How to benefit from health insurance and save money on medical costs and bills?
This is a million dollar question, and today I would like to
share with you how you can save lots of money on healthcare even if you have
the best health insurance in the world which is paid by your employer!
This is especially helpful to those that have a individual
health plan or a high deductible health insurance. So, for the last 10 years,
the cost of insurance and healthcare has doubled. I’ve seen the rates go up
before my eyes even in the past few years.
Even the most basic bronze plan could cost as much as a mortgage payment
for a month (if not more).
So, here are a few tips that will help you manage the costs
of health insurance and spending on healthcare:
Rule no. 1. If you want to save money on healthcare, then
you need health insurance. That is simple. Even though health insurance is
expensive, paying 100% for healthcare bills is outrageously expensive. So, yes
think about it, don’t risk your finances. Believe me, insurance is worth it.
Rule No. 2 Know your plan. Really, when I ask my new clients
– “What plan did you have last year?” Only a few can tell more than the name of
the company that sold them this plan. If you don’t know what you have, how are
you going to use it? This is very, very important. The best way to learn your
plan is ready the Summary of Benefits. Ideally you should read it before you
buy this plan. In any case, this document is like a contract or like a menu-
where it is outlined what is covered by your plan, what is not covered, how
much your co-pay is? What is the deductible? What is the coinsurance? And so
on. If you don’t have access to this
information your either don’t use the plan to your advantage or you end up
paying more money than you should for features that you might not need. Again,
learn your benefits. If you have no idea where to start, talk to your insurance
agent or broker. If you don’t have one, I will be glad to give you an overview
of your benefits and be your agent if you want. By the way, agents don’t charge
a dime for their services and by working with an agent you won’t pay more in
premiums. Really, agents are a professional free resource and it is wise to use
their help.
O.k. let’s move on to Rule No. 3.
Compare your options. Compare plans and companies. Don’t get
stuck with one plan and one company for ever. The premiums change every year
and if you don’t keep your eyes open during enrollment you might end up
overpaying for your health insurance. So, shop and compare options HMO vs. PPO,
Kaiser vs. Blue Shield, and so on.
Rule No. 4.
Be Aware of any Health Plan Changes Something that may have
been covered last year may not be covered this year. Or, better yet, maybe your
plan offers more free preventive services or screenings this year. Take a few
minutes and look over your plan documents. I know reading insurance contracts
is not quite an activity for Friday evening, but it could save you a lot of
money. Again, talk to an agent and get their prospective.
Rule No. 5. Use In-Network Providers This may sound obvious,
but you wouldn’t believe how many people end up paying thousands more than they
should because they used an out-of network provider. Check with your insurance
company before choosing a provider. When your doctor refers you to a specialist
for care, don’t assume the specialist is in your network. Always check. You’ll
pay a lot more to see someone who is considered out-of-network.
If you have Medicare, make sure you choose a provider who “accepts Medicare reimbursement.” If you
choose a provider who simply
“participates in Medicare,” they may file your claim but charge you later. For Medicare, I have a
special section dedicated. So, if that applies to you, make yourself a favor
and explore our educational videos on this topic.
Rule No. 6 Keep track of your Receipts for Qualifying
Medical Expenses
If you haven’t already, make sure you’ve gathered all
receipts for any qualifying medical expenses you used your FSA or flexible
spending account to pay for last year. You should have those handy for tax
time. If you don’t have an FSA or have no idea what it is, feel free to watch
my video and get all the advantages of this plan. I also have a video about the
HSA – health savings account – this is an amazing account that has many
benefits and advantages. The HSA account can save hundreds of dollars and is my
absolute favorite if used accordingly.
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