The Annual Cost of Healthcare
It Pays to Know!
How much will you spend on health care next year? WhatÖyou donít know? Your crystal ball just isnít that clear?
You may be surprised to know that, barring an unforeseen accident or onset of a serious disease, you can probably estimate your cost for medical care next year pretty closely.
Why, you may ask, would you want to know? Understanding how much healthcare you and your family usually purchase allows you to compare insurance plan features that may help your healthcare dollars work harder.
When employees consider the cost of health care, what first comes to mind is the premium thatís deducted from their paycheck. Secondly, most people think of their deductible. These are not, however, the whole costs. To understand your annual healthcare costs, include the following:
- Annual premium contributions
- Annual deductible payments
- Co-payments for doctor visits, emergency room visits, in-patient hospital stays
- Co-payments for prescription drugs
- Co-insurance amounts (if your insurance plan pays 80% of the charge, youíre responsible for 20%.)
- Tax impact of these purchases. Your money works harder for you when itís not subject to taxation. If you are paying any of these costs with after-tax dollars, there is an additional cost to you for doing so.
Knowing your medical spending history in advance can help you better compare medical plan options. So, put pencil to paper and get closer to your expected annual medical costs. Itís the ONLY way to make sure your medical plan choice is working for you!