Health insurance can be costly, but there are ways to cut costs. From increasing your deductibles to taking advantage of eligible discounts, there are multiple strategies for cutting family medical claim premiums.
Families that require frequent medical services may opt for a high-deductible plan with lower premiums in exchange for higher out-of-pocket expenses, coupled with a health savings account for additional tax benefits.
1. Look for Discounts
When purchasing health insurance, it’s essential to search for discounts both on monthly premiums and out-of-pocket expenses – such as deductibles, copays, and coinsurance payments – to save money.
When purchasing plans on the Affordable Care Act marketplace, make sure to look into subsidies or any forms of financial aid that could reduce costs significantly. After doing this, select plans that meet both the current and future healthcare needs of your family.
For example, if you know you will visit your doctor often for routine and preventative care visits, choose a plan with lower monthly premiums but a higher deductible so you can meet this sooner and save more money.
2. Compare Plans
Before selecting the plan that’s right for you, it is essential to carefully compare all costs relating to it, such as monthly premiums, deductibles, cost-share arrangements, and maximum out-of-pocket expenses.
Utilize your network providers, as these may reduce out-of-pocket costs by decreasing copays before reaching your deductible. Some plans even offer fixed copays that tend to be low.
Use our Shop and Compare Tool to quickly compare costs, assess plans for which financial assistance may be available, and make informed choices regarding health coverage.
3. Check Your Plan’s Network
The Marketplace health plans feature various kinds of plans with their networks of doctors, hospitals, and other providers who can offer care at lower costs. Some plan types like HMOs may limit coverage only to providers within their network while PPOs require you to obtain prior authorization before seeing specialists.
These healthcare providers agree to a predetermined price with their insurance provider and are known as being “in-network”. A bit of research could save you significant sums in out-of-pocket costs by choosing an in-network doctor; using your plan’s provider search tool should help you locate one quickly.
4. Pay Your Bills in Full
More people than ever before are qualifying for help paying their premiums and out-of-pocket costs through Marketplace tax credits based on estimated income. Consider switching to a high deductible health plan (HDHP) to lower monthly premiums while contributing your savings into an HSA for tax-advantaged investment opportunities.
As family health insurance costs continue to skyrocket, families must understand how trends and factors that impact coverage affect them. By employing simple strategies like these, families can navigate their healthcare options more successfully while being better prepared for future medical costs.
5. Take Advantage of Preventative Care
Chronic illnesses place a substantial financial and healthcare system strain. Preventive measures can help lower their impact and keep patients healthier for longer.
“Prevention is always worth more than cure.” In healthcare contexts, preventive care refers to health and wellness services including checkups, screenings, vaccinations, and healthy lifestyle habits such as proper diet, exercise, and enough sleep time.
These services can help detect any medical issues early when treatment will likely be less costly and easier. Furthermore, health savings accounts and flexible spending accounts (FSAs) can save money by allocating pre-tax dollars towards healthcare expenses and prescriptions.
6. Don’t Skip Your Routine Checkups
Routine checkups can do more than simply satisfy convenience; they also contribute to long-term cost reduction in healthcare. When health problems like cancer are detected early enough and treated appropriately, treatment costs become far less complex and manageable.
Yearly checkups also help patients form and strengthen relationships with their physicians, increasing confidence and knowledge about health matters while simultaneously decreasing stress levels and anxiety levels. A good health checkup may even reduce monthly premium costs and overall medical costs in a high-deductible plan.
7. Use an HSA or FSA
Health FSAs enable employees to set aside pre-tax money for eligible healthcare expenses without incurring tax penalties, either immediately or by investing in one of a variety of options available to them. Any unused funds returned back to employers at the end of the plan year (or after any grace period has elapsed) can be carried over into future years and used on healthcare expenses as needed.
HSAs differ by being owned by their account holder and can be used with both traditional or high-deductible health plans, offering another tax advantage: any earnings from investments and interest received tax-free can be utilized without penalty. Determining which option best meets your situation and goals will be up to you alone.
8. Make the Most of Your High-Deductible Plan
Health savings accounts (HSAs) can be an excellent way for those with HDHPs to save tax-free for deductible and other eligible medical expenses. Many employers even match employee contributions into HSAs, further increasing your savings potential.
When considering a high-deductible plan, it’s essential to carefully weigh both its benefits and risks. Carefully examine monthly premiums and deductibles as well as potential out-of-pocket expenses; with higher deductibles potentially saving money but potentially forcing you to cover additional health care items or services upfront before your plan pays anything.
9. Take Advantage of Tax-Free Savings
Health insurance premiums can be an enormous expense for many families, but there are ways to make your coverage more manageable and cost-effective.
Consider selecting a high-deductible plan with a health savings account (HSA). HSAs allow you to save on medical costs since contributions and distributions from an HSA are tax-free.
Search for employers offering Section 125 plans or health reimbursement arrangements (HRA). These flexible benefits allow you to use part of your salary before taxes towards monthly premiums and deductibles.
Compare and evaluate your plan options annually to identify potential opportunities for saving money or improving coverage.
