With health care costs constantly rising, you may be looking for ways to lower your medical expenses. These 10 ideas can get you started.
1. Practice prevention
This may seem basic, but one of the most effective ways to lower your medical expenses over time is to maintain a healthy lifestyle. For example, you can:
* Take advantage of wellness programs
* Maintain a healthy weight
* Exercise regularly
* Kick unhealthy habits (e.g. smoking)
* Have regular checkups
2. Shop around for health insurance
If you don't have employer-sponsored health insurance, you may be ready to look for individual health insurance. Because premiums vary widely, you'll probably save money if you get quotes from several companies. Evaluate each plan's coverage and features, taking into account exclusions, limitations, and the freedom to choose health care providers, among other things. Also find out how much you'll end up paying out of pocket in the form of co-payments, coinsurance, and deductibles, because even relatively small amounts of money can really add up if you make frequent visits to your doctor. If you're healthy and just want protection for a major illness or accident, consider Catastrophic Health Insurance Coverage.
3. Cut the cost of prescription drugs
Try ordering your prescriptions through the mail, using a traditional or online pharmacy. If you belong to a prescription drug plan (e.g. through your health insurance), you may be able to get a three-month supply of your prescription drug through the mail for the same price you would pay for a one-month supply at your local pharmacy. You can also ask your pharmacist or doctor to recommend a less-expensive generic drug whenever possible. In addition, many groups and pharmacies offer prescription drug discount programs, although they usually offer small savings at best and large drawbacks at worst. Senior citizens and others on a limited budget may also apply directly to pharmaceutical companies for prescription assistance.
4. Check your medical bills
Check every itemized statement your receive from a hospital or physician to make sure that the bill accurately reflects the treatment you received and applies all available insurance coverage. Some errors, such as incorrect computer codes, are common, and you may be billed for health care you never received. Contact the billing office if you think you've found a mistake. If you've received an explanation of benefits from your insurance company that you believe is wrong, ask the company to review your claim.
5. Join your spouse's health plan
Many married couples maintain separate health insurance coverage even though it may not be cost effective to do so. Examine both your coverage and your spouse's coverage to see if it makes sense for either of you to join the other's plan. Keep in mind that most plans allow you to add a spouse to your plan within a certain period after you get married (e.g. 30 days). Otherwise, you may have to wait for the plan's annual open enrollment period.
6. Keep track of your medical expenses
Come tax time, you may be able to deduct certain medical expenses. The current IRS rules specify that you must itemize your deductions, and your total medical expenses must exceed 7.5% of your adjusted gross income. Allowable medical expenses include everything from health care services to medical aids (e.g. eyeglasses, hearing aids). And, don't wait until the end of the year to track these expenses, if there's a chance you'll be able to deduct them on your income tax return.
7. Negotiate a discount with your health care provider
Many people don't realize that you can sometimes negotiate to lower your medical bills. While it may not always work, it doesn't hurt to ask your doctor, hospital, or pharmacy if they're willing to come down in price. Before you begin to negotiate, do a little research to find out what other health care providers in your area are charging. You can also ask your health care provider if they'll lower their price if you pay in cash up front.
7. Investigate health care incentives
Health care providers sometimes offer wellness incentives to their customers. These can include regularly attending a gym, pledging not to smoke, and preventive care programs. Many health insurance companies will give an annual or monthly discount if you simply get a physical once a year and have a doctor certify that you're receiving proper preventive care.
8. Contribute to a tax-favored medical account
Your employer may offer a tax-favored health plan such as a flexible spending arrangement or health savings account (HSA) that allows you to put pretax dollars in an account. You can then use these funds to pay for or reimburse your out-of-pocket medical expenses, such as prescription drugs, dental care, and co-payments. Because these contributions are taken out of your pay before federal and state taxes are calculated, you get to use pretax dollars to pay your medical bills. In some cases, these accounts can provide an investment savings option as well.
9. Take advantage of free health screenings and immunizations
If your health insurance doesn't provide adequate coverage in some areas, or if you don't have any health insurance coverage at all, you may want to look into free health screenings. Local clinics and hospitals often provide a variety of screenings, such as blood pressure, cholesterol, and mammograms. You may also find free flu shots and well-child check-ups at government offices or your local WIC program.
10. Get to know your health insurance
Your health insurance may cover more than you think. Insurance companies often provide benefits designed to help you stay safe and healthy. For example, you may receive discounts on vitamins, alternative medicines, health club memberships, exercise equipment, and bike helmets.
You may also be surprised at the range of coverage your health plan offers. For instance, it may cover dental care for young children, chiropractic care, and acupuncture. Read your plan membership materials to find out what products and services are available through your health plan before you pay for them on your own.
