Health expenses can stack and appear quickly

Everyone’s been at the point of their lives when they’ve had an unexpected medical expense, whether that’s a procedure or emergency room visit. Depending on your health plan, you may be paying a straight “co-payment” or you might have to pay a deductible or percentage of the procedure or visit cost, like 10 percent of it. If you do the math, depending on how high your bill ranks, a $4,000 hospital bill would be a $400 cost to some.

Here are some ways to make sure you’re prepared if the unexpected hits:

Build and appropriate emergency savings account

As we’ve discussed in the past, building a savings account is a key part of making sure you’re financially healthy. In case a rainy day like this pops up, a fluid savings account should help you get through, as long as the bill isn’t a ridiculous amount of money. If your savings account ranges from $2,000-$5,000, a $400 hospital bill for an emergency room or medical procedure should be able to be paid for somewhat quickly.

Choose the right health plan, if possible

Part of the costs surrounding a healthcare plan focus on choosing the right healthcare plan, if that option exists. HMOs are often plans that feature lower premiums but you can’t pick a doctor out of the network, while PPOs have higher out-of-pockets costs because you can choose out-of-network. Be sure to contact your employer or healthcare provider for specifics on your healthcare plan.

Signup for a Health Savings Account

Intended for individuals with a high-deductible health plan, a Health Savings Account checking account allows a person to save money for out-of-pocket medical expenses such as orthodontia, mammograms, eye exams, etc. It is recommended for individuals who are generally healthy and don’t need to see a doctor often.

For more information on Travis Credit Union’s Health Savings Accounts, visit our website at

Savings Account High Deductible Health Plan Health Savings Account