Personal Finance

Take Charge of Your Out-of-Pocket Healthcare Payments

Our health is the most important thing we have. It’s also one of our most important financial priorities and one that can cause a major setback in difficult times. With the rise of the gig economy and the changing employment landscape, the healthcare benefits that normally came with employment are no longer a guarantee.

Healthcare Is Expensive

What exactly are out-of-pocket payments (OOPs) and what do they mean for your personal finances? OOPs are defined as any direct payment that an individual makes to a healthcare provider to cover the cost of service. This does not include things like taxes or insurance premiums, it’s the amount you pay for medication, a cleaning at the dentist, new glasses, and anything else that is not covered by an insurance provider.

If you’re worried about getting caught off guard with these costs, then be sure to read this guide on how to make better spending decisions with your money. For those who regularly make OOP purchases for medication and healthcare services, it’s essential to budget and plan accordingly so that medical costs aren’t cause for a financial emergency.

Personal Injury

These days the cost of healthcare falls more and more on the responsibility of the individual, which means that people need to be prepared for the financial burden that can come with Out-of-Pocket healthcare payments. Even with proper planning and budgeting, life comes up with ways to surprise us financially and a personal injury can set off a domino effect of financial consequences.

In cases where a personal injury involves a lawsuit or the inability to work, you might consider a personal injury loan to help you with the costs associated with getting back on your feet. Similarly, payday loans from a reliable lender can give you the boost you need to cover some injury costs in-between paycheques.

Even if you are injured while working and are entitled to worker’s compensation, it’s possible that you will be expected to make some upfront payments for legal representation, medical costs, and to cover unpaid time off work until your case is sorted out. A short-term online loan is a viable option for those who need a little extra help in-between paycheques, as they wait for the details of their injury to be sorted out.

Health Insurance

You don’t have healthcare coverage from your employer, or maybe you are self-employed and responsible for paying your own medical costs. If the extent of your healthcare costs are the occasional antibiotic or routine checkups with the dentist, paying your costs yourself make sense. However, what happens when your expenses change?

Individuals are often drawn to cheap health insurance plans for a variety of reasons, and at first it makes sense to pay a low health insurance premium to keep your health insurance payment costs low. However, the things you need might not be covered, so that’s where it becomes important to invest in a better health insurance plan.

Know Your Benefits

For those who do have some healthcare benefits either through the government, through their employer, or as part of a personal insurance plan, ask yourself this: do you know the specifics of what your plan entails? Review your plan’s policies, educate yourself, buy medical supplies in bulk where you can, and get used to buying the generic alternatives. Understanding the details of the coverage you have can be the deciding factor between overpaying for medical costs and keeping your expenses at a reasonable level.