How To Lower Health Insurance Costs

How to Lower Health Insurance Costs

When you're in the midst of a medical emergency, the last thing you want to think about is how you're going to pay for it. However, the United States has one of the highest healthcare prices in the world. It is, in fact, one of the top causes of bankruptcy in the United States.

Individuals and families must have health insurance coverage, but there are numerous methods to reduce the cost of your health insurance, from taking advantage of subsidies to increasing your deductible. Continue reading as we discuss the best methods to maximize your healthcare savings each month. We'll go over the greatest strategies to save money on health insurance.

Health Insurance Subsidies

The federal government may be able to pay a portion of your health insurance coverage under the Affordable Care Act, depending on your income level. It provides incentives in the form of tax credits that assist reduce the monthly cost of your insurance premium. You can see if you qualify for cost-sharing reductions according to your income—the lower your income within the range, the more you'll save. Go to the online health insurance marketplace to discover whether you qualify.

Quit Smoking

Isn't it true that it's easier said than done? However, there is a financial incentive to quit smoking in addition to the health benefits. Health insurance rates are determined by the following characteristics under the Affordable Care Act (ACA): plan category, number of people on the policy, age, geography, and tobacco usage. Tobacco use can be used by most insurance companies to raise health insurance prices for smokers. The rate varies by state, but you might save up to 50% on your monthly premium. 

For this information, insurers rely on the honor system. If you have group health insurance through your job, your smoking status may be confirmed through a blood or urine sample at your next routine medical exam. Misrepresenting your smoking habits may be deemed insurance fraud, with various penalties depending on where you live.

Increase Your Health Insurance Deductible

This easy change will reduce your monthly rate by 5% to 10% because the more you spend out of cash, the less premiums you will have to pay. Remember that increasing your deductible will immediately lower your expenditures, but it may be a dangerous choice if you are not financially stable. If something tragic occurs and you are unable to file a claim, you may face significant out-of-pocket expenses. However, if you are pretty healthy and do not anticipate many medical visits in a year, raising your deductible in return for a cheaper premium can save you a significant amount of money. 

Use a Health Savings Account

High-deductible plans are frequently combined with a health savings account, which is an excellent way to save money on medical expenses. Each year, you simply deposit pre-tax funds into your account for future medical expenses. The advantage of an HSA is that it is tax-deductible, which means that not only does the money in your account grow tax-free, but you can also withdraw it tax-free. The greatest approach to take advantage of an HSA is to contribute to it on a regular basis. You'll always be prepared in the event of an emergency because you never know when you'll need those funds.

Use In-Network Doctors

When scheduling an appointment, make sure the doctor is still in your insurance plan's network. If your preferred doctors do not participate in the plan, you may be charged exorbitant out-of-network fees. If you need to go to the hospital or an emergency room, ask for in-network providers. After all, just because a hospital participates in your plan doesn't mean that every medical practitioner who works there does as well. Finally, if you need to see a doctor while you're away, contact your insurance carrier to find out which doctors and treatments are covered.

Double-Check Your Medical Bills

Did you know that administrative errors account for nearly 80% of all medical bills? It is no coincidence that patients are routinely overcharged, whereas hospitals and providers rarely, if ever, appear to undercharge. As a result, it's vital to check through each statement with a fine-toothed comb for mistakes including erroneous patient, provider, or insurance information, as well as incorrect procedure codes and duplicate billing. You should also evaluate your provider's benefit description and ask questions if something doesn't seem correct. 

Save Money on Prescription Drugs

Before choosing a physician or renewing your policy, ask your provider for a prescriptions list to see whether yours are covered. If you have prescriptions that you need to fill on a regular basis, ask your provider for a list to see if your medicines are covered. Ask your provider if you can save money by getting your medications through the mail or utilizing a preferred pharmacy.

You can also go with a generic name. Both prescription and over-the-counter generics must be comparable in dose, potency, safety, and efficacy, according to the FDA. Despite this, the Food and Drug Administration reports that generic versions can save you up to 85% off brand-name rivals.

Finally, there are a handful of websites that will help you save money on prescription drugs with just a few clicks: ScriptSave WellRx or GoodRX? Simply enter your drug name to receive a discount for the pharmacy with the lowest prescription pricing.

Opt for a Telehealth Visit

If you have a minor health problem, a telemedicine visit can be much less expensive than going to the doctor's office. Simply meet with your doctor over secure video chat on your phone, computer, or tablet. If you have a non-emergency problem such as a cough, rash, fever, or flu, it might be an excellent way to get in touch with a doctor or nurse. A virtual appointment costs $50 on average, compared to $85 for low-severity therapy at a doctor's office, $130 for an urgent care facility visit, and $740 for an emergency department visit. A televisit also saves time and gives 24-hour access to all of your healthcare requirements.

Change your Co-insurance Ratio

After you have met your deductible, your co-insurance ratio is the percentage of covered medical expenses (how much you will pay). The remainder is covered by your health insurance policy. A usual ratio is 80/20, which means that once you've paid your deductible, your insurer will cover 80 percent of the price and you will only pay 20 percent. Increasing this ratio to pay more than 20% lowers your monthly premium. However, just like upping your deductible, you'll need to be financially prepared in case you need to file a claim. 

Re-evaluate Your Coverage Every Year  

Do you allow your health insurance to automatically renew each year with the same coverage? If your circumstances or premiums have changed since the last time you reviewed your plan, you may be losing out on savings. That is why, when it comes time to renew your coverage, it is critical to examine your insurance. Consider the following considerations: 

• Do you use a lot of prescription medications?
• Do your children frequently see the doctor?
• Are you willing to bear the cost of routine health care in exchange for significantly lower premiums?

You might also want to learn how to compare health insurance coverage.