How Much Should You Save?
Top 10 Tips
- 1. Know your health insurance coverage. Every health plan will have out-of-pocket costs in the form of deductibles, copays, and coinsurance, and each plan will have a maximum contribution limit to keep in mind.
- 2. Use your premium savings. If you chose an HSA eligible health plan that offers lower premiums – consider putting some, or all, of those savings into your HSA.
- 3. Know your account. Ask these important questions:
• What is your contribution limit?
• Is your employer contributing to the account?
• Can you take the account with you if you leave the company?
• Do unused dollars at the end of the year roll over, or do you lose them?
- 4. Consider your budget and financial goals. Ensure your contributions fit into your overall personal finances.
- 5. Think about your typical health care utilization. Ask yourself how many office visits, prescriptions, specialists, labs, and other procedures you're likely to need.
- 6. Factor in major purchases. Look up average costs for any major planned treatments or procedures.
- 7. Look back at prior years. Your prior year spending may give you a hint as to how much you are likely to spend this year.
- 8. Think about the future. Think beyond the plan year – health care will continue to be a significant expense, even in retirement. It's never too early to save for the future.
- 9. Build in a buffer. Life happens – build in contingency funds for the unexpected.
- 10. Familiarize yourself with eligible expenses. Don't leave money on the table because you didn't realize certain expenses were eligible.
Learn More About How Much to Save
- Watch this video to help you determine how much you should be saving for health care
- Check out the HSA infographic and FSA infographic to help you figure out how much to contribute to your FSA or HSA
- Read a short article about saving money for health care expenses
- Use these calculators to help you estimate your health care spending next year and savings potential for the future
Short-Term Savings Calc | Long-Term Savings Calc