Calculate the Total Cost of Your Health Plan
How much do you pay for your health insurance? If you think of your health insurance costs in terms of monthly premiums alone, you are overlooking many potential costs.
Right now, for example, I have an Affordable Care Act Bronze plan with a $ 442.83 monthly premium and a $ 6,200 deductible.
This means that I could pay a total of $ 11,513.96 – a $ 6,200 deductible plus $ 5,313.96 in premiums – before my insurance company begins to cover any of my health care costs. services.
I may end up paying less if I don’t have as many medical expenses or if my adjusted gross income allows me to still be eligible for the premium subsidy.
But in theory I could pay the full $ 11,513.96.
In fact, I might even pay $ 12,063.96 – that’s $ 5,313.96 in premiums plus my maximum cash of $ 6,750. Remember, just because you paid your deductible in full does not mean you are not at risk of paying for medical expenses. It simply means that your insurance company will start paying for a portion of your health care costs, excluding co-insurance or copayments, until you reach your cash limit.
Then, in theory, you have paid whatever you need, and insurance will cover the rest.
Unless, of course, you go to the doctor outside the network. Or you are being treated by an out-of-network doctor in a network hospital. Or get any other medical, visual, or dental care that is not covered by your plan.
Many people won’t even come close to hitting the cash cap, but it’s still worth adding up whatever you might end up paying for on-net health insurance, especially if you’re trying to choose between multiple insurance plans. ( Business Insider’s Zachary Tracer has a great article on how he did it – and how it helped him find the best plan for his health and financial situation.)
It is also worth considering whether you want to enroll in a health savings account or HSA; this will allow you to deposit pre-tax dollars for health care costs and, if you wish, invest those dollars in the stock market. Any HSA money that was not spent on health care can be used towards your pension if it is still in your account when you turn 65.
So. How much will your health insurance cost if you maximize your out-of-pocket expenses? Can you cover these costs? My HSA balance is currently $ 4,036.49, which means I will have to spend money in my emergency fund before I can cover my maximum cash of $ 6,750 – and yes, I know I’m lucky to be making money. enough to have savings on HSA. and a reserve fund.
And you?