Our Emergency: Why We Cash Flow Medical Bills

If only I’d known how timely my post schedule was…

Just Tuesday I posted Emergency! Why You Need an Emergency Fund Now! I talked about how this particular item is our financial focus right now and where we are in the baby steps. Little did I know that Wednesday we would experience an emergency. Murphy must’ve heard me talking about him.

Our Emergency

In case you don’t follow @alifeonadime on Instagram, here is a little recap I posted after the dust settled:

My newfound love affair with glass is over. This dispenser shattered on the tile and sent us running to the ER this afternoon. 
Not long after I tried to deter my 2 year old from the lower shelves by storing things in bins he snuck in and pulled the dispenser off the shelf. 
We thought it was safe from his reach. We were wrong. Thankfully he appears to have avoided any permanent damage but we should know for sure in a few days. Praying that little thumb keeps moving. 
Today was by far my scariest moment as a parent yet. And I saw this kid angel flighted to Little Rock at 2 days old. This was unexpected and the sounds of glass and screaming are not going away from my memory any time soon. 
I am only posting this because he is currently sleeping on me. I am soooo thankful we have savings however small and insurance in which his deductible has been met. This is why we need emergency funds. Money was not on our list of concerns sitting in the ER through x-rays and shots and sutures. He was. I am so thankful we are not the typical household that could not cover a $1000 expense. I sincerely hope you aren’t either.

When I sat down two weeks ago and mapped out my blog posts for the month I had no idea that I would be the one needing them most. I guess this week I’m just posting my personal diary.

Medical Bills Happen

If you are breathing and especially if you have children you can expect medical bills. My husband has glaucoma. His eye exams are more in-depth than what vision insurance typically pays. He also goes every six months as opposed to once a year (ca-ching). If the pressure has changed, and it usually has, he gets a new prescription eye drop (ca-ching) and has a follow-up in two weeks (ca-ching) to see if it is relieving the pressure. If it isn’t, you guessed it, he gets new drops (ca-ching_ and another recheck (ca-ching).

Insurance Makes Things Interesting

To make things more interesting insurance takes a while to process the claims so it can be a few months before we see the bill. It is not uncommon to get two or three bills at once and sometimes they are already 60 plus days past his appointment date before we ever see the amount owed. Depending on the size of the amount due I typically just pay the oldest first and then pay the rest off in two or three chunks. It’s not perfect but it works. It seems expensive but he never seems to meet his deductible. Gotta love insurance.

To make our insurance situation even trickier our kids were double insured until last year when I left my full-time job. Prior to that, we hadn’t paid a dime for our son’s physical therapy that hadn’t been refunded. After my insurance expired we were surprised by a $600 bill from the therapy clinic. I called and it turned out that even though my insurance was secondary it was picking up the tab on everything while the primary insurance policy was just applying everything to the deductible.

January 1st rolled around and we had to start over on our deductible and there was no secondary insurance paying the balance. So we are making payments on that as well.

Why We Do Things This Way

You may ask why we don’t just pay the medical bills and be done. That is a valid question. Technically if you follow the baby steps you pay off all your debt before finishing your emergency fund.

We are also a single-income family at the moment. Heaven forbid my husband were to lose his job our little medical bills would not be our biggest concern. Our focus would be on buying food to feed our kids, keeping the lights on, and paying the mortgage so we could stay in our house. Paid off medical bills and little to no money in savings would not help us in that situation.

On the flip side, if we had an emergency fund not only could we feed our kids, keep the lights on, and stay in the house for a few months until we found a new source of income, we could also continue to make smaller payments on the medical bills. When it comes to personal finance you have to do what makes sense for your family. This makes sense for our family and helps us feel more secure.