How Having Cash on hand Can Help You Save On Medical Expenses

2 weeks ago, we got a $2,300 bill in the mail from the emergency room and I don’t expect to pay that full amount. How? 

I’ll negotiate this medical bill by offering to pay-in-full… but I’ll offer a LOWER amount after I compare the hospital charges to comparable prices in my area using a tool like Fair Health Consumer. 

Unfortunately, if you don’t have cash on hand to negotiate a larger bill like this one, you lose a lot of your negotiating power… but I have a solution for you!

Because we will have cash on hand for medical expenses, we won’t get roped into a payment plan and eventually pay the entire (ridiculous) amount they charged for the 2 day in-patient stay. We also won’t fall into the scary medical debt collections pit of doom! Goodbye pile of papers and awkward phone calls that feel like spam… but might actually be hurting your credit. 

I forgot to mention… before I negotiate, I always check my bill for errors…are you checking your medical bills for errors before you pay them? Here is a FAST way to learn how…register for this FREE training where you can learn the 3 secrets to confidently save on your medical bills!

This week, we narrowly escaped another trip with my 2-year-old to the Emergency Room, and I’m grateful to be typing this from my living room while both kids play in our backyard! We made out of the entire ordeal with two $20 co-pays and $43 for a nebulizer... whew! 

I want to share a great strategy that YOU can implement this week that will be a game changer for your financial peace… Do you want to know what it is? 

Planning ahead for medical expenses… and it is a LOT easier than you think! I’ll show you below!

I’m Jules, and I help people with U.S. job-based health insurance learn how to save time & money on their medical bills without spending hours on the phone!

Don’t get me wrong…

Preparing for medical expenses doesn’t take away the sting of paying a medical bill (after all… money is money), but it DOES help you avoid the added stress of falling into debt, collections, and a rabbit hole of phone calls that could result from a bill you don’t have money to pay right away. 

The two steps below will help you plan ahead for medical expenses, so you don’t lose your negotiating power with a hospital!

Step 1: PLAN for medical expenses this year using one of the 3 methods below!

1. Save the amount of your deductible: This amount that you have to pay out of pocket BEFORE your health insurance benefits start to “kick in”. If you aren’t saving AT ALL for health expenses, this is a good place to start, but should be the bare minimum you are prepared to spend for medical expenses throughout the year.
2. Save the amount you spent last year on medical expenses: The amount you spent last year (or average the last 2 years) can be a good estimate for how much you will spend this year.
3. Save the amount of your out of pocket maximum(s): This amount will likely be higher than option one and two, but it will probably be closest to your “worst case scenario” 

Personally, my family has a budgeting system where we “tag” any medical expenses that flow into our budget so that we can review the total amount at this time of year with a click of a button. If you don’t do this, THAT IS OKAY, because you can plan to save another way! We also consider our deductible and out of pocket max before making the final decision on the amount we will save for medical bills. 

Step 2: Decide HOW you will save for the amount you decided to save

1. Monthly Savings Payment: Take the amount of money you want to save for medical expenses for next year and divide this number by 12. (Example: $2,500 estimated medical expenses divided by 12 months = $208 per month). Set this money aside (even in a different account if you think you’ll try to spend it). This keeps any other emergency savings in-tact so you don’t have to cut into an emergency fund for a realistic amount of medical expenses.
2. End of Year Bonus: Does it feel like torture setting aside a “monthly payment” for something like this? Setting aside this money when you are awarded your monthly bonus will check this off your savings to do list FAST!
3. Health Savings and Flexible Savings: Don’t forget that you may not need to save for ALL of your medical expenses in your checking account. If you are eligible, you can contribute to one of these accounts BEFORE paying any taxes on your earnings! These accounts have annual maximums, so you may consider saving some through one of these accounts, and some outside of your HSA/FSA.

I’ll implement this EXACT strategy myself:

This year, I’m having a baby and my two other children both had visits to the emergency room… cha ching! One of those emergency room visits resulted in an inpatient stay for two nights… double cha-ching!

Two ER visits is not unusual for our growing family, but we won’t plan on saving for another trip to Labor & Delivery in 2025!

After we look at all 3 saving options (deductible, last year(s) spending, OOP max), then we will choose how much to save with our FSA and how much to save in a separate checking account! 

Example of how we will save: 

$3,000 FSA - $125 deducted from bi-monthly paychecks

$2,000 Other Savings - Budget $166 per month to contribute to a savings account

= $5,000 total saved for medical expenses 

Easier than you think...

As you can see, saving for medical expenses is easier than you think! It really boils down to these two steps! These two steps can give you an edge when negotiating for large bills AND help you avoid the added stress of falling into debt, collections, and hours on the phone!

• Decide on amount to save:

1. Deductible
2. Last year(s) medical expenses
3. Out of pocket maximum

• Decide HOW you will save the amount

1. Monthly budget item
2. End of Year Bonus
3. HSA/FSA  

Get Started Today!

Take action TODAY and let me know how you save for your own medical expenses if you do it differently! Want a step-by-step and easy-to-follow online course with even more valuable lessons you can use to save time & money? Medical Bill Academy™ is designed for those who enrolled in a health insurance plan through their U.S. employer...Not only to save money on your medical bills, but to avoid hours on the phone and feeling overwhelmed with the U.S. Health System.