TL/DR –
A survey by Policygenius found that 45% of insured Americans have avoided medical care due to cost fears. To cover these costs, the article suggests setting aside money specifically for healthcare expenses, possibly in a flexible spending account (FSA) or a health savings account (HSA). The article also recommends saving at least the amount of the health insurance deductible as a benchmark.
You can’t afford to let health issues escalate
Uninsured individuals risk catastrophic medical bills, yet even those with health insurance may avoid treatment due to cost concerns. A Policygenius survey reveals 45% of insured Americans have dodged medical care, fearing insufficient coverage. Avoiding treatment not only threatens your health but could also lead to pricier future treatments.
The best ways to save for healthcare costs
Setting aside funds for healthcare expenses can prevent worsening health and financial conditions. You could increase your savings account balance, but for potential tax benefits consider a flexible spending account (FSA) or a health savings account (HSA). An FSA allows for tax-free withdrawals, but unused balances typically don’t roll over. HSAs, similar to FSAs but without the use-it-or-lose-it rule, let you invest for tax-free growth. However, HSA eligibility requires a specific minimum deductible and out-of-pocket maximum.
How much to save for healthcare costs
An ideal savings benchmark could be your insurance deductible. With 28% of insured Americans confessing they can’t afford deductibles, saving this amount can protect you from ignoring health problems. Your deductible is the sum you cover before your insurer steps in. Saving beyond this deductible can better prepare you for the remaining, often less substantial costs once your insurance takes effect.
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