How to Lower Your Healthcare Expenses and Medical Bills

You must have a qualifying High Deductible Health Plan (HDHP).

• Not all plans with high deductibles qualify. The minimum acceptable deductible changes each year.

You must not qualify for Medicare.

You can’t be listed as a dependent on somebody else’s taxes.

HSAs allow you to save money in the long-term:

• The money in your HSA is 100 percent yours, so you can take it with you even if you change employers.
• Because the money is yours, any funds not used on qualified medical expenses rolls over each year.
• You can withdraw your savings when you reach 65 years old without receiving a penalty.

FSAs are offered through employer benefits packages.

Unused funds do not necessarily roll over each year.

• Some employers have a rollover option, but the IRS caps the rollover amount at $500.

When enrolling, you choose how much money you will contribute over the course of a year.

• The amount can’t be changed, but once you’ve agreed on a contribution amount, you have full access to those funds, even if you haven’t yet contributed that money to your FSA.
• FSA funds come out of your paycheck at regular intervals.
• If you use your FSA funds and leave your employer before making your full FSA contribution, you will likely have to pay back your employer for those used funds.

…for the insured:

• People with HDHPs can use an HSA to help make up for the extra costs associated with that high deductible.
• Money put into an HSA can grow over time.
• FSA money can be used to chip away at deductibles and can help cover a range of other medical costs.
• Because money put into these accounts are untaxed, you save in taxes.
  

…for the uninsured:

You must have a health insurance policy to qualify for an HSA or an FSA.

• HSA money is untaxed as long as it is not withdrawn before retirement.
• Money is added to FSA and HSA accounts pre-tax.
• HSA funds can grow over time with interest.
• You can use funds on qualified medical expenses penalty-free.

• You can’t have both an FSA and an HSA.
• Using funds on non-qualified expenses will result in a penalty.
• Withdrawing HSA funds before retirement will result in a penalty, and the funds will be taxed as income.
• Because HSAs require high deductibles, they may not be suitable for people who anticipate many medical bills throughout the year, as the deductible may be hard to hit.

…for the insured

On top of the already low rates telemedicine offers, many health plans partner with telemedicine providers, making virtual visits even cheaper.

…for the uninsured

The prices advertised on telemedicine websites is usually the rate without insurance, which makes it easy for self-pay patients to compare costs between doctors and telemedicine services. Telemedicine rates hover around $45 per visit without insurance.

• More insurances are supporting telemedicine and offering it at a cheaper price than a copay.
• It is being supported as a viable option to a doctor visit.
• Affordable and convenient access can prevent costly emergency room visits in the future and can lead to fewer people foregoing medical care altogether.

• Telemedicine may not be suitable for all people or medical circumstances.
• Patients must have access to certain technologies, like a reliable internet connection and web conferencing tools.
• Some people prefer an in-person experience.

…for the insured:

• Bills and payment terms can be negotiated even with insurance, and shopping around can be easier with access to insurance company price comparison tools. Savings gained from shopping around and negotiating work in addition to insurance savings.

…for the uninsured:

• Those without insurance may benefit the most from negotiating and shopping around, especially if they can pay insurance rates and work out discounts and payment plans.

• Shopping around helps ensure you’re getting the best possible rate, regardless of your insurance policy.
• Shopping around and negotiating help patients better understand the services they receive and can be empowering.
• Employing different negotiating tactics before and after receiving treatment can result in significant savings.

• Both shopping around and negotiating can be time consuming and frustrating.
• Shopping around may not be a viable option in emergency situations, but negotiating is still possible before and after emergency care.

…for the insured:

• Under the Affordable Care Act, most health plans must cover certain preventive services at no cost to patients. This means that using preventive health services is a super viable way for insured people to save money on healthcare expenses.

…for the uninsured:

• While those without insurance generally have to pay out of pocket for preventive health services, early detection and prevention can save them money in the long run. Using telehealth and reduced-cost clinics for preventive health services can help keep your overall medical expenses down.

• Regular doctor visits, screenings and immunizations help people stay on top of their health and can prevent more severe and expensive health problems.
• Many preventive services are covered by insurance.
• Many free and low-cost clinics provide preventive care services and low rates for uninsured and underinsured people.

• Despite potential long-term medical savings, people without insurance may be less likely to seek preventive health services because of the upfront costs.
• The low cost of preventive care services can keep people from using non-preventive health care services when they need them.
• You may not be able to rely exclusively on preventive care.

…for the insured

While many of these clinics are limited to uninsured patients, it’s becoming more common for free and reduced-price clinics to treat low-income and underinsured patients, too. Buying a low-tier marketplace health plan, which likely comes with a high deductible, and using free and reduced-price clinics for primary and preventive care can be a great way to save money while ensuring you have coverage in case of emergency.

…for the uninsured

The idea behind free and reduced-price clinics is to provide people without insurance affordable access to care, so if you are uninsured, the sliding scale payment structure can help ensure your care is affordable.

• These clinics are often widely accessible.
• Most patients receive treatment at reduced rates. Some treatment may be free.
• These clinics can help uninsured people get preventive care.
• There are typically few requirements to receive care.

• Some clinics are limited to those without insurance.
• Clinics that accept underinsured patients have different definitions of “underinsured,” so you’ll have to check if you qualify.
• Although they may be called “free,” free clinics often run on a sliding scale. Some patients may pay nothing while others pay a fee based on their income.
• These clinics may not offer the specialized care some need.

…for the insured

While many programs are not available to those with insurance, those that allow underinsured and low-income applicants may offer additional benefits, discounts and reimbursements that can add up to useful savings.

…for the uninsured

Many of these assistance programs provide insurance and other benefits to those who qualify at reduced or no cost. Patients save money on insurance and medical costs alike.

• They can provide lowered costs or full coverage on medical services and prescriptions.
• These forms of aid are widely accepted at different medical facilities.

• Each state has different policies, procedures and qualifications.
• You must renew your application for assistance every year.