Health Care Costs - Annual Account Allowance

I’m Miriam Neff, and I’m Valerie Neff Hogan, with Wise Women Managing Money.

M Health care costs are rising.  My insurance costs this last year doubled. There is one bright spot.  Many plans have moved to giving an annual account allowance.  That may be used for insurance premiums as well as medical costs not covered by insurance.  Why is that positive?

V It requires we make choices about our health because the impact on our wallet is direct.  We more carefully choose plans that meet our needs, pay attention to preventative lifestyles to avoid health risks where possible, and make choices about treatment more carefully. For example, generic medications may work.

M We more carefully examine prescribed medications.  I’ve chosen to decline some seeing the risks are more than the benefits.