It’s a no-brainer that everyone should save on healthcare costs. But many people don’t, and they end up paying the price. Healthcare is expensive, and it only gets more expensive every year. Plus, you never know when you might need it. That’s why it’s crucial to start saving for healthcare costs as soon as possible. Read on to know why.
Healthcare costs are rising
The rising cost of healthcare is a major concern for many Americans. Due to inflation, the cost of healthcare has been rising steadily for years, and there’s no sign that it will stop anytime soon. This means that even if you have health insurance, your out-of-pocket costs are likely to go up over time.
For example, let’s say you have a $20 co-pay for your doctor visits. If healthcare costs rise by just 3% each year, in 10 years that co-pay will jump to $26. And in 20 years, it will be $33. That may not seem like a lot, but it can add up over time – especially if you need to see the doctor often.
In addition, as you get older, you’re likely to need more medical care. This is due to both the natural aging process and the fact that chronic conditions tend to develop later in life. So even if healthcare costs only go up by a little bit each year, over time they can take a big chunk out of your budget.
Insurance may not cover all healthcare costs
Even if you have insurance, it may not cover all of your healthcare costs. One reason is that many insurance plans have high deductibles. This means that you have to pay for a certain amount of your healthcare costs yourself before your insurance will start covering them. For example, if your deductible is $1,000, you’ll have to pay the first $1,000 of your healthcare costs yourself.
There are certain health procedures that insurance companies may not cover, such as cosmetic surgery or fertility treatments. For example, getting dental implant treatments are only partially covered by your health insurance. This means that you’ll still need to pay a part of the cost yourself.
Additionally, if you have a high-deductible health insurance plan, you will be responsible for paying a large portion of your healthcare costs out-of-pocket. So even if you have insurance, you could still be on the hook for a significant amount of money when it comes to your healthcare costs.
That’s why you should be aware of what your health insurance policy covers and doesn’t cover so that you can plan accordingly. You may need to supplement your health insurance with a healthcare savings plan to fully cover all of your potential healthcare costs.
You never know when you’ll need medical care
Even if you’re healthy now, you never know when you might need medical care in the future. An unexpected illness or injury can happen at any time, and if you’re not prepared for it, it can throw your finances off track.
For example, let’s say you get into a car accident and go to the hospital. If you don’t have health insurance, you’ll be responsible for the entire cost of your medical care – which could easily add up to thousands of dollars. This causes a lot of financial stress when you’re already dealing with the physical and emotional stress of an injury.
Or let’s say you develop a chronic illness such as cancer. Treatment for a serious illness can be very expensive, and if you don’t have health insurance or enough savings to cover the costs, it can put a real strain on your finances.
No one knows when they’ll get sick or injured, so be prepared for the possibility that you’ll need medical care at some point in your life. If you don’t have health insurance, saving for healthcare costs can help you pay for the care you need without putting your finances in jeopardy.
No guarantee from the job
In the past, employer-sponsored health insurance was the most common way for Americans to get health coverage. But with the rise of the gig economy, that’s no longer the case.
More and more people are working freelance or part-time jobs that don’t offer health insurance benefits. This means that they have to either purchase their health insurance or go without coverage.
Additionally, even if you do have a full-time job with health insurance benefits, there’s no guarantee that your job will continue to offer those benefits in the future. If your employer decides to cut costs by eliminating health insurance, you could be left without coverage.
So even if you have health insurance through your job now, it’s essential to be prepared for the possibility that you could lose your coverage in the future. You may need to purchase your health insurance or save for healthcare costs to be protected in case you lose your job-based coverage.
Saving for healthcare costs can help ensure that you have the money you need to pay for medical expenses, whether they are unexpected or not. Starting early is the best way to ensure you have enough saved up.