If you’ve noticed your health insurance premiums are more expensive this year, you’re not alone. Employers’ health benefit costs, Affordable Care Act premiums, and Medicare Part B premiums have all risen, or are expected to rise considerably in 2026.
Healthcare costs in the U.S. typically outpace inflation, and inflation and general affordability are major issues for Americans today. How can the average American plan for these rising costs?
Saving Money for Healthcare
Some people have specific accounts or amounts earmarked for healthcare costs. However, many Americans don’t save money specifically for healthcare. These savings typically come in two forms:
- Retirement funds: It’s normal for our healthcare needs—and therefore our healthcare costs—to be highest in retirement. Estimates show a 65-year-old may need $172,500 in after-tax savings to cover healthcare expenses in retirement. As such, having a healthy retirement fund means increasing our chances of getting the healthcare we need as seniors.
- Rainy day funds: Emergency savings can be vital. Setting aside a portion of your money for unplanned setbacks is wise. Such a fund can help see you through an illness, a vehicular crash, a flooded basement, job loss, or other unfortunate scenario.
Tips for Planning for Healthcare Costs
Here are some steps you can take to help prepare for rising healthcare costs:
- Choose the right health insurance plan: Is your current plan truly the best for you? Maybe you want to minimize monthly payments, or actually increase them to cover the right care when you need it.
- Take preventive care: Many health insurance plans include preventive care services, which include annual physicals, vaccines, and screenings. Preventive care and living a healthy lifestyle — keeping active, eating well, and getting plenty of sleep — can be good for your body, mind, and bank account.
- Explore your medical options: Try to find the clinics, hospitals, and health centers near you with the most affordable prices. Ask for discounts and payment plans and explore your telehealth options.
- Switch to generic medications: Many generic medications have the same active ingredient as brand names but at reduced prices.
- Utilize health savings accounts (HSAs): An HSA is an account where you can save money for paying qualified medical bills. HSAs are allowed if you have health insurance coverage with high deductibles. The contributions made to an HSA are tax-exempt, and if you withdraw for medical expenses, then it’s also tax-free.
Contact Vectra for More Information
Want to learn more about saving money for healthcare? Contact a Vectra Bank professional today, and we’d be happy to help.
