How to Save Money on Health Insurance Now?

If healthcare costs are starting to feel prohibitively expensive, you’re not wrong: in fact, the average American spent $10,966 on healthcare costs in 2019. But skipping insurance completely isn’t the right answer either: hundreds of thousands of families in America file for medical bankruptcy every year.

Having insurance is important, but that doesn’t mean you need to pay more than you can afford. We’ll dive into the steps to save money on healthcare so that you’re staying within your means and still getting the healthcare you need.

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What Are the Health Insurance Costs?

Before we dive into how to save money on health insurance, it helps to know what you’re actually spending money on. The typical costs you’ll encounter in health insurance include:

Premiums: This is a charge you pay every month for health insurance coverage, regardless of whether you use any services that month.
Deductible: This is how much you’ll have to pay before your health insurance coverage kicks in and starts covering some or all of your costs.
Co-pay: This is the amount you’re required to pitch in for certain services, regardless of your premiums and deductibles.
Coinsurance: After you’ve passed your deductible, you still may be required to pay for a certain percentage of the costs until your insurance does pay for all costs.
Out-of-pocket costs: These are any costs you’ll need to pay for that your insurance doesn’t cover, such as costs for using out-of-network providers or the amount before your insurance picks up 100% of the costs.

These all vary by plan and provider, so you’ll want to make sure to read your policy and understand which costs apply to you and when. Either way, it’s clear that health insurance can get expensive, so here’s where we dive into ways to save money on healthcare.

Save Money on Healthcare: 4 Easy Steps

Luckily, there are simple steps you can take now to start seeing savings in your healthcare costs.

Raise your deductible: This is an easy change to make. After all, your premiums are a fee that you pay every month no matter what, whereas you only pay a deductible when you start using a service. By increasing your deductible, your premiums will likely be reduced significantly.
Explore your work healthcare plan: Taking advantage of a healthcare plan that your work offers (if they do) are a smart idea. Your employer shares in the costs of the premiums, which saves you money. Your contributions can also be made pretax, which will save you come tax season. It’s worthwhile to note that your employer chooses the plan though, so you don’t have any choice in what is and isn’t covered.
Stay in-network when possible: Your plan provider has negotiated discounted rates for providers in your network, so your costs are cheapest when staying in-network. If you get stuck needing an out-of-network provider, not only will the costs be higher, but you could be stuck with the entire bill if your insurance provider won’t pitch in.
Shop around for plans: If you don’t opt for your employer’s health insurance plan, you can save money on healthcare costs by shopping around for a plan. You’ll be able to compare coverage and costs to find the best fit for your family.

These four tips can help you keep your healthcare costs down and still get you the coverage you need to keep you and your family healthy.

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Save Money on Healthcare: the Takeaway

It’s no secret that healthcare is costly. But not having health insurance is risky and can lead to significant financial and health consequences. By understanding what you’re paying for and finding ways to keep your insurance costs down, you should be able to get the care you need at a price you can afford.

Lauren Lewthwaite Lauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.