Taking care of your health shouldn't come with financial worries. It's open enrollment season! This is your chance to reassess your health plan, whether through an exchange, your employer, or Medicare. Now's the time to evaluate if your current plan suits you and your family. With soaring healthcare expenses, it's crucial to monitor your spending on medical services and see if you've been caught off guard.
Healthcare costs have risen significantly, with a 5% increase in medical expenses reported this year. Given that healthcare costs have been climbing for years, you should expect even more out-of-pocket expenses ahead. Research indicates that most people underestimate their healthcare spending. While individuals predict around $850 annually, the actual figure can be about $2,100 — that's a staggering 145% more than anticipated.
This data is highlighted in the Lifetime of Healthcare Costs report by a leading financial services company specializing in healthcare financing. In a recent discussion, the CEO of the Health & Wellness branch delves into these findings and shares strategies for preparing for healthcare expenses. This company manages a network of 260,000 healthcare providers and offers a medical credit card to assist patients with deductibles and treatments.
Join us as we explore why many fail to set aside adequate funds for healthcare, leading to potential medical debt. A study in the Journal of the American Medical Association revealed that Americans are burdened with $140 billion in unpaid medical bills. One key issue is our approach to healthcare costs. Even if expenses vary yearly, it's wise to anticipate them. We suggest treating healthcare savings like any major expense — consistently setting aside money.
We also discuss two effective saving methods: health savings accounts (HSAs) and flexible spending accounts (FSAs). Our experts explain how to utilize both, their differences, and tips for withdrawing funds. Additionally, we touch on healthcare financing options, detailing how they function, who qualifies, and important information regarding deferred interest.
In our Mailbag segment, we address queries about managing a family member's mortgage and the search for a forensic accountant. Lastly, in Thrive, we reveal insights from our State of Women 2022 study, which indicates that women are increasingly saving, taking charge of their finances, and prioritizing mental health.
