Budgeting for healthcare

iVillage Member
Registered: 05-11-2005
Budgeting for healthcare
5
Sun, 10-25-2009 - 7:33am

OK, this is not an issue for me as I'm covered by military healthcare but I know plenty of people who do have healthcare issues, it has really messes up their finances. I have a few questions for those that pay healthcare out of pocket.

1) Are premiums automatically deducted from the paycheck or do you have to write a separate check?

2) Do you write your budget after premiums are taken out or do you remove them as part of the budget?

3) What about co-pays? Do you budget for procedures each month or do you pull a little money out each month and set it aside for future visits?

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iVillage Member
Registered: 08-04-2008
Sun, 10-25-2009 - 9:14am

We are covered by DH's military insurance, but I pay for my own private insurance through work as well. That way, I can go to the rheumatologist and OB/GYN group of my choice. So, I'll answer for how we pay for my insurance.


1) Are premiums automatically deducted from the paycheck or do you have to write a separate check?


Auto


2) Do you write your budget after premiums are taken out or do you remove them as part of the budget?


After. I don't count my health care costs as part of my take home pay.


3) What about co-pays? Do you budget for procedures each month or do you pull a little money out each month and set it aside for future visits?


We budget for these each month. BUT, we also take advantage of the tax-free Health Savings Account (HSA). We have to choose a set amount each year that gets taken out of each paycheck before taxes. Then, the amount is accessible through an HSA card, which we can use like an ATM card for every health expense from co-pays to Qtips. For anyone with a company that offers an HSA, I can't recommend it enough.




Colleen


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Edited 10/25/2009 10:31 pm ET by snappynina
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iVillage Member
Registered: 02-11-2008
Sun, 10-25-2009 - 9:43am

1) Are premiums automatically deducted from the paycheck or do you have to write a separate check?


Automatically deducted from each paycheck... $500/mo for family of 4


2) Do you write your budget after premiums are taken out or do you remove them as part of the budget?


I don't count this as income


3) What about co-pays? Do you budget for procedures each month or do you pull a little money out each month and set it aside for future visits?


DH work has new insurance at work

 

      

iVillage Member
Registered: 05-11-2005
Sun, 10-25-2009 - 7:29pm

Wow, that sounds identical to the new insurance my mother's work picked up this year. She pays some insane cost out of her paycheck and then has some high deductible to cover.

Thanks for sharing though. It's interesting to see how different plans stack up and their impact on household finances.

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iVillage Member
Registered: 03-26-2003
Sun, 10-25-2009 - 9:37pm
Our premiums are automatically deducted as pre-tax income.
iVillage Member
Registered: 12-04-2006
Mon, 10-26-2009 - 12:34am

We have a public healthcare system in New Zealand and I'm currently not in a situation where private health insurance would be financially possible for me - and that ignores that the ankle injury that generates most of my healthcare costs would be excluded as a pre-existing condition anyway.

1) Are premiums automatically deducted from the paycheck or do you have to write a separate check? - No insurance, so doesn't apply.

2) Do you write your budget after premiums are taken out or do you remove them as part of the budget? - Again this doesn't apply. If I had insurance, and it was deducted from my paycheck then I would budget after the premiums were taken out (I already budget based on what I receive into my account each paycheck anyway). If I was paying the premiums myself then they would be included as a payment in my budget.

3) What about co-pays? Do you budget for procedures each month or do you pull a little money out each month and set it aside for future visits?
I don't actually know what co-pays are, but I'm assuming that they are like the share of my medical costs that I pay the doctor that the government doesn't subsidize. At the moment I just budget for that particular paycheck when I need to go to the doctor - most of the time I know that I need to see him and can juggle the money. If I'm ill and can't juggle the money then I get my doctor's surgery to put it on an account and pay what I can. I do need to find a better way of budgeting for these costs since I know that to a certain degree I still have to see my doctor regularly through the year.

Lyn

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Lyn