Healthcare costs are one of the necessary expenses that have become increasing expensive over the years. Budgeting for these expenses vary greatly by person because of their individual health and the quality of the health insurance that they have.
How much to budget – Individual health aside, I suggest budgeting based on the details of your individual health plan. I suggest saving somewhere between the deductible and out-of-pocket max per year. For example, if your health insurance has a $1,200 deductible and $4,800 out-of-pocket max, saving at least $100/month but no more than $400/month would be wise. I personally save half of the out-of-pocket max per year and once I get to the out of pocket max, I stop saving for healthcare until I incur more expenses.
What is included – Anything covered by your insurance plan.
What is not – Anything not covered by your insurance such as elective procedures
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified investment, tax or legal advisor. All of these examples are estimates and should be taken as such. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual.