How To Save on Healthcare Costs This Year
Healthcare costs have been on the rise for a while, with insurance companies changing premiums, copays and covered services all the time.
Here are our tips to help you better navigate and save on healthcare costs this year.
Review What Your Healthcare Plan Covers
What costs more than anything when it comes to healthcare? Hidden costs you didn’t expect because you didn’t confirm what your plan covers and how.
Services not covered by your plan
Conditions requiring a referral for coverage (especially for seeing a specialist)
Network limitations and coverage areas can impact how much or how little you pay out of pocket (and total)
Limits on certain services or provider types can sneak up on you if they’re buried in your explanation of benefits
Our number one tip this year to help you keep healthcare costs low is to carefully read through your healthcare plan documents, especially your explanation of benefits, to make sure you are aware of what is and is not covered, and any rules, conditions, or limitations that also exist.
Use Your FSA Funds, Then Your HSA
Using funds from your health savings account (HSA) and flexible spending account (FSA) is a good way to help keep out of pocket costs lower. Moreover, contributing to these accounts is a pre-tax win, so you’re also using funds you didn’t have to lose out on taxes too.
But what we recommend is using your FSA funds FIRST. Why?
FSA funds are “use it or lose it” dollars. Data shows about half of all people with FSAs leave some funds unused, with average lost amounts around $400-$450 per person, due to the "use-it-or-lose-it" rule. This is roughly $4 billion forfeited annually to employers.
FSA funds accumulate throughout the year, so we recommend using FSA funds for eligible purchases, then considering using some of your HSA if you need help covering gaps between what you have on hand and what the bill is.
For reference, see below for some FSA-eligible expenses examples. Some may be a happy surprise.
Examples of common FSA-eligible expenses:
Medical expenses: Copays, deductibles, coinsurance, hospital stays, ambulance, medical equipment (CPAP machines, crutches, etc.)
Dental care: Exams, cleanings, fillings, braces, X-rays.
Vision care and products: Eye exams, prescription glasses, contact lenses, laser eye surgery.
Prescription & OTC medications: Prescription drugs, insulin, OTC medicines like pain relievers, allergy meds, antacids, and more
Menstrual products including pads, tampons, and menstrual cups or discs
Specialist health services: Physical therapy, chiropractic care, acupuncture
Choose Generic Over Brand-Name
This is a simple one. Choose generic over brand-name products. From menstrual products to nasal sprays and OTC-medications, choosing a generic brand option (the less colorfully branded ones usually) is a more cost-savvy option. This is an easy way to save on healthcare costs.
Another tip is talk to your provider about cost options when it comes to medication. There may be more than one medication we can recommend, and sometimes, one may be lower or higher in cost. Always ask us if you’re not sure or are nervous about medication costs.
Take Advantage of Preventive Care Services
There are two benefits to using your preventive care services. One, many are often covered by your insurance plan 100%, so you can take care of yourself and focus out-of-pocket expenses on other needs, services, or items. Two, the long-term benefits for your health and your bank account, is that by routinely using preventive care services like annual physicals and blood work, you can help yourself stay healthier and avoid higher medical costs down the line that may come from complex conditions like diabetes.
Taking care of yourself now with preventive care can go a long way to saving money down the line.
Example of preventive care services a health insurance plan usually covers 100%:
Annual Physicals & Wellness Visits
Vaccinations: Flu shots, MMR, Tdap, Hepatitis, HPV, etc.
Health Screenings: Blood pressure, cholesterol, blood sugar, cancer (breast, colon, cervical), depression, obesity, vision, and hearing may be covered
Women's Health Services: Well-woman visits, Pap smears, mammograms, and certain contraception options
Counseling for tobacco use, diet, and alcohol use
Key things to remember:
Try to use an in-network provider: Usually you only pay $0 when you see an in-network provider, but again, check your plan.
Affordable Care Act (ACA) Mandate: Most plans must cover the essential preventive services under this mandate without cost-sharing. If you’re not sure what falls under this, visit this resource.
Check if limitations exist within your plan: Specific services and how often you can get them can vary by plan, so again, we recommend reviewing your plan's summary of benefits carefully.
With all this in mind, now is a great time to get a head start on your healthcare checklist. Schedule a preventive care visit today here.