Personal medical costs are a huge topic of conversation in the US right now. They’re sky high and could get even higher in the coming years. Unless you happen to have comprehensive medical coverage through your employer, you’ll need to self-finance your personal medical costs. The main way to do it is to simply make sure that you’re budgeting for the future. However, you also need to make sure you’re aware of how much coverage you have right now. This guide is going to discuss both of these issues.
How Much Coverage Do You Have?
Before coming up with a plan, you need to check how much coverage you have. If you don’t have any plan at all, your strategy will have to be far more radical. Approach your insurer and check to see what’s covered and what isn’t. Sometimes diagnostic tests aren’t included, for example. It’s important to be aware of this before you experience health problems.
Create a Savings Plan
It’s well-known that if you can cover costs upfront you can get a big discount on the final bill. Remember that medical facilities aren’t charging you based on their costs they’re charging you based on them making a healthy profit. Sometimes paying upfront can give you a 30% discount.
Create a regular savings plan by forming a household budget. Start making a nest egg specifically for covering any potential medical costs. The earlier you start the bigger the savings.
But what about if you’re an employer who decides to self-fund?
How Do Employers Self-Fund Personal Medical Costs?
For the first time, small employers are forced to consider self-funding personal medical costs as bills continue to get higher. Instead of contacting an insurance company, they pay out of their own pockets. The principle is exactly the same as an individual. Create a budget and set aside a certain amount every month to cover personal medical costs.
Alternatively, some small employers may decide against offering any health coverage whatsoever. But this could make them less competitive.
Insure Some and Cut Others
Another option for self-financing is to purchase limited insurance coverage and pay for other things out of pocket. One option may be with dental implant insurance. You could acquire coverage for major procedures, such as dental bridges and crowns. But you may decide to self-finance for minor expenses like your annual checkup.
It’s unwise to attempt to self-finance everything because some medical bills run into six figures. This is where a comprehensive insurance plan comes in, whether that’s standard medical insurance or dental insurance. You need to make the decision based on your own health and your own financial situation.
Last Word – Self-Financing is All in the Budget
To put it bluntly, self-financing is all about the way you budget. You need a good grasp of money management if you’re going to self-finance. If you have a budget and a good grasp of the amount of coverage you have now, you’re well on the way to self-financing successfully.
How are you going to self-finance your personal medical costs?