![]() (Those unexpected curveballs mentioned earlier? See tip 3.) You can contact your insurance and healthcare providers for documentation.) The final number you come up with is a good start for determining your annual fixed and routine healthcare expenses. (If you didn’t save all of last year’s receipts, don’t stress. You can start by reviewing all of your receipts from your insurance company and healthcare providers and going through your bank and credit card statements to flag any healthcare costs you paid out of pocket over the past year, Allec says. “The best place to start in determining how much to budget for healthcare costs is to look at how much you actually spent on healthcare previously,” suggests CPA and personal finance blogger Logan Allec. When it comes to planning for healthcare costs, your medical and spending history is key. Unexpected: These costs can be difficult to predict, like an unplanned trip to the emergency room or an urgent medical procedure.Think your copay for your annual checkup or the cost of a regular prescription. Routine: These are your anticipated healthcare costs, even if they fluctuate.If you get health insurance through work, this expense may be deducted automatically from your paycheck. Fixed Premium: This is the set amount you pay for your health insurance.When budgeting for medical expenses, it may be helpful to bucket your healthcare costs into three categories: To better plan for healthcare costs, consider these five steps: 1. ![]() How do I budget for healthcare costs, you ask? Fair question. Even if your health insurance kicks in to cover an expense, your budget for healthcare costs still needs to include your premiums (AKA the amount you pay for your health plan). Consider this: On average, healthcare costs account for about 8 percent of annual household spending, or nearly 7 percent of pretax income, according to the Bureau of Labor Statistics. Medical expenses should be a top budgeting priority, with out-of-pocket costs on the rise and the always-present risk that an unexpected medical expense could put a ding in your spending plans. It’s easy to think that health insurance will cover the majority of medical-related costs and thus can be overlooked in your budget-a copay here, a deductible there… all can be handled without much ado, right? And nothing says “adulting” quite like budgeting for medical expenses. Adults often feel the pressure to act responsibly with everything related to their well-being and their wallets.
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