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US Health Care Financing Choices: Your Options

In the USA, there is a lack of universal healthcare. It also doesn’t help that medical expenses can get pretty high. Various factors increase the price of medicine and medical care in the country. If you want to afford your medical expenses, you should be familiar with the various funding sources that you might have. Here is a quick look at your options.

Out-of-pocket Funding

If you have a good job and earn a decent income, saving money for a rainy day is a smart idea. One of these rainy days is a medical emergency. But it is just one of the potential emergencies you might face, so you should be putting a lot of money in your savings to protect yourself.

The need for a large savings account is because medical expenses can be very high. For example, a broken leg can cost $7,500 to treat. That is just the initial payment. If you have to stay in the hospital for three days, the price tag can reach up to $10,000. That is already very high and can go even higher.

Simple savings can be good if you are only expecting simple injuries. But if you want to be ready for medical expenses, then a health savings account can be a good option. It is a special savings account that has higher interest and doesn’t have any tax disadvantages. The main requirement these accounts have is that you need to have a high-deductible health plan. These accounts also can be supported by employer contributions, and they can pay for medical, dental, and vision care. They can also help pay for prescription drugs.

Private Insurance

The most popular way to pay for medical expenses in the US is private insurance. This is mostly done in conjunction with an employer. Employee and employee share the costs, with the government helping out by considering the insurance payments as not counting as part of the employee’s taxable income. Regular payments are necessary for you to keep these plans active.

There are several insurance companies out there, profit and non-profit in nature. The problem is that premiums can get expensive while plans can provide minimum benefits. Thankfully, in 2014, the Affordable Care Act set down some ground rules so that healthcare providers would give better options for those seeking ways to pay for their medical care.

For example, under the ACA, private insurance cannot exclude people who have preexisting conditions. That opens it up to many people who are looking to fund their medical bills. The ACA also limits the price variation of the premiums, ensuring that it is more accessible for many individuals.

It all depended on the state that you live in. Different states have various options available. More urban regions also offer more when it comes to choices for your insurance. You also may have to fight for your insurance claim. Many insurance companies send out investigators to ensure that you are not trying to cheat them in any way. For-profit insurance companies are also well-known for denying claims. Hiring a lawyer might be necessary to ensure you get your compensation.

Government Support

There is also government to turn to for payment of your medical bills. It is possible to get some financial assistance from the government, depending on your current conditions. The two most popular government assistance programs when it comes to medical costs are Medicare and Medicaid. Medicare is for the elderly and disabled, while Medicaid is for those below a particular income threshold.

A variety of government programs help those in specific circumstances. For example, if you are a veteran, you might be eligible for various health services. This is as long as you apply for them and meet the requirement.

However, it is not as easy as simply filing a claim. The government can be very strict about who it helps out. For example, if you are disabled and file a disability claim with Social Security, there is a chance of being rejected. Hiring a Social Security disability lawyer can help ensure that you get the compensation you deserve.

Being able to afford proper medical care goes a long way towards ensuring that you won’t have to worry about anything if you get sick. Even if you are healthy now, knowing that you have options for paying medical bills and expenses can be reassuring. Start preparing now and learning more about your options so that you can be ready when the worst happens.

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