There are other reasons you might face a big medical bill early in the year. Researchers pointed out that high bills during that time period could reflect policyholders paying off their plan deductible before coverage kicks in.
But using tax refunds to cover medical bills or debts didn’t necessarily improve families’ bottom line. A year after an emergency medical payment, almost half of families still had depleted savings and a third still had elevated credit card debt.
“Even with more money in their pocket from tax refunds, the strain of major and unexpected medical costs are hitting families hard and making it difficult for them to recover,” Diana Farrell, president and chief executive officer of the JPMorgan Chase Institute, said in the press release.
Here are some resources from CNBC’s personal finance team on precautions that can help you limit the impact of an emergency bill:
4 great ways to head off a financial shock
Where to stash your emergency fund in a low-yield world
Time to start an emergency fund