45% of Americans with health insurance still avoid treatment because of cost.

You will often hear that going without health insurance is dangerous. If you suffer an injury or require extensive treatment at a hospital or rehabilitation facility, you could be looking at truly catastrophic bills without any kind of coverage.

However, it is important to make clear that having health insurance does not guarantee that medical care will be affordable. In fact, a new survey from Policygenius found that 45% of insured Americans have avoided health care because they knew or feared their health insurance would not cover the costs. And that’s a big problem.

We cannot allow health problems to escalate.

The problem with avoiding medical care is two-fold. First, if certain problems worsen, there is a risk of harm to your health. And if you don’t get 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 really important to set aside money for medical expenses. It’s not necessarily easy, but doing so will ensure you have funds available when you need them. And there’s no need to risk things getting worse physically or financially.

The best way to save on medical expenses

When it comes to setting aside money for medical expenses, you have several options. Just add more money to your savings account. However, you may want to donate to an account that offers a tax break on the money you put in.

One option is to put your money into a flexible spending account (FSA). If medical expenses arise later, you can withdraw them as needed. Be careful with FSAs. These plans typically operate on a availability basis and the amount invested does not carry over from year to year. If you donate too much in any given year, you risk forfeiting any unused funds.

Another option to look at is a health savings account (HSA). This account is similar to an FSA, but you don’t have to spend the plan balance each year. In fact, it’s better not to do that if possible. That’s because HSAs allow you to invest your balances tax-free, allowing them to grow into larger sums over time. The only problem is that with HSAs, your health insurance must adhere to certain rules to qualify. And this can change from year to year.

To qualify for an HSA in 2024, you’ll need a deductible of at least $1,600 for a self-only policy or $3,200 for a family policy. Your out-of-pocket limit should be limited to $8,050 for self-only coverage and $16,100 for family coverage.

How much should you save on medical expenses?

As far as many One criterion to consider for saving is having enough money saved to meet your health insurance deductible. In the aforementioned survey, 28% of people with health insurance said they could not afford their deductibles. But saving that much can help protect yourself and ensure that you don’t have to ignore and resign yourself to health problems when they arise.

Your deductible is the amount you must pay before your health insurance company picks up the tab for your treatment. Meeting your deductible doesn’t necessarily mean you’ll have to pay any medical bills for the year, but the costs are often not as significant after that because insurance coverage kicks in. So if you can save more than your deductible, it entails something better. But saving at least your deductible is a good start.

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