Patients seeking financing for Lap-Band surgery must often rely on private loans or self-financing. The costly procedure is not always covered by health insurance. Lap-Band surgery is the registered trademark for a specific type of bariatric, or weight-loss, surgery for obese individuals. It is also known as adjustable-banding surgery. During the Lap-Band procedure, a surgeon places a silicone band across the upper stomach, drastically restricting the size of the stomach. According to the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK), bariatric surgery costs ranged from $20,000 to $25,000 in 2009. Lap-Band surgery can cost up to $5,000 more, depending on geographical location.
Private Health Insurance
The total cost of Lap-Band surgery has several components, including physician fees, anesthesia costs, and post-surgical therapy and medication costs. Patients with private health insurance should contact their insurance company to inquire what, if any, of those costs are covered. If the insurance company denies the procedure, inquire about the company's appeals process and request an appeal of the decision. Prior to approving the surgery, insurance companies that cover bariatric surgery will typically require six months of detailed medical history from the patient's primary medical care provider.
Medicare and Medicaid
Since 2006, Medicare and Medicaid, two government programs serving the nation's elderly and poor, have expanded their coverage for bariatric surgery.
"Bariatric surgery is not the first option for obesity treatment, but when performed by expert surgeons it is an important option for some of our beneficiaries," CMS Administrator Mark B. McClellan, M.D., Ph.D., said in a news release dated February 21, 2006.
In 2010, Medicare covered the cost of laparoscopic adjustable-banding surgery for beneficiaries who had a minimum body mass index (BMI) of 35 and also suffered from an obesity-related illness, such as diabetes.
Care Credit
Care Credit is a financing company that specializes in providing funding for medical procedures. Patients utilizing a Care Credit line of credit can avoid paying finance charges if the loan is paid off in the agreed upon time, normally six to 24 months. Payments can be extended up to 60 months. Approval is based on a patient's credit history, although co-signers are allowed. Not all physicians or health care facilities accept Care Credit. Those that do will accept Care Credit to pay the entire cost of Lap-Band surgery or just insurance deductibles and co-payments.
Retirement Savings Loan
Many retirement plans, such as 403Ks or 403Bs, offer loan options to investors. Loan programs differ, but most require that interest be paid on the loan. However, because an investor is in essence borrowing from himself, any interest payments will be returned to the retirement plan. If the loan is not repaid in full, the Internal Revenue Service will treat the loan as a disbursement and charge an early withdrawal penalty.
Credit Card Financing
Understandably, some patients may be hesitant to finance the cost of Lab-Band surgery with a credit card. Prior to making a decision, it is important to compare the credit card finance cost to the personal cost of morbid obesity. A 2009 Rand Corporation study by Roland Sturm, Ph.D., found that obese individuals spend 36 percent more on health care costs than non-obese individuals. Sturm is a health economist with the Rand Corporation, a nonprofit research group. Obese individuals may also suffer financially from lost wages due to health issues.
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