Day-to-day expenses can place a heavy financial burden on individuals, often causing financial strain and uncertainty. Amidst this complexity, a new trend called “loud budgeting” has emerged on TikTok. The trend gained viral attention at the beginning of the year with one video that has since garnered millions of views. In response to this trend, influencers and consumers are placing increased emphasis on planning purchases such as dining out and online shopping, and being vocal about their budgeting strategies. However, one major cost that often goes unaddressed is healthcare expenses, which remain a significant financial challenge for many Americans.
To delve into this topic, BlackDoctor.org spoke with family physicians Dr. Marie Ramas and Dr. Natasha Bhuyan who shared valuable insights on the importance of loud budgeting and practical tips for navigating healthcare expenses.
The Importance of Loud Budgeting
Loud budgeting, or keeping track of spending against an annual budget, is essential for individuals to understand their healthcare costs better. According to Dr. Bhuyan, healthcare can be tricky, complicated, and opaque for many people. Being transparent about healthcare spending and sharing tips on saving money can help you navigate the healthcare system more effectively.
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“Loud budgeting is a way of utilizing social media for positive reinforcement and socializing a concept of financial responsibility,” Dr. Ramas adds. “Being transparent about budgeting can help individuals realize that they are not alone in facing financial challenges.”
To get started, Dr. Ramas and Dr. Bhuyan share 15 ways to budget for healthcare expenses:
Be Proactive
When it comes to budgeting for healthcare expenses, there is a common misconception among patients.
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“One common challenge patients face when budgeting for healthcare costs is assuming that insurance will cover everything. However, healthcare costs can still lead to bankruptcy for many Americans,” Dr. Ramas notes.
To combat this, it helps to know your insurance plan and the free preventative services it covers under the Affordable Care Act, such as annual wellness visits, cancer screenings, and vaccinations.
“With the Affordable Care Act, nearly all of us who have insurance are entitled to certain free preventative services free of charge as long as we stay within our insurance network,” Dr. Bhuyan shares.
Ask Your Doctor About Cost-Saving Options
Labs and medications can significantly contribute to healthcare expenses. The good news is that in certain situations, you might be able to avoid them.
“Ask your family doctor if there’s any expensive labs that you can skip. Most people don’t actually routinely need a vitamin D level checked or hormones tested,” Dr. Bhuyan advises.
Utilize Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)
Both FSAs and HSAs can offer significant tax savings for individuals and families with medical expenses. However, it is important to understand the rules and limitations of each type of account to maximize their benefits.
Health Savings Accounts (HSAs):
- HSAs are tax-advantaged savings accounts available to individuals enrolled in high-deductible health plans (HDHPs).
- Contributions to HSAs are tax-deductible, and withdrawals are tax-free when used for qualified medical expenses.
- HSA funds roll over year to year if not spent, and the account is portable, meaning it stays with you even if you change jobs or health plans.
- HSAs can be used to pay for a wide range of medical expenses, including deductibles, copayments, and coinsurance, as well as some expenses not covered by insurance, such as vision and dental care.
“For those with insurance, having a health savings account (HSA) can be beneficial. HSAs allow for tax-free savings for healthcare expenses and can be used for retirement savings as well,” Dr. Ramas notes.
Flexible Spending Accounts (FSAs):
- FSAs are tax-advantaged accounts set up by employers that allow employees to set aside pre-tax dollars to pay for eligible medical expenses.
- Unlike HSAs, funds in an FSA generally do not roll over from year to year (though some plans may offer a carryover or grace period).
- FSAs can be used to pay for a variety of medical expenses, including deductibles, copayments, prescription medications, and certain medical supplies.
- FSAs can also be used for dependent care expenses, such as daycare, preschool, and summer day camp costs, for children under the age of 13, or for disabled dependents.
“FSAs are flexible spending accounts and health savings accounts. So those are accounts that are intended to help us with medical costs that might not be covered by insurance,” Dr. Bhuyan notes. This includes things like glasses or contacts or even sunscreen.
“A letter of medical necessity can help you use your HSA or FSA dollars for even things like massage therapy or a gym membership, as long as the massage therapy and gym membership have a medical indication,” Dr. Bhuyan adds.
Save Money for Health Costs
Saving money for a rainy day sounds like a no-brainer, however, many people neglect this step in terms of health costs.
Even if you don’t have insurance, Dr. Ramas suggests saving money from each paycheck for health expenses.
Not sure where to start? Dr. Ramas suggests starting small. “Even setting aside a small amount, like $10 or $20 per paycheck, can make a difference in covering health expenses,” Dr. Ramas shares.
You can also save by attending community health centers and federally qualified health centers, which often provide quality care at reduced costs.
Consider Generic Medications
If you are taking regular medication, one effective way to cut down on costs is by opting for generic medications, which Dr. Bhuyan ensures work just as well as name-brand medications.
Dr. Bhuyan also suggests exploring 90-day supplies for medications, which tend to be cheaper than 30-day supplies.
Try Pill Splitting
Another option you might consider exploring with your doctor is pill splitting, which involves dividing a higher-dose medication into two or more portions to achieve the desired dosage.
“I think the key here, though, is the doctor needs to write the correct instructions on the medication so there’s no medication error,” Dr. Bhuyan shares.
Utilize Pharmacy Discount Programs
Pharmacy discount programs are another valuable resource if you are looking to save money on medication costs. These programs offer discounts on prescription drugs at participating pharmacies.
Dr. Bhuyan suggests exploring pharmacy discount programs, such as those offered by Walmart or Walgreens, which can sometimes offer lower prices than traditional retail pharmacies.
Explore Mail-Order or Online Pharmacies
Mail-order or online pharmacies offer a convenient way to access prescription medications without the need to visit a physical pharmacy. Aside from being convenient and time-saving, these services are also beneficial if you require long-term medication or are seeking cost-effective options for your healthcare needs.
“There are tons of different pharmacies out there,” Dr. Bhuyan adds.
She recommends comparing the prices of traditional retail pharmacies with mail-order pharmacies and even online pharmacies. “In some instances, the coverage might actually be better for a mail-order pharmacy,” Dr. Bhuyan adds.
Plan for Preventive Care
Budgeting for preventative care is a crucial aspect of maintaining overall health and well-being. Allocating funds for regular check-ups, screenings, and vaccinations, will allow you to proactively manage your health and avoid more costly treatments for preventable conditions later on.
“It is important to catch conditions early…If we catch those conditions early, we can get people’s blood pressure and diabetes under control so, in the long run, they don’t have a higher risk of having things like heart attack or stroke,” Dr. Bhuyan adds.
Negotiate Medical Costs
Yes, you read that right. There are strategies available to potentially lower your out-of-pocket costs for services and treatments.
“…If somebody pays ahead of time for services or pays in cash, there are some instances where the organizations might give you a discount,” Dr. Bhuyan notes.
If you accumulate large medical expenses during hospital stays or treatments, consider getting on a hospital payment plan.
“Hospitals may offer payment plans or discounts for paying in full. Be proactive in discussing payment options,” Dr. Ramas adds. “This can significantly reduce your healthcare expenses,” Dr. Ramas adds.
If you need further assistance understanding the fair market value of medical services and negotiating costs with healthcare providers, visit fairhealthconsumer.org.
Review Itemized Bills
Reviewing itemized bills is a crucial step in managing healthcare costs that will allow you to ensure accuracy, identify potential errors or overcharges, and better understand the breakdown of your medical expenses.
“Always ask for an itemized list of your bills because you might be able to say ‘Hey why was I charged for this?’ Pay attention to those things because there are accounting errors that are done, there are changes that an organization might make,” Dr. Ramas suggests.
Utilize Resources
Navigating healthcare costs can be challenging, but assistance is available.
“Public health departments, case managers, and social workers can connect you with local resources to help manage healthcare costs,” Dr. Ramas shares.
Avoid Risky Cost-Saving Measures
In managing healthcare costs, it’s important to heed advice from healthcare professionals. Dr. Bhuyan cautions against potentially risky practices such as seeking medications abroad or rationing them to extend their use.
“Don’t go out of the country to get meds… don’t ration your medications because you’re trying to make them last longer take your medications as prescribed by your doctor and then avoid taking expired medications,” Dr. Bhuyan warns.
Seek Community Support
One reason loud budgeting has been a game-changer is because it allows people to see that they aren’t alone in navigating the challenges of budgeting. If you are feeling the pressure of budgeting your expenses, Dr. Ramas suggests finding a support system.
“Find a budgeting buddy or support group to share experiences and learn from others facing similar challenges,” Dr. Ramas advises.
Achieving financial well-being is a multifaceted journey that requires proactive planning, informed decision-making, and ongoing education. However, every step taken towards understanding and managing healthcare costs is a step towards greater financial stability and peace of mind.
“Budgeting for healthcare expenses is a proactive step toward financial well-being and can help you feel more confident and empowered in managing your health and finances,” Dr. Ramas concludes.
