How Young Workers Can Handle Crazy Healthcare Costs

It’s no secret that healthcare costs in this country are rising at an exponential rate. For young people who are just entering the workforce, these costs can be a significant burden to take on so early in their lives. Here are three ways that young workers can get a handle on their healthcare costs and ease this financial burden.

The HSA Strategy

If your employer offers it, a Health Savings Account is one way to save for anticipated health expenses while also reducing your taxable income. These plans are designed for employees enrolled in high-deductible health insurance plans. By setting aside a portion of your pre-tax or tax-deductible income, you will help ensure that you have the necessary money to pay for your healthcare needs while also enjoying a significant tax advantage. Long-term care costs associated with major injuries can be astronomically high, and an HSA can help you bear the impact.

Stay in Network

One of the best ways that you can save money on your healthcare costs is to choose providers who are in your insurance network. This will afford you a reduced rate on what your costs are out of pocket. You will spend more money on your medical care if you seek treatment outside of your network. Your healthcare provider will be able to provide you with a list of professionals inside your network and then you can choose one of those options. If your doctor refers you to a specialist, you need to take special care to ensure that this provider is within the network.

Choose a High Deductible Plan

A high-deductible plan will save you loads of money on your monthly premium costs. While you run the risk of facing costs down the road, a high-deductible plan makes sense for young people without preexisting health conditions. This type of plan is also good for those without children. Under the Affordable Care Act, preventive care is now free, making this an especially prudent choice if you do not have major health issues. If you only notch a few visits to the doctor each year, a high-deductible plan can make good financial sense for young workers.

Navigating the complex world of health insurance is frustrating. It’s easy to just choose the easiest and cheapest option. However, it is vital that you make informed decisions. Choose providers that will save you money and that will give you the best care possible. Doing so will benefit both your health and your wallet.