According to the Federal Reserve Bank of New York, consumers now expect their health care costs to jump 10.1% over the next year. The last comparable spike came in early 2014, when expectations hit 11.15%.
Much of the concern reflects the looming expiration of enhancements to Affordable Care Act subsidies, known as premium tax credits (PTCs), which are set to end this year without a resolution so far.
According to calculations from the Center on Budget and Policy Priorities, a family of four earning $130,000 could see their annual premium costs leap from $11,050 with the enhanced subsidies to $23,909 without them. That’s more than double.
Whether these fears fully materialize or not, now is a good time to get your financial defenses in order.
1. Max out your HSA while you can
If you have access to a health savings account (HSA) through a high-deductible health plan, treat it like the financial superpower it is. HSA contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses aren’t taxed either. That’s a triple tax advantage you won’t find anywhere else.
Even if you can’t hit the maximum, every dollar you set aside now reduces the pressure when health care costs spike. Since HSAs are one of the most efficient ways to prepare for rising medical bills. Some HSA providers, like Lively HSAs, even let you invest the money in your account so it grows faster.
2. Review coverage before open enrollment closes
With potential subsidy changes looming, your current plan might not be the best fit come January.
Compare premiums, deductibles, and out-of-pocket maximums across available options. Pay close attention to whether your doctors and preferred hospitals remain in-network.
A plan with a lower monthly premium could cost you more overall if it forces you to switch providers or carries a sky-high deductible. Run the numbers based on your actual expected healthcare usage, not just the monthly cost that looks cheapest at first glance.
3. Shop around for prescriptions
Tools like GoodRx and RxSaver can reveal price differences of hundreds of dollars for the same medication. Some warehouse clubs and online pharmacies offer steep discounts, and many drug manufacturers have patient assistance programs that go underutilized.
If you’re on maintenance medications, ask your doctor about generic alternatives or 90-day supplies, which often come with lower per-dose costs. A few minutes of research could translate into real savings over the course of a year.
4. Check and negotiate medical bills
Medical bills are often negotiable. Hospitals and providers routinely work with patients on payment plans, and many offer discounts for prompt payment or financial hardship.
Before paying any large bill, request an itemized statement and review it for errors. Duplicate charges, incorrect codes, and services you never received are sometimes listed.
If the total seems overwhelming, call the billing department to discuss payment options or charity care programs. You won’t know what’s possible unless you ask.
5. Build a dedicated health emergency fund
Beyond your regular emergency savings, consider setting aside a separate cushion specifically for medical surprises. A sudden ER visit, an unexpected diagnosis, or a specialist referral can blow a hole in your budget without warning.
Even a modest dedicated fund of $1,000 to $2,000 can provide breathing room and keep you from resorting to high-interest credit cards when healthcare costs catch you off guard.
To make your emergency fund work harder for you, keep it in an account that offers strong returns. SoFi offers a combination checking-and-savings account, and if you set up direct deposit, you can earn up to 4.30% on your savings. (Can change without notice.) Get up to a $300 bonus if you direct-deposit $5,000 or more within the first 25 days or up to a $50 bonus if you direct-deposit $1,000 to $5,000. That’s money in your pocket.
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