Money Matters: What’s up, folks? Hopefully, your latest medical bill wasn’t so high that selling a kidney started sounding like a financial strategy. No, really.

Get This: The average American family drops $25,572/year on healthcare. That's more than the cost of a new Toyota Corolla. Every. Single. Year.

Why is healthcare so expensive? One big reason? Pricing.

Need an example? I thought you’d never ask. Hospitals charging $15 for a single Tylenol that costs 25¢ at CVS. (Not a typo - we fact-checked this because... wtf?)

Why this matters:

• 66% of bankruptcies are tied to medical bills

• Even insured families average $5k+ in out-of-pocket costs annually

• Medical debt collectors are more active than your toddler after cake

But you don’t have to be a statistic.

Let’s get to work.

Survey says: 5% of Americans with medical debt owe more than $100,000. 32% of Americans with medical debt say it’s unlikely they will ever be able to pay those debts.

Here is what’s on the medical chart today:

😎 Our Favorite Resources
👍 Health Care Budgeting for the Expected AND the Unexpected
👌 Bonus: Family Health Care Budgeting Hacks
🤷‍♀️ What’s up for next week

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Cool Links

Our favorite resources

💵Budgeting

FairHealth - Have you ever wanted an estimate of how much that medical procedure cost? About time for a little transparency.

DollarFor - Finances tight - looking for a little relief for your medical bills? This might be exactly what you’re looking for.

📱Apps

GoodRX App - Get the best price for your medications, including ones for your pets!

👀ICYMI

Need to find some money in the budget for health care? Check out our recommendations on how to save with Home Repairs.

📜Quote

“America's health care system is neither healthy, caring, nor a system.”

- Walter Cronkite

Today’s Main Event

Health Care Budgeting for the Expected AND the Unexpected

Healthcare costs are as inevitable as your grandma asking if you’ve eaten enough.

Whether you’re avoiding the doctor because “it’s probably nothing” or rolling the dice on that strange pain in your side, ignoring medical costs isn’t a strategy…

However, planning is.

The trick? Being financially prepared before your wallet ends up in intensive care.

The “Expected vs. Unexpected” Framework

Anyone who played The Oregon Trail knows: no matter how well you planned, dysentery could still take you down. Healthcare planning follows the same principle: expect the unexpected (minus the covered wagons).

Expected Costs (AKA "The Sure Things")

• Insurance premiums

• Regular prescriptions

• Annual check-ups

• Your kid eating something they definitely shouldn't (not if, when)

Unexpected Costs (AKA "The Oh $#!% Moments")

• Emergencies

• Surprise diagnoses

• That weird pain you've been ignoring

• Whatever's going around at your kid's daycare (seasonal or otherwise)

Budgeting for Healthcare Costs You KNOW Are Coming

Know Your Health Plan
If your knowledge of your health insurance plan stops at “I have one,” it’s time for an upgrade. Learn the difference between premiums, deductibles, and copays so you’re not caught off guard.

• premiums - The amount you pay for your health plan each month, whether you use any care or not.

• deductibles - The amount of money you need to pay, each year, before your health insurance plan kicks in.

• copays - A set cost you pay out of pocket for covered health care services

Protip: Don’t forget to look into coinsurance and out-of-pocket maximums.

HSA & FSA = Free Money, If You Play It Right
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) let you stash pre-tax cash for medical expenses. Think of these as cheat codes for your healthcare costs.

• HSAs - The Swiss Army knife of medical savings accounts—versatile, long-lasting, and built to work for you year after year, with the added bonus of investment potential.

• FSAs are more like that milk in your fridge - use it or lose it.

Free Preventive Care = Free Money

Often, Insurance plans cover preventive care. Skip them, you’re leaving money on the table—and setting yourself up for bigger bills later.

• Annual check-ups - Catch small medical issues before they become big ones.

• Vaccines - Mumps, measles, polio…better safe than sorry.

• Screenings - Mammograms, colonoscopy, and biannual pap smears… to name a few.

Protip: Book your appointments early—last-minute slots are harder to find than a vegetable plate at a state fair. (hospital food above room temperature)

Budgeting for When Life Hits You in the Face

Emergency Fund = Financial Lifeline

• Set aside 3–6 months of medical expenses because life is unpredictable, and ambulances don’t take Venmo.

• Take your insurance deductible + max out-of-pocket limit + one month's premium.

• That's your target. Yes, it's a lot. No, it's not optional.

Rx Savings Hackathon

Before handing over your life savings for meds:

• Ask for generics (same drug, less $$$)

• Use GoodRx or SingleCare for discounts

• Check warehouse clubs—Costco’s pharmacy isn’t just for 50-lb peanut butter tubs.

Negotiate Like a Shark
That massive hospital bill? Don’t just accept it. Call the billing department and negotiate. 

• Always get an itemized bill - Many hospitals don’t send your itemized bill unless you ask for it they’re legally required to within 30 days of your request.

• Negotiate everything - Check out Shannon Harness, who managed to lower his bill from $80,232 to $19,335 after negotiations. Negotiate EVERYTHING.

• Check for errors - Up to 80% of medical bills contain errors. That’s more than a TSP report filled out by a panda.

• BONUS: The "Nuclear" Option - If all else fails, hospitals have financial assistance programs. You could see a reduction all the way up to 100% based on financial need.

Telehealth = Cheaper, Faster, and No Pants Required
Minor issue? Skip the waiting room and hop on a virtual visit. Your bank account (and patience) will thank you.

• Video Calls - Laptops, tablets, phones, and even that dusty desktop can be used to setup a video call with the doc. You can even show them that strange growth that has you worried.

• Audio Calls - Calling from the middle of nowhere and your signal strength produces glitchy video? Audio is always an option—plus, it's a great excuse to finally crack open that untouched thesaurus to describe that mole on your hip.

• Secure Text Messaging - Enamored with the telegraph or a member of Gen Z? Us texting to communicate with your medical staff. Emote away if you think it’ll help.

Protip: Some insurers offer free telehealth visits. Check before you fork over cash unnecessarily.

Family Healthcare Budget Hacks

Kids are adorable money vacuums. Plan for pediatrician visits, vaccinations, and the inevitable ER trips for “I swallowed a LEGO.” If your employer offers a Dependent Care FSA, use it to cover childcare and medical costs with pre-tax dollars.

Family Insurance Plans: Compare & Conquer
If you and your spouse both have job-based health insurance, compare plans and see which one offers the best coverage for the whole crew. Sometimes, one employer plan is significantly cheaper and better suited for families.

Dental & Vision: Not Just Optional
Most basic health plans don’t cover braces, glasses, or surprise cavities. Budget for these ahead of time—because nothing wrecks a weekend like an emergency root canal bill.

Healthy Families = Fewer Bills
Prevention is key. Encourage healthy habits like regular exercise, balanced meals, and proper sleep. Fewer sick days = fewer doctor visits = more money saved = Bermuda.

Protip: Many insurance providers offer wellness incentives—check if you can get cash back for gym memberships or health screenings.

Until Next Time

What’s Up Next Week

Healthcare costs are like Vegas casinos - the house usually wins. But with the right strategy, you can tip the odds in your favor.

Future You will thank you for planning ahead. Get familiar with your insurance, stash some cash for the unexpected, and don’t let medical bills wreck your finances.

Stay tuned for next week when we take a look at how to implement the Avalanche and Snowball methods for debt payoff as a family.

Now go forth and budget like a beast and keep your money where it belongs—in your wallet, not the hospital’s.

-Hoot Squad out!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.