5-Step Plan to Cut Your Health Care Costs
Even if you have a great health insurance plan, chances are that your health care expenses will continue to rise. That means it’s more important than ever to look for ways to save. Here are five good places to start:
1. Pick the perfect insurance plan
Some employers offer a choice of health care plans, from health maintenance organizations (HMOs) to preferred provider organizations (PPOs) to point of service (POS) plans. You can save by choosing the plan that’s right for you and your family. If you’re unsure, ask your family physician for guidance.
2. Max out your Flexible Spending Account (FSA)
If your employer offers a flex plan, take full advantage of it by taking time to estimate your family’s eligible health care expenses for the year. Because of the “use it or lose it” provision of flex plans, many people fail to contribute enough.
3. Consider a Health Savings Account (HSA)
Health Savings Accounts require you to enroll in a high-deductible health plan. Then you fund a special savings account that you use to pay healthcare expenses. The big benefit: You can deduct funds invested in an HSA from your income for tax purposes, and any unspent money rolls over from year to year. Before you decide on an HSA, evaluate your current or likely health costs. People with high medical bills may be better off in a traditional insurance plan.
4. Save on drugs
Insist on generic drugs when available and shop around for the best prices. If you must pay for your own prescriptions, ask your doctor if an older or less expensive drug would work just as well for you. And even if you are in a plan that pays part of your prescription charges, you may be able to save by purchasing from a mail order pharmacy, or by buying three-month supply instead of just one month. Many health insurers can provide information on ways to cut your drug costs.
5. Take care of yourself
Preventive care goes a long way. Even if you're not ready to take on a rigorous exercise regimen, there are simple things you can do, such as regular flossing, eating a healthier diet and taking medications strictly according to your doctor's orders.
Take the next step...
A Health Savings Account can help you save money and potentially earn interest and investment returns.
