5 Tips to Help You Budget for Healthcare Costs

Budgeting for medical expenses is a big part of staying on top of your finances. Little things like doctor visits and prescriptions can add up and should always be added to your monthly budget. But what happens if you ever get hit with something huge, like an accident or life-threatening illness? If you haven’t prepared for something like this with an emergency fund, you could find yourself in a mess, unable to make your mortgage payment, buy groceries, or pay utilities. A big expense like this can even lead to an overdrawn checking account or bankruptcy.

According to the Bureau of Labor Statistics, healthcare accounts for around 8 percent of a consumer’s household budget. Of course, this is probably assuming normal circumstances, such as regular checkups and occasional medication. Once you’ve set a savings goal based on this, it’s still important to plan for an emergency. But the 8 percent is a good place to start, and there are a lot of ways to budget for this.

Look for lower-Cost Options For Routine Healthcare.

A lot of people don’t realize that there are actually lower-cost options for some of their most routine care. For example, most public schools host events that include things like vision and hearing tests for children. These screenings for young children are usually free and will give you an idea of whether or not further testing for hearing loss is necessary. Take advantage of these types of services and then follow up, if necessary, with a trusted, low-cost provider.

Other low-cost providers are often available within communities. These include places such as your local health department where you can get vaccinations or other services either for free or at a reduced price. Many communities also offer prenatal or birth control services through non-profit women’s clinics. The best place to check for low-cost services is through your local health department.

Budget For large Expenses As Well As Small Ones.

Many homeowners feel overwhelmed when budgeting for large expenses at home. This can come in the way of an unexpected expense or a big remodeling project that has to be done in order to accommodate someone’s change in health status. For example, what would you do if someone in your home suddenly becomes dependent on a wheelchair for mobility? After all, your paycheck can only stretch so far. If you haven’t budgeted for a large purchase, you might have to look at other options.

Review Your Health Insurance Policy.

Another important thing to do is to review your health insurance policy annually. There could very well be some important benefits you’re missing out on. One of those is free preventative care. Most insurance companies pay for certain screenings that they believe will save them money in the long run. Not to mention, giving you some peace of mind. Some of those might be cancer, diabetes, or blood pressure screenings. They also might offer coaching and counseling for weight loss and discounted gym fees. Additionally, most insurance companies offer discounted telehealth services for all their members. This can be helpful for simple ailments, such as ear infections, or mental health counseling from the comfort of your home.

Look For Extra Money.

When budgeting for any expense, the best way to start doing it is to look for extra money wherever you can find it. To start, you can re-evaluate unnecessary expenses and spending habits like cable TV and dining out. Are you paying for way more channels than you watch or eating out more than once a week? Next, do some research on your utility bills. Most large areas have more than one energy provider to choose from and you can often get a much better rate by switching. Also, look for ways to bring in extra money. Sell unused items from around the house, or take on a weekend job for an extra paycheck, if it’s feasible. Finally, take advantage of credit card perks your company might offer, such as cashback and other freebies.