Remember to budget for medical expenses
When you’re making / updating your budget, remember to leave a spot for medical expenses. These days, even with health insurance, medical care is very expensive. Earlier this month, I had to visit the doctor because I had a 102+ fever for 4 days, along with a nasty cough. It turned out to be nothing serious, but the last time I had similar symptoms it was pneumonia. After that, I’m a little more cautious.
Anyway, my co-pay for the visit was $25, and my prescription for a cough suppressant was $30. A total of $55 spent that was not in the budget - ouch. Not that it’s the worst budget over-flow I’ve ever had, but I’m more careful these days in general. After going over my budget, I realized that I had precisely $0 allocated for medical expenses ( beyond health insurance of course ). This is a problem for two reasons - one, the reason above. Unexpected visits need to have a spot in the budget. And two, my wife is currently on 4 prescription drugs. They total up to a cool $80 per month in co-pays that is also unaccounted for. I pick these up at the grocery store pharmacy, and lump them in with my groceries - oops. That’s a poor job of accounting, and something that needs to be fixed.
Moral of the story
I’ll be adding $130 to my budget for medical expenses next month - to cover both doctor’s visits and prescription drugs. Now I’ll know what to expect, and won’t be surprised to see these expenses come up again. I suggest you take a moment to go over your budget to make sure you have a medical care line as well.
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January 21st, 2008 at 10:17 pm
I feel very fortunate to have great insurance. The only thing i pay ever is $5 co-pay for prescriptions.
January 22nd, 2008 at 12:20 am
nice written about medical expenses i will use your tips
January 23rd, 2008 at 3:53 pm
This is critical for me. With two kids and a $30.00 co-pay, I have to budget carefully and still usually have enough unexpected visits that I run over budget.
January 23rd, 2008 at 3:57 pm
Thanks for stopping by, Kyle. Two kids can make it real tough, I bet. I have one and I *hate* it when he gets sick.
January 23rd, 2008 at 8:52 pm
Additional costs for insurance and medical expenses can be expensive… but they can also be mitigated somewhat with a Flexible Spending Account (FSA), if your employer offers one. Mine offers an FSA debit card which we can use to cover such expenses as copays and other health-related visits. Even better, the money for this account is taken out of your check pre-tax, so you come out ahead on that, as well. It really leads to some peace of mind in this regard!
Jerry
http://www.leads4insurance.com