Eight Ways to Hold Down Your Health Care Costs
By Teresa Ambord
It’s common knowledge that the cost of health insurance has shot up in the last decade. Part of the reason is that people with good coverage through their employers consume more health care than they really need, like insisting on an MRI for a headache, or visiting the emergency room when an urgent care center or doctor visit will do.
Those lucky enough to have employer-paid insurance tend to forget the real price and begin to think of the cost of insurance as equal to their copays. For those people that may seem like the boss’s problem. But in reality, more and more employers are dropping health insurance as the cost climbs higher, or they hire fewer people or keep wages lower than they would be if health insurance was reasonable.
If you buy your own health insurance, or have a high deductible, or worse, have no insurance and pay out of pocket for medical needs, you understand that the real cost of health care and health insurance is enormous. But there are ways to save. Studies show that people like you who understand how expensive it is become better consumers of health care. Whatever coverage you have or don’t have, it benefits everyone to be a better health care consumer.
Here are some money saving tips:
1. Start by making some healthy life changes. You can stave off a lot of health problems by losing those extra pounds, getting some exercise, and dropping bad habits like smoking and overindulging in alcohol. And during cold and flu season, use disinfectant wipes in common areas at work and home.
2. Take advantage of free or low-cost health screenings through work, at clinics, senior centers, and health fairs.
3. If you buy your own insurance, do some shopping. Not all health insurance premiums are created equal. Just be sure you know what is covered and what isn’t. Otherwise you could end up paying for possible services you know you will never use.
4. Comparison shop for prescription drugs. Ask your doctor or pharmacist if there is a generic equivalent. You may wait longer by going to a discount pharmacy like Wal-Mart or Costco, but you could save a bundle. If you have insurance, find out if you can buy prescription drugs through the mail. If you take a regular prescription, ask your doctor if your medicine can be prescribed at double the dosage and then pill split. Not all pills can be split, but if yours can and your doctor agrees, you save half the price. And, if you have no insurance, let your doctor know this. He or she may have samples that will be enough to get you through an illness.
5. Check your bills. When you get a bill for medical services, be sure and check it closely. Billing code errors are easy to make and billing clerks are only human.
6. If you have coverage through your employer, find out if you have the option of a Flexible Spending Account (FSA) or a Health Savings Account (HSA). An FSA allows you to set aside money, pre-tax, for medical expenses. As you pay those expenses, your employer reimburses you. An HSA is for insurance policies that have high deductibles. With an HSA you can set aside money from your paycheck, before tax to pay the deductible when expenses arise.
7. Income tax. Keep track of what you spend, including the cost of prescriptions, eyeglasses, and premiums. The threshold you have to cross to be able to deduct medical expenses is pretty high (only the amount that exceeds 7.5% of your adjusted gross income) but if you have a high deductible or no insurance, you just may get there.
8. Avoid emergency rooms. Studies show, emergency room visits are soaring, yet only 48% of those visits require emergency care. Most cases can be handled in a doctor’s office or urgent care center for a fraction of the cost and waiting time.