A growing number of Americans are finding themselves having to reach into their wallets to pay for high deductibles before their insurance kicks in.
The average annual deductible, or the amount you pay for health care out of pocket before your insurance company will pay a claim, for individual plans on HealthCare.gov is around $4,000. And no matter how much you earn, ponying up any amount of money, even small, can be a challenge.
That’s why health care policy watcher, John Goodman, sometimes known as the “father of health savings” told FOX Business on Thursday that stashing money on the sidelines is the best way to manage high-deductible costs.
“We are much better when we are managing our own money,” he told Ashley Webster on “Varney & Co.” “We are better than the insurance companies.”
But saving doesn’t come as easy as it seems, as most Americans can’t cover $1,000 for emergencies, according to a report from Bankrate.
Goodman added anyone considering insurance today should look at the choices and compare the additional risk with the amount of savings.