Expect healthcare costs to increase
Healthcare costs have risen over the years and it’s safe to say this trend will continue. But there are a few things you can do to make sure you’re safe, at least from a monetary perspective.
First off, consider opening a Health Savings Account (HSA), as it has many benefits. For example, withdrawing money for qualifying medical expenses won’t be taxed. Once you reach 65, taking money for other reasons will incur a tax, but you won’t be subject to a 20% penalty anymore. Things change again when you turn 70. Since HSAs don’t require minimum distributions you can let the money grow until you need it.
But reducing medical costs you can start off earlier. For example, you can try to switch to generic brands instead of paying top dollar for name brands for your medication. You could also try and tackle your co-pays and other out of pocket expenses through federal subsidies. Finally, consider looking into the Medigap policy, the Medicare Advantage plan, and the prescription-drug plan to cut costs even further.
