Medical Debt

How to Pay High Deductibles

Every year health insurance companies are raising their deductibles.  While these high deductibles may come with the benefit of a lower monthly premium, it also carries the substantial risk of having to pay a large unplanned expense that can be $5,000 or more!   When the deductible is paid throughout the year it isn’t as big of a burden, but, when a more serious medical expense occurs, you might be on the hook for the entire amount of the deductible – all at once.  How can the average consumer who is already strapped for cash, come up with the money to pay the deductible?

Here are a few ways consumers can pay for high deductibles:

Apply for a personal loan

Personal loans are becoming more popular and a personal loan may be the best and quickest source of funding.  Many personal loans give you an instant decision on your loan request, and provide access to cash in as soon as one business day.  The best part is, most personal loans are installment loans, which spread the payments out evenly over a period of time, making that large deductible much easier to pay.

Use an HSA

High deductible plans may come with an HSA plan. An HSA is a health savings account, sometimes known as a flex spending account. These accounts allow for those with a high-deductible health plan to save for medical spending without paying income tax on the amount saved. An HSA plan allows you to save money and save on taxes.  You can fund your HSA plan in advance, (up to certain limits), and then use this money to pay for your deductible.  If you have a high deductible plan, it may be useful to set a goal of having enough money in your HSA to pay off your high deductible health care plan.  Granted, if you have to pay a high deductible now, and haven’t set up an HSA yet, this won’t help, but, if you are thinking towards the future, the HSA can be a great tool.

Ask for a discount

Hospitals and health care providers are able to adjust their prices.  It may be possible to get a discount on whatever your health care will cost, especially if you do so before the cost is incurred (which may not be possible in an emergency).   Remember, if your health care costs are higher than your deductible, it will only help you if you can get the costs lower than the deductible amount.

Ask to pay in installments

Your health care provider may be amenable to paying off your bill in installments, which may help you pay the high deductible over time.  Talk with your billing representative to see if they have payment plans available.

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