The Best Ways To Spend on Your Health in 2025 To Save on Healthcare Costs Later
Healthcare costs are top of mind for many Americans, particularly the older you are, when it’s more common for age-related issues and concerns to mount.
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While the actual costs of healthcare premiums and related expenses are unlikely to come down much, there are ways to spend money now to prevent your health from declining and thus to save on healthcare expenses down the road.
There are also investments you can make in your health or healthcare strategy that can be significantly helpful later on. Here are some of the best ways to spend your money on your health, now and later.
Healthy Eating Habits
Poor diet is linked to many of the leading causes of death in America, according to Shelley Balls, MDA, RDN, LDN, a registered dietician nutritionist at Consumer Health Digest.
She pointed out an older Harvard School of Public Health study that found that eating healthy costs an average of $1.50 more per day. Accounting for inflation by 33% since 2013, that still only comes out to an additional $2 a day to eat healthy.
While this doesn’t address the fact that things like food deserts and other challenges to healthy eating exist, even prioritizing more fruits and vegetables and fewer processed foods can be worth the money upfront.
“Yes, the upfront cost is a little more expensive at approximately $2 a day, but let’s look deeper at the cost of living with preventable chronic diseases later in life,” Balls said.
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Hiring a Nutritionist
If you don’t have a solid grasp on nutrition, Balls said it’s worth it to meet with a registered dietitian, whether it’s one time, or on a monthly basis, for your health. “With so much misinformation from social media, peers, family, etc., it’s hard to know what to believe and meeting with a registered dietitian can help you navigate what will actually improve your health,” Balls said.
To give some context for the costs of disease, she shared some of the average out-of-pocket costs associated with common illnesses (none of which have been shown to be caused exclusively by eating habits).
Type 2 Diabetes: The average out-of-pocket costs range between $3,300 and $4,600 a year, including prescription medications, provider visits, over-the-counter supplies and lost wages.
Heart Disease: The average annual cost of direct medical care for those with cardiovascular disease in the U.S. is $18,953, with inpatient care accounting for 42.8% of that total.
Cancer: The average cost for cancer medical services was highest for the end-of-life phase at $76,100, followed by the initial care phase of $35,000 and the continuing care phase at $3,500. The average out-of-pocket costs for oral prescription drugs were highest for the end-of-life phase at $2,700, followed by the initial care phase at $1,100 and the continuing care phase at $830.67.
Contributions to Tax-Advantaged Health Accounts
Any amount of money you can sock away into a tax-advantaged health or flexible savings account, such as a health savings account (HSA) or flexible spending arrangements (FSA), can help you save and pay for medical expenses and give you a tax benefit too, according to Monica Steinisch, legal editor at Nolo.
FSA Contributions and Distributions
For FSA accounts, typically your employer will deposit your annual election in equal installments throughout the year, depending on your paycheck schedule, Steinisch explained. “The employer also may contribute to your account.”
The benefit of this type of account is that the IRS places no limit on the amount of money you or your employer can contribute to the account. “However, the plan itself is required to set either a maximum dollar amount or maximum percentage of compensation that can be contributed.”
You can tap your FSA to pay qualified medical expenses up to your annual election amount, even if you have not yet placed the funds in the account. Though do note that you can’t receive distributions from your FSA for health insurance premiums, long-term care coverage or expenses, or expenses that are covered under another health plan.
Health Savings Accounts (HSAs)
An HSA is another kind of tax-exempt account that allows account holders to use employer contributions and earnings to pay future medical expenses.
While you may be able to establish one as part of an employee benefits plan, you can also find them through any number of banks, credit unions, insurance companies, or other entities that meet IRS requirements, she explained.
Eligibility requirements demand you are covered by a qualified high deductible health plan (HDHP), that you can’t otherwise be covered by any other insurance that would pay for medical expenses (with exceptions for limited forms of coverage), must be younger than 65 (the age when you become entitled to Medicare) and can’t be claimed as a dependent by someone else.
There are even more types of accounts you can look into but these are good starting points.
Tools To Support Healthy Sleep
Another way to invest in your health in 2025 is to improve your sleep.
“Sleep impacts nearly every aspect of our well-being — mental clarity, immune function, stress management and chronic disease prevention,” according to Catarina Tucker, founder of Snuggle Sense. She pointed out that poor sleep has been linked to increased risks of heart disease, diabetes and mental health conditions, which can lead to significant healthcare costs over time.
She recommended investing in high-quality sleep tools, such as weighted blankets, to improve health outcomes and reduce future medical expenses.
Meditation Apps
Stress may not in and of itself cause illness or disease, but it has certainly been shown to exacerbate and worsen outcomes in physical and mental health. A variety of meditation apps, such as Calm or Aura, abound to help promote relaxation and reduce stress. Subscriptions to these apps can vary in price, but finding one that meets your needs can potentially save you money on your health later on.
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This article originally appeared on GOBankingRates.com: The Best Ways To Spend on Your Health in 2025 To Save on Healthcare Costs Later
