$10,000 in medical bills -- and that's with insurance
Posted
Sep 10 2008, 03:14 PM
by
Karen Datko
Rating:
Two encounters with illness have cost David of My Two Dollars and his wife nearly $10,000 out-of-pocket so far this year, and that's not including the $320 a month they were paying for health insurance premiums.
Health care is a huge personal-finance topic, but PF bloggers rarely write about it -- unless it hits close to home. Luckily, David and his wife were able to absorb the unanticipated expenses. But, he wonders, what about people who can't?
"So imagine what it would be like for someone without extra income. Or three kids to feed. Or a mortgage to pay for," he says. "... No wonder people lose their homes, their jobs, their marriages, etc., over paying for medical bills."
Here's how some other PF bloggers have dealt with the issue in their personal lives. Maybe you'll find something resembling your own situation.
Blogger MariRDH at MariRDH's Personal Finance Blog learned that her health insurance premium through work for her family of three is going up $300 -- to a total of $1,100 a month. She then found a high-deductible HMO, eligible for a health savings account, for $600 a month. She writes, "The family deductible is $5,000 with a max out-of-pocket of $10,000 a year. Guess what my $5,000 emergency fund is going to be called come Sept. 1?" (Update: She might get a better deal through the student health service at the college her husband attends.)
Pamela Grundy at Personal Finance Analyst details how her coverage at work declined over several years. "The plan I have now has a $5,000 deductible, and pays 80/20 after that, but they are notorious for denying claims outright," she writes.
Madison at My Dollar Plan was able to quit work outside the home at the tender age of 29, but thank goodness she's married to Scott. "He's still working. Not necessarily for the money, but for our awesome health insurance," she writes.
"Vh" at Funny about Money has recently encountered yet more mind-boggling changes in her employer's health insurance offerings. She's also approaching retirement age and has looked into Medicare. She observes that the government's overview of Medicare is "113 pages full of details whose complexity rivals the U.S. tax code!"
At Her Every Cent Counts, SFgal writes about the challenges you face when you have high-deductible insurance. (Warning: She provides TMI.) Her point is that you worry about the money you spend as much as the care you get.
David had what he calls a "brush" with leukemia. More recently, he had melanoma removed from his leg. He doesn't smoke, drink or overeat, and he exercises regularly.
They had private insurance with a $2,500 deductible (and hopefully the option of a health savings account), a $40 co-payment for doctor's visits, and had to pay 50% for out-patient services. It didn't cover vision or dental. His wife was not eligible for insurance through her teaching job at a private school.
They have since moved from Los Angeles to New Mexico, and their insurance situation has greatly improved. As of Sept. 1, they have good coverage, at $257 a month, through her job as a public-school teacher.
That doesn't stop David from thinking of those who are uninsured or underinsured. "If I could not have paid my bills, would I deserve to lose my home? My job? My credit? I don't think so -- this is health we are talking about, not some stupid mistake I made on my own."
