It’s no secret that health care is expensive, even with insurance. In the event of a major health crisis, even the most carefully planned family budget can be entirely ruined due to costly bills and potentially lost income. So what can a family do to financially survive a major health crisis?
Paying Medical Bills
Paying off medical bills can take years, thanks to how expensive they can be. This can be especially difficult when you consider that the possibility exists that the one in the middle of the health crisis might be the primary source of income. In the event that normal income isn’t enough to pay off medical bills, it’s time to explore other options. If you have a health savings account, this is the first place you should go. In fact, it might be better to start there than to use your normal income. The funds in an HSA are set aside specifically for medical expenses and can’t be used for anything else. If that’s not an option, taking out a loan or tapping into a retirement account is less ideal, but still viable.
Replacing Income
If the medical crisis you’re experiencing disrupts income, you’ll need to take steps to replace it. This is where having an emergency fund with enough cash to cover at least three to six months of expenses can really come in handy. If you don’t have one, other options are available. Depending on the nature of the crisis, you may qualify for Social Security Disability payments. There are many conditions that qualify you for Social Security Disability payments, including mental health disorders. Some places of employment also offer short-term or long-term disability income as a benefit. If yours does, see if that’s something you can take advantage of.
Reducing Other Expenses
You may find that it becomes necessary to look for ways to reduce other expenses in the event that your income is insufficient to pay off your medical bills. There are things you can do to save money by cooking at home to reduce your food bill. Lower your utilities by adjusting the temperature at which your HVAC system kicks in. Shop at thrift stores and garage sales to get household items at lower prices. The more ways you find to save money, the quicker you can pay off those bills.
Surviving a major health crisis with family finances even somewhat intact can be a very real challenge. Fortunately, there are resources available that can help with paying medical bills and replacing income. Reducing other expenses where possible can help as well. If your family is experiencing a major health crisis, make sure you explore all the options available to you to protect your family’s finances.
To make a financial plan that’s right for you and your family, schedule an appointment with Mike today!
