How We’re Managing the Crushing Cost of Healthcare as a Family

Let’s talk about the expensive costs of just having healthcare. Every year, it feels like the price is shooting up, from monthly premiums to those sneaky out-of-pocket fees. When you start to calculate the total cost of having healthcare, it really does start to feel like a surprise party nobody asked for. From my perspective, going from corporate America to starting my own business, I’ve realized just how much healthcare actually costs. On top of the shocking unsustainability of affordable healthcare being tied to “having a good job.” We don’t talk enough about how unaffordable healthcare costs have become in the past recent years and how it messes with our personal finances. As someone with Graves’ disease, medical costs are an important topic in my household. We’re always updating our budget to accommodate my medical needs, but at what point do healthcare costs become unmanageable?

My Healthcare Story

As a millennial, we’ve all been told: go to college and get a good job to get those “amazing” healthcare benefits. But what the heck does that really mean? Why were our parents and grandparents so obsessed with healthcare benefits? It sounded like they’d rather stay at jobs they hated if it gave them those good benefits. In my 20s, I didn’t get the hype and the dramatics of putting work benefits over picking a career I was passionate about. Until I was pregnant with my first child. I clutched my healthcare plan like it was a lifeline during maternity leave. Mainly because I was terrified of any changes to my healthcare plan and potential costs. Wow, was I shocked once I left the 9-to-5 world. My husband and I made the decision to dip our toes into entrepreneurship. We were advised to check out Covered California’s healthcare site to get an affordable healthcare plan in the open market. But little did we know that it was like navigating a never-ending maze blindfolded. That’s when it hit me: Why is healthcare tied to having a job? This is complete BS. Healthcare should be affordable and accessible to everyone, from young moms to entrepreneurs.

The “Picking a Plan” Drama

This reality hit home when we found out that we didn’t qualify for the affordable healthcare plans offered by Covered California. So we had to fend for ourselves and shop around. The prices in the open market were jaw-dropping, to say the least! I even remember crying a little bit. I never knew how expensive healthcare was in the open market. No wonder our elders were so crazy about getting good healthcare benefits. The top-tier plans? Over $400 easily, a car payment back in the day for sure. And every plan down from there felt like they were just snatching away the good stuff. It’s like going to a fancy coffee shop and being asked if you want a latte. But everything that makes a latte a latte is extra. Even the fancy foam is extra, caramel drizzle is extra, or if you can’t afford that, then just get water. It became this weird game of “how low can we go?”

When we did our research, a lot of finance gurus promoted getting a healthcare plan that offered a health savings account (HSA). But once I started doing my research, it didn’t make a lot of sense for us. If I’m being real, as young parents, there’s no way we had extra cash to throw into an HSA. You have to be ready to put some serious cash into this account to get the ball rolling, especially if you go to the hospital more often than not. But then we had a heart-to-heart moment. Maybe we don’t need the Gucci of health plans. So we decided to play it smart. We gave our son, who has a heart defect, the better plan and we went budget-friendly for the rest of us.

Inflation and Healthcare Costs

As daunting as choosing the right plan was, dealing with the steady rise in healthcare costs due to inflation added another layer of complexity. Every year, we reevaluate our healthcare plan just to see another increase here and another there. The mom guilt and stress of having to make the decision of cutting back our healthcare plans due to rising costs is real and hits hard! Especially when your healthcare premiums are above $1,200 a month as a family of four. Luckily, not too long ago I was able to get my son covered under Medi-Cal due to his health conditions with the same medical plan he previously had, which was a big win for us. But with inflation still in full effect, our monthly costs for three people are still going up. Equaling close to what we used to pay for a family of four just 2 to 3 years ago. I know, it’s shocking to me too! This constant increase in healthcare costs really makes you wonder how much more the average American household can really handle.

The Hidden Costs of Healthcare:

If you think your monthly healthcare premiums are where your expenses stop, then you’re in for a rude awakening. The healthcare industry is known to have an excessive amount of hidden costs that are waiting for you around every corner. I know they don’t call them hidden costs. They like to call them out-of-pocket expenses. You would think your monthly premiums were enough, but nope. The moment my daughter needed speech therapy – hello, that’s an extra $60 a week! My son’s specialty heart check-ups? $120 more, even though he had their “Gold” plan. And then there’s me – dealing with my thyroids, which means adding in constant labs, appointments, and ongoing medication, racking up even more bills. It feels like I’m paying for a luxury SUV, but instead, it’s just doctor visits. I get it now. I was naïve about how expensive healthcare is, but what are we to do when our medical premiums are going up right along with our out-of-pocket expenses year after year?

Pay for it, I know. The hard part is that whenever I would share that my budget is tight because of healthcare costs, others would brag about their “affordable” healthcare. I’m over here like, “Hello, this is not the time to flex!” It’s super frustrating when what should be a basic need, like getting medical help,p feels like choosing between life or debt. The best thing I’ve been able to do to control the uncontrollable is to put in the extra effort to plan and budget for these expenses. If you’re like me and are doing monthly labs, then add those expenses to your budget. If your child needs specialty services, then add those funds to your Bills Checking Account of the High 5 Banking Method. If you recently received a letter informing you of your new healthcare premiums, make sure to add that to your budget. Sometimes the best thing we can do is be as realistic and informed as possible.

My Real Thoughts on Healthcare Costs

Look, I’m sharing all this not because I have a solution for everything, but because I don’t. I’m sharing all of this because I feel like we need to have real conversations about healthcare costs. It’s not just about what’s being taken from our paychecks. It’s about the choices we’re forced to make and how they impact our finances and, most importantly, our lives. Right now, you may feel like your plan hasn’t changed much, but if you take a closer look, you’ll notice that the costs are going up. So please be kind to those who pay out of pocket for their healthcare, be kind to yourself, and put in the extra time to be aware of your healthcare costs. We’re on a budget for a reason. And honestly, it’s heartbreaking to think that these sky-high costs might push people to avoid going to the doctor due to costs or, even worse, go without any coverage at all. Don’t let this be you. Get informed and stay aware of these rising costs.