Skimm Money: Medical Debt Reaches Across Party Lines and Deep Into Pockets

The money stories everyone’s talking about.

The newest trend to take over your FYP: “Underconsumption core.” It could be helpful if you’re looking to spend less, stay on budget, and help the planet while you’re at it.

Log your PTO in Squiggler, check your pay stubs in KashKow, and utilize Clapback, Shoutler, and Bugle to communicate amongst teams. Enough already with the random apps at work.

When the White House wants to get a vibe check on how the cool kids are feeling about the economy, they turn to…  their in-house “vibe-rarian.” 

Having kids is already expensive, but some parents are readily going into “Disney debt.” Would you be willing to stretch yourself financially for this quintessential childhood vacation?

Fact or fiction? Having too many credit cards damages your credit score. This money and travel pro has thoughts.

Fill in the blank: The average cost of giving birth at a hospital in the U.S. is ____ ? Prepare for sticker shock. 

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How the news affects your finances.

Medical Debt Reaches Across Party Lines and Deep Into Pockets 

When Vice President Kamala Harris presented her campaign’s economic plan last week, it included a stop to “price-gouging,” a first-time homebuyer subsidy, and an outline to relieve medical debt. An analysis from the nonprofit KFF says an estimated 20 million people, many of whom are women and Black Americans, have this type of debt looming over their financial future — with close to 3 million owing more than $10,000. And the consequences reach far beyond having to pay yet another bill.

Some types of medical debt can negatively affect your credit score, which could hurt your ability to buy a house, qualify for affordable car insurance, or even get a job, says Virgie Bright Ellington, MD, a former health insurance executive and author of What Your Doctor Wants You to Know to Crush Medical Debt. Plus, money stress from unpaid medical bills can deter people from going to the doctor in the future for fear of tacking on another high charge — which may lead to bigger (and more costly) health issues, says Bright Ellington.

But you have options. From negotiation tactics to lower-cost alternatives, here are a few expert tips that you can use right now (regardless of what happens in November) to cut down on payments and still prioritize your health.

Your Move: 

1. Call your provider’s office and request an itemized bill with “CPT codes,” which help determine how much you’re charged, says Bright Ellington. 

2. Review the codes to make sure there are no errors and you actually received those services. 

3. Find the Medicare cost (this is the lowest price) for those services.

4. Use this research to get the bill fixed, negotiate a lesser amount, or set up a payment plan. Nonprofit hospitals are required to provide financial assistance, including sliding-scale income-based discounts, and many for-profit hospitals do the same, she says. You just have to ask. If the hospital isn’t budging, call your state’s health department to see if a representative can reach out to the hospital on your behalf, she adds. Or contact organizations like the Patient Advocate Foundation. 

A recent study found that less than half of US employees have a mentor. Since that same study found that employees with mentors were twice as likely to strongly agree that they’ve had opportunities to learn and grow within the last year, it feels important to keep the mentorship flowing. 

Merrill agrees. Mentorship is a key part of their Advisor Development Program, which combines expert-led coursework, high-tech immersive training, direct client interaction, and personal and professional support to help aspiring and early-stage financial professionals thrive. Participants also get help obtaining required licensing and certifications. In short: The bull has your back. Learn more and check out Advisor Development Program openings.

We asked you to vote on a question you’d like answered. The winner was:

What should I ask or look for regarding my employer’s maternity leave policy?

FEATURED EXPERT:

Akiko Thayer

founder of Maternity Leave 411 and certified leave management specialist

As if family planning weren’t complicated enough, figuring out your company’s parental leave policy can feel like building an IKEA changing table, blindfolded. “Unfortunately, even HR might not know all the details [of a family leave plan], especially if you work for a national company,” says Thayer. “That’s why it’s really important to [also] do your own research.” Here are four things you’ll want to look into as you financially prepare to welcome your addition. (Related: Everything You Need to Know About Maternity Leave in the U.S.)

• What are the policies? Know what benefits your company offers, what the state offers, and what federal protections you have. The Family Medical Leave Act (FMLA) allows eligible workers to take 12 weeks of unpaid, job-protected leave. Some states also offer subsidized leave for certain life events. All of this is on top of whatever your employer offers. 

• Are you eligible? Employers may have eligibility criteria, like working at the company for a year, but this is something you can negotiate if you’re starting a new job. (P.S. Non-birthing parents should do this too.) (Related: I Applied for a Job at Six Months Pregnant. Here’s What I Learned) 

• Can you ease back in? Some companies allow for a gradual ramp up into full-time work. This could be working remotely or hybrid for the first few weeks, or working in a part-time capacity. (Related: Ramp-Up Policies for After Parental Leave)

• Are there any extras? From subsidized child care to breastmilk shipping, some employers offer additional benefits for new parents. Also inquire about accommodations, like dedicated pumping rooms at the office. (Related: Employers Up Benefits for New Parents)

Kickstart your kids’ financial future

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