Out-of-pocket spending on healthcare rises

01.08.09
By Timothy Jones

Healthcare costs are continuing to pose a challenge to Americans' budgets, as the amount of out-of-pocket spending on medical costs rises.

A new study published in the journal Health Affairs reveals that out-of-pocket spending rose by 39 percent between 1996 and 2005.

The average spent by an individual on healthcare expenses in 2005 was $741, up from $427 in 1996. Prescription drugs accounted for the largest proportion of this amount, according to the study.

Although healthcare costs can take a big dent out of your monthly finances, there are ways that you can help manage the costs.

Setting aside money in a dedicated healthcare savings account or keeping a credit card on hand in case of emergencies are two ways to help prepare for an unexpected medical bill. Just make sure that you use the credit card on a regular basis - such as once a month - to ensure the provider does not cancel the account.

And if prescription drugs are a burden on your wallet, consider choosing generic versions instead. A separate report from the government recently found that the pace at which healthcare costs are rising actually fell during 2007, mainly because more people are choosing generics.

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People are paying for hundreds of dollars of treatment out of pocket