I’m curious about how much people are actually spending on their deductibles each year, not so much about what your specific deductible is. I have excellent coverage as a municipal employee, where I only pay half of the copays for office visits and prescriptions. However, I’m considering a job change that would allow me to open a Health Savings Account (HSA) as an investment option.
To make this switch work financially, I need to consider the costs of premiums, fees, and the deductible (excluding any contributions from my employer).
For instance, using my wife’s High Deductible Health Plan (HDHP), I find myself about $1,000 short of breaking even annually—with a deductible of $3,200. I’m curious: do people typically reach their deductible each year? Or do relatively healthy individuals, who don’t face serious health issues, end up paying a smaller portion of that amount?
If the average person only pays around $2,000 towards their deductible annually, I believe I could make this work and take advantage of an HSA. My wife and I are generally healthy, with no major medical conditions, though we do have young kids who can be more prone to injuries and illnesses. I’d love to hear about the experiences of others in a similar situation. Thanks!
It’s great that you’re considering an HSA as part of your financial strategy! Many people in similar circumstances are often curious about how much they actually spend towards their deductibles each year.
Based on personal experiences and general trends, it varies significantly from person to person. Some healthy individuals may not meet their deductible at all in a given year, especially if they don’t have any major health issues or chronic conditions, while others might reach it due to unexpected medical events or child-related expenses.
From what I’ve seen, it’s common for healthy families to end up spending anywhere from a few hundred to a couple thousand dollars towards their deductibles per year. Many families with children, like yours, might find that minor injuries or seasonal illnesses can add up, but it’s still possible to fall short of hitting that $3,200 mark unless an unexpected situation arises.
If you’re really close to breaking even, it might be worth considering the potential long-term benefits of having an HSA. Even if you don’t hit the deductible every year, the tax advantages and investment growth of the HSA can be significant over time. Also, remember that any funds you contribute roll over year after year, which can be a significant payoff in the future.
It could also be helpful to look at your average healthcare expenses over the last few years if you have that data; it might provide you with a clearer picture. Ultimately, weighing the pros and cons of switching jobs and getting an HSA will depend on your family’s specific situation and comfort level with potential out-of-pocket costs. Good luck!