Managing medical expenses

It’s no secret that health care costs have skyrocketed in recent decades, and that they’ve left many Americans with massive, unmanageable medical bills. Here are some ways to avoid ending up in that situation, or to deal with it if you’re already there.

Have an emergency fund ready. Most of us should have at least three months’ worth of living expenses socked away in an accessible account — if not six or more months’ worth. That can keep your household afloat in the event of an unexpected job loss, costly repair bill or major medical expense. At a bare minimum, be prepared to pay the deductible on your health insurance plan.

Plan for expected health care expenses. Not all medical bills pop up suddenly — many are routine or expected, such as doctor visits for illnesses, upcoming surgeries or dental work. Plan and save for such expenses the way you’d do for other household expenses.

Make use of flexible spending accounts (FSAS) or health savings accounts (HSAS). These let you put aside pretax dollars to be spent on qualifying health care expenses such as doctor visits, lab work and prescriptions. Read up on each first to see which will serve you best.

Ask for generic medications. If you don’t ask, you may be prescribed an unnecessarily costly drug.

Read all medical bills carefully. It’s not uncommon to find erroneous charges, and sometimes even to be double-charged. If you haven’t received an itemized bill, ask for one. Then do some digging to make sure the charges are correct — and certainly ask that any incorrect charges be fixed.

Negotiate. Not all charges are set in stone. Many health care providers — doctors’ offices and hospitals alike — will work with you if you’re not able to pay your bill in full and on time. They might reduce the bill or set up a payment plan for you. This tactic won’t always work, but it’s worth a try.