How to Save on Healthcare Costs This Winter
Q: Healthcare expenses are often one of the largest and most unpredictable parts of my household budget. From routine checkups to unexpected emergencies, costs can really add up. How can I save on healthcare costs without compromising on my wellbeing?
A: Healthcare costs can take a big bite out of your budget, especially during the winter months. The good news is, with strategic planning and smart choices, you can save on healthcare costs without compromising the quality of your care. Here’s how:
1. Choose the right health insurance plan
Health insurance plays a crucial role in how you manage your healthcare costs, but not all plans are created equal. Picking the wrong one could leave you paying more than necessary.
Here’s how to choose the right plan:
-
Compare coverage. Evaluate plans based on your healthcare needs. If you visit specialists often, or take regular medications, ensure those are covered under each plan you consider.
-
Understand premiums vs. deductibles. Lower premiums can seem attractive, but the monthly savings are often undercut by higher out-of-pocket costs. If you tend to visit the doctor and need frequent medication, a higher deductible is likely not ideal for you. However, if you’re generally healthy, a high-deductible plan with lower premiums can save you a significant amount of money.
-
Utilize open enrollment. Review your coverage annually to ensure it still meets your needs. Don’t hesitate to switch if another plan offers better value.
2. Take advantage of preventive care
Preventive care is free under most insurance plans. This includes services like vaccinations, screenings and annual wellness visits. Schedule regular checkups for early detection of potential issues and keep up with recommended vaccinations and routine screenings. It’s also important to maintain a healthy lifestyle for minimizing illnesses. Staying ahead of potential health issues can reduce the need for costly treatments down the line.
3. Use health savings accounts (HSAs) and flexible spending accounts (FSAs)
These tax-advantaged accounts can significantly reduce the burden of healthcare costs. Here’s how:
-
HSAs are available with high-deductible health plans (HDHP). This account allows you to set aside pre-tax dollars for medical expenses. Funds roll over annually, and you can even invest unused money.
-
FSAs also allow you to save pre-tax dollars for medical expenses, though funds must typically be used within the plan year.
Both accounts can be used for various medical expenses, from prescriptions to eyeglasses and more.
4. Shop around for medical services
Healthcare prices can vary significantly depending on the provider or facility. Be sure to compare costs on various tests or imaging services by using tools like your insurer’s cost estimator or third-party websites. It’s also a good idea to ask for cash discounts when paying out-of-pocket. Finally, avoid the ER for non-emergencies, as it can be costly. Instead, opt for urgent care clinics or telemedicine services to save on costs.
5. Maximize generic medications
Prescription medications are a common source of high medical costs, but switching to generics can offer significant savings. When prescribed medication, ask your doctor about generic options. Compare prices at different pharmacies to ensure you get the best deal and use discount programs, like GoodRx and SingleCare, to find coupons and discounts on medications.
6. Stay in-network
When using insurance, staying within your plan’s network is crucial to avoid higher out-of-pocket expenses. Ensure that your preferred doctors and specialists are in-network before scheduling appointments and confirm the network status of any hospital or facility you’re referred to. If you do need out-of-network care, ask your insurer about partial reimbursements.
7. Explore community and nonprofit resources
Local clinics, nonprofits and government programs often provide free or low-cost services for those who qualify. Visit community health clinics for reduced-cost or sliding-scale services for uninsured or low-income individuals. You can also check out prescription assistance programs for reduced medication costs. Finally, see if you qualify for government programs, like Medicaid or CHIP, which provide affordable healthcare for eligible families.
8. Be proactive about medical billing
Mistakes in medical bills are more common than you might think. Reviewing and negotiating bills can save hundreds or even thousands of dollars. Look over your medical statements carefully, ensuring that all charges are accurate and match the services you received. If a bill seems high, ask the provider about payment plans or discounts for upfront payments. It’s also a good idea to compare your insurer’s explanation of benefits (EOB) to confirm you weren’t overcharged.
9. Consider telehealth
Telehealth services have become increasingly popular and can save both time and money. You’ll pay less for consultations compared to in-office visits and enjoy convenient access to care without the need for travel. Telemedicine can be ideal for non-urgent issues like colds, minor infections or follow-up appointments.
Healthcare costs can take a bite out of any budget, but there are ways to bring down costs. Follow these tips for significant ways to make managing your health easier.
Sources:
https://www.ameriprise.com/financial-goals-priorities/insurance-health/managing-health-care-costs
https://healthy.kaiserpermanente.org/learn/health-care-savings
Garden Savings Federal Credit Union
The local credit union in your neighborhood.
A Better Place to Bank.
