Americans have a love-hate relationship with health insurance. They love to have it, but they hate to pay for it. And with stagnant wages and skyrocketing premiums and co-pays, who can blame them? While there isn't much in the average American's control when it comes to their health insurance, there are some things you can do to save a few dollars here and there.
Instructions
1. Consider the big picture when it comes to health insurance costs. While you may be able to pick a plan with lower premiums, that usually means higher co-pays or fewer covered essential services. Make sure you really will save money by going with a less expensive health insurance plan by comparing the total cost for premiums plus all co-pays and other out-of-pocket costs for non-covered services that you expect to use during the plan year. Depending on how the policy is written, you might actually end up saving more by paying higher premiums for a plan that has lower co-pays and a broader range of covered services.
2. Participate in your employer's health insurance plan. Because employers direct a large volume of business to the insurer, the employer is generally able to negotiate more favorable rates, meaning you can save money on your employer-sponsored health insurance premiums over buying an individual health insurance policy directly from the insurer.
3. Make sure your employer deducts your health insurance premiums from your pay on a pre-tax basis. What that means is that your insurer figures out your gross pay, deducts your health insurance premium as a reduction to your gross pay, then calculates and deducts your income taxes. By reducing your overall gross income, you will have less taxable income and pay lower federal income taxes. So while this doesn't really save you money on your health insurance premiums, it does put more money in your pocket--which is the goal, right?
4. Enroll in your employer's flexible spending plan. A flexible spending plan allows you to direct a certain amount of pre-tax dollars from each pay check into an account that you can submit claims against. By contributing pre-tax dollars, you in effect reduce your overall gross income resulting in lower federal income taxes paid for the given calendar year. Depending on the rules of the medical flexible spending account, you submit receipts for things your health insurance doesn't cover (co-pays, certain over-the-counter medications, certain medical devices) and get reimbursed up to the maximum contribution you elected.
5. Buy your prescriptions through a mail order pharmacy. Most mail order pharmacies will permit you to purchase a 90-day supply of your prescription medications for the same co-pay you would pay for a 30-day supply at a traditional bricks-and-sticks pharmacy. Ask your physician to write your prescriptions to dispense a quantity of 90 days' supply with enough refills to last one year. If your physician balks, explain to her why you are making the request. Most doctors are familiar with this drill and are more than happy to accommodate you.
6. Avoid the emergency room if you can help it. Co-pays at the emergency room are typically much higher than regular office visit co-pays--sometimes as much as five times higher. Clearly, if your symptoms dictate that you require urgent care, don't hesitate to use the emergency room. But if you are suffering from a relatively minor condition that can wait until your doctor holds regular office hours, then do so. Aside from saving yourself a chunk of change, you'll also save yourself untold hours waiting while other, more urgent cases are treated first by ER staff.
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