How to Save on Healthcare

How to Save on Healthcare

Healthcare is probably one of the most expensive costs that majority of us have to face in our lives. Medical expenses often come as a surprise, sometimes even when we think that we are in the pink of health.

While nobody can predict the state of our health, we can take steps to prevent medical bill shock and save on healthcare in the process. Here are some ways to do just that.

Get a health coverage A health insurance helps you spread the financial risk associated with medical expenses, which are among the major causes of bankruptcy in the United States.

Hospital care costs are always rising and one way to avoid depleting your savings or protecting your income while you are under medical care is to get your own health plan, especially if you don’t have an employer-sponsored coverage.

To the younger generation, who are generally healthy, insurance policies are more affordable so it’s best to get a health coverage while you are still young.

When it comes to getting an insurance, there is no one-size-fits-all policy; it all depends on your personal circumstances. Should you talk to an insurance agent, make sure that he or she also has your best interest in mind, rather than sell you policies you don’t need, just to rake in the biggest commission he or she can get.

Consider generics rather than branded medicine Of course, you need to ask your physician first if it’s OK to use a generic alternative to his or her prescribed medicine. Most of the time, there is a significant difference in price between a generic and a branded medicine and these savings can really add up.

Get a Flexible Spending Account A flexible spending account (FSA) is a tax-favored financial account which you can set up through your employer. With an FSA, you can earmark a part of your pre-tax income to pay for out-of-pocket, qualified expenses like medical bills or for dependent care. In FSA, your money isn’t taxed, but the disadvantage is its “use it or lose it” policy: you have to use the money in the account by the end of the year or else, it’s gone.

If your medical expenses are rather regular and/or predictable, or you know how much you’re going to spend for your medical expenses every year, as in the case of prescription drugs or regular checkups, it’s good to take advantage of this option.

Consider an HD plan A high-deductible health plan (HDHP) has lower insurance premiums but higher deductibles than those of traditional health plans. Some HD plans allow you to open a health savings account (HSA), where you can put in your pre-tax income. HD plans are ideal for relatively healthy people who don’t expect to have frequent medical visits. The logic behind HD is that you avoid paying a higher premium when you are generally healthy. After all, premium that isn’t used is money down the drain. If you expect to have high medical expenses, however, it’s better to avoid this type of plan.

With a high deductible plan, you use your own money to pay for medical expenses, before your health provider provides the reimbursement. For example, your deductible is $5000 per year but spent $6,000 in medical care, you will be reimbursed for $1,000 on that year.

Don't postpone check ups Sometimes, being too stingy on health care can seriously backfire on your finances. Postponing a medical checkup in hopes of saving a few bucks only to end up in the ER a few days later is ridiculous. Check with your physician at the first signs and symptoms; don’t wait for it you to be wheeled into the emergency room as ER costs are several times more expensive than an ordinary checkup.

Follow your physician's advice Ignoring your physician’s advice can be a costly mistake. Don’t self-diagnose or take shortcuts to your treatment. If you are asked to take a medicine for 7 days, don’t cut it to 3 days, unless specified by your doctor. Splitting pills is also a way to save on medicines but you need to ask your doctor first. For example, if you are prescribed a 250mg medicine but find a 500mg pack where you can get much bigger savings, ask your doctor if you can buy the 500mg pack and just split the pill.

Last, but not the least…nothing beats staying healthy. Don’t neglect your health, it’s above everything else.