Although Americans have been putting more money into HSA savings, Fidelity’s survey found that over half of the participants took steps to reduce healthcare costs in the last two years. Unfortunately, some individuals resorted to financially harmful actions such as missing rent, car payments, or utilities to cover healthcare expenses. The survey revealed that 26% reduced savings, 18% borrowed money, and 16% did not get the care they needed to lower healthcare costs. Steve Betts, head of Fidelity Health, emphasized that health care decisions are linked to financial well-being and that Fidelity is focused on providing innovative benefits to help employees find, save for, and pay for healthcare. HSAs offer a solution for covering healthcare costs while enjoying tax breaks and avoiding harmful financial decisions. If struggling in today’s economy, a personal loan with a lower interest rate could be an option to pay down high-interest debt. Credible offers a platform to compare offers from different lenders at once without affecting credit scores.
What is an HSA? An HSA is a tax-advantaged savings account designed to help people save for medical expenses. Contributions made to an HSA are tax-deductible, and the money invested in it grows tax-free. Withdrawals are also tax-free as long as they are used for qualified health expenses. To be eligible for an HSA, individuals must enroll in a high-deductible health insurance plan. While some employers offer HSAs as part of their employee benefits package, individuals can also open them through most banks or investment management firms. The maximum contribution limit for an HSA in 2023 is $3,850.
“Rising healthcare costs remain a concern for Americans, especially as inflation impacts household budgets,” said Begonya Klumb, Fidelity Head of Health and Benefit Accounts. “We consistently see that individuals with access to an HSA can leverage the triple-tax advantage to better prepare for current and future healthcare expenses.”
If you are looking to save more money for healthcare expenses, you may want to consider paying off high-interest debt with a personal loan that has a lower interest rate. You can easily check your personalized loan rate with Credible in just a few minutes.
Revised: However, the burden of high healthcare costs is not limited to retirees. According to Statista, the US spends more on healthcare than any other country. In 2019, the total national health expenditures reached $3.8 trillion, as reported by the Centers for Disease Control and Prevention (CDC).
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