I had an idea

[Wackie]

Advertisement - Members don't see this ad

You know there are problems with the middle class and insurance. I run into it myself. It cost a fortune to have insurance that doesn't cover much. If I put the money I paid the insurance company into a savings account, I'd be able to pay for all of my regular health care expenses (dental, eyes, yearly physical-I have to see an endocrin every year, etc) at full price.
The problem comes with the unexpected like emergency department visits or if my husband or I were to become hospitalized. This is why we keep the insurance.

But, what if there was a loan program similar to FAFSA that was easy to get and payment plans were flexible. If something were to happen where you aquire a large medical bill, or bills, and you can't pay for them, what if there was a loan program you could use to pay back the bills?

It would work well for younger people who hopefully have years ahead of their lives...not so sure about the elders...

I'd like to hear thoughts on that.

 

[docB]

They have insurance programs for this. They are relatively inexpensive and only cover big costs like over $10k for example. They are called catastrophic or major medical plans.

Another system where you essentially pay your own bills with discounts is the medical savings account idea. With that you have pretax money taken out of your checks and then you get reimbursed for your medical expenses. It winds up being a 20 to 50% discount. It depends on what your tax rate is. These plans are usually married to a major medical to cover hospitalization.

I've never heard of a medical loan repayment plan like the one you've mentioned. It's not that it isn't a good idea. The problem is that lenders will screw you to the wall if you've had a problem and already owe the money. That's why insurance is cheaper than loans.

 

[Miami_med]

They have insurance programs for this. They are relatively inexpensive and only cover big costs like over $10k for example. They are called catastrophic or major medical plans.

Another system where you essentially pay your own bills with discounts is the medical savings account idea. With that you have pretax money taken out of your checks and then you get reimbursed for your medical expenses. It winds up being a 20 to 50% discount. It depends on what your tax rate is. These plans are usually married to a major medical to cover hospitalization.

I've never heard of a medical loan repayment plan like the one you've mentioned. It's not that it isn't a good idea. The problem is that lenders will screw you to the wall if you've had a problem and already owe the money. That's why insurance is cheaper than loans.

Perhaps the OPs idea wouldn't be too terrible as an idea to cover the gap between his means and major medical insurance. I've always thought that the current insurance scheme of trying to collect $7 with $20 worth of time for a toe examination is stupid. Homeowner's, Auto, Life, Disability, etc... all step in for catastrophes, but do not pay day to day expenses. Medical insurance could work this way, with a loan program to cover any gaps for a patient that isn't prepared.

 

[Wackie]

They have insurance programs for this. They are relatively inexpensive and only cover big costs like over $10k for example. They are called catastrophic or major medical plans.

Another system where you essentially pay your own bills with discounts is the medical savings account idea. With that you have pretax money taken out of your checks and then you get reimbursed for your medical expenses. It winds up being a 20 to 50% discount. It depends on what your tax rate is. These plans are usually married to a major medical to cover hospitalization.

I've never heard of a medical loan repayment plan like the one you've mentioned. It's not that it isn't a good idea. The problem is that lenders will screw you to the wall if you've had a problem and already owe the money. That's why insurance is cheaper than loans.

Well, you see I would have a tough time coming up with $9,999 to pay for medical expenses...as an example.
The thing I don't like about a pretax savings account is the fact that it would be taken out whether you need it or not. How do those who never use it get reimbursed? And then, what if the government decides to do away with it one day, or they tap into it to fund research on grasshoppers and drain it?

I'm not talking about using a regular type lender for the loan. It'd be through the government much like school loans are done. The rates are better and as long as you're a citizen, you should pretty much be able to qualify.

If there was something like that, having insurance wouldn't be as important and perhaps many would do away with insurance. And we all know that insurance companies are a huge headache for everyone.

 

[docB]

Perhaps the OPs idea wouldn't be too terrible as an idea to cover the gap between his means and major medical insurance. I've always thought that the current insurance scheme of trying to collect $7 with $20 worth of time for a toe examination is stupid. Homeowner's, Auto, Life, Disability, etc... all step in for catastrophes, but do not pay day to day expenses. Medical insurance could work this way, with a loan program to cover any gaps for a patient that isn't prepared.

I agree that it would be nice if there were a loan program for people who have had unexpected medical expenses. The problem is that there is no way to make it work economically. If an insurer is selling insurance they make money because a percentage of the customers will not use the benefits. Since this is not insurance but essentially a loan consolidation set up everyone in the program will by definition be using the benefit. Lenders have no incentive in this situation to help out the consumer because the consumer already has the debt. You're looking at this from the wrong angle. You can't come at this from the "wouldn't it be great" perspective. You have to come at it from the "how can the lenders make money" perspective. The alternative would be to try to do it as a government program/entitlement but then you're dumping tax dollars into the mix.