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Key takeaways
Evaluating and potentially changing your current insurance plan can lead to significant healthcare cost savings by ensuring your plan meets your healthcare needs and taking advantage of lower-cost options.
Saving on prescription medications is possible through using pharmacy savings cards, opting for generic drugs, and utilizing mail-order pharmacies for bulk purchases at discounted rates.
Shopping around for healthcare services and procedures can uncover vast price differences between providers, and negotiating prices with healthcare providers and billing departments can further reduce medical bills.
Investing in preventive care, utilizing free resources for essential healthcare services, and making use of Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) can significantly lower overall healthcare costs.
Healthcare costs are a significant expense in the United States—to the tune of $12,530 annually for the average American, according to the Centers for Medicare and Medicaid Services. Considering that the median household income is just over $67,000 (and many earn much less), that’s a big chunk of a family budget.
The changing job market caused by the COVID-19 pandemic, and corresponding loss of employer-sponsored health insurance has made even more Americans aware of the gaps in their healthcare coverage—and how confusing and difficult the system can be to navigate.
For people with chronic conditions and long-term treatment needs, finding ways to cover medical costs without breaking the bank is a daily activity. Luckily it’s not all bad news. In many common healthcare scenarios, the savvy consumer can find significant savings if you know where to look.
10 ways to save on healthcare costs
According to medical experts, these are the top 10 ways the average person can save money on healthcare costs:
- Evaluate your insurance plan
- Save on your prescriptions
- Shop around
- Avoid unnecessary expenses
- Negotiate prices
- Take advantage of free resources
- Sign up for an HSA or FSA
- Get appropriate care
- Review your medical bills for errors
- Invest in preventive care
1. Evaluate your current insurance plan
Are you getting the most possible out of your insurance plan? Your plan dictates the cost of many of your healthcare-related expenses. Make sure to study your plan and know what is covered under your current plan (and what isn’t).
That means taking time to understand what your copay and/or coinsurance costs are, how big your deductible is, and which providers, facilities, or hospitals are in-network. And don’t forget to get familiar with the drug formulary associated with your plan. You can work with your healthcare provider to change prescriptions to fall into a lower price tier of your specific coverage.
If your current plan doesn’t suit your current healthcare needs, consider changing your coverage. Whether your plan is private, employer, or state-sponsored, you may have other options available that better suit your personal needs.
2. Find ways to save on your prescriptions
Sign up for a pharmacy savings card.
Pharmacy savings cards are free services that offer significant discounts on drug prices at the pharmacy counter. Programs like SingleCare allow you to search your prescription to find the lowest prices in pharmacies near you. All you need to do is show the pharmacist your card to gain instant savings on your prescriptions. You can also download the app here. Additionally, some pharmacies like Walgreens and Walmart have prescription savings programs all customers can take advantage of.
Ask for generic medications when applicable.
Don’t assume healthcare providers or pharmacists will automatically prescribe you the cheapest treatment available. Doctors often prescribe the name-brand drugs they are most familiar with. Generic drugs, however, are just as effective as the brand name drug and cost 80%-85% less on average. Always ask your pharmacist if there is an equally effective, less expensive generic alternative for your prescription.
Switch to mail order prescriptions.
If you take the same medication or medications regularly, you may save money by filling your Rx with a mail-order pharmacy. Mail-order pharmacies allow you to fill your prescriptions in bulk, delivering you 90-day supplies instead of 30-day supplies, often at a discounted price. Even better—many mail-order pharmacies will work with the SingleCare prescription discount card for even more savings.
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3. Always shop around
The best thing you can do for any large healthcare cost is to explore your options. Many people don’t realize that the same procedure can cost tens of thousands more at one hospital or facility than another or when performed by one doctor versus another. For scheduled procedures or surgeries, patients can call hospitals in advance to request invoice estimates. Many insurance plans allow you to search for in-network providers before scheduling an appointment. Some hospitals and insurers even offer online pricing tools for real-time estimates.
If you want to keep your current provider, it’s worth asking if they are able to provide treatment at a lower cost in a different location. Some doctors practice in multiple facilities, all of which may bill differently for many of the same services. Depending on your health plan, your doctor may be able to provide certain services, such as vaccines, procedures, or testing at a lower cost at another facility. It’s always worth asking your physician if your care would cost less at another treatment site.
Prescription drug prices also vary across pharmacies. You can use SingleCare to compare prices at pharmacies near you to find the lowest price before you even leave the house.
4. Avoid unnecessary healthcare expenses
Be honest with yourself about potential financial challenges you might face adhering to a treatment plan or filling a prescription. Identifying your own financial limitations will help you narrow down the right questions to ask your insurance plan and your healthcare provider about how to find lower cost options. Finally, ask yourself if you really need the test, prescription, or procedure that has been recommended. Find out if there is an alternative, less expensive option that can work for you.
5. Don’t be afraid to negotiate prices
It may not seem like it, but many large hospital bills are negotiable. Many hospitals offer waivers, cash discounts, or relief plans. Make sure to call the billing department and ask if there are healthcare discounts available or if they can wave any associated fees. The billing department will also be able to provide information about setting up a payment plan that doesn’t collect interest.
RELATED: How to get help with medical bills when you don’t have insurance
6. Take advantage of free resources
Community clinics may offer certain health screenings for free or on a sliding scale—and many big expenses have programs to allow you to get treatment at no cost.
Preventive services: If you have insurance coverage, many cover a free yearly checkup, like an annual physical or well-woman exam—no copay required. Check with your plan to see if you can take advantage of this benefit.
RELATED: How to get free birth control
Insulin: The American Diabetes Association estimates that 37.3 million Americans are living with diabetes. As the price of insulin continues to rise, it’s no wonder that so many people living with diabetes are struggling to pay for treatment. In recent years, however, pharmacy manufacturers have developed programs that provide free or discounted insulin. Many pharmacy manufacturers offer insulin assistance programs. In addition to these programs, discount pharmacy cards, like SingleCare, can also help those living with diabetes find the pharmacy offering the most affordable prices for their insulin prescription.
RELATED: How to get free diabetic supplies
Vaccines: Contrary to popular wisdom, the most affordable vaccines are not always found at community health clinics. Many local health centers and state health departments provide free or discounted vaccines to uninsured or under-insured adults, but there are also other ways to save on vaccine costs. Vaccine manufacturers like Merck and Pfizer offer payment assistance programs for children and adults. For maximum savings, it’s important to shop around and determine which option is the best for you.
RELATED: How do I get a discounted or free flu shot?
7. Sign up for an HSA or an FSA
If you do have health insurance, a plan with an HSA (health savings account) or FSA (flexible spending account) can help you save money on your out-of-pocket medical costs. Both accounts allow you to contribute a portion of your pre-tax income, which can be used to pay for qualified medical expenses, including copays, coinsurance, prescriptions, and more. “Keep in mind that in 2018 the average American family expended $28,166 on healthcare costs, 83% of which went to insurance companies,” says Deane Waldman, MD, MBA, a professor emeritus of Pediatrics, Pathology, and Decision Science at the University of New Mexico. “Imagine if they put that into an HSA every year!”
8. Get appropriate care
When you’re not feeling well, it is appealing to go to the first care facility that has an appointment available. Yet not all provider options cost the same. Ask yourself—do you need to visit an emergency room, or can you wait for an appointment with an in-network provider? These options have very different copays, and can save you hundreds of dollars, depending on the issue you need to address.
If your insurance covers it, see if you can consult with a healthcare provider over the phone or through a telehealth appointment instead of an in-person visit. For those who qualify, telehealth appointments can yield significant savings over time. According to one study, the average cost of a virtual doctor’s appointment is $40-$50, while that same appointment in person would cost about $176 per visit. This option has become even more appealing in light of the current pandemic, since it requires less risk of infection for patients and providers. The U.S. Department of Health and Human Services (HHS) has taken steps to expand access to telehealth services.
Make sure to check your insurance coverage and speak with your provider to determine what works best for you.
RELATED: Urgent care vs. emergency room visits
9. Review your bills (and appeal errors)
According to Fair Health Consumer, there are some basic steps you should take any time you receive a large medical bill. First, make sure you get an itemized receipt. Each product should be listed separately with the costs associated with each item broken down. Cross reference these procedures and their costs with your health insurance’s explanation of benefits (EOB) to make sure there are no discrepancies. If you do find an error, make sure to call your insurance company and appeal. If you have questions about why you were charged for a particular procedure, medication, or test, it’s always a good idea to call the doctor that billed you and ask. Save all of your receipts and proofs of payment to make appeals as easy as possible.
10. Practice preventive care
One of the best things you can do to limit your long-term healthcare costs is to establish a daily health and wellness routine that works for you. “I think of good nutrition, regular exercise, and stress management as the three legs of a tripod that help stabilize a person’s well-being,” says Julie Cunningham, a registered dietitian and diabetes care and education specialist based in North Carolina. “If you’re missing one or the other, your tripod will topple over. When you’ve got all three, your health has a really solid foundation.” Staying hydrated, getting in a daily walk, quitting smoking, drinking less alcohol, or making healthful diet changes can have a meaningful impact on your future health and prevent future costs.
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These methods are great ways to find extra savings on your day-to-day healthcare costs. No matter what level of insurance you have, there’s no reason to pay more than necessary for your treatment!