Health
Slash Your Healthcare Costs with Expert Financial Tips
Every year, the United States invests an astronomical sum of around 4.5 trillion dollars in healthcare. This making it one of the most costly nations when it comes to medical care. The American Medical Association (AMA) testifies that this translates to the average American expending more than $13,000 annually on healthcare. Hospital care takes up about 30 percent of this cost, while physician services and prescription drugs account for 15 and nearly 10 percent respectively. Other costs include health insurance, clinical services, nursing care facilities, home health care, along with miscellaneous healthcare expenses.
However, financial and medical experts suggest that with a strategic approach to spending, there are numerous ways to cut down on healthcare costs.
Invest in preventative care
“Preventative care is one of the best investments not only to manage health-related finances but also for your health itself,” suggests Armen Gazaryan, chairman and medical expert at CalltheCare. Regular physicals and immunizations can keep diseases at bay, potentially saving you from hefty hospitalizations and emergency room visits. Gazaryan points out another plus: if you are at risk for avoidable chronic conditions, the savings from preventative care could run into several hundreds or even thousands of dollars annually.
Use your health savings account (HSA) or flexible spending account (FSA)
Another way to budget your healthcare spending is through health savings accounts (HSAs) or flexible spending accounts (FSAs) that your employer might offer.
“FSAs are tax-advantaged accounts you can use to cover out-of-pocket medical expenses on a pre-tax basis, thus reducing your taxable income and saving you money on taxes,” Gazaryan explains.
Sean Fox from Achieve suggests carefully planning your spending and checking your balances ahead of time. He also mentions that FSA funds can be utilized for a wide range of products and services.
Use pharmacy discount cards and websites
To save on prescription drugs, Joe Tammaro of DrFirst suggests considering pharmacy discount cards or websites like GoodRx, WellRx, and SingleCare. However, he warns that the amount saved may differ greatly depending on the specific drug.
Request generic medications
Fox also recommends asking about costs upfront to avoid unexpected medical bills and to compare options. Additionally, Fox suggests opting for generic versions of brand-name drugs where applicable and safe to do so, which might result in significant savings.
Telehealth services that tend to be less pricey than in-person visits might also cut healthcare costs.
However, Fox warns, “Often, you need to see a healthcare provider in person. But in some cases—whether for a consultation, follow-up, or certain symptoms—you may be able to do a telehealth appointment, which can slash costs in half, depending on the provider.”
Always stay in-network
Making sure to choose medical providers within your insurance network can also lower expenses. The recent “No Surprises Act” limits ‘surprise’ bills from some out-of-network providers, but it’s still crucial to verify that providers are in-network.
Avoid the ER when safe alternatives are available
Planning ahead for emergency care can control your financial burden. Knowing which hospitals are in-network before an emergency is crucial to avoid skyrocketing out-of-pocket costs. Fox suggests utilizing urgent care facilities as they offer lower-cost treatments and to inquire about financial resources when visiting an ER.
Check bills for errors
Fox advises patients to carefully review medical bills for errors and to question the billing department in case of confusion or concerns. He also recommends asking about cash payment discounts from medical offices when insurance coverage for a procedure is suspected to be minimal.
Avoid putting medical expenses on a credit card
Lastly, Fox underscores the importance of diligently managing medical expenses and not piling them on credit cards, which could result in high-interest debts. He insists on exploring financial help from local organizations, charities, churches and government agencies, and even availing discounts from various organizations.
Let us know what you think, please share your thoughts in the comments below.
