Financial Decoder How Do Healthcare Costs Actually Work?
Oct 13, 2025
Chris Kawashima, a director of financial planning at the Schwab Center, breaks down the often confusing world of health insurance. He explains key terms like deductibles, copays, and coinsurance, helping listeners understand their impact on finances. Chris compares high-deductible and traditional plans, offers tips for choosing between family and individual coverage, and discusses HSAs and FSAs for saving on healthcare. He also highlights the importance of reviewing open enrollment options annually and managing costs for chronic conditions.
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Know The Core Plan Terms
- Review premiums, deductibles, copays, coinsurance, network rules, and covered services before choosing a plan.
- Understand these terms so you can compare real out-of-pocket costs, not just monthly premiums.
Employers Shoulder Most Premiums
- Employers typically pay the majority of premium costs, making employer coverage cheaper than individual plans.
- For single coverage employees pay about 15–20% and for family coverage about 25–30% on average.
Match Plan To Health Usage
- Choose a high-deductible plan if you're healthy and want lower premiums, and a traditional plan if you expect regular care.
- Also compare HMO versus PPO networks: HMOs lower costs but limit out-of-network freedom; PPOs cost more but offer flexibility.