The Error-Proof Portfolio: The Do-It-Yourself Health Savings Account
Skyrocketing out-of-pocket costs call for creating a separate fund to defray these expenses.
The conventional financial-planning wisdom is that you need an emergency fund to tide you over in case of job loss or to cover unanticipated expenses such as car or home repairs. That's true enough.
But there's another, growing category of expenses you should consider when deciding how much to set aside: your potential out-of-pocket health-care costs. Even if you haven't opted for a high-deductible health-care plan, it's likely that your out-of-pocket health-care costs have jumped up substantially in recent years. Not only have health-care premiums increased dramatically, but so have the co-payments and deductibles associated with many health-care plans.