New Year, New Deductible, Now What?The new year brings a fresh start to many things and one of those is your health insurance deductible. For those of you with calendar year plans, your health insurance deductible reset on January 1. So, what If you don’t know, find out how much your deductible is for this year. Many plans deductibles increased from last year and find out what medical services are covered under your deductible and what your responsibility is after your deductible is met.When you are gathering your receipts for tax purposes this will give you an idea on what your spent in medical in 2016.
Now, you have two important pieces of information to formulate your plan for 2017 medical expenses. Its wise to have a plan for how your will cover medical expenses, while you may not need them this year it may be next year.
Step 1 for 2017: Plan to Save up for the amount of your individual deductible. The amount may seem overwhelming at first, but take it small chunks. Below is a chart that shows how you can save up for your deductible on a week, bi-weekly, and monthly basis.
Step 2: Save up for your yearly medical expenses. You can use the same methodology as your deductible just take your annual medical expenses as an estimate.
Step 3: Save up for your total family deductible. It may take a few years to get all three of these accounts fully funded. Once you do your Medical rainy fund is fully funded. If you use the funds then you can replace them by dividing them up as you did before. Keeping these types of accounts will give you the financial piece of mind that if you ever need care you have the funds to cover it.