Monday, February 10, 2014

Medical Expenses?

I am off tomorrow as I have multiple doctor appointments.  One copay will be $50 and the other $25.  What I want to ask ya'll is this: Do you set aside funds each pay period to pay for these or do you adjust your budget for said pay period?  Say put less in the groceries to make up for the copays?  And I guess I would include prescription costs in this question as well.  I take multiple prescriptions every day.  I just include these in my budget for each pay period.  Should I then include some extra for those times when I get sick?

Thanks for your help!!

5 comments:

  1. I'm trying to figure this out myself. I don't have copays - I have a deductible :-( sure miss the copays. for mine I have to reach $800 in network (or $1600 network and one dr is out of network) and the company puts $400 in a HRA that will pay the claims until it reaches $0 and I can take a health assessment (next year a physical as well) for another $100. I also have an FSA I can contribute to automatically by pretax payroll deduction but it takes a while to get reimbursed unless I use the credit card they sent and keep up with the balance.
    I didn't budget for dr this month since most of my physicals are in the fall but I ended up sick and went to a clinic I prefer over the dr office. Hopefully that will be easily covered by my HRA and be in-network. Now I'm wondering if I need a 'sink fund' where I put money in each month because eventually the HRA will run out and I'm on a cash system now.

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  2. No, we do not set aside a special amount for such things. This would come out of our checking. (Well, put on our cc which we pay off each month.) As I said in an earlier comment, our income was split with the larger amount going to savings of varioys types, the rest to checking ti cover rent (then mortgage, now paid off) food, utilities, Dr 's appointments, car (we had only 1 for years, now we gave 1 truck, 1 van, both bought in cash...van bought new in 2008, to be upgrade in Sept......maybe.) The thing is, we didn't need to earmark money in our dda. We just spent less tyrant was deposited each month. If something like sn avscessed tooth came up, the credit card was used. The money in the various savings could be transferred to checking to pay the bill...which rarely happened, as we just don't spend our "allowance "simply because it's there. When the dda grew too much, a check was written to more profitable accounts. That said, as my husband is retired and older, we did get long term disability insurance. We also see more out of pocket for an increasing amount of prescriptions. I guess then this would mean a greater percentage of our monthly "allowance " goes to this than something else....but I can't think of anything I cut back on to eave room for it. I know I sound lilies a broken record, but if you spend less, way less of your monthly allowance in the stores, you will have the coin to pay for Dr.appointments and dental cleanings in your purse, all the while building wealth in savings.

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  3. Good grief! My comment is incoherent! Maybe I SHOULD loosen the purse strings and spring for a new laptop, as I cannot type on my e -reader! My favorite autocorrect? "We spend less tyrant..." oh sheesh. Sorry!

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  4. I have a flex spending account which takes 25.00 dollars a pay out for drs. apps, rx's, glasses, er..etc. I only use this for me and the DD's since my son works full time and handles his own. Nice thing is they put it all on in January so even though I haven't paid into it yet the money is there as if I have paid for the year. Then if I think there is going to be extra I schedule a needed doctors app or refill 3 months of rx;s in December.

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  5. I have a high deductible insurance plan with a health savings account. I put in $2000, my employer puts in $2000. I have $200/month for my 10 month work year (teacher) deposited into the HSA). Once I've used that money to meet my $4000 deductible, I have no further medical expenses for the year, as long as I stay in plan and don't maximize coverage benefits such as go beyond the limit for physical therapy visits for the calendar year.

    Prior to this, we had a Flexible spending account. Again, I set aside $ each payperiod (pre tax dollars, nice) to cover anticipated expenses. I made a list, based on all of our expenses the previous year, and estimated LOWER as the Flex account is a use it or lose it, and it doesn't carry over into the next year, kind of a deal.

    if you have neither a Flex or a HSA, talk with human resources and see what your options are. If there are none, then estimate what your typical medical expenses are every year and set up your own account.

    HTH

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