It’s that time of year again when healthcare costs tend to spike. According to a 2016 Commonwealth Fund study, healthcare expenses now make up over 10.1% of family budgets, a significant increase from just a decade ago. Despite this surge, healthcare costs are outpacing income, though the rate has slowed slightly. Without delving into politics, my aim is to help people navigate the healthcare landscape, ensuring they don’t settle for subpar coverage or go without altogether.
Firstly, it’s crucial to determine if you qualify for subsidies under the Affordable Care Act (ACA). These plans offer comprehensive coverage with no restrictions on pre-existing conditions. Depending on your household income, you could pay anywhere from 2.08% to 9.86% of your income towards premiums. However, there’s a caveat: if your income exceeds the maximum limit, even by a dollar, you could be liable for the entire cost of the plan, a detail that often catches people off guard come tax time.
Fortunately, there are alternatives that offer stability and flexibility, with no enrollment restrictions. Enter Health Sharing Plans, which, while not insurance, provide coverage for healthcare costs and come in various forms. They offer affordable options tailored to different needs and budgets.
The most basic plan, Minimum Essential Coverage (MEC), starts at $69 a month and covers routine healthcare needs like telemedicine, annual physicals, and a limited number of doctor visits. Catastrophic care plans provide coverage for hospital and surgical care, serving as a safety net for major health events. Comprehensive plans combine doctor and hospital care, making them comparable to ACA plans but often at a lower cost.
I specialize in helping individuals and families evaluate these options and determine the best fit for their needs. With healthcare costs on the rise, it’s essential to scrutinize one of the largest expenses in your budget. As a CERTIFIED FINANCIAL PLANNER ™, my goal is to help you optimize your budget and achieve your financial objectives while safeguarding your family’s well-being. Feel free to reach out for a complimentary analysis and personalized guidance.