A lot of you have medical savings

[dawnwes]

is this for a catastrophic emergency or what?

We have always had very good insurance and have never paid more than $1000 in one year's time for all five of us to get care. The only time we went up to $1000 was when my youngest son needed surgery three times in one year.

We have $1,000 deductible per person and $2,000 per family for a year.

I am just wondering what I should be saving for.

Dawn

[riverwed070707]

Are you referencing the thread on HSAs? When I started with my company they had recently switched over to a high deductible plan. Basically, the premium taken from each check is lower, but the deductible and OOP costs are higher. The reason most high deductible plans come with an savings account is to help people be prepared to cover those costs when they come up since it is very different from the old plans.

For example, on the old plan you had a $10 copay for a sick visit to the doctor. On the new plan, you have no deductible but pay the whole amount the doctor bills (usually around $110). Many people just don't budget well enough to be able to shell out $100 they weren't expecting. It really can be a great plan, but it takes some advance planning. The savings is also contributed pre-tax so that's another advantage -- it lowers your taxable income.

[bjl584]

Originally Posted by dawnwes

is this for a catastrophic emergency or what?

We have always had very good insurance and have never paid more than $1000 in one year's time for all five of us to get care. The only time we went up to $1000 was when my youngest son needed surgery three times in one year.

We have $1,000 deductible per person and $2,000 per family for a year.

I am just wondering what I should be saving for.

Dawn

This could be tied in to the theory of keeping a 6 month emergency fund. If you would lose your job your good insurance coverage will most likely go away. It's a good idea to have some cash just in case.

[disneysteve]

Originally Posted by dawnwes

I am just wondering what I should be saving for.

You need to save for your deductible.
You need to save for your maximum out of pocket expenses which may not be the same thing as your deductible.
You need to save in case you need to cover your own premiums due to job loss.
You need to save for treatments not covered by insurance. For example, our plan doesn't cover eyeglasses and all 3 of us wear glasses. Our dental plan doesn't cover periodontal care and I see a periodontist every 6 months at $149/visit. My wife and daughter both take what is now an over the counter allergy medicine so no longer covered by our prescription plan.

Just a few examples of things to set aside money for.

[dawnwes]

I see. Well, those are all covered in our savings. I thought maybe I was missing something.

We have calculated Cobra into our 6 month living expenses and we have enough to cover minor ER visits, etc...well, I say minor, they are still about $100 per visit if we end up in the ER.

Thankfully DH's job is pretty secure, but it is in there just in case.

Dawn

[Like2Plan]

We have a primary and a secondary ins and a flexible spending account. I don't ever want $$ to be a consideration in whether we seek treatment.
Usually, our bills are covered by the 2insurances together. But sometimes we have to pay a deductible. Our primary ins calendar year starts 1 Jan and our secondary insurance calendar year starts 1 Oct.
I just had gallbladder surgery a couple of weeks ago--one of those same day, in and out, "drive through" procedures , we'll see how that works out.
If we have any money left in the FSA at the end of the year, we buy glasses. DS usually needs a new prescription. He is involved in a very rigorous physical program at college. They don't even have a Starbucks in his college town let alone a Lenscrafters, so I like to get him a back up pair of glasses if funds permit.

[LMA]

The answer would certainly depend on your or your families medical condition. If there is someone with medical problems then it might be wise to have specific savings for medical costs. Otherwise you can use an HSA at work to pay for copays and small medical costs. Other than that then I only have savings, not necessarily savings for medical.

That really is the reason why you always have to save money and have money in savings, for whatever unexpected expenses show up whether they are medical, car, home or anything else.

[BMEPhDinCO]

We save extra for things not covered by insurance...for example, DH just got Laser eye surgery and I have a hearing loss so have to cover hearing aids (they can be up to $7,000!!). It also covers meds, dental, etc that either aren't covered or have additional costs to us.

It's really up to you though, if you have enough in another fund for insurance costs, not eligible for insurance costs, etc, you don't need a "medical fund". Some of us just like to divide it out more...

[cypher1]

While I have an HSA along with 6month EF, I don't factor it as part of the EF. A few months ago for ER visit, it was more convenient to pay the 1200 bill with HSA instead of paying directly with cash savings. Different coverage for different situations/individuals.

[dawnwes]

We did some of that pre-paid before and had to scramble to find a way to use it in December. That was money we could have saved.

None of us is on any medications or anything.

My son does need more surgery, but it is mostly covered and we were told we could go to Shriners if we needed, I don't think we will need it.