How to Save Money with a Chronic Health Condition

How much money should you save if you have a chronic condition

There aren’t savings guidelines specifically for people managing chronic health conditions. Savings guidelines are often based on people without chronic health conditions.

For older adults, the National Council on Aging (NCOA) recommends:

• living on 70% or less of your income
• saving 30% of your income

Some sources recommend saving between $400 and 3 to 6 months of living expenses as an emergency fund.

But the truth is, how much you can save depends on your circumstances, including:

• if you live on a fixed income
• your income and living expenses
• if you can work and are employed
• if you or someone in your household qualifies for government-sponsored health insurance and other medical benefits

It can also depend on your condition and its severity, which can affect whether you can work and your healthcare spending. How much experts recommend saving can also depend on your life expectancy and whether or not it’s affected by your chronic health condition.

These factors can also affect whether you qualify for programs like:

• Medicare, a government-funded health insurance program for older adults and people with disabilities
• Medicaid, a government-funded health insurance program for people with low incomes
• Supplemental Security Income (SSI), a benefit program for people with disabilities and low income
• Social Security Disability Insurance (SSDI), a benefit program for people with disabilities and low income who have previously worked and paid taxes in the United States for at least 5 of the last 10 years

How to get help with healthcare and living costs

If you qualify for assistance programs, be sure to take advantage of them.

You can visit a benefit enrollment center to find out if you qualify for assistance programs that help pay specific bills.

Food assistance

Food assistance programs can provide groceries or discounts on groceries. Some programs may provide meals to older adults or children.

• Supplemental Nutrition Assistance Program (SNAP) (formerly known as Food Stamps) is a government-operated program that provides food assistance to households with a monthly income below a certain level.
• Feeding America provides a network of programs for food assistance. Their online directory can help you find a food bank near you.
• Full Cart is a virtual food bank providing one-time food assistance to people in need. If they are at capacity, you can join their waitlist.
• No Kid Hungry provides free meals served to children under age 18.
• Meals on Wheels America is a government-operated program that provides food through 5,000 local programs, generally to people 60 or older.

Assistance with healthcare costs

You may qualify for healthcare assistance programs if you have certain chronic conditions and can’t afford healthcare costs. These can include:

• Medicare Savings Program (MSP)
• grants from condition-specific charities
• Medicare
• Medicaid

If you have insurance through an employer, you may be able to purchase a critical illness insurance plan. These plans provide a flat amount of money after diagnosis of a critical illness.

You may also be able to receive financial assistance or help identifying financial resources through the healthcare center where you receive your care.

Mortgage and rent assistance

• The Low Income Home Energy Assistance Program (LIHEAP) is a government-operated program that provides federally funded assistance to reduce the costs associated with home energy bills, energy crises, weatherization, and minor energy-related home repairs.
• The U.S. Department of Housing and Urban Development’s HUD Exchange provides information about housing assistance.
• Rebuilding Together is a nonprofit service that provides free critical repairs to the homes of low-income people, particularly older adults or people with disabilities.
• Volunteers of America is a nonprofit that provides affordable housing.

Families who need to move out of their homes due to expenses associated with a diagnosis or ongoing medical care can talk with their county department of social services to find out if they qualify for low cost or government-supported housing programs.

Some states may list this service under the health department or welfare department.

Tips for reducing health expenses when you have a chronic health condition

Whether or not you qualify for assistance programs, reducing your current expenses may help you feel more comfortable with your finances.

Consider your insurance plan

Healthcare can be expensive, especially if you have a high out-of-pocket max or deductible.

If you have multiple healthcare plan options available to you, choosing the one that best fits your needs can save you money. Consider:

• if your plan covers all of your healthcare professionals in-network
• if your plan covers all of your prescription medications
• if another tier of plan may have a higher monthly cost but save more overall on an upcoming procedure (for example)
• if another tier of plan with a lower monthly cost may raise your out-of-pocket expenses, but still keep them lower than the expected yearly cost of the plan

If you can’t choose a different plan or your plan is already the best fit for your situation, make sure to follow its guidelines. Doing so can include only receiving care from healthcare professionals in your plan’s network, if it has one. This can help you avoid more expensive out-of-network prices.

Stay on top of medical bills and submit appeals

Keep all your medical documentation in one place and always review your bills.

You can deduct qualified medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI) when you file your taxes. Having your bills in one place can help you track your spending.

If you receive a denial for a service you believe should have been covered under your plan, be sure to file a timely appeal. You can also talk with your healthcare team to ensure everything was submitted correctly.

Keep track of any calls and conversations, including the date, time, who you spoke to, and what they said.

Seek out prescription savings

There are a few ways to save money on prescriptions.

You can often get a prescription for a generic version of a medication a doctor has prescribed for less than the brand-name version.

Using a mail-order pharmacy may also allow you to save money on your prescription costs.

If you have medications that aren’t covered by insurance, you may be able to use a manufacturer’s coupon or join a manufacturer’s drug savings program when buying them out of pocket.

Using a flexible spending account (FSA)

A flexible spending account (FSA) can help you save money by allowing you to pay for out-of-pocket medical expenses with pretax income. With these accounts, you choose a set amount of money to be withdrawn from your paycheck and added to the account. Then, you receive a debit card you can use to make eligible health purchases.

You can use these accounts to pay for:

• prescriptions
• copays for medical appointments
• over-the-counter medications, like acetaminophen (Tylenol), ibuprofen (Advil), and naproxen (Aleve)
• medical devices that aren’t fully covered by insurance

However, if you leave unused money in these accounts at the end of the year (or if your employment with a company providing one ends), the money stays with your employer.

Often, you have access to the full amount you commit to the FSA as soon as the account is active, and the money you contribute is taken out of each paycheck.

It’s best to read the fine details of your particular plan so that you know how it works.

General tips for reducing expenses

You may be able to reduce your non-health-related expenses through careful budgeting.

Budgeting involves knowing how you spend your money and setting reasonable limits by category to manage your spending better.

It may help you see trends in your income and spending that can inform areas to reduce costs.

Budgeting may lead you to consider:

• reducing subscription services, like streaming services, and relying on free library-provided streaming and physical media
• reducing food and grocery costs when you can by purchasing discount products or shopping wholesale
• maintaining a monthly budget for restaurants, takeout, and coffee shops
• relocating, if a high rent or mortgage does not allow you to save money, or if your financial circumstances have changed significantly since you moved into your home
• saving big purchases for during holiday sales

Tips for reducing food costs

You may be able to reduce some food costs by:

• making most of your meals at home
• consuming fewer processed foods, such as boxed cereals and packaged snacks, and swapping them for whole foods like oatmeal and fruit
• eating more whole plant-based proteins like beans, lentils, and tofu, and reducing your intake of meat and fish (which are usually more expensive per serving), if a doctor says that it is safe for you to do so
• eating more produce that’s in season and widely available, or growing some herbs and produce, if you can
• reducing food waste by freezing certain foods before their expiration date (such as bread, cut vegetables and fruits, and leftover meals)
• making multiple portions of meals and freezing leftovers for days you don’t feel like cooking (this can help you avoid ordering food or eating in restaurants, which is usually much more expensive)

Resources for specific chronic conditions

You can usually find financial assistance at national nonprofit organizations for specific chronic conditions. Organizations can include:

• The American Cancer Society (ACS) updates a list of resources for living expenses, like housing and food assistance, prescription drug assistance, transportation assistance, caregiver expenses, and other medical expenses like dental care, for navigating the financial costs of cancer care.
• The American Diabetes Association (ADA) offers guidelines on managing costs associated with diabetes care.
• The Multiple Sclerosis (MS) Foundation provides a list of resources for paying for living expenses and financial planning for people with MS.
• The Alzheimer’s Association offers a directory of resources on paying for dementia care.
• The American Kidney Fund provides a list of financial resources for people managing the costs of chronic kidney disease (CKD).
• The American Lung Association has a directory of resources for managing finances with chronic obstructive pulmonary disease (COPD).
• The American Heart Association (AHA) offers the FindHelp service, a health roadmap to help you get financial assistance for heart disease.

You may also be able to find help through government services.

However, it’s important to note that delaying care is not an effective way to save money when you have a chronic health condition. It can cause you to experience higher costs in the future and negatively affect your overall health, according to 2024 research.

If it is difficult to afford medical care, let your doctor know. They may also be able to refer you to local resources.

The bottom line

It can be more difficult to save money when you have a chronic health condition.

Guidelines on how much to save are typically intended for people without chronic health conditions and high healthcare spending. It’s OK to save whatever you can.

If you are having trouble paying for healthcare or living expenses due to a chronic health condition, financial assistance may be available, whether through the government, a national nonprofit organization, or a local organization.

You can talk with your doctor about your concerns, and they may be able to direct you to resources for your situation.