us is ultimately responsible for our own well-being. Avoiding debt and saving money can be part of your healthy lifestyle -- and keep you and your family financially healthy, too.

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