How Should I Prepare Financially When I Have a Chronic Health Condition?

Living with a chronic health condition brings distinct challenges that extend far beyond medical appointments and treatments. The financial burden can feel overwhelming: from mounting healthcare costs to potential income disruptions when symptoms flare. You’re not alone in wondering how to support your financial future while managing your health. Fortunately, with the right financial planning approach, you can build a plan that gives you confidence.

At Harvest Wealth Partners, we understand that managing finances with a chronic condition requires more than standard tips. We help clients create a personalized strategy that accounts for their specified healthcare needs and financial goals.

Understanding Your Financial Health

Financial literacy becomes even more critical when you’re managing a chronic condition. Just as you’ve learned to advocate for your healthcare needs, you must also become an advocate for your financial well-being.

Start by honestly assessing your current financial situation. List all income sources, monthly expenses (including medical costs), debts and any existing savings. This foundation helps you identify areas where you can adjust spending and build financial strength.

Managing Healthcare Costs Strategically

Healthcare expenses represent one of your biggest financial challenges, but smart planning can help you manage these costs more effectively.

• Utilize Your Insurance Benefits: Review your health insurance policy annually during open enrollment. Understand your deductibles, co-pays and out-of-network costs. If you have high medical expenses, a plan with higher premiums but lower deductibles might save money overall.
• Consider Health Savings Accounts: If you have access to a Health Savings Account (HSA), make appropriate contributions. HSAs offer certain tax benefits, such as deductible contributions and tax-efficient withdrawals for qualified medical expenses.
• Research Patient Assistance Programs: Many pharmaceutical companies and nonprofit organizations offer financial assistance for medications and treatments. Consider asking your healthcare providers about available programs.

Building Your Emergency Fund

An emergency fund becomes especially crucial when managing a chronic condition. Unexpected hospitalizations or changes in treatment can create financial stress beyond typical emergencies.

Aim to save six to nine months of essential living expenses—not your entire monthly budget, but enough to cover housing, utilities, food, medications and minimum debt payments. Start small if necessary. Even $25 per month builds momentum.

Store emergency funds in a high-yield savings account or money market account where you can access money quickly but won’t be tempted to spend it on non-emergencies.

Managing Debt and Creating Positive Financial Flow

Debt becomes more burdensome when managing chronic illness. High-interest credit card debt can quickly spiral out of control when medical expenses strain your budget.

Create a debt management strategy by listing all debts, their interest rates and minimum payments. Focus extra payments on the highest-interest debt while maintaining minimums on others. Once the first debt is addressed, apply that payment to the next highest-interest debt. Positive financial flow, or having more money coming in than going out, provides breathing room for unexpected medical expenses.

Sound Investing for Long-Term Performance

Don’t let your chronic condition prevent you from building long-term wealth through investing. While you may need more accessible emergency funds than someone without health challenges, you still need investments that outpace inflation and build wealth over time.

Work with a financial advisor to create an investment strategy that balances your need for liquidity with long-term growth potential. Consider investments that provide a buffer against inflation, as healthcare costs historically rise faster than inflation.

Building Your Future with Proper Planning

Estate planning becomes more urgent when managing chronic illness, but it doesn’t have to be expensive or complicated. Essential documents may include:

• Advance Directives and Medical Powers of Attorney: These make it so that your healthcare wishes are followed if you become unable to communicate them yourself.
• Financial Power of Attorney: This allows someone qualified to handle financial decisions if you’re incapacitated.
• HIPAA Release Forms: These permit designated people to discuss your medical care with healthcare providers, which is crucial for adult children or spouses who need to coordinate care.
• Special Needs Trusts: If your condition may eventually require government benefits, proper trust planning can conserve assets while maintaining benefit eligibility.

Seek Guidance from Harvest Wealth Partners

Managing finances with a chronic health condition requires proactive planning, but it’s possible with professional assistance. The key is starting where you are and building systematically toward sound financial performance.

You don’t have to navigate this journey alone: Harvest Wealth Partners offers the insight you need. Take the first step by scheduling a consultation to discuss how proper financial planning can support both your health and your financial goals.

Investing includes risks, including fluctuating prices and loss of principal. No strategy assures success or protects against loss. 

LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A. an affiliate of LPL Financial.

Harvest Wealth Partners and LPL Financial do not provide legal advice or services.  Please consult your legal advisor regarding your specific situation.​