With all the talk out of Washington DC about health insurance reform and whether it will lower healthcare costs, yada yada yada, here's a chance to take matters into your own hands by reducing what you're paying RIGHT NOW out-of-pocket for you and/or your family's health care.
If you're the one who makes the decisions on what type of health insurance you have, it really pays to thoroughly research the best deal you can find. There are many web sites that allow you to easily compare health insurance plans and I urge you to take advantage of them. Two such web sites I highly recommend are eHealthInsurance.com and Health Insurance Finders.
To make this report a little easier to read, I broke down the tips into three sections; (1) General Healthcare, (2) Health Insurance, (3) Prescription Drugs. I'm sure you will find at least one tip if not more that will save you money, probably enough money to treat yourself and/or your family dinner at a nice restaurant or even a weekend vacation! You won't know, however, until you start reading.
Finally, should you be interested in reading about ways of lowering your dentist-related bills, check out our special report Tips For Lower Dental Bills.
General Healthcare Tips
Follow Doctor's Orders
Roughly half of all patients don't follow instructions about taking medicine, which results in 10% of hospital visits a year, according to the Merck Manual of Medical Information. Simply doing what you're told can save you your out-of-pocket share of the average $8,200 cost of a hospital stay.
Track Your Spending
Do you know when you've met your deductibles or how much money is left in your health FSA? Programs such as Quicken's Medical Expense Manager ($50 at quicken.com) can tell you and also alert you to potential savings such as overlooked tax deductions and possible billing errors. Be responsible for your own health records. Make or request copies of your health records so that you don't have to pay for repeat tests when your doctor's office loses charts or you decide to visit a specialist.
Using Tax Write-Offs
The IRS allows you to deduct medical bills that exceed 7.5% of your gross income. That's a high bar, but the list of eligible expenses is extensive, including insurance premiums, dental X-rays, fertility treatments, prescribed weight-loss and stop-smoking programs and even LASIK eye surgery. For details, see IRS Publications
Take An Aspirin
If you're a man over 40, a woman past menopause or a smoker or have high blood pressure, high cholesterol, diabetes or a family history of heart disease, you can sharply lower your risk of a heart attack by taking an aspirin every day or every other day (consult your doctor first). The cost of aspirin: about $0.20 a day. The average cost of treating a heart attack: $25,000, including hospital, doctor and drug bills.
Stress Less
Between 60% and 90% of doctor visits stem from stress-related factors, says Dr. Herbert Benson, founder of the Mind/Body Medical Institute. So chill out: Take a yoga class, listen to music and exercise for at least 30 minutes a day.
Get A Lunchbox
Brown-bagging your lunch can help you lose weight since home-cooked eats contain 20% less fat on average than restaurant meals, according to the U.S. Department of Agriculture. Skipping the $6 deli sandwich could save you about $1000 a year.
Drink From The Tap
Americans spent about $10 billion a year on bottled water, $3 billion on sports bars and $23 billion on nutritional supplements last year. But most of that stuff has little, if any, proven benefit. So ditch the ginkgo biloba, drink from the tap and tote a banana, not a PowerBar, on your way to the gym.
Let The Boss Help
Take advantage of any wellness benefits that your company offers. About six out of 10 large companies now offer benefits like smoking-cessation classes, discounts on gym memberships and health risk assessments.
Adult-Proof Your Home
Home accidents rank among the top reasons for visits to the emergency room. Some easy ways to make your home safer and avoid the $560 average tab of a trip to the ER: Install handrails along both sides of the stairs, use nightlights, put nonslick strips in tubs, check smoke alarm batteries every month and keep candles at least three feet from anything that can burn. For more tips, go to Home Safety Council.
Floss Daily
According to a 2010 survey, only 25% of Americans floss daily. This is tragic because regular flossing is the best way to prevent periodontal disease which can cost between $200 for minor problems up to $2000 or more to replace a tooth.
Give Blood
Donate blood at least once per year and in the process you will receive free blood pressure, iron-level, and temperature checks. Donating blood could also help find potential health care problems before they become major. My own brother found out that he had a disease known as "Celiac" which began as part of routine blood donation when he discovered that the iron level in his blood was extremely low which led to him being seen by a doctor which led to his diagnosis. Giving blood is also a good way to be a good neighbor.
Get Immunized
Get immunizations to prevent certain diseases. See the Center for Disease Control's recommendations.
Explore Low-Cost Treatments
According to a Center for Health System Change and University of Chicago survey of physicians, 80% of doctors will prescribe a generic medication over a brand-name drug to save a patient money but far fewer consider patient costs when recommending diagnostic tests (51%) or choosing between hospitalization and outpatient treatment (40%). Don't be shy to ask your doctor if cheaper, medically sound options are available... just make sure to keep it friendly and ask nicely.
Find The Right Person For Billing Disputes
Although they are heavily involved in treatment decisions, doctors may not be directly involved in other billing issues, so you need to find a person with the ability to adjust your bill such as the office manager. If they can help you with themselves, but they are the best person to direct you to the person who handles billing disputes.
Take A Virtual Trip To The Doctor
A trip to the doctor doesn't necessarily have to cost you anymore than your monthly Internet bill. Sites like WebMD can help you diagnose your symptoms and find creative ways to get healthy.
Health Insurance Tips
Shop Smart For The Best Plan
When selecting a health insurance plan, don't just choose the one with the lowest monthly premium or the one you used before. Benefits can change significantly every year -- as can your family's health needs. The best way to bargain-shop is to write down you or your family's average number per year of doctor visits, regularly re-occurring prescriptions, dental exams and cleanings, eye care checkups, etc. Compare what you'd pay over an entire year for these items on each plan remembering to include monthly premiums and deductibles for your health, dental and prescription drug costs. Also, if you were married or divorced, had children, or gained or lost income since you first signed up for your current health care plan, you may be able to save money on medical costs by purchasing a new plan better suited to you or your family's needs.
Don't Only Consider Premiums
Poor health insurance coverage is better than no health insurance coverage because the uninsured have higher death rates from chronic disease and accidents. Don't just take the easy way out during open enrollment and sign up for the same health plan as you had last year. In 2010 the difference in premiums is relatively small, between $650 and $750; the real differences lie in the plans' co-pays and deductibles. To figure out which option is best for you, estimate what your total annual costs are likely to be under each plan, depending on your family's medical needs (many companies have online calculator tools to help figure this out). If you have kids, you'll likely want a plan with low co-pays for doctor visits and good coverage for preventive care; if you're young and healthy, a plan with higher deductibles and lower monthly premiums may be a better bet.
Test Drive a Plan
You should ask for a trial period to really see if this is something that you can get behind. During this trial period you can really see what the health insurance will do for you, how you can fight fraud, and if you can change anything to make it easier on you. Will your provider allow for this? Well, it depends, so you might as well ask because that never hurts. A trial period will ensure that the plan is the right fit for you and you are the right fit for the company, so it should be looked at as a win-win for both people involved. Take a look and see if this is possible, because you might want to use it if it is available.
Don't Pay Two Deductibles
Many health insurance plans come with calendar-year deductibles so you could end up paying to deductibles for your healthcare coverage if you're planning switching jobs or other life changes sometime early or mid year. Since certain medical claims are only paid by the insurance company after the deductible is met, so switching to a new health insurance plan in January or February may help you avoid paying deductibles twice in a single calendar year.
Get Married
Getting married just for the health insurance deal is of course not recommended, but spouses can pool together their savings and find two-for-one deals that are cheaper than paying for two separate accounts.
Widen Your Network
You know that seeing an in-network doc will save you 50% or more on the cost of treatment. But sometimes only an out-of-network specialist will do--say, if that physician is far more experienced in performing the procedure you need than in-network docs. In those cases, it's worth calling your insurer's pre-certification department to explain why using the out-of-network provider is essential and ask for coverage at in-network rates. You've got a good shot. "Insurers would rather strike a deal up front than go through an expensive appeals process," says billing expert Nora Johnson.
Consider A High-Deductible Plan
It might feel like a big switch if you're used to paying $20 office co-pays. But a high-deductible (HD) health plan can save you hundreds of dollars per month in lower premiums. These plans (which have an annual deductible of at least $1,100 for individuals; $2,200 for families) are great if your family is healthy and doesn't usually visit the doctor too often. When was the last time you actually went to the doctor? If you're an ace at home remedies and almost never get sick, paying a lower premium with higher co-pays is a smart move. Another benefit: Most HD plans qualify you to open a health savings account (HSA), where you can sock away (on a pretax basis) money to pay your insurance premiums and out-of-pocket health expenses. Better yet, unused HSA money continues to grow tax-deferred, year after year. An HD plan might not be right for you, though, if family members have chronic (and costly) health conditions, you're not disciplined about saving money in your HSA, or if having such a high deductible makes you uneasy.
Join The Farm Bureau
Believe it or not, you don't need to be a farmer to join your state's farm bureau. Simply by paying an annual membership fee (usually less than $50) you're eligible for all sorts of benefits -- including discounted group health insurance in some states. If you or your spouse are self-employed, this might work for you. For more information, type "farm bureau" and your state's name into your favorite search engine.
Get What You Deserve
Are you paying the tab for acupuncture or chiropractic care? Check your insurer's website or call the help line to see if your plan covers alternative medicine treatments. Some 87% now do. Many also offer discounts on preventive measures like vitamins and bike helmets.
Don't Be Denied
Your insurer refused your claim? Fight back. Begin with a phone call to customer service, and if that doesn't work, put your appeal in writing. Document everything, including the times of calls and the names of the reps you spoke with. "Every plan has an appeals process that you must follow to the letter," says Robert Bland of Insure.com, a consumer information website. For more information, download the Kaiser Family Foundation's guide to handling disputes with your employer or private health plan.
Hire Expert Help
Buried under thousands of dollars in bills and claim denials you can't resolve? Consider hiring a professional billing and claims specialist to help you resolve disputes. You'll pay $50 to $250 an hour, but you may save up to 40% on your bills. To find specialists in your area, go to Bill Advocates and Claims.org.
Check Yourself Out
If you're in the market for a new policy and you've applied for individual health, life, disability or long-term-care insurance in the past seven years, go to MIB.com to see whether this insurance industry antifraud group has a file on you. Request a copy (it's free) to make sure the information provided about your health status is right. If you find a mistake, ask for a correction in writing ASAP. Believe it or not, these types of errors can drive up your premiums by hundreds of dollars a year.
Consider Getting An HSA
If you have a high-deductible health plan (at last check, $1050 for individuals or $2100 for families), you are eligible to fund a health savings account (HSA), which you can tap to pay medical expenses. You'll save about $1500 in taxes for every $5000 you put into an HSA. Any funds you don't use will grow tax-free and can be rolled over from year to year. got to get the most out of your HSA, fund it to the maximum amount early in the calendar year. This will allow you to use pre-tax dollars for copayments and deductibles while allowing unused money to collect interest for more of the year.
Stay Insured
Leaving your job next year? Switch to the lowest-cost plan during this year's open enrollment. Then, after you quit, federal rules (known as COBRA) will let you stay on your employer's health plan for up to 18 months, although you'll usually have to pay the full cost, plus 2%. Once you've tapped out COBRA, you must sign up for a new policy within 63 days or insurers can legally turn you down or refuse to cover pre-existing conditions.
Be Flexible
Add up your co-pays, deductibles and other out-of-pocket medical expenses from last year to figure out how much to put into your flexible spending account (your benefits department can tell you what's eligible). For every $1000 you put in, you'll slash about $300 in taxes.
Don't Lose It
You'll forfeit any funds in your HSA that you don't use by the end of the year or by March of the following year (depending on your company). Need to get rid of some bucks? Stock up on over-the-counter medical supplies like Band-Aids, cold and flu tablets and aspirin; order a six-month supply of contact lenses and solution; or schedule an extra session with your shrink, if you've exceeded the number of therapist visits covered by your health plan.
Physical Out; Screenings In
Skip the annual physical but get specific screening tests recommended by the U.S. Preventative Services Task Force. If your insurance company doesn’t cover USPSTF-recommended tests, question why it doesn’t cover expenses proven to prevent disease and start a letter-writing campaign asking for coverage; write your insurance company and your state’s insurance commissioner.
Continuous Coverage
Carry continuous coverage so that exclusions for preexisting conditions will be limited according to federal law associated with HIPAA (Health Insurance Portability and Accountability Act).
Homeopathic Haste Makes Waste
If you are into using home remedies, herbs, vitamins/supplements, etc, check out their safety, effectiveness, and clinical soundness at Consumer Reports Health Consumer Reports-Health. Always remember to tell your doctor what homeopathic supplements you are using before they prescribe any prescription drugs to you as they may react negatively with the supplements.
Look for Special Services
Many health plans have programs for patients with ongoing conditions like asthma or allergies, including discounts on preventive care, helpful newsletters, and more. Some carriers, for example, have nurses on call 24/7. They can tell you how to safely remove a splinter or whether or not your child's cold symptoms warrant an immediate doctor visit (and another co-pay, ka-ching!). Some plans also offer discounts on acupuncture, gym memberships, massage treatments, and weight-loss programs.
Stay With Your Parent's Health Insurance As Long As Possible
Students just graduating college or vocational school usually have a cushion of time before they're required to find their own insurance coverage. Find out how long you have to depend on Mom and Dad before wasting money on your own policy too soon.
Consider A Discount Medical Card
When used in conjunction with an HSA, a discount medical card can allow you to gain access to the healthcare coverage without the exclusions, limitations, and paperwork typically associated with health insurance. Be careful though; companies selling these types of "discount cards" are notorious for taking your money first and leave you asking questions later so thoroughly investigate any company you're interested in purchasing a discount medical card from. One reputable discount card plan is called Total Health put out by AmeriPlan and sells for $39.95 per month.
Challenge the Fine Print
This is the first thing that health insurance providers do not want you to know. When you are discussing a plan with them they will go over all of the details with you before you sign on. This will seem like they are describing everything for you in great detail. Unfortunately there is still fine print that you need to read. This is something that should be reading while you are still talking to the health insurance provider. You also need to challenge the fine print to make sure it is just like your provider says it is. Most insurance companies want you to wait to read the fine print until you have signed up, but by then it might be too late. Read early and challenge often.
Use Your Location
You probably have heard a lot about health care and the troubles people have. Well, this is true, people do have troubles, but you do not have to have troubles as well. This is why you need to use your location. Different states have different rules and regulations in regards to health care. Do not be discouraged if you heard about some case in another state that was a lot of trouble. Find out the best ways to use your state to your advantage. Your state should have some information set up for you on the state’s website, so definitely look into that. Find out what your location is best set up for and then use it wisely.
Prescription Drug Tips
Bring a List
Get a copy of your insurance company's list of covered prescription medications (known as a "formulary") and share it with your doctor. Many insurers separate drugs into several pricing "tiers," so some medicines cost you more than others. If your doctor knows what's on your insurer's list, he can select the best medication for you at the lowest price. If your plan requires you to get a referral to a specialist, take your insurance plan's preferred-provider list to your primary-care appointment. Your doctor can easily pick out the best specialist who participates in your plan.
Recruit Your Doctor And Pharmacist
If you want to cap your drug costs, you need these professionals as allies. Your physician knows your medical history and can discuss alternative therapies with you, while your pharmacist may be more aware of the specific costs of those alternatives. Also, pharmacists tend to be more clued in about what prescription drugs are about to be available over the counter.
Inquire About Drug Alternatives
Web sites such as Rxaminer can help you explore potential alternatives to many brand-name drugs. Of course, you should always discuss switching prescription drugs with your attending physician before pursuing any new prescription.
Look For Coupons, Rebates & Other Deals
Check with your doctor as they may have rebate forms for insulin and other medical supplies. Head to a brand-name drug's official Web site to see whether there are coupons or other rebates available, and when possible register as you could occasionally get notified of new rebates or other types of money-saving offers.
Have A Flexible-Spending Plan? Use It
These workplace plans allow you to put aside pretax money to pay for health care and medicines. Over-the-counter drugs are often included so ask your HR Director for details. You have to estimate in advance how much you'll spend, and you must use up the money before the plan's year ends, or you'll lose it. But every $1000 you contribute saves you $250 to $300 in taxes so it's a great break for many individuals and/or their families.
Bigger Is Better
Ask for a 90-day supply of your maintenance drugs. If you must pay a copay each time you fill a prescription, you can cut that cost by going longer between refills. Though buying in bulk often results in savings, sometimes you might want less particularly if you're not sure how you'll react to the drug or you may end up paying three times as much for drug doesn't work for you.
Ask For Rx Samples
Drug companies give away tons of samples to physicians, so your doctor may be able to supply you with several weeks' worth of medication at no charge. While you'll only be able to use samples in the short term, they include enough of the drug for you to determine whether or not you'll suffer a reaction or side effect from taking it. Finding this out will prevent you from paying for a full prescription of a drug that will be useless to you.
Compare Prices and Purchase in Quantity
Beyond comparing branded, generic and over-the-counter drug prices, consider comparing prices among different pharmacies. Comparing pricing from different pharmacies works well for drugs you will take on a regular basis, and not as well for drugs you are prescribed for the short term to help you get over a brief illness. Pricing your drugs may take you some time, but you'll be surprised at the differences in costs. Phone your local pharmacies and ask them what they charge for your drug, and ask what the costs are for a 30, 60 and 90-day supply. Though you may be tempted to explore foreign pharmacy offerings or order drugs from overseas, this can be dangerous -- and it won't necessarily save you money. Foreign drug dispensing companies are a prime source for counterfeit drugs, some of which have caused patient deaths. The FDA devotes a large section of its website to information on the importation of drugs from foreign countries.
Prescription Assistance Programs
Unable to pay for the medicine you need? Visit the Partnership for Prescription Assistance website, which has links to more than 400 patient-assistance programs offering discounts on more than 2,500 medications. Most programs require you to demonstrate financial need. But some, such as Merck's discount card, are open to all income levels.
Use a Discount Rx Drug Card
If you're one of the few Americans still paying retail prices for prescription drugs, consider getting a drug discount card which will save you anywhere from 10% to 50% on all types of prescription drugs. Usually these cards cost anywhere from $20 to as much as $50 per year, but you can get a pretty good discount drug card for FREE by going to USA Drug Plan website.
Grab Generics
Whenever you can, opt for generic drugs, which on average cost less than a third as much as their brand-name counterparts, according to the National Association of Chain Drug Stores. If you're paying retail for one prescription a month, you'll save $863 a year by going with the generic version instead of the brand name. In some states, unless the doctor designates DAW (dispense as written) on your prescription, the pharmacist may substitute a generic drug automatically. Got drug coverage? You'll still save $13 on the average prescription co-pay, or $156 for a year's supply. And don't forget about over-the-counter medications: By sticking to the no-name store brand, you'll save $100 of the $400 that the average American spends annually on over-the-counter drugs. If there is no generic version of a brand-name drug you're taking, ask your doctor about a therapeutic substitute or an older drug in the same category. A drug that has been on the market for more than 10 years will almost always have a generic version available.
Go Postal
Ask your insurance company or HR Director if your coverage has a mail order pharmacy option and if you can order your prescriptions directly from the plan. Typically you will save 15% to 35% on your monthly co-payments at the pharmacy, or nearly $100 a year on the average prescription.
Split 'Em Up
High-dose pills are generally priced the same as their low-dose counterparts, so ask your doctor if you can safely split a higher-dosage pill in half. You'll save about $179 to $610 a year per prescription if you don't have drug coverage or 50% on your co-pays if you do.
Buy Online
You may find the best deal of all at an online drugstore, particularly if you order more than one prescription at a time. Recently, for example, you could order a 90-day supply of Lipitor, a popular cholesterol-lowering drug, for $306, or as much as 30% off typical retail prices, at Drugstore.com. To make sure a site is legit, check to see that it carries the seal of the Verified Internet Pharmacy Practice Sites (VIPPS), a quality-control program sponsored by the National Association of Boards of Pharmacy.
Sign Up For Medicare Part D
If you're 65 or older and don't currently have drug coverage, sign up as soon as you can. Average savings on drug costs: 28%. If you delay and need coverage in the future, you'll get hit with a permanent penalty of 1% of your premium for every month you were eligible and didn't enroll. If you're in good health now, simply choose the lowest-cost plan in your area; you should be able to find one with premiums of less than $10 a month. Already enrolled? Now is your opportunity to switch to a different plan if you're not satisfied with the one you have. Compare plans in your area at the Medicare website.
Sources For This Healthcare-Costs Lowering Report
Money Saving Tips
Keeping Health Care Costs Under Control
5 Ways to Lower Your Medical Bills
ABOUT.COM: Medical Discount Cards
What You Need To Know About Dentists, Dental Practices & Insurance
50 Easy Tips to Lower Your Healthcare Expenses
How To Get Better, Cheaper Health Care W/O Insurance
25 Ways To Save Money on Healthcare
New Year’s Health Insurance Tips for 2011 by ehealthinsurance.com
50 Ways To Squeeze Value From Your Healthcare $ W/O Killing Yourself
50 Ways to Cut Your Health-Care Costs
