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It’s important to have funds on hand for healthcare bills. Read on to see what the minimum amount is you should be saving. 

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Medical bills have the potential to creep up on you at any time. And if you don’t have money saved for them, they could quickly become a source of stress — and debt.

It’s hard to narrow down an exact figure when it comes to saving for medical care. After all, you could have a year when you barely need to see the doctor. Or, you could have a year when you get into a car accident, need surgery, and then face several months of expensive physical therapy.

That’s why you should try to save as much for healthcare bills as possible. But there’s also a minimum amount you should aim to save when putting money aside for healthcare purposes.

Save at least the equivalent of your deductible

It’s common for health insurance plans to impose a deductible on enrollees. Your deductible is the sum of money you’ll have to fork over before your insurer will start to pick up the tab for your care. However, certain services, like your annual physical or specific screenings, may not be subject to a deductible.

A recent survey by PolicyGenius found that 28% of respondents cannot afford the deductible their insurers impose. But you should do your best to save at least that much for medical bills.

It doesn’t mean you’ll only have to shell out your deductible in the course of a given year. But having that much money saved at least buys you some protection.

Let’s say your health plan has a $750 deductible. You might end up spending $900 throughout the year when you factor in copays and other costs. But at a minimum, you should aim to keep $750 in your savings account so you know you have your deductible covered. If you need a $2,000 surgery, your insurance might force you to pay $750 before it covers the rest.

Where to put your healthcare savings

You could opt to keep enough money in your savings account to cover your health insurance deductible and then some. But you may also want to consider putting that money into a flexible spending account (FSA) or health savings account (HSA). Both of these accounts are funded with pre-tax dollars.

So let’s say you want to save $750 because that’s your deductible. If you put that money into the bank, there’s no tax savings. If you put it into an HSA or FSA, the IRS won’t tax you on $750 of your income.

However, not everyone is eligible for an HSA. And you generally cannot have an HSA and an FSA at the same time.

To qualify for an HSA, your health plan must meet certain criteria. In 2024, you need a minimum deductible of $1,600 for self-only coverage or $3,200 for family coverage. Your plan’s out-of-pocket maximum also cannot exceed $8,050 for self-only coverage or $16,100 for family coverage.

In an ideal world, healthcare would be affordable for everyone. But alas, that’s just not the way the system works. For now, your best bet is to make sure you have savings on hand for medical costs at all times. And if you’re limited in what you can save, at least make sure you have enough to cover your deductible.

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