Simple Ways to Save on Healthcare Costs - Money Tip Tuesday

Being healthy should always be a priority, and taking care of yourself is very important. However, things happen, and you may become sick or injure yourself.

Healthcare, which many need, can often be expensive and even unaffordable to some. Here are some ways to save on healthcare.

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Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.   

If you’re looking for ways to save on healthcare, we have tips for you! 

First, choose a healthcare plan that works for you. Low-deductible plans have higher monthly premiums but will cover more of your health costs. This plan suits those with health issues who need regular care. High-deductible plans have lower monthly premiums, but you must pay more out of pocket. This plan is suitable for those who rarely need medical care. If you have a high-deductible healthcare plan, you should enroll in a Health Savings Account, or HSA for short. HSAs are great for saving money for medical expenses, medical bills, and higher deductibles and any money you contribute to an HSA are tax deductible, or if made through payroll deductions, are pretax which lowers your overall taxable income. Ans your funds grow tax free in the HSA. When you need to make a withdrawal, if it is used to pay for a medical or dental expense (as dictated by IRS rules), you will not pay taxes on that money. 

The HSA limit for 2024 is $4,150 for individuals, and families can contribute up to $8,300.  

HSA is a great way to reduce your tax base and it covers expenses in your high deductible health plan. For example, our medical plan has a $2,500 individual deductible annually. Rather than paying a high premium, I personally would rather put the money I pay in premium into an HSA and use a high deductible plan. 

Second, check your past usage of your healthcare plan. If you are using it sparingly, you're most likely over-insured. If you're paying more out of pocket, you're underinsured. If you have medical insurance through your employer, check with your HR or Benefits Administration Department – they should be able to offer some advice in this area. 

Third, if possible, only go to healthcare providers covered by your health coverage. Choosing healthcare providers who are in-network is cheaper than selecting those who aren't in-network. This is because in-network providers have a contract with your health plan and can charge you lower rates.   

Fourth, if you take medications, there are a few ways to save money on your next prescription. If you're taking a name-brand drug, ask your healthcare provider if you can switch to a generic. Generic drugs should have the same ingredients but at a lesser cost. You can also ask your healthcare provider if a less expensive medication can treat you.   

Fifth, if you have a procedure, ask your healthcare provider if you can do it at an outpatient surgical center rather than a hospital. Outpatient clinics are typically 45 to 60 percent less expensive than a hospital. This is because outpatients are smaller businesses with less overhead and are generally cheaper to run. Also, you typically won't be spending the night and will only be there for the day, substantially cutting the cost of being in a hospital.    

Lastly, participate in preventative care. Eating well and exercising will make you healthier and less likely to become ill. If you are sick, the doctor will likely catch it before it becomes too severe.    

If there are any other tips or topics you'd like us to cover, let us know at tcupodcast@trianglecu.org. Also, remember to like and follow our Making Money Personal Facebook and Instagram to share your thoughts. Finally, remember to look for our sponsor, Triangle Credit Union, on Facebook and LinkedIn.  

Thanks for listening to today's Money Tip Tuesday. Be sure to check out our other tips and episodes on the Making Money Personal podcast.   

Have a great day!