Preparing for Unexpected Medical Expenses
If you’ve ever watched the television show “Big Brother,” you are probably familiar with the show’s slogan: Expect the Unexpected. And, while that has certainly proven true in a game show-style reality television show, now in its 25th year based on anything but reality, it is a phrase that can apply to your life, too.
I recently explained some ways to save up for a household emergency fund. Medical expenses can certainly be one of those needs for an emergency fund, but it’s worth going deeper into this topic. Let’s explore some benefits of planning (or expecting, should we say) for the unexpected.
Statistics Don’t Lie: Medical Care Is Expensive
Healthcare insurance can be more than confusing. Determining what you do and do not have coverage for alone can be a difficulty. But, preparing for the unexpected can help you cover anything that may arise.
Studies show that medical bills in the United States make up about 40 percent of personal bankruptcy filings each year. Nearly half a million Americans were forced to file for bankruptcy protection in the year 1999 due to heavy medical expenses.
Health isn’t cheap! Studies have shown that an average night in a hospital in the state of Minnesota runs $2,568. That is for just one single night’s stay. Can you imagine if you were in a terrible accident and required multiple nights? Add in the cost of medications, anesthesia, doctor’s care, nursing care, food, and supplies … the prices stack up very quickly.
How to Save for Medical Care
Beyond having insurance coverage, there can still be unexpected copays and debts that come along with required care. The best way to be sure you don’t get buried to cover them is to form a safety net of savings.
Add More Coverage
First, you can be sure to have as much coverage as possible, that can be both affordable and helpful in the event of emergencies. Supplemental plans can also help to pay your bills if you are unable to work, lowering the odds that you’ll be financially crippled by such unexpected medical accidents.
You can get assistance all under one roof, because Gretchen Rehm Financial has partnered with Rehm Insurance to offer insurance options for individuals and families.
2. Start Saving Up
There’s no magical wand to just make money appear (but if I find one, I’ll be sure to share the tricks!) Instead, building up an emergency fund takes time, patience, and dedication. Even setting aside a small amount each paycheck can help you slowly build a financial safety net of funds to help in the event of medical emergencies. Again, this blog provides some practical strategies for increasing your savings.
3. Roth IRA
A Roth IRA is a great way to save money, often tax-free. Depending on your age, you can save funds in these types of accounts, build some interest, and save on income tax all at the same time. Many use these types of accounts to add to a sensible and well-distributed retirement plan, but the same IRA savings plans can help you build a medical emergency fund, too!
4. Start ASAP
A solid tip in saving is to get going as soon as possible. Unexpected medical expenses are, well, just that: unplanned, unexpected, unknown. We don’t know when or where or how they’ll happen, but chances are you’ll find yourself in need! Get the ball rolling as soon as possible.
A Helping Hand
Another great way to answer your financial questions is to seek the help of a pro. I am able to sit down with you, create a tailored plan to your specific needs, and lend a helping hand to guide you on your journey to financial freedom. Don’t let unexpected emergencies put you into bankruptcy. Instead, let’s map out a plan today so there are no worries tomorrow.
Reegan Rehm, and Rehm Insurance and Financial Services are independent of, and not affiliated with, The Lincoln Investment Companies. Insurance products are not offered through The Lincoln Investment Companies.
