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Reducing Health Care Costs | Discover Personal Loans

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class="date">Aug 20, 2024</p> <img class="meta__clock-icon no-lazy" data-src="/content/dam/discover/en_us/personal-loans/icons/clock-icon.svg" data-srcset="/content/dam/discover/en_us/personal-loans/icons/clock-icon.svg"/> <p class="reading-time"></p> </div> <div class="article-details-list"> <div class="cards__img-wrapper"> <img class="cards__img rebuild no-lazy" data-src="/content/dam/discover/en_us/personal-loans/images/resource-pages/major-expenses/RIK-22258_Getty1299187592_RETOUCHED.jpg" data-srcset="/content/dam/discover/en_us/personal-loans/images/resource-pages/major-expenses/RIK-22258_Getty1299187592_RETOUCHED.jpg" alt="Woman on the phone holding a prescription bottle."/> </div> <div id="article-details" class="article__description rc-articles rc-table"><p>Health care concerns are top of mind for a majority of Americans. Both the process of getting medical care and the costs involved can be confusing and unpredictable.</p> <p>As a result, making decisions about health care, including how to manage the costs involved, can be a tremendous challenge. In fact, fewer than one in five adults know how much their healthcare products or services will cost before they receive them.<sup>1</sup>  Even more concerning perhaps is that one in four U.S. adults says they have skipped or postponed getting health care they needed in the past 12 months because of the cost.<sup>2</sup></p> </div> </div> </article> </div> <div class="rc-text text"> <article class="article__description rc-articles rc-table"> <p>Managing the costs of insurance premiums, insurance co-pays, and other medical expenses can be difficult. But there may be ways to lower some of your medical bills and potentially save on health care costs, even for routine expenses.</p> </article> </div> <div class="article-highlight"><aside class="article-highlights grey--background"> <h3 class="article-highlights__title">Key takeaways</h3> <div class="article-highlights__list"> <ul> <li>Make sure you take advantage of any health insurance coverage that’s available through your employer or through a government plan.</li> <li>Look for ways to lower prescription costs by talking to your doctor and pharmacy, searching online, or contacting the pharmaceutical company.</li> <li>Stay up to date with routine preventive care, which may help reduce risk of illness and costs for future treatments.</li> <li>Be sure to understand your medical bills and contact your providers or insurer about billing errors or questions.</li> </ul> </div> </aside></div> <div class="rc-text text"> <article class="article__description rc-articles rc-table"> <h2>Get to know your health insurance </h2> <p>Health insurance provides financial protection by paying for at least a portion of the costs of treatments for many illnesses, medical conditions, and injuries. In case of a sudden major illness or unexpected injury, health insurance may help reduce out-of-pocket costs that might result from hospital stays, surgeries, or other procedures.</p> <p>In most cases you pay a monthly premium for your health insurance benefits. Keep in mind that many insurance programs offer plans with high deductibles and plans with lower deductibles. A deductible is the amount you pay for covered health care services before your insurance plan starts to pay. Your benefits program may offer a tool that lets you compare the estimated total costs of the plans they offer. This helps you understand what your premium + deductible + out-of-pocket expenses might add up to so that you can choose the plan that works best for your budget.</p> <p>In the United States there are several types of health care insurance to know about. You may be eligible for different options at different life stages, so be sure to consult with your benefits manager or an insurance professional.</p> <h3>Private insurance or group health plan</h3> <p>If your employer offers health insurance, you have an opportunity each year to review your coverage to see if it’s best for your situation. You may be able to select a plan based on both your health needs and your financial situation. Check with your employer’s benefits administrator to see what your options may be. </p> <h3>HealthCare.gov</h3> <p>Under the federal Affordable Care Act, if you don’t have insurance through your employer or another program, you may obtain health insurance coverage as an individual or a family through the federal Health Insurance Marketplace® or through state-based marketplaces. You can research these health insurance–coverage options at <a href="https://www.healthcare.gov/choose-a-plan/plans-categories/" target="_blank">Healthcare.gov</a>. </p> <h3>Medicare</h3> <p>People aged 65 and older or who have certain medical conditions are eligible for their health insurance benefits through Medicare. Run by the federal government, Medicare coverage is divided into parts based on different services, including hospital stays, doctors’ visits, preventive care, and prescription drugs. There are also separate Medigap policies run by private insurers that you might want to research when considering Medicare coverage. Because the process of choosing these plans can be confusing, Medicare suggests visiting its <a href="https://www.medicare.gov/basics/get-started-with-medicare" target="_blank">website</a> to get started.</p> <h3>Medicaid</h3> <p>Individuals and families who meet certain income requirements or have special needs may also be eligible for free or low-cost medical care through the <a href="https://www.healthcare.gov/medicaid-chip/getting-medicaid-chip/" target="_blank">Medicaid</a> program or through separate state programs. As benefits may differ between states, it is important to research the program in your area.</p> <h2>Understand what your insurance will pay</h2> <p>Understanding your insurance is key to keeping your expenses down. If you can estimate your costs prior to a medical procedure, you may be able to plan your payments ahead of time. Contact your insurance company or your medical provider’s office to find out what your insurance plan will cover. </p> <h2>Focus on preventive care </h2> <p>Health insurance may also pay for routine screenings, tests, vaccines, and medical visits that are considered preventive care. Keeping up with preventive care is an important step to help catch potential health problems while they could be more easily treated. As a result, preventive care may save you money by protecting against costly treatments or hospitalizations later. </p> <h2>Plan for prescriptions </h2> <p>Expenses for regular prescription medications can add up quickly. But there may be ways you might save money.</p> <p>If you’ve been prescribed a brand-name medication, you might ask your doctor if a lower-cost generic option would work. Some prescription-coverage plans offer a discounted price if you order a 90-day supply or if you choose mail order and delivery. You can also ask your pharmacist about discount co-pay cards that cover some expensive medications or various prescription savings cards that may provide a discount on some prescriptions.</p> <h2>Understand your medical billing statements</h2> <p>Medical bills can be confusing. It's a good idea to contact the billing office of your medical provider for help if you don’t understand the statement. Remember that mistakes can happen, especially when multiple medical providers are involved. If you receive a medical bill and the amounts seem high, contact your doctor or other medical provider to ask for an itemized bill that lists the details of all tests, procedures, and treatments. </p> <h2>Talk to your providers </h2> <p>Especially if you are facing an expensive medical procedure, ask your provider’s billing office if they are willing to discount their services. You may also ask to pay the medical bill over time in installments. Your medical provider might have a range of options for either lowering your medical costs or providing alternative payment plans.</p> <p>If you are facing costs you cannot afford even with insurance coverage, ask your medical provider about financial assistance, such as charitable care. Some states require hospitals to automatically screen patients for <a href="https://www.consumerfinance.gov/data-research/research-reports/understanding-required-financial-assistance-in-medical-care/" target="_blank">financial assistance</a>, but specific benefits may vary depending on your location.</p> <h2>Consider savings through an HSA or FSA </h2> <p>A Health Savings Account (HSA) or Flexible Spending Account (FSA) lets you set aside funds on a pre-tax basis to pay for some out-of-pocket health care expenses. While this doesn’t lower your expenses, it may make it easier to pay medical bills. Because y<a href="https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/#:~:text=A%20Flexible%20Spending%20Account%20(FSA%2C%20also%20called%20a%20%E2%80%9Cflexible,the%20money%20you%20set%20aside." target="_blank">ou’re not paying taxes on these dollars</a>, you’ll keep more of your salary for spending on medical bills. There are restrictions you should research. Consider consulting with a tax advisor, especially if your medical bills are substantial.</p> <h3>Health Savings Account</h3> <p>A <a href="https://www.healthcare.gov/high-deductible-health-plan/hdhp-hsa-information/" target="_blank">Health Savings Account</a> (HSA) is available to individuals who are enrolled in a qualified high-deductible healthcare plan, either through their employer or through the Heathcare.gov marketplace. The money in an HSA can be used to pay for qualified medical expenses, such as deductibles, copayments, co-insurance, and some other expenses. Your employer may even contribute to this, helping to defray out-of-pocket medical spending.<a href="https://www.healthcare.gov/high-deductible-health-plan/hdhp-hsa-information/" target="_blank"></a></p> <h3>Flexible Spending Account</h3> <p>If you have a health insurance plan through your employer, you can set up a <a href="https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/#:~:text=A%20Flexible%20Spending%20Account%20(FSA%2C%20also%20called%20a%20%E2%80%9Cflexible,the%20money%20you%20set%20aside." target="_blank">Flexible Spending Account</a> (FSA), which lets you pay for qualified out-of-pocket medical expenses with pre-tax dollars. Some allowed expenses include insurance copayments, deductibles, qualified prescription drugs, and medical devices. You can decide how much money to place in an FSA, though there is a federal limit.</p> <p>Because HSAs and FSAs have restrictions and because federal limits change annually, be sure to check with your benefits administrator or an insurance professional regarding your specific needs. </p> <h2>Consider medical tax deductions</h2> <p>If you have medical and/or dental expenses that are more than 7.5% of your adjusted gross income, you may be able to deduct the amount from your federal taxes. Some states also allow tax deductions for medical expenses, sometimes with lower qualifying amounts. You should check with the <a href="https://www.irs.gov/taxtopics/tc502" target="_blank">Internal Revenue Service</a> or your tax advisor to find out about all the requirements.</p> <h2>Plan for the costs of health care</h2> <p>No matter your situation, taking care of your health and your family's health is the most important benefit of paying your medical bills. But medical expenses may come up unexpectedly.</p> <p>Building an <a href="/personal-loans/resources/major-expenses/unexpected-expenses/planning-unexpected-expenses/" target="_blank">emergency fund</a> is always a good idea, as it may help you handle unexpected expenses. Even taking small steps to build up savings can be a good place to start. In an emergency, some people might put their medical bills on their credit card. Some credit cards, however, carry high interest rates, which can make it more difficult to pay them off. </p> <p>For many people, a personal loan with an installment plan is a convenient way to pay for medical bills over time. It may help you cover your expenses and relieve your financial stress so you can focus on healing.</p> <p>Personal loans can be used to help pay for <a href="/personal-loans/resources/major-expenses/health-family/medical-debt-plan/" target="_blank">medical expenses</a> such as medical bills, transportation, prescription drugs, or medical equipment. In addition, a personal loan may have a fixed interest rate and a fixed repayment term with one set regular monthly payment, making it easier to manage the costs.</p> <p>With a personal loan from Discover®, for example, you can choose from multiple repayment options to fit your budget—36, 48, 60, 72, or 84 months.  And if an emergency occurs, you can complete a personal loan application in minutes,  and funds can be sent as soon as the next business day after your acceptance . </p> <p>To make the process less difficult, we have a <a href="/personal-loans/resources/learn-about-personal-loans/eligibility/5-steps-to-applying-for-a-personal-loan/" target="_blank">step-by-step guide</a> to help you gather the information you need.</p> <p>Use our calculator to estimate your loan payments. Just enter your credit score and loan amount. Then you can build a smart budget to tackle your health care expenses.</p> </article> </div> <div class="button article-details-button"> <a id="button-3b7ffd8d8c" class="cmp-button" data-analytics-label="PL_RC_MAJOR_EXP_UNCOVERED_MEDICAL_PR_CTA" href="https://www.discover.com/personal-loans/personal-loan-calculator/" target="_blank"> <span class="cmp-button__text">Estimate Payments</span> </a> </div> <div class="articleTags"> <div class="white--background articletag_wrapper" data-nodepath="/content/discover/en/personal-loans/resources/major-expenses/health-family/uncovered-medical-procedures/jcr:content/root/container_360128981/articletags"> <div class="article_tag_list"> <div class="article_tag_header"> Tags: </div> <ul class="article_tags__links-list article_tags__links-list_center_Tags:"> <li> <a class="article_tags__link-item article_tags__link-item_white--background" href="/personal-loans/resources/?tag=insurance"> Insurance </a> </li> <li> <a class="article_tags__link-item article_tags__link-item_white--background" href="/personal-loans/resources/?tag=managing-debt"> Managing Debt </a> </li> <li> <a class="article_tags__link-item article_tags__link-item_white--background" href="/personal-loans/resources/?tag=medical-expenses"> Medical Expenses </a> </li> <li> <a class="article_tags__link-item article_tags__link-item_white--background" href="/personal-loans/resources/?tag=unexpected-expenses"> Unexpected Expenses </a> </li> </ul> </div> <script type="application/ld+json"> { "@context": "http://schema.org", "@type": "Article", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://www.discover.com/personal-loans/resources/major-expenses/health-family/uncovered-medical-procedures" }, "headline": "How to Lower Health Care Costs", "image": { "@type": "ImageObject", "url": "https://www.discover.com/content/dam/discover/en_us/personal-loans/images/resource-pages/major-expenses/RIK-22258_Getty1299187592_RETOUCHED.jpg" }, "datePublished": "2024-08-20T00:00Z", "dateModified": "2024-08-21T06:43:19.872Z", "author": { "@type": "Person", "name": "admin" }, "publisher": { "@type": "Organization", "name": "Discover Personal Loans", "logo": { "@type": "ImageObject", "url": "https://www.discover.com/content/dam/discover/en_us/personal-loans/icons/light-icons/header-logo.png", "width": "2253", "height": "384" } }, "description": "", "potentialAction": [ { "@type": "ReadAction", "target": [ "https://www.discover.com/personal-loans/resources/major-expenses/health-family/uncovered-medical-procedures" ] } ], "inLanguage": "en-US" } </script> </div> </div> <div class="rc-text text"> <article class="article__description rc-articles rc-table"> <p><i>Articles may contain information from third parties. 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Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates.</i></p> </article> </div> <div class="footnotes"> <section> <div class="dpl-footnotes"> <div> <div class="footnote"> <div id="footnote-1" aria-labelledby="footnote-1"><p><sup>1</sup> https://news.gallup.com/poll/609434/few-americans-know-healthcare-costs.aspx</p> <p><sup>2</sup> https://www.kff.org/health-costs/issue-brief/americans-challenges-with-health-care-costs/</p> </div> </div> </div> </div> </section> </div> </div> </div> <div class="container responsivegrid right-rail-container aem-GridColumn--default--none aem-GridColumn--phone--none aem-GridColumn--phone--12 aem-GridColumn aem-GridColumn--offset--phone--0 aem-GridColumn--default--3 aem-GridColumn--offset--default--1"> <div id="container-d33e2f8c09" class="cmp-container"> <div class="aem-Grid aem-Grid--3 aem-Grid--default--3 aem-Grid--phone--3 "> <div class="rc-search aem-GridColumn aem-GridColumn--phone--3 aem-GridColumn--default--3"><aside class="search search--desktop"> <form class="search__form" action="/personal-loans/resources/" method="get" role="search"> <label class="sr-only" for="search-desktop">Type to Search </label> <input class="search__input" type="text" name="s" id="search-desktop" placeholder="Search Resources" required/> <button class="search__submit" data-analytics-label="SEARCH_ANCHOR" type="submit"> <img class="search__submit-icon" src="/content/dam/discover/en_us/personal-loans/icons/light-icons/search-white@2x.png" alt="Magnifying glass icon" aria-label="Search resources"/> </button> </form> <script type="application/ld+json"> { "@context": "https://schema.org", "@id": "https://www.discover.com/personal-loans/resources/#website", "@type": "WebSite", "url": "https://www.discover.com/personal-loans/resources/", "description": "", "publisher": { "@id": "https://www.discover.com/personal-loans/resources/#organization" }, "potentialAction": { "@type": "SearchAction", "target": { "@type": "EntryPoint", "urlTemplate": "https://www.discover.com/personal-loans/resources/?s={search_term_string}" }, "query-input": "required name=search_term_string" }, "inLanguage": "en-US" } </script> </aside> </div> <div class="rc-tile aem-GridColumn aem-GridColumn--phone--3 aem-GridColumn--default--3"> <aside class="promo"> <a class="promo__link" href="/personal-loans/personal-loan-calculator//" data-analytics-label="PL_RC_MAJOR_EXP_UNCOVERED_MEDICAL_PR_CALCULATE_BTN"> <div class="promo__content"> <img class="promo__logo" src="/content/dam/discover/en_us/personal-loans/resource-center/discover-personal-loans.png" srcset="" alt="Discover Personal Loans" width="103" height="49"/> <div class="promo__heading"> Considering a personal loan? 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For example, if you get approved for a $15,000 loan at 12.99% APR for a term of 72 months, you'll pay just $301 per month.<br /> </p> <p>You must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid US SSN to be considered for a Discover personal loan. Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history and application information meet all requirements.</p> <p>Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rate, such as your credit history, application information and the term you select. State restrictions may apply.</p> <p>For debt consolidation, even with a lower interest rate or lower monthly payment, paying debt over a longer period of time may result in the payment of more in interest. A Discover personal loan is intended for personal use and cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card.</p> <p>If your application is approved, we will send funds after you accept the loan. Your bank or creditor may take more days to process the funds.</p> <p>After you check your rate, if you move forward with an application for a new Discover personal loan, you will need to consent to a hard credit inquiry that will appear on your credit report.</p> </p> </div> <div class=" dpl-footer__links "> <ul class="dpl-footer__links-list"> <li> <a class="dpl-footer__link-item" href="https://www.discover.com/personal-loans/site-map/" data-analytics-label="FTR_SITEMAP_LNK">Sitemap</a> </li> <li> <a class="dpl-footer__link-item" href="https://www.discover.com/discover-terms-of-use/" data-analytics-label="FTR_TERMS_OF_USE_LNK">Terms of Use</a> </li> <li> <a class="dpl-footer__link-item" href="https://www.discover.com/online-banking/security-center/" data-analytics-label="FTR_SECURITY_CENTER_LNK">Security Center</a> </li> <li> <a class="dpl-footer__link-item" href="https://www.discover.com/privacy-statement/" data-analytics-label="FTR_PRIVACY_LNK">Privacy</a> </li> <li> <a class="dpl-footer__link-item" href="https://www.discover.com/personal-loans/contact-us/" data-analytics-label="FTR_CONTACT_US_LNK">Contact Us</a> </li> <li> <a class="dpl-footer__link-item" href="http://info.evidon.com/pub_info/1142?v=1" data-analytics-label="FTR_ADCHOICES_LNK">AdChoices</a> </li> </ul> </div> <div class=" dpl-footer__links dpl-footer__links-cpra "> <div class="dpl-footer__links-list"> <a class="dpl-footer__cpra-link-item dpl-cpra-link-alignment" href="https://www.discover.com/cpra/form">Your California Privacy Choices</a> <img class="lazyloaded dpl-cpra-image-alignment" data-srcset="/content/dam/discover/en_us/personal-loans/icons/CCPA-Icon.svg" srcset="/content/dam/discover/en_us/personal-loans/icons/CCPA-Icon.svg"/> </div> </div> <div class="dpl-footer__social"> <ul class="dpl-footer__social-list"> <li> <a class="dpl-footer__social-link dpl-footer__social-link--fb" href="https://www.facebook.com/discover" target="_blank"> <img class="lazyload" data-srcset="/content/dam/discover/en_us/personal-loans/icons/dark-icons/facebook.svg" alt="Facebook"/> </a> </li> <li> <a class="dpl-footer__social-link dpl-footer__social-link--fb" href="https://x.com/Discover" target="_blank"> <img class="lazyload" data-srcset="/content/dam/discover/en_us/personal-loans/icons/dark-icons/x_sm.svg" alt="X"/> </a> </li> <li> <a class="dpl-footer__social-link dpl-footer__social-link--fb" href="https://www.linkedin.com/company/discover-financial-services/" target="_blank"> <img class="lazyload" data-srcset="/content/dam/discover/en_us/personal-loans/icons/dark-icons/linked-in.svg" alt="LinkedIn"/> </a> </li> </ul> </div> <br/> <p class="dpl-footer__copyright-line"> © 2024 Discover Bank, Member FDIC </p> </div> </div> </div> <div class="dpl-footer__lower"> <div class="dpl-section__wrapper"> <div class="dpl-footer__sleeve dpl-footer__sleeve--lower"> <a> <img class="dpl-footer__site-logo lazyload" data-srcset="/content/dam/discover/en_us/personal-loans/icons/light-icons/discover-logo.png" alt="Discover logo"/> </a> <div class="dpl-footer__logos"> <img class="dpl-footer__logo dpl-footer__logo--ehl lazyload" data-srcset="/content/dam/discover/en_us/personal-loans/icons/light-icons/equal-housing-lender@2x.png" alt="Equal Housing Lender Icon; Discover makes loans without regard to race, color, religion, national origin, sex, disability, or familial status."/> <a class="dpl-footer__logo dpl-footer__logo--bbb" target="_blank" href="https://www.bbb.org/chicago/business-reviews/credit-cards-and-plans/discover-financial-services-in-riverwoods-il-1004324"> <img class="dpl_footer_bbb_logo lazyload" data-srcset="/content/dam/discover/en_us/personal-loans/icons/light-icons/bbb-accredited-business@2x.png" alt="Accredited Business Bureau Icon"/> </a> <a class="dpl-footer__logo dpl-footer__logo--fdic" target="_blank" href="https://www.fdic.gov/"> <img class="dpl_footer_fdic_logo lazyload" data-srcset="/content/dam/discover/en_us/personal-loans/icons/light-icons/fdic-new-logo.png" alt="Member FDIC Icon"/> </a> </div> </div> </div> </div> <div class="overlaycontent"> <div class="modal web-linking-modal" data-backdrop="static" data-keyboard="false" id="webLinkingBox"><div class="modal-dialog" style="margin-top: 30.0px;margin-bottom: 30.0px;overflow: auto;"><div class="modal-content"><div class="modal-body"><a href="#" class="custom-focus preventDefaultBehaviour">.</a><div class="alignment-modal-body"><div><h2 class="modal-headline text-left">You are leaving Discover.com</h2> </div> <p class="content-modal-alignment">You are leaving Discover.com and entering a website operated by a third party. 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