The Problem.
You are in control of the rest of your life, but have no clue what you should set aside to cover your regular health care costs in 2010.
The Solution.
Plan for at least one visit to your regular doctor, gynecologist, and dentist per year (if you’re in good health).
A site we love, Family Health Budget, estimates that an uninsured 25-year-old will spend about $302 for doctor visits and tests, and $280 for a dental exam, cleaning, and tests. The total comes to $582, which is what you should budget if you don’t have insurance to cover these items. If you have medical and dental insurance, Family Health Budget estimates annual expenses to be $175, excluding insurance premiums. We recommend spending some time on the website—which also calculates other health-related costs, from vitamins to health club memberships—to input your information and gain a full picture of your health expenses.
The Action.
Whatever you do, DON’T GO WITHOUT MEDICAL INSURANCE! Average individual insurance premiums often cost more than $143 per month (nationwide, for someone between 25 and 29 years old), so we understand that it’s tempting to skimp in this arena if you’re not covered through work. But, your expenses could be genuinely disastrous if you ever wind up in the hospital, where the cost of an average hospital stay is more than $6,000. At the upper end, a serious illness can cost more than tens of thousands of dollars. It’s not surprising that medical costs are the leading cause of bankruptcy in the United States.
Once you have a policy, make sure to read it carefully. Find out exactly how much coverage you have for each type of expense, what happens if you use an out-of-network provider or need medical care away from home, and what happens to your insurance if you leave your job.
Also, know what your out of pocket expenses will be. Make sure you know how much co-pay and co-insurance you have to pay, if any. Co-pay is a flat fee that you pay up front whenever you visit a doctor or receive other care. Co-insurance is usually a percentage you need to pay of your total costs. For instance, the average co-insurance for outpatient surgery is 19%. (Note, however, that in general policies and premiums vary greatly by state.)
Finally, plan for medical expenses when making up your budget. If you have high-deductible insurance, $582 is the very minimum you should set aside to cope with medical bills each year. That amounts to less than $12 per week.
In tomorrow’s daily, we’ll tell you how to reduce your medical expenses without giving up quality of care.
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Minda is vice president of The American Society of Journalists and Authors and co-author of The Geek Gap.
