Insights

Posted on August 2, 2018

Health is Wealth

Blog

Published by Taylor Financial Group

At the end of the day, we all strive to be healthy. I do my best to stay healthy by jogging, lifting weights, and eating foods that are good for my body. However, remaining healthy goes much deeper than this.And, since health care can become quite an expensive burden, it’s important to make every effort you can to stay as healthy as possible. Here are 5 tips to help you save on health care. After all, health is wealth, right?

 If you are healthy, consider a high-deductible health insurance plan. The difference between a high deductible plan and a low deductible plan can be significant.  For instance, a family premium on a typical employer-offered low deductible plan could be $467, compared to a high deductible plan at a premium of $321. This strategy can pay off (even if you aren’t in tip top shape) as long as you have enough cash on hand to cover the higher deductible.

 

Consider investing your savings into a HSA (Health Savings Account). One of the benefits of having a high deductible plan is that you can take those savings and open an HSA. This gives you the opportunity to set aside annual pretax dollars (up to $6,550) for medical expenses now and in the future! Plus, once you’re retired, you can withdraw the HSA money tax free for Medicare premiums and other medical expenses (it’s a win-win situation!). In fact, HSAs are beginning to be looked at as another form of retirement account.

Check if your employer offers wellness incentives.  Many large companies offer wellness programs that give financial incentives to participate in actively improving your health, like gym memberships, annual medical tests, etc. (make sure to ask your employer!). Imagine earning money for running on the treadmill or getting your cholesterol checked! The average employee wellness incentive can add up to $742! For example, TFG reimburses gym memberships up to $376 per year! That’s a lot of “free” money.

Sign up for Medicare on time.  Don’t be that person who’s always late, especially not when it comes to signing up for Medicare. If you don’t sign up for Medicare Part B by age 65, your monthly premium increases by 10% for every 12-month period that you’re late. This means that enrolling a year late will cost you $1,000 extra after just six years. Think about all the other ways you can spend that money.

Don’t let health care costs cause you financial trouble.  If you have questions about planning for health care costs in retirement, give us a call.  We are happy to help you figure it all out.

 

 

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