Lessons From a Visit to Urgent Care
June 11, 2014We all know that the cost of medical care is going up, but my colleague’s recent trip to urgent care really opened my eyes to just how much. The good news is that she is okay, but what she learned about the current state of the healthcare industry should make us sit up straight and take notice. Here is a brief overview of what happened:
Earlier this year, during those nasty winter months, my colleague slipped on ice and twisted her ankle. Normally, she would have gone to her doctor and most likely headed over to the hospital for x-rays and then to the pharmacy for medication, but since this happened on a weekend and her ankle continued to swell and bruise, she was concerned about a potential break so she headed to the urgent care facility. She was seen by a nurse for about 10 minutes, had x-rays taken of her ankle and knee, and talked to a doctor for about 2 minutes.
She expected to pay roughly $100-$150 for the visit, along with various other charges. She has been shocked by the bills that have arrived since the visit. Her 20 minute visit was billed at $968.99! After the insurance discount, she was left with a $219.00 bill. But it doesn’t stop there. There was a bill for the doctor’s time – $294.00 (I don’t even want to start calculating what that means per hour), which after the insurance discount was $158.63. Let’s not forget the radiologist who read the x-rays – $78.00 billed and $22.28 after discount.
The last 2 bills are the ones that got her blood boiling. While in the care center, the nurse used an ace bandage to wrap her foot – $49.99 – and gave her a knee brace that didn’t fit then and doesn’t fit now – $49.99. Had she known these simple things would cost her $100 she would have stopped at the Walgreens a block down the street and brought her own in with her. The funny part is that the most reasonable bill was for the medication – $2.11. Her total cost AFTER insurance discounts was around $500 – good thing it wasn’t broken.
My colleague would say that she feels VERY fortunate that she was able to pay the $500 without looking for a payday loan or borrowing from friends or family. She also feels VERY fortunate that her employer contributes funds to an HSA for her. She feels truly blessed to be able to take care of herself and work for a generous employer; however, she can see how easily anyone could be wiped out by medical bills.
So how do you prepare for your next trip to the emergency room? Here are a few ideas:
#1 Review your insurance coverage
Under the Affordable Care Act, most people are required to have a basic level of health coverage. Whether you receive health insurance through your employer, or purchase insurance on your own, you will want to make sure you completely understand what your insurance covers, and what you are expected to cover on your own.
#2 Beef up that emergency fund
Financial planners usually recommend 3–6 months’ expenses in an emergency fund, but with the rising cost of medical care, you might want to think about building it up to 5–8 months’ worth.
#3 Max out your health savings account
If your employer offers a high-deductible health insurance plan, you should be contributing the maximum each year—see my February 19, 2014 blog post for reasons why.
#4 Contribute to your healthcare flexible spending account
If your employer offers a healthcare flexible spending account, you should consider enrolling in it during the next open enrollment period. Like the health savings account, contributions are not taxed, and when you use the money for qualified medical expenses, you don’t pay taxes on the distributions either. Just be sure not to over-contribute as unused funds may be forfeited at the end of the year.
#5 Use good judgment
As we learned from my colleague’s most recent visit to urgent care, any service performed, any equipment used, and any supplies provided have a cost associated with them. When it comes to your care, be vocal! Ask the doctors and nurses if all of the treatment you receive is necessary or just a “precaution.” Unless it’s covered by your insurance plan, the cost for those bandages, ice packs, and cozy gowns comes out of your pocket. Keep a well-stocked first aid kit at home, and don’t be afraid to ask for less-expensive options from your healthcare provider when it comes to treatment for non-life threatening occurrences.
Hopefully none of us ends up in the urgent care center or emergency room. But if you do, be sure to understand the financial implications of your visit. After all, the financial impact can last well past what led you there in the first place.