Identify Options for Paying for Health Care
Source: National Center for Health Statistics
You cannot control health conditions inherited from your family, but you have choices in how to manage the costs. You can:
- Accept the costs of health care. Although most Americans receive health insurance through an employer or government plan, others pay out of pocket. Just like saving for retirement, it is a good idea to have a savings fund dedicated to health care costs.
- Reduce the costs of health care. It takes some effort, but it’s possible to save on health care by maintaining a healthy lifestyle and taking advantage of employer-sponsored wellness programs, discount prescription or service cards, free preventive services, nutritional counseling, teledoc/telehealth services, generic drugs, etc.
- Avoid costs of health care. Some people will choose to forego health care services like putting off an expensive tooth crown, not filling a prescription or ignoring a chronic disease/condition. These tactics can carry a higher cost if they lead to an emergency room visit, hospital stay or more serious health issue.
- Use insurance to share health care costs. Insurance helps you manage risk by passing some of the cost to a third party — the insurance company — in exchange for the payment of a premium.
Create a Medical Emergency Savings Fund
Forty-four percent of people could not afford an emergency medical expense of $400. Take SAM’s Emergency Fund Plan course to get started on your medical emergency savings fund.