How to Survive With a High Deductible Health Insurance Plan
If you’re stuck with a high-deductible health plan, you’re not alone: 39 percent of us (under age 65) have a plan with at least $ 1,300 deductible. For years, I had a whopping $ 8,000 family franchise plan. However, you haven’t completely screwed up. You can still get help without breaking the bank if you know a few tricks.
High deductible plans are becoming more common as healthcare costs rise . The insurance company can increase its deductible instead of increasing premiums, and this will make your insurance cheaper. This is actually a good deal if you are healthy enough and lucky enough to never accumulate huge bills.
If you really need to use the health care system, insurance will still help because your insurance company negotiates better rates than if you paid in cash. I once received a $ 2,000 invoice that was withdrawn from $ 42,000 with no money changing hands. However, having a high deductible sucks, and here’s how you can get over it.
Take advantage of free prevention services
Don’t feel like you need to stay away from your doctor if you want to save money. Your plan must give you certain preventative care and drugs at no cost, which means no co-pay and no cost to your deductible .
This means you can get vaccines, cholesterol screening, birth control, and more without paying a cent. Please check your insurance plan for details; you will have to contact your network provider and in some cases office visit fees may apply. But by law, all non-heir health plans must provide these free services. And using them will help you control your overall health, which will benefit your body and wallet in the long term.
Pay into your health savings account
A medical savings account , or HSA, is a tax-free fund for covering medical expenses. If you have a high deductible plan, you are eligible to open this type of account and you (or your employer) can contribute to it as part of your salary.
Don’t confuse the HSA you want with a flexible savings account (FSA) , which has many more restrictions. The HSA we’re talking about has two major advantages:
- You do not pay taxes on money that you have invested in HSA (or gained from it). This is the equivalent of a large discount on your medical expenses.
- The money at HSA is yours forever. It stays in the account at the end of the year, unlike the FSA money. It stays in your account even if you change jobs or your insurance plan. This is your money. If you are not going to use it for medical expenses, you can withdraw it tax-free if you become disabled or retire .
Ideally, you should make regular contributions to your HSA. Then, when you start getting medical bills, the money is in your bill and ready to be paid.
The downside is that if you sign up in January and then break your leg in February, you won’t have a lot of HSA money to start covering costs. In this case, you will have to dip into your regular emergency fund or talk with the hospital about a payment plan. But if you can manage to save a whole deductible amount and you end up not needing them, that money will still be in your account next year.
Know your cheapest treatment options
As tempting as it is, don’t give up on the care you really need. It’s a shame that sometimes we have to choose between wallet and health, but use common sense and be smart about it. Here are a few things you can do right now to make this choice easier:
- Buy an ambulance pass . In my area, by paying $ 50 up front, you can buy as many free ambulance rides as you like (otherwise, $ 700 apiece). It costs only $ 4 a month and makes it easier to pick up the phone when it’s time to call emergency services.
- Find a telemedicine service that works in your area. Each company only operates in certain states. If you’re not sure if something requires a personal visit to a doctor, calling telemedicine can be a cheap and easy way to find out. A typical call costs about $ 40 and there is almost no waiting time.
- Check the services of your insurance company. They may have a toll-free nurse hotline or a discount on telemedicine.
When you really need help – especially if this is something you warned about in advance, for example, a planned operation – be sure to shop around. GoodRx can help you find the best prices for prescription drugs , and your insurance company probably has a tool to help you estimate the cost of treatments. It is often impossible to find an exact price for your treatment , but tools such as the Blue Book on health can help you estimate.
Throughout your acquaintance with the medical system, remember that you can always ask the price and refuse if it turns out to be too high. For example, if your doctor recommends an additional test or procedure that you weren’t expecting, ask about the cost – and ask if it’s really necessary. Sometimes there is another option that is cheaper or almost as good.
For example, when I took my child to the doctor for a (free) visit, I showed him the rash he had and mentioned that we treated it with an over-the-counter cream. She said it worked, but as a favor, she wrote us a prescription for another cream that “sometimes works a little better.” When I went to the pharmacy to pick it up, the cashier told me it would cost $ 200. “No thanks,” I said and left. (Yes, you can!) We continued to use the over-the-counter cream and the rash went fine.
You will be surprised at the answers you get when you ask if a test or drug is really needed, and a good provider will honestly discuss your options. Living on a high deductible plan can be difficult, but you don’t have to fear seeking medical attention.