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  • #1

    Medical Bills

    How do you handle medical bills in relation to debt and savings?

    As of Jan 1, we have a high deductible plan and no dental insurance. I have about $1000 in dental charges that I'm making small ($25/mo) payments on right now. I'll actually be adding to that amount soon for my next perio-maintenance appointment.

    I also just received a bill from my psychiatrist's office for $480. I have a follow up in 5 weeks. I'm planning to set up a payment plan for this as well.

    I guess my question is, since I don't pay interest on these bills, should I continue to make the smallest payments I can on them? Or is there any reason to pay them down faster?

    Ideally, these would be budgeted in, but this type of insurance is new to us and we will basically have to increase our income to account for the increased expenses.
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  • #2
    Does the new plan have a lower premium? If so, designate that savings to go toward costs.

    Is there an HSA with the plan? If so, make sure you are taking full advantage of that.

    Otherwise, at 0% indefinitely, no rush to pay it off. The only problem will be that over time, your balance may grow faster than the rate at which you are paying it off.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment

    • #3
      Originally posted by disneysteve View Post
      Does the new plan have a lower premium? If so, designate that savings to go toward costs.

      Is there an HSA with the plan? If so, make sure you are taking full advantage of that.

      Otherwise, at 0% indefinitely, no rush to pay it off. The only problem will be that over time, your balance may grow faster than the rate at which you are paying it off.
      No, I was on a state-subsidized program before and my premium was $37/mo and I just had small co-pays. My income went up by $2/hr and I no longer qualify. I've now purchased BCBS through the exchange and my premium is $175 after tax credits and I don't expect to meet my deductible.

      I'm embarrassed to say that I don't know if there is any HSA option.

      I guess as long as the clinics are OK with my tiny payments, I'll continue that until I can change my circumstances.

      Thanks for your reply!

      Comment

      • #4
        Originally posted by annibe11e View Post
        I'm embarrassed to say that I don't know if there is any HSA option.
        Check with your HR department. If there is an HSA option, you should definitely use it. That way you can pay all of your medical expenses with pre-tax dollars. It won't cost you a thing and will actually save you money.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

        Comment

        • #5
          I also have the HDHP with my employer. Definitely look at HSA option, if available.

          Throughout the last couple of years I try to contribute 1600-2000 each year, and employer gives another $750 during each enrollment.
          "I'd buy that for a dollar!"

          Comment

          • #6
            Originally posted by cypher1 View Post
            I also have the HDHP with my employer. Definitely look at HSA option, if available.

            Throughout the last couple of years I try to contribute 1600-2000 each year, and employer gives another $750 during each enrollment.
            My job doesn't contribute but I maxed it last year ($6,750). I actually expect to change plans this year throw go my other job so I won't contribute any more after that.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

            Comment

            • #7
              Originally posted by disneysteve View Post
              My job doesn't contribute but I maxed it last year ($6,750). I actually expect to change plans this year throw go my other job so I won't contribute any more after that.
              Yeah, that's still a nice chunk to have saved up for any surprises down the road. Hopefully you won't need to use anytime soon.

              I now look at HSA as part of my EF: It's just a matter of when we're going use it, not if.
              "I'd buy that for a dollar!"

              Comment

              • #8
                Originally posted by cypher1 View Post
                Yeah, that's still a nice chunk to have saved up for any surprises down the road. Hopefully you won't need to use anytime soon.

                I now look at HSA as part of my EF: It's just a matter of when we're going use it, not if.
                Well we have already used a good chunk of it. I think the balance is about 4K. We regularly spend $185/week for my daughter. We also use that money for vision and dental care since those aren't covered by our plan.
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

                Comment

                • #9
                  Originally posted by annibe11e View Post
                  How do you handle medical bills in relation to debt and savings?

                  As of Jan 1, we have a high deductible plan and no dental insurance. I have about $1000 in dental charges that I'm making small ($25/mo) payments on right now. I'll actually be adding to that amount soon for my next perio-maintenance appointment.

                  I also just received a bill from my psychiatrist's office for $480. I have a follow up in 5 weeks. I'm planning to set up a payment plan for this as well.

                  I guess my question is, since I don't pay interest on these bills, should I continue to make the smallest payments I can on them? Or is there any reason to pay them down faster?

                  Ideally, these would be budgeted in, but this type of insurance is new to us and we will basically have to increase our income to account for the increased expenses.
                  that bill sounds outrageous. If you will PM me I can probably get it reduced significantly.

                  Comment

                  • #10
                    Originally posted by TexasHusker View Post
                    that bill sounds outrageous.
                    How can you say a bill is outrageous without having any idea what the bill is for?
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment

                    • #11
                      Originally posted by disneysteve View Post
                      How can you say a bill is outrageous without having any idea what the bill is for?
                      I stated that it sounds outrageous. It may be appropriate, but I doubt it. Psychiatrists generally stick with 992XX and 993XX codes. It's difficult to get to $480 for a psychiatry office visit even if it is extended.

                      I have 24 years experience analyzing and negotiating physician and hospital fee schedules.

                      Comment

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