A recent national survey reported that just 1 in 3 Americans had no stress last year about being able to pay medical bills. That means 7 in 10 Americans had some stress. I think it’s fair to say that worrying about how to handle out-of-pocket medical costs is a national epidemic.
And that can lead to the devastating decision to not seek medical care because you fear it’s going to be a financial burden. Even if the condition isn’t life-threatening, having to deny ourselves care and the peace of mind of a diagnosis and timely treatment is horribly sad.
For those of you who carry this stress, I hope you will consider opening a new savings account that is solely for future medical out-of-pocket costs. In a recent newsletter, I explained that even with insurance, your share of medical bills can be at least a few thousand dollars each year.
I think having a dedicated savings account that you can tap for out-of-pocket medical costs is not just financially smart, it can also be a practical way to reduce this very understandable stress. Your regular emergency savings account is for ongoing known expenses: paying for housing, utilities, groceries, and yes, all your insurance premiums (not just health insurance), etc. That’s how you weather a layoff, or reduced hours, or an injury/illness. Having an additional savings account that you know will be there for you when you do run into steep out-of-pocket medical costs is a smart complement.
If, for some reason, you have yet to take advantage of the Ultimate Opportunity Savings Account offered by Alliant Credit Union, it is a great place to start saving up for future medical expenses. It pays a solid interest rate, and if you make 12 consecutive monthly deposits of at least $100 each month, Alliant will then add another $100 to your account. That’s a healthy bonus!
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