stages of life - starting a family

You found the love of your life and maybe you are thinking about expanding your family by two more feet. There is lots to consider when providing for a growing family. Here are a few questions you may want to ask.

• We are having a baby. How much do I have to pay for medical bills?

• Medical and childcare expenses are adding up. Can I save for medical and childcare expenses through a payroll deduction? Can I use my HRA VEBA dollars for medical expenses?

• How do I balance providing for my family and saving for retirement? Will my PERS pension be enough? How can I save extra money but not be locked in?

• How do I make sure my family is ok if I die? Is there life insurance available through my PUD?

• Are there other benefits I don’t know about?

PPO Plan - pay and forget about it

For a family, you pay $333.41 per month ($4,001 per year) in premiums, In addition you pay a $25 copay for most services. For complex care and hospitalization, you will have to pay a $500 individual or $1,500 family deductible, then 20% coinsurance until you meet your $2,000 individual or $6,000 family out of pocket maximum.

CDHP Plan - pay as you go

You pay $20 per month ($240 per year) in premiums regardless how many family members you cover. If you see a doctor you will have to pay your $1,100 individual or $2,200 deductible first, then 20% coinsurance until you meet your $3,200 individual or $6,400 family out of pocket maximum. Preventive care is covered in full. To help offset some of these cost, you get a $1,000 HRA VEBA contribution for you and your spouse and $250 for your child(ren).

saving for medical and child care expenses

During open enrollment, you can elect to set aside money for expected out-of-pocket healthcare and/or dependent care expenses by enrolling in Flexible Spending Accounts (FSA). Contributions to your FSA account are deducted from your paycheck each month, reducing your taxable earnings. Plan carefully how much money you set aside as you will lose unspent dollars.

• Dependent Care FSA: Save up to $5,000 for eligible dependent care expenses, such as childcare, nursery school, pre-school, before/after school care etc.

• Health Care FSA: Save up to $3,050 (in 2023) for eligible health care expenses, such as copays, deductibles, orthodontia, prescription glasses, etc.

In addition, you may want to consider to contribute to a 457 account. You can enroll and increase/decrease your contributions at any time. Remember, time is money, and even small monthly contributions can add up over time.

You are saving already? Perfect! Crunch the numbers and find out how much more you could earn if you saved $20, $40, $100 per month more. And don’t forget to review your investment options occasionally to make sure you are on track.

life insurance

As your family grows, more lives depend on you. That’s why it’s important to review your life insurance coverage:

• Your PUD buys one time your annual earnings (base wages) in life insurance and the same amount in accidental death and dismemberment (AD&D) insurance. If you die of natural causes, the life insurance policy will be paid to your beneficiary; if you die because of an accident, both life and AD&D insurance will be paid out.

• Buy additional life insurance during open enrollment with no medical questions asked (up to $200,0000), or increase your coverage to $220,000 if you already purchase $200,000, without proof of good health. The maximum you can buy is $500,000 or five times your annual base earnings with proof of good health. Premiums go up as you age, so it’s important you review your coverages occasionally.

• AD&D insurance protects your family in the event you die of an accident and is inexpensive. You can buy up to $500,000 or five times your annual base earnings in coverage, with no medical questions asked.

Crunch the numbers! Download Life Insurance Calculator and find out how insurance you can buy while staying in your budget.