For many Americans, the rising cost of healthcare is a significant financial concern. However, through careful planning and strategic decision-making, you can manage these expenses. Most Americans have health insurance coverage, but it's still in your best interest to shop around for healthcare services just like any other purchase. Even with a PPO (preferred provider option) health insurance plan, going out of network can result in higher costs.
A new trend involves third-party health “infomediaries,” organizations that advise consumers about treatment and provider selection. These can aid in making informed choices about medical procedures, whose estimated prices can be found on websites such as HealthGrades.com and The Leapfrog Group.
Chances are, your physician may provide estimates for procedures or services, providing an opportunity to negotiate the cost or explore less expensive options. Do not hesitate to question the necessity of any suggested medical tests or procedures, especially if faced with a high out-of-pocket expense.
An interesting metric to bear in mind is that while physicians earn high incomes, their offices often operate on low cash reserves. Consequently, they may be open to offering discounts for cash payments.
In terms of prescription drugs, generic alternatives offer the same safety and efficacy as name-brand options at a fraction of the cost. Wholesale clubs and large retail chains may offer discounted rates especially on frequently prescribed generic drugs. You could also consider mail-order pharmacies or seeking larger prescription packages which can lead to savings.
It's crucial to scrutinize your medical bills for errors, which a 2014 study shows may be present in up to 80% of bills. Request detailed itemized bills, assure all billed items were received, and confirm your insurer has correctly processed claims. The professional billing staff at your doctor’s office can assist with billing queries and concerns.
If you're struggling to understand your billing statements, professional bill reviewers can determine whether incorrect or overcharged billing has taken place. Other strategies for medical expense management include using a Health Savings Account (HSA) or a Flexible Spending Account (FSA). These pre-tax dollar accounts can save you on average 30% for your out-of-pocket medical costs according to the Federal Flexible Spending Account Program (FSAFEDS).
Finally, lifestyle modifications such as changing to a healthier diet or substituting medical marijuana for prescription drugs where feasible could potentially lower your healthcare costs. However, the effectiveness of these strategies needs to be examined on a case-by-case basis.