Jul 8, 2019
Today we’re going to discuss whether or not a high deductible plan with a health savings account is really an affordable option for your family!
When we talk about optimizing expenses here on Simplify and Enjoy there are a few ground rules.
- Personal finance is personal so your budget will reflect your family’s priority and goals.
- Find ways to automate the tedious stuff because you have better ways to spend your time.
- Talk about money regularly and see it as a tool, not the goal.
- We focus on the big wins. So while I do recommend shifting small habits, I’m not going to spend a ton of time telling you to skip the lattes, avocado toast, or whatever the personal finance police are harping on.
If you’re limited on time and mental bandwidth – which is the default for many parents and families – I highly recommend you focus in on big wins.
Look at those big monthly bills that eat up a good chunk of your paycheck.
Of course, it varies by family, but there are some expenses that typically top many families’ list including:
- Housing
- Transportation
- Food
- Childcare
- Health Insurance
And they each deserve their own episode. Today we’re discussing health insurance.
Finding Affordable Options for Heath Insurance
How much are you paying for health insurance?
According to Milliman Medical Index report, a typical family of four’s estimated health insurance costs (including employer contributions) were over $28,000 for 2018.
The average monthly premiums for a family of four is around $1,200.
Now listen, I’m not telling you to skimp or skip on health insurance, because it’s essential.
One trip to the ER can set you back if you’re not covered.
But is there a way to keep it affordable?
One option you may have heard about or seen offered at work is a high deductible plan along with a health savings account.
You see the lower premiums and you might immediately think, ‘this is awesome’, but is that really the case?
When we were looking at our own plans during open enrollment last year I did some digging and chatted the pros and cons with financial planner Michael Dinich.
Joe Meccas from Coastal also was kind enough to share his process for deciding to sign up for the HDHP and HSA.
In this episode we’re looking at:
- How high deductible plans and HSAs work
- Some scenarios to consider before you make the switch
- How to run the numbers and find out if’s right for you
Let’s get started!
Thank You to Our Sponsor Coastal!
Support for this podcast comes from Coastal Credit Union! If you’re living in the Raleigh Durham area and looking to bank better, come check out Coastal today.
If you have a high deductible health plan, you may be able to open a health savings account with them!
Resources to Save Money on Healthcare
Are you looking for more help with keeping health care within your budget? Here are some resources:
- Best Budget and Money Apps: Personal
Capital, Tiller, Mint
Grow Your Stash Faster: High Yield Savings with CiT Bank
Automatic Saving: Qapital
Free 401(k) Analysis: blooom - Work with Michael: He’s a certified financial planner who specializes in assisting families to navigate their health care options.
- How to Save Money on Your Health Insurance and Expenses
- Hack the Affordable Care Act Guide
- Why We’re Switching to a High Deductible Health Plan
- How to Spend Less on Insurance
- Save Money on Health Insurance
Support the Podcast!
Thank you so much for listening to the podcast! If you enjoyed this episode and found it helpful, here are some ways to support it.
- Spread the word! If you enjoyed this episode and think it can help a buddy get on the path to dumping debt and become financially free, please share.
- Leave a review. Honest feedback and reviews make a big difference and gets the word out about the podcast. Leave your review on Apple or Stitcher.
- Grab a copy of Jumpstart Your Marriage and Your Money. My book is designed for a busy couple to set up their finances in 4 weeks. Get tips and tools that have worked for other couples on their journey of building their marriage and wealth together!
Music Credit
Like the music in this episode? Our theme song is by Gentle Regime. Additional music by Lee Rosevere.