Is Paying Medicals Ruining Your Bank Accounts

Paying Medical bills is the foremost reason for bankruptcy, in respect to a recent survey conducted at Harvard University, showed that there are more than 75% of individuals who had confirmed insolvency as their medical bills were escalating & had Health Insurance in the beginning of their illness.

In today’s global world the word “insurance" has a different meaning it is sometimes termed as misnomer. Health care coverage no longer promises to pay your medical expenses. It has many pitfalls and gaps leading to people getting uninsured.

There are basically two reasons for the rise of people recently & are worried about their health care expense and have managed to give their premium even if they are not employed and have health benefits from their job.

Firstly, health care expenses are getting higher at double the rate of inflation. A huge amount of money is paid by an individual for getting insured as well as for treatments. Also the prescribed drugs are expensive

Next the employers are giving away their financial liability for health care to its employees. In an effort to accumulate money, employers are switching from complete coverage to high deductible coverage. And the final outcome comes to be increase in the cost by 8% in 2006.

There are many ways by which you can save your money. First are the flexible spending account and then its health saving account (HSA). These two accounts help the individuals a lot in order to save money and also to keep them away from the financial burden.

First is Flexible spending accounts, it let you to keep your money aside from your salary before giving away taxes & uses the  spending account to give for your medical expenses yearly. For these individuals who finish up their money annually, flexible spending accounts is the best possible & a reliable option.

Now if we talk about HSA, it is also a good alternative and works as a long run flexible spending account & enables you to accumulate for medical bills. But in order to enjoy it a high deductible health plan (HSA qualified) should be there and also there is an age limit of 65. Charity given to HSA are narrow and given annually. The money invested in HSA can be used again and again in the coming years and even can be increased through   investment earnings.
   

Article Tags: Health Care, Flexible Spending, Spending Account

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