Episode 120: Health Care Planning

Health care is something everyone needs to plan for. Whether you are still in the workforce or already retired, you need to have a plan.

In this episode, I’ll explain the important factors to consider with health care planning at each stage of life.

And in the Tips, Tricks, and Strategies segment, I’ll explain why FSAs and HSAs can be powerful tools for health care planning.

Key Points:

• Health care planning matters at every stage of life—whether you are working, retiring early, or already on Medicare.

• Review your health insurance options each year during open enrollment rather than automatically renewing last year’s plan.

• Compare premiums, deductibles, out-of-pocket maximums, prescription coverage, provider networks, and anticipated medical needs.

• Health care costs can create substantial financial stress, especially when medical events coincide with lost income or reduced ability to work.

• A taxable brokerage account can provide income flexibility in early retirement and may help manage ACA premium costs.

• Review Medicare coverage annually because premiums, deductibles, formularies, provider networks, and plan benefits can change.

• Consider working with a specialized Medicare professional to help evaluate coverage choices.

• FSAs are employer-sponsored accounts best suited for expected near-term health expenses, while HSAs are portable, individually owned accounts that can serve as both a health care spending and long-term retirement-planning tool.