How to Budget For Good Healthcare
Healthcare costs can be astronomical in the United States. For many Americans that do have health insurance, just meeting the deductible can put their home budget in a tailspin. Many people are looking for ways to lower their cost of healthcare without sacrificing the quality of their healthcare. With a few simple steps, you can find ways to make healthcare more affordable for you and your family members.
The Statistics are Daunting
Even if you are in good health right now, the statistics that you will never need healthcare for chronic illness are against you. It is estimated that four out of five older Americans will have at least one chronic condition that they will have to deal with. Heart disease, osteoporosis, and arthritis are all on the rise. About 50% of people that have a chronic condition are battling two conditions.
Unfortunately, the odds are stacked against you when it comes to making it through life without ever having to worry about healthcare costs. The scary part is that many older adults are forced to sell their family homes to cover those costs. Proper planning is essential when it comes to managing healthcare costs.
If you have kids, it is even more important to consider how you will get quality healthcare without having to sell your home. About 4.6% of kids between the ages of five and 11 years old have missed 11 or more school days in the last year because of an illness or injury. This can be scary to face, but don’t panic. There are things you can put into motion right now that are going to help you save on costs without giving up quality care.
Start a Health Savings Account Now
A health savings account is completely tax-deductible and can be just the cushion you need to pay for medical costs. An HSA is an easy way to put money away to address costs and benefit from the tax advantages.
These accounts can roll over indefinitely, so what you do not use this year you can use next year. Think of it this way, when you are setting up your home budget, you put money into different accounts to cover things like monthly bills, emergency funding, and perhaps to save on upgrades. You can do the same thing with your health care costs except it is a single account.
An HSA makes it a lot easier to have money there when you need it. For example, if the child needs braces, you can make the payments right from your HSA. The American Association of Orthodontists recommends that children see the orthodontist as early as seven years old.
Compare Costs
When you need repairs to your home, do you call just a single contractor, or do you meet with a few? You are likely to meet with a few contractors to compare costs. Why not do the same thing with your healthcare? Very few people will “doctor shop” based on costs, but they should. Costs can vary tremendously from doctor to doctor. Most people will call and ask about insurance acceptance but never really ask about their co-pay for the services.
Shopping around for a provider that can suit your budget is an easy way to find some savings. You would never just hire someone to make repairs to your home without doing your due diligence. Do the same with your health care.
Look Closer At Your Health Insurance
Most people do not look close enough at their health insurance plan. Most people do not look close enough at the insurance they have for their home or their car. Paying high premiums with high deductibles does not make good financial sense. Perhaps you can move your health plan to a catastrophic plan and pay out-of-pocket for regular checkups.
Your Kids May Qualify for Medical Assistance
For kids, household income limits are higher so more kids can qualify, at least in Minnesota. While you may not qualify for medical assistance for yourself, your kids may qualify. Check your state’s income limits. If they qualify, you may be able to cut a lot of your healthcare costs.
Did you know that medical providers give you a deep discount when you pay in cash? You must weigh your options to see what the best value is for you and everyone else in your home. With some planning and a closer look at your health care needs, you can make health care more affordable for everyone in your home. Make this the year you get costs under control.