The average American household spends more than $800 a month on health insurance.
That number doesn’t include additional expenses like copays and deductibles. One study from the Commonwealth Fund found that the average family spends 10% of its wealth on health insurance. That’s up from 6.5% 10 years ago.
The rising costs of coverage has pushed people to choose health care plans with even higher deductibles to save on the monthly cost.
According to the Centers for Disease Control and Prevention, nearly 40% of Americans have a high-deductible health plan (HDHP). But if you have a medical emergency, you could be on the line for $1,000 or more in costs before you meet your deductible.
So today, we’ll explain how to put aside money for emergencies and take advantage of a loophole that allows you to profit from your health care plan.
HDHPs are one of three main health insurance plans. The other two are health maintenance organizations (HMOs) and preferred provider organizations (PPOs).
Health maintenance organizations (HMOs) offer local plans that focus on in-network providers. That means they have specific doctors, specialists, and hospitals they work with. They’ve worked with the insurance plan to offer reduced rates in exchange for getting more patients through the insurance company.