7 Ways to Cut Health Costs

Smart Ways to Save Money and Stay Healthy

by Erin Scobie

If you’re like most Americans, health costs make up a considerable portion of your monthly living expenses. While healthcare is a necessary burden, it is not required that you overpay. With a little more research, you can take more control over how much you spend and find ways to cut health costs.

Pick the Right Provider

Make sure everyone you see is in your insurer’s network as your insurer has pre-negotiated, lower rates with those specific providers. If you’re referred by your doctor to a specialist, make sure the specialist is in your network and if he or she isn’t, ask your doctor to refer someone who is. Also, ask about alternate facilities. Doctors work in hospitals, clinics and outpatient centers and what they charge at each location can vary.

Fill Prescriptions the Smart Way

Switching to generic drugs can result in huge savings. Both the price tag and the co-insurance amount you will pay will be lower. Many chain stores now have prescription plans that allow you to fill prescriptions with generic drugs for as low as $4.00 each. Another option is to order your drugs online. Mail-order pharmacies often provide a three-month supply of drugs for the same price as a one-month supply at your local pharmacy.

Maintain Good Health

The best way to save money on healthcare is to take care of yourself by taking preemptive steps. Many insurance plans provide certain preventive-care screenings without charging deductibles or co-payments. Depending on your age, this rule may apply to basic tests including blood-pressure, diabetes, cholesterol, flu shots, vaccines, and other preventive services.

If you have a chronic condition, check with your insurer to see if they provide incentives for you to take your medications, visit your doctor and have regular tests.

Take Advantage of Tax Breaks

Always make sure to contribute to a flexible spending account because that money is not subject to federal or Social Security taxes. You can use these tax-free funds to pay out-of-pocket medical expenses throughout the year.

Know Your Insurer’s Rules

If you have a policy with a high deductible, make sure you’re getting the insurer’s negotiated rate rather than the higher list price. Even if you haven’t hit your deductible yet, you are eligible to receive the lower price and to have that cost counted toward the deductible.

Always get an itemized bill when you have a hospital stay or major procedure done. If a charge doesn’t make sense, question it. In addition, always check your bill against an explanation of benefits.

Ask for a Discount

You have nothing to lose. If you’re paying for a test or procedure yourself, cash actually gives you leverage. Make sure you’re getting the insurer’s negotiated rate, and submit the claim yourself so that it counts against your deductible. After getting the bill, ask for a discount if you pay a lump sum right away.

Do Your Research

Many insurers offer online personalized tools to help members shop for care. The tools can sometimes show the retail price for a specific procedure, the negotiated rate with each in-network provider, and exactly how much you’ll pay based on your plan. You can also check the quality ratings for doctors and hospitals.