How to Save on Health Insurance

If you’re one of the millions of Americans struggling to pay for the rising cost of health insurance,
here are some money-saving tips.
Check with Your Employer
If your employer provides health insurance benefits, it might be worthwhile to take a closer
look at those options. Depending on the coverage you’re looking for and the amount of savings
you want, you might find that your employer-sponsored plan is the best option, especially if
they also offer an HRA or FSA account.
Use Tax Credit Subsidies
If you purchase your own health insurance, subsidies such as the Advanced Premium Tax Credit
are available to make premiums less expensive. The amount of this subsidy depends on your
income and family size. If you qualify, the tax credit will be applied to your monthly premiums,
and you’ll be able to pay the discounted rate.
Opt for HMO over PPO
If you can choose between an HMO and a PPO, choosing an HMO can save you money because
they have smaller networks of doctors and hospitals. In addition, HMOs often require you to
use in-network providers, which can help keep costs down.
Pick a Plan with a High Deductible
Deductibles are the out-of-pocket amounts you must pay before your insurance starts covering
medical expenses. A higher deductible means lower monthly premiums but more money
upfront. So, if you’re healthy and don’t often visit the doctor or take medication, consider
choosing a plan with a higher deductible. However, make sure you have enough saved in case
of an unexpected medical emergency.
Don’t Forget About Your HSA
If you have a Health Savings Account (HSA) or a Flexible Spending Account (FSA), you can use
these accounts to save money on health insurance costs. With an HSA, you can make tax-deductible contributions (up to $3,650 per year for individuals and $7,300 for families) and use
the funds to pay for qualifying medical expenses. With an FSA, your employer sets aside a
certain amount of money (up to $2,850 per year) from your paycheck to cover eligible medical
expenses.
Check Your Coverage Before Going for Treatment
Before you receive any treatment, it’s always a good idea to check with your insurance
company to make sure the procedure or medication is covered. Some treatments may not be
fully covered or may require a higher deductible. You can also ask your doctor if any cheaper
alternatives are just as effective.
Save on Medication
You can save money on prescription medications by buying generic drugs instead of brand-name ones, as they both contain the same active ingredient. Also, ask if your doctor can
prescribe a cheaper alternative drug that has the same effect. Another option is to order from
online pharmacies because they might provide discounts for online and bulk purchases.
Take Preventative Measures
You can save on healthcare costs by making sure you get regular checkups and screenings.
These tests can detect illnesses early so you can avoid costly treatments down the road. They
can also prevent serious conditions like cancer from developing in the first place.
Adopting a healthier lifestyle by eating well, exercising regularly, and getting enough sleep will
contribute to better overall health. Not only will you feel better, but you’ll also be less likely to
get sick and end up needing expensive medical care.