Your health insurance doesn’t cover everything. Most plans have co-pays for prescriptions and doctor visits, and you also have to spend a certain amount of your own cash before you get full coverage, in the form of a deductible.
For most small employer plans, deductibles now average about $2,000 a year, according to benefits consulting firm Mercer. That’s double what deductibles were a decade ago.
If you have high medical costs, or think you may need high-cost care like surgery or you’re planning to have baby — it pays to put cash aside for those out-of-pocket costs pre-tax.