Healthcare is EXPENSIVE. I’m fairly certain we all know that, but it is something I was reminded of last week.
Since moving to Greensboro, my wife, Ashley, and I have scheduled several doctor’s appointments to build relationships with new doctors and make sure our health is where it needs to be. After one of the appointments, my wife received a prescription for a minor issue she has been dealing with.
When we got to the pharmacy, we were blown away by the cost of the medication – over $1,000 before insurance. And still over $500 even after insurance! It was quite an eye-opening experience.
Luckily for us, we have both been contributing to an HSA account for several years and had money saved up in those accounts in case something like this happened.
An HSA is an abbreviation for Health Savings Account. Many healthcare plans have the option for participants to contribute to these accounts through a payroll deduction. The money that is put into the HSA goes in before taxes are taken out, and if the money is used for medical expenses (like this was for us) the money comes out of the account tax-free. It can be a great tool to help save money for medical expenses- whether they are unexpected or routine!
Because we contributed money to our HSA account, we were able to afford the prescription without impacting our monthly budget. But if it were not for that HSA account, it would have been much harder to swallow an unexpected $500 expense!
That is why I love HSAs!
If you are interested in learning if you can contribute to an HSA or learning more about them- we would be happy to talk. At Plybon & Associates, we frequently work with business owners on setting up healthcare plans for their employees and would be happy to share some of that experience with you!
| TREY ERB, CFP® ,CFS