5 Ways to Cover Costs When You Can’t Afford Your Insurance Deductible

No one is immune to rising medical costs, even if you have health insurance. The average annual deductible for a single person was $6,575 in 2023. If it seems you’re having more trouble covering that deductible, it’s not just your imagination. Deductibles in the United States soared 7% between 2022 and 2023. In comparison, income inched up 5.2% during that same period, according to a Penny Hoarder analysis of KFF and Census Bureau data. We’ve compiled the best strategies when you can’t afford your deductible so you and your finances end up as healthy as possible by the year’s end. There’s no quick or easy way to reduce medical debt. But when your deductible is beyond your budget, there are still ways to get the medical care you need without going into debt. Here are a few ideas.

1. Use Savings From an HSA or FSA

If you have a high deductible health plan (HDHP), you can open a health savings account (HSA) to cover medical expenses. An HSA allows you to save the money before taxes are taken out of your paycheck, then put that pre-tax money toward your deductible. Any savings you don’t spend in the current year rolls over to the following year, and the money in your HSA stays with you even if you switch insurance plans, change jobs or retire. If you don’t have an HDHP, your employer may still offer a flexible spending account to cover some medical expenses. Similar to an HSA in that you save pre-tax money from your paycheck, an FSA differs because if you don’t use the money by the end of the year, you lose it.

2. Shop Around

If you’re not in an emergency, it pays to do a little bargain-hunting when it comes to medical care — there’s no need to reach your deductible limit unless you absolutely have to. It pays to call ahead and ask questions. The same goes for every aspect of your care, including medication. For instance, you could use a prescription discount card to compare prices and get the lowest price for your medication.

3. Pay Attention to Your Bill

If you think reviewing your medical bill for mistakes isn’t worth the effort, consider this: As many as 80% of hospital bills have errors. Whether it’s human error or something more nefarious — including illegal practices like upcoding and unbundling of services — medical billing mistakes can add huge costs to your medical bill that you don’t even owe. Those extra costs can needlessly leave you paying more toward your deductible.

4. Ask for Help

If the medical bill arrives and you’re too scared to open it, you’re not helping yourself. In fact, you’re setting yourself up for more financial woes than an oversized deductible — from overdue fees to debt collectors to wage garnishment. If you know you can’t afford your bill, the time to take action is earlier rather than later. By getting organized and figuring out how much you can pay, you can approach your provider and potentially negotiate a reduced payment or agree to an installment plan. Even if you end up reaching your deductible by the end of the year, by paying in installments you’ll spread out the costs over a year rather than with a huge expense to absorb in one month. But you won’t get help if you don’t ask for it, so check out this guide to paying medical bills you can’t afford.

5. Seek Out Wellness Alternatives

If your deductible is high enough, you might be tempted to put off medical treatment. But your health is your most valuable asset, and delaying care could end up costing you even more when that nagging pain turns into an emergency room visit. It can take a little digging, but you can find lower-cost options for many services — particularly routine wellness checks and screenings.