If you’ve been battling weight gain, you’re not alone. According to the Centers for Disease Control and Prevention, more than one-third of adults in the U.S. have obesity. That extra weight can cause other health conditions, such as heart disease, stroke, and diabetes.
Bariatric surgery can be a literal lifesaver if you have obesity, but it’s expensive, and not all insurance plans cover it. If you’re considering a procedure, here’s how to pay for bariatric surgery without insurance coverage.
How to pay for bariatric surgery without insurance
The cost of weight-loss surgery depends on a number of factors, including your location, the hospital, the surgeon’s fees, and the type of procedure. According to Obesity Coverage, a bariatric surgery information site, the average cost of lap-band surgery is $14,500, while gastric bypass costs an average of $23,000.
The price tag might be gulp-inducing to you, and that’s understandable; it’s more than some new cars cost. However, it can be well worth the investment. The American Society for Metabolic and Bariatric Surgery reported that weight-loss procedures could help prevent major health issues and extend your life span.
Bariatric surgery is one of the few cases where going into debt is a good idea because of what it can do for your health and happiness. Thankfully, there are six financing options available to help make the cost more manageable.
1. Secured medical loan
According to Bariatric Surgery Source, one common source of financing is a secured medical loan. A secured medical loan is a loan you guarantee with collateral, such as your home or car.
Depending on the value of your collateral, you can borrow up to the full cost of your procedure. Because you have to secure the loan with collateral, you often can qualify for lower interest rates than you would with other types of loans. Plus, you typically have as long as 10 years to repay the loan.
Most banks and credit unions offer secured medical loans, but you also can compare rates by using an online broker like MyMedicalLoan.com.
Before applying for a loan, make sure you can afford it. If you fall behind on your payments, the lender can seize your collateral.
2. Hospital payment plan
Depending on the hospital you choose for your surgery, you might qualify for a payment plan. Some hospitals allow you to spread out the cost of surgery over the course of several months or even years, often at low interest rates. To find out if your hospital offers payment plans, contact its billing department.
3. 401(k) loan
Although raiding your retirement fund isn’t ideal, it can make sense in some situations, such as for medical procedures. If you’re considering bariatric surgery, taking out a retirement plan loan can help you achieve your goals.
When you take out a 401(k) loan, you borrow money from yourself. You take out the desired amount, and then you make monthly payments on the loan with interest. With a 401(k) loan, you typically can borrow up to $50,000 or 50% of your vested account balance, whichever is less. You might have to pay set-up and maintenance fees too.
There are some downsides to consider before taking out a 401(k) loan. While the loan is in repayment, you lose out on account growth, which can end up costing you thousands over time. If you leave your job or get laid off, you have until the due date of your federal tax return to repay the loan; otherwise, you’ll have to pay taxes or penalties on the amount you borrowed.
4. CareCredit
CareCredit is a credit card you can use only for qualified medical expenses. If you can afford a repayment term of 24 months or less, you’ll pay no interest as long as you pay off the balance in full within the promotional period.
However, it’s important to read the fine print before paying with CareCredit. If you don’t pay off the balance during the promotional period, CareCredit will charge you interest from the original purchase date, so you’ll lose out on the 0% interest offer entirely.
You can opt for a repayment period as long as 60 months, but then the interest rate is similar to other credit cards.
5. Health savings account
If you have a high-deductible health insurance policy, you likely qualify for a health savings account (HSA). An HSA works like a personal savings account, but the funds can be used only for health-related expenses, such as bariatric surgery. As of 2018, you can contribute up to $3,450 per year to an HSA if you’re single.
An HSA can be a more cost-effective tool than a personal savings account. HSA contributions are taken out of your pretax paycheck, lowering your taxable income. Plus, any interest that accrues on the account is also tax-free, and if you use the money for eligible expenses, the withdrawals are tax-free too.
Unlike flexible spending accounts, HSA savings roll over to the next year if you don’t use the money. That’s why an HSA can be a useful way to save and pay for your surgery.
6. Personal loan
If you have good credit, taking out a low-interest personal loan might be a smart option. Unlike secured medical loans, personal loans typically don’t require collateral, so you don’t have to risk your home or other valuables.
Depending on your credit history and income, you can borrow anywhere from $1,000 to $100,000 and have up to seven years to pay it off. If you qualify for a low interest rate, a personal loan can be a cost-effective tool you can use to move forward with your weight-loss procedure.
However, applying for a personal loan makes sense only if you have good credit. Otherwise, you could get hit with interest rates as high as 35.00%, adding thousands to your surgery’s cost.
For example, pretend you took out $23,000 to pay for gastric bypass surgery and qualified for a five-year loan at 5.00% interest. Over the course of your repayment period, you’d pay back $26,042. By contrast, if you took out a $23,000 loan and qualified for a five-year loan at 35.00% interest, you’d pay back a staggering $48,977. Thanks to interest charges, you’d end up paying more than double the surgery’s cost.
If you decide to move forward, compare offers from personal loan lenders to ensure you get the best rates.
Preparing for your procedure
Undergoing weight-loss surgery is a huge decision. It can be an invaluable investment in yourself and your health. If you’ve been wondering how to pay for bariatric surgery without insurance, it’s important that you understand all your options so you don’t end up overwhelmed with debt.
Interested in a personal loan?
Here are the top personal loan lenders of 2018!| Lender | APR Range | Loan Amount | |
|---|---|---|---|
1 Includes AutoPay discount. Important Disclosures for SoFi. SoFi Disclosures
2 Includes AutoPay discount. Important Disclosures for Payoff. Payoff Disclosures
3 Important Disclosures for FreedomPlus. FreedomPlus Disclosures
4 Important Disclosures for Citizens Bank. Citizens Bank Disclosures
5 Important Disclosures for LendingPoint. LendingPoint Disclosures
6 Important Disclosures for LendingClub. LendingClub DisclosuresAll loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer. 7 Important Disclosures for Earnest. Earnest Disclosures
8 Important Disclosures for Avant. Avant Disclosures* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC. ** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33 * Important Disclosures for Upgrade Bank. Upgrade Bank Disclosures* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements. ** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days. |
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 | 7.73% – 29.99% | $1,000 - $50,000 | Visit Upstart |
 | 5.81% – 15.37%1 | $5,000 - $100,000 | Visit SoFi |
 | 6.87% – 35.97%* | $1,000 - $50,000 | Visit Upgrade |
 | 8.00% – 25.00%2 | $5,000 - $35,000 | Visit Payoff |
 | 4.99% – 29.99%3 | $10,000 - $35,000 | Visit FreedomPlus |
 | 5.99% – 18.99%4 | $5,000 - $50,000 | Visit Citizens |
 | 15.49% – 34.49%5 | $2,000 - $25,000 | Visit LendingPoint |
 | 6.16% – 35.89%6 | $1,000 - $40,000 | Visit LendingClub |
 | 5.49% – 18.24%7 | $5,000 - $75,000 | Visit Earnest |
 | 9.95% – 35.99%8 | $2,000 - $35,000 | Visit Avant |