Health insurance is not cheap, so it’s important to consider how much you’ll be spending each month on it. There are several ways to save money on your health coverage. You can choose to use out-of-network care, go to low-cost clinics, or go with a high-deductible plan.
Out-of-network care
Although you may not think it’s possible to save money on health coverage by seeking out-of-network care, it is a viable option if you are able to negotiate a lower price for your treatment. However, before you seek out-of-network care, make sure you understand what it entails. Usually, out-of-network care will cost you more. Whether you can negotiate a lower rate will depend on your health plan.
Health insurers may offer lower costs for out-of-network care, but there are still risks involved. Using an out-of-network provider can increase your deductible or copay, and you may end up with an overcharged bill. It is therefore important to discuss the details of the out-of-network care with your insurer before making an appointment.
If you need to see a specialist outside of your network, you should consider getting the care through an out-of-network provider. While out-of-network care is often more expensive, it is the only option if you need urgent care or a specialist for a recurring condition. Furthermore, out-of-network care may give you better access to specialist care and will give you the largest choice of doctors and health care providers.
Low-cost clinics
When looking for health care, it’s best to treat it like any other purchase: shop around, compare prices, and make a plan that covers preventative care. Using low-cost clinics or doctor’s offices can save you money while preventing or catching problems early. It may also save you time and avoid a trip to the emergency room.
One option for medical care is to use telehealth services. These services work like community health centers, and they can help you get a diagnosis, treatment plan, and prescriptions for a fraction of the cost. These services are often offered through health insurance networks, and many are located within stores and drugstores.
The biggest advantage to using outpatient clinics over hospitals is that the rates are much lower. Many outpatient clinics have an agreement with your health plan that allows them to accept your insurance. In addition, you may be able to choose from an in-network provider who charges a lower rate than those outside the network.
High deductible plans
If you are younger and relatively healthy, you might be able to save money on health coverage by opting for high deductible plans. They can also be useful if you already have a health savings account, such as an HRA, which lets you pay the deductible out of non-taxable money.
High deductible plans require higher out-of-pocket expenses from the patients, but their monthly premiums are usually lower. They also allow you to combine a high deductible plan with a health savings account, which allows you to pay for medical costs without worrying about the cost of medical bills. To learn more about high deductible plans, check out IRS Publication 969.
High deductible plans have a few disadvantages. They may have higher deductibles, and you may only use them for preventive care services. Additionally, you may only be able to get the help you need if your provider’s network accepts these plans.
Tax-free savings with an HDHP
A Health Savings Account (HSA) allows you to set money aside for qualified medical expenses. This money can be used to pay for deductibles, copayments, and even some vision expenses. As long as you have an HDHP and contribute to it each year, your funds will grow tax-free and are available to you when you need them. In addition to being tax-free, the money in an HSA can be invested like a retirement account.
The HDHP is also known as an HSA-Eligible Plan. This type of health insurance plan will allow you to make pre-tax contributions to an HSA to cover your out-of-pocket expenses. Often, your employer will match your contribution to the account. While an HDHP will have lower monthly premiums, you’ll also have to budget for the expenses you’ll incur during the year.
HDHPs come with different deductibles. Some have a family deductible and others have individual deductibles. Generally, the family deductible is higher than the individual deductible. However, you must make sure that you can afford the deductible before enrolling in the plan.
