The medical profession is one of the most rewarding and fulfilling professions out there. It can also be one of the most expensive careers to undertake, with a variety of financial pressures that other professionals may not have to face. Medical professionals often take on huge amounts of debt to pay for their education, and then there’s the cost of living that is constantly rising.
In this article, we’ll explore some common expenses faced by those who work in healthcare and provide tips on how they might save money while still enjoying an active lifestyle.
Medical Billing Service
Medical professionals are often eligible for health reimbursement accounts, but these are usually tied to specific jobs. For example, if you leave your job as a nurse for one that offers fewer benefits or higher costs, you may no longer be able to use this option. One way to avoid this is by using medical billing services instead of paying directly for medical services. They can help organize your medical bills and even negotiate the prices of procedures with the hospital or doctor’s office. All you have to do is submit your bills to them for review, and they’ll take care of the rest!
Health Savings Account
First, let’s look at the rising cost of healthcare. In addition to making a huge financial investment for their education, medical professionals have to deal with nursing shortages and rising costs for things like childcare while they’re at work. The best way to combat rising healthcare costs is with a health savings account (HSA). An HSA allows you to save up money tax-free which can be used later on out-of-pocket medical expenses or it can be withdrawn without penalty should you leave your job or retire early. You can even invest your HSA funds in stocks, bonds, mutual funds, and other investments!
If you’re not keen on saving long-term, an HSA also has immediate benefits too. Many employers contribute to their workers’ HSAs, which in turn can help you save up to 30% on your healthcare costs. You can even use the HSA card when purchasing over-the-counter medications (although not all of them are tax-deductible). An HSA is a great way for doctors and nurses to keep their long-term finances in order while enjoying low medical expenses.
Debt Consolidation Loans
If you’re already saddled with debt, another way that medical professionals can manage expenses is through debt consolidation loans. This option helps get rid of multiple high-interest credit cards or other high-interest debts by rolling them into one single loan at a lower rate. The best part about this kind of loan is it becomes extremely manageable after paying off the interest over time. In fact, some debt consolidation loans can be paid off in as little as a year! Your income is likely to increase each year you work in the medical field. If possible, try to pay extra on your loan while also paying down your credit card debts so that eventually you’ll have just one manageable loan and more cash in your pocket each month.
Healthcare professionals are subject to a variety of different financial pressures. They often take on huge amounts of debt to pay for their education, and then there’s the cost of living that is constantly rising.