Everyone needs an HSA
I just received my first, and hopefully last bill, from my appedicitis hospital stay. I spent 2.5 days in the hospital. The hospital was great. I received care from over 20 different healthcare professionals.
1. Everyone is going to spend money on healthcare
No one lives forver. But people are living longer and longer. Everyone eventually needs health care.
2. The hospital bill total was over $30,000
This included a surgery as well as anesthesiology.
3. I have health insurance through my employer so my portion of the cost is much less, but still thousands
Luckily, I have been saving money through my HSA
4. An HSA is a Health Savings Account
In order to do an HSA you must have a high deductible health insurance plan. But it seems what the government classifies as 'high-deductible' continues to decrease.
$1,400 for an individual
$2,800 for a family
5. Max is $3,650 for a single. $7,300 for a family
I recommend maxing this out each year.
For me, that is about $300 per month.
6. Never pay tax on this money
Save and spend the money without paying tax on it
7. Keep a certain amount in cash, invest the rest
Use cash for smaller illnesses and health products/perscriptions.
Invest the rest for the day you need to use a lot of the money for long term care, cancer or a health emergency.
8. The amount you can contribute per year will likely continue to increase
Which is good because the cost of healthcare will continue to increase
9. This account will supplement your Medicare coverage when you are older
You will eventually reach the age to get medicare, but medicare does not cover everything. You will need more money to provide better care or more than medicare offers.