CNNMoney.com published an article, “10 ways to beat the rising cost of health care.” This article includes some excellent tips for consumers. Here are some great ideas that can help you manage your health care dollars.
1. Before you visit a provider, ask “how much will this cost?” Negotiating is important if you have a high-deductible plan, are uninsured, or using a provider out-of-network. The good news --providers are becoming more accustomed to patients asking for discounts. All you have to do is ask.
2. Discounted prescription medications. Medications can be very expensive. If you can take advantage of mail-order pharmacies or even retail chains that offer generics for just $4 - you can save a lot of money. There are hundreds of mail-order pharmacies, and you can find them by doing a Google search.
3. Take advantage of employer sponsored Flexible Spending Accounts (FSAs). According to Mercer, about 80% of large employers offer FSAs, but only 22% of employees enroll in these plans. This is tax free dollars that you can set aside for health care expenses. If you are in the 28% tax bracket, a $1000 FSA may save you about $350. Beware that money FSA dollars that aren’t spent by year-end are lost.
4. Be sure to look into high-deductible health plans (HDHPs). We are starting to see a higher rate of adoption for these plans because they encourage personal responsibility, create financial incentives for consumer to make informed choices for staying healthy and are successful at reducing health care expenses! These HDHPs offer lower-monthly premiums and can save you thousands of dollars a year on reduced premiums, but require you to satisfy your deductible before your insurance kicks in. For many people, saving $5000-7,000/year on premiums and paying a $5000 family deductible is a great deal. In a healthy year, you might not even have met your deductible! Do some research to determine if this plan is right for you.
5. Health Savings Accounts (HSAs). With an HSA you can save pre-tax dollars to pay for health care expenses. In 2009, a family can contribute $5950 and single person can contribute $3000. As an extra bonus, American Chartered Bank offers free HSAs. It’s definitely worth checking into.
6. Walk-in retail clinics are less expensive than office visits for non-emergency, routine medical services. They post their prices upfront and most now accept insurance.
7. Stay insured if you lose your job. A federal subsidy covers qualifying individuals with 65% of the COBRA premiums.
8. Make healthy life style choices. Employers are implementing wellness programs where they often reward employees for behavior changes (losing weight or quitting smoking). The personal benefits of making healthy choices and taking personal responsibility are priceless!
9. Avoid Medicare mishaps. Before you sign up for Medicare, or Medicare supplement programs like Medicare Advantage, make sure you understand what is covered and what is not covered.
10. Adding vision and dental expenses to your health plan can inflate your premiums. If your health plan does not cover vision and dental, remember vision and dental expenses can be paid for through your FSA or HSA. If you pay high monthly premiums for dental and vision, be sure to calculate the total cost of coverage vs. your annual expenses. You might be surprised at the savings if you decide to opt out of dental/vision coverage and pay out-of-pocket. And be sure to ask your dentist or eye doctor for a discount!