Who Needs a Healthcare Budget?

Just about everyone these days could benefit from healthcare budgeting. Medical costs pinch everyone and can hurt your health. In a poll sponsored by the health insurance provider Humana, 24 percent reported that they've gone into debt because of medical expenses, and 30 percent have avoided or delayed doctor-recommended treatment because of cost.

The first step: Figure out how much you're spending now. Many Web sites now offer calculators to help you estimate your healthcare expenses. One fairly basic tool can be found on the Family Health Budget Web site, sponsored by Humana and Consumer Action.

Whichever calculator you choose, the next step is to use it. Consider these costs:

Healthcare premiums, usually deducted from your paycheck.
Copayments for doctor visits (don't forget the specialists and the dentist).
Flexible spending account contributions.
Payments not covered by your insurance, such as eyeglasses, contact lenses, asthma inhalers or insulin pumps.
Prescription medications.
Over-the-counter medications, vitamins and supplements.
Any alternative treatments or remedies.
Health club memberships, weight loss programs or other related expenses.
Funds set aside for unplanned events, emergencies or elective procedures such as cosmetic surgery, laser eye surgery and medical equipment not covered by insurance plans.

Next, check your insurance. You may be able to save some money now. For example, if your favorite doctors cost more because they're out of network, consider finding in-network doctors.

NEXT: How to really save money >>

To really save money, though, you may need to find a different policy or insurance company whose coverage more closely fits your needs. Research your benefits you're your spouse's, if they have different coverage). You may need to switch plans. During the next open-enrollment period, when you have a chance to switch plans, consider:

Your pattern of doctor visits. If you are generally healthy with few doctor visits, look for a plan with higher office copays. But if you have a chronic medical condition and need regular primary care and specialist appointments, you'd want to avoid such a plan.
Therapy. Mental health counseling may not be covered as well as medical care and have limited visits with higher copays. Look for a plan with a more generous benefit in this area.
Eyes. Are you still replacing eyeglasses every year with a plan that pays only every two years? Or if you've never had to think about vision care, remember that most people need to start wearing reading glasses in their 40s.
Teeth. For dental care, you may think you are done with cavities, but what if your dentist says you should replace old fillings from childhood? As you get older, gum disease and bone loss may result in a need for replacement teeth such as dentures or expensive tooth implants.
Next year's health needs. Hoping to have a baby next year? Got a kid who's going to need braces or loses retainers? Look at plans with these new needs in mind.

After you've gotten the best insurance coverage for your needs, look for ways to cover uncovered costs. Many employers offer plans that allow you to use pretax earnings to pay for unreimbursed medical expenses, such as doctor or dental visits, eyeglasses or contact lenses, laser eye surgery, prescription or over-the-counter medications. These include Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). Check with your employer about how each plan works. The ability to set aside pretax dollars for expenses you know you'll have make them a powerful tool in creating a budget for your healthcare expenses.