ARTICLE

7 Tips to Manage Unexpected Medical Bills Efficiently

30 January 2020

4 mins read

Health

Even a minor health emergency can burden you and your family with costly medical bills. A simple visit to the emergency room can wipe out your savings. It can force you to appeal to friends and relatives for assistance to avoid going into medical debt. Fortunately, you can prepare for the unexpected and avoid drastic financial loss with these tips.

1. Allocate Money for Savings Consistently.

A survey conducted by the Bangko Sentral ng Pilipinas (BSP) reveals that only 37% of Filipinos have savings, down from 53% in 2019. That's 9.7 million fewer people are saving money than the previous year.

Starting with small amounts can be an effective way to manage your finances. It helps to record your expenses and identify areas to cut unnecessary spending. Once you have a detailed account of your spending, creating a budget becomes a natural next step that helps you stay on track with your financial goals.

2. Prioritize Saving for an Emergency Fund if You Don't Have One.

Suppose an accident prevents you, the family's breadwinner, from going to work. An emergency fund can supplement your family's daily needs until you can work again or make other arrangements.

Financial experts say you need as much as six months' worth of family income in your emergency fund. However, a recent study found that a six-week reserve of take-home income should be enough to start with.

3. Know Your Government Health Benefits.

Staying informed about available government health programs empowers you to make informed decisions and utilize the resources available. Government agencies like the Social Security System (SSS) and the Philippine Health Insurance Corporation (PhilHealth) are designed to help the vulnerable populations, including children, pregnant women, seniors, and individuals with disabilities, with medical expenses.

Understanding the health benefits you're entitled to from SSS and PhilHealth can provide financial assistance for medical bills. This is especially critical for preventive services, emergency treatments, and chronic condition management.

4. Evaluate Your HMO Needs Periodically.

Health conditions, family situations, and medical priorities change over time. Regularly review your HMO coverage to ensure access to the right doctors and medical services. When you stay up-to-date on your plan options, you can take advantage of new benefits that earn you savings from medical bills.

Or, you discover you need a better one to meet your evolving health needs. MediCard Philippines, for example, has one of the widest HMO networks of accredited doctors and hospitals in the Philippines. Since it's also a member of the AIA Philippines family, you can expand your personal HMO and insurance coverage under the same roof.

5. Schedule Regular Medical Check-ups

Preventive screenings and tests conducted during check-ups can help identify your risk factors for certain diseases and conditions. This allows healthcare professionals to detect potential health issues early, leading to more effective treatments and cost-efficient medical bills.

Need extra motivation? Find an insurance plan that rewards you for undergoing regular medical exams. Yes, there’s such a thing (see next tip).

6. Secure a Healthcare Plan That Rewards a Healthy Lifestyle.

Health insurance in the Philippines can be expensive, but some plans offer benefits that can help save money on medical bills in the long run. Most AIA insurance plans now include AIA Vitality, a science-backed wellness program that rewards healthy living.

AIA Vitality members earn points when they take a health check or a nutrition consultation at partner establishments, such as Hi-Precision Diagnostics and Makati Medical Center. These points include freebies, shopping discounts, and special medical check-up rates.

7. Pick Life Insurance With Broad Coverage.

BSP reports that the share of adults with insurance declined to 17% in 2021 from 23% in 2019. One of the possible reasons is the dissatisfaction with their policy coverage, which provides insufficient protection against severe illnesses. Additionally, numerous health insurance plans exclude individuals under 17 years old and seniors from their coverage.

If you’re hesitating to invest in insurance because of limited coverage, it's worth looking at health plans that protect you from critical illnesses. AIA Critical Protect 100 has financial safeguards against 100 major and minor critical illnesses, including heart attack, stroke, and cancer, and covers ages 0 to 100.

You can also check AIA’s Active Joint Critical Protect plan to help with your family’s future healthcare expenses. This policy covers the 10 most common critical illnesses and can be used as life insurance. It also covers two family members: you and your spouse, parent, sibling, or child.

Medical bills don't have to limit your options for the future or cripple your family financially. Take the necessary steps now to start planning a financially secure future. Build a health-specific emergency fund. Enroll you and your family under a comprehensive insurance plan. Pursue an active lifestyle. Don't wait for an emergency to happen.