I often hear that it is dangerous not to have health insurance. If you are injured and require extensive treatment in a hospital or rehabilitation facility, the costs can be truly devastating without some form of coverage.
But let's be clear: Having health insurance does not guarantee that you will receive affordable health care. In fact, a new report shows that a significant 45% of insured Americans have avoided medical care because they knew or feared their health insurance would not cover the cost. Research by Policygenius. And that's a big problem.
We cannot afford to let health problems escalate.
There are two problems with avoiding medical care. First, you run the risk of worsening certain problems and impairing your health. Also, if you don't seek treatment early when you have a health problem, you run the risk of the problem escalating to the point where treatment becomes more expensive.
That's why it's so important to set aside money for medical expenses. It's not always easy, but doing so will ensure you have funds available when you need them. And there's no need to risk worsening your situation, both physically and financially.
The best way to save on medical costs
When it comes to setting aside money for medical expenses, you have options. Just add more money to your savings account. However, you can also donate to an account where the amount you deposit is tax deductible.
One option is to put your money in a Flexible Spending Account (FSA). If you incur medical expenses, you can make withdrawals as needed. Be careful with FSAs. These plans are usually run on a spend-it-or-lose basis, and the money you put in isn't carried over from year to year. If you contribute too much in a particular year, you risk having your unused funds forfeited.
Another option to consider is a Health Savings Account (HSA). These accounts are similar to his FSA, except he doesn't have to max out his plan balance every year. In fact, it's best not to do so if possible, as an HSA allows you to invest your balance tax-free, allowing that balance to grow into a larger amount over time. The only catch is that with an HSA, your health insurance must follow certain rules to qualify. And these can change from year to year.
To qualify for an HSA in 2024, you'll need a deductible of at least $1,600 for personal coverage and $3,200 for family coverage. Additionally, your out-of-pocket expenses must be capped at $8,050 for him for self-only coverage and $16,100 for her for family coverage.
How much should you save on medical costs?
how many One of the criteria you should work on to save money is to save enough money to meet your health insurance deductible. In the aforementioned survey, 28% of people with health insurance said they could not afford their deductible. But by saving that much money, you're giving yourself some protection so you don't have to give up when health problems arise.
A deductible is the amount your health insurance company must pay before it can receive your treatment. Once you meet your deductible, it doesn't necessarily mean you'll have to pay for your medical bills for the year, but in many cases, your insurance will cover them from there, so the costs won't be as high. It comes with something even better. However, at least saving on your deductible is a good start.
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