Here's how to cut your out-of-pocket expenses.
Karen Datko
• September 20, 2019
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High-deductible
health insurance plans can make consumers living on a tight budget very
nervous.
As
employers try to cut the cost of providing health insurance to workers, they’re
offering more of these types of plans. The premiums are lower, but you’ll pay a
lot of money out-of-pocket — typically thousands of dollars — before the
insurance coverage kicks in.
High
deductibles also are the rule for many plans available on the federal and state
health insurance marketplaces created under the Affordable Care Act.
How do
you get the best use of this kind of coverage while also keep costs down? Here
are several tips:
1. Claim your freebies
Under
the Affordable Care Act, certain preventive health services are available to
you at no cost, even with a high-deductible policy. Make sure the doctor’s
office or hospital accurately codes any such procedure you have. That way, the
insurance company will know it’s one of the free services and will cover the
cost.
A list of free
procedures and screenings is available online at the federal health
insurance marketplace, HealthCare.gov.
Before
you have a test or screening, check to make sure which costs are covered. Many
years ago, Money Talks News founder Stacy Johnson
found out the hard way that some of his annual physical examination
was provided at no cost to him, but that much of the rest was not.
2. Ask for a discount
Tell
your doctor’s office or the hospital that you have a high-deductible plan and
ask if there’s a discount for paying cash. You may even find that a doctor will
give you a considerable discount if she knows you have to cover the entire cost
out-of-pocket.
If you
can’t afford to pay, ask the doctor or hospital for a low- or no-interest
installment plan. Some still offer them.
Needless
to say, you should ask whether a less expensive, alternative treatment is
available.
3. Save on medications
Ask
your doctor if a generic exists for the drug he or she wants to prescribe. If
so, don’t stop there — shop around. Sometimes, you can save a huge amount of
money simply by purchasing a generic drug from the right pharmacy.
For
more, check out “5 Ways I Slashed
My Prescription Drug Costs.”
4. Compare prices of medical providers
Hospital
prices across the country vary wildly for the same procedure. While cost
shouldn’t be the sole basis for selecting a health care provider, it should be
part of your process.
When
you call around to compare prices, make sure you identify your insurance
company so you’re quoted the rate it would be charged. Chances are good that
your insurance company has negotiated lower costs with the provider.
5. Stay in your network
Even if
you’re paying out-of-pocket thanks to your deductible, you’ll typically pay the
lower in-network rate if you stick with the health providers in your insurance
plan’s network.
6. Open a health savings account
With
qualifying high-deductible plans, the Internal Revenue Service allows you to
create a health savings account — a savings or investment account into which
you can deposit pretax earnings to spend on health care.
Any
money and interest earned that you don’t spend remains in these accounts year
after year. Many employers kick in some money too.
In 2019,
an individual can set aside $3,500 in an HSA, while a family can set aside
$7,000. Increase the number by $1,000 if you’re 55 or older.
For
more on this topic, check out “3 Reasons to Get
a Health Savings Account.”
7. Have a super-solid emergency fund
It’s
asking for trouble to buy a high-deductible plan without having money at least
equal to the deductible in a savings account or HSA.
Such a
healthy emergency fund
will keep you from racking up interest on the unpaid balance you owe to the
local hospital or clinic, or prevent you from putting your bill on a
high-interest credit card.
8. Keep good records
Keep
copies of all your medical receipts, just in case the insurance company makes
an error.
9. Do some research
It’s
unwise to avoid going to the doctor when you have a problem. But you don’t need
to see a professional for a simple case of the sniffles. Many insurance
providers have online information and nurse advice lines that can help you
understand symptoms.
Of
course, if any of this feedback indicates that you require care, don’t delay.
Waiting to see a doctor could end up costing you substantially more if the
condition worsens.
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