How To Manage a High Deductible Health Plan On a Tight Budget
Most people don’t look for high-deductible health insurance plans. But an increasing number of companies are now offering these, which is why some now opt for them. If you are on a tight budget, it’s a good idea to shop around a bit and understand what different companies are offering.
If you are relatively healthy and fall in the 30- 45 year age group, it can help you avoid the staggeringly high bills that older people wrestle with. When you take interest and conduct some amount of research on the high deductible health plans available, you will realize there are ways to manage them better.
Some Pointers
Your first year with this type of plan is the toughest. When sky-high medical bills swamp you, a high-deductible plan can make you feel overwhelmed. If you are also forking-out money for various costly monthly prescriptions, the overall situation can be quite maddening.
In that first year, you might feel like you have very little control. If you are on a tight budget, you need to get a little creative and proactive in your approach. There are certain things you can do to cut costs and manage a high deductible health plan, such as:
- Take Advantage of Various Free Services. In line with the ACA (Affordable Care Act,) all health insurance plans offer you free access to multiple preventive services, even if you have defaulted on your deductible. Some of these services include diet counseling, mental health screenings, blood pressure, cholesterol, etc. Make the most of your plan’s vaccines and free annual checkups and save yourself some money.
- Conduct Research for Prescriptions. As you start comparing medication costs, you will find there is a wide variation in them at different stores. Some online platforms will offer coupons and low prices at thousands of US pharmacies. If you have specific monthly prescriptions, shop around before filling them, so you get the best prices.
- Compare Procedure Costs. You will also find there also is a difference in the costs of procedures. Ask your medical practitioner to give you referrals as that will help you save on the more significant expenses. There are online tools you can use to determine the fair price of the procedure in your area. It will help you manage the costs of any costly tests your doctor asks you to do.
- Benefit from your Insurance Provider’s Tools. Most insurance providers will allow you to search for various in-network providers. You also have the option to contact them in advance to get a better idea of what your out-of-pocket costs can be. This approach is an excellent way to avoid copayments for things like flu shots and the HPV vaccine.
- Save Money on Your Taxes. Check whether you can pair your high-deductible health plan with a HAS (health savings account). If yes, you might qualify for a particular tax deduction. Your employer might offer a health savings account and deposit the money on your behalf too. Alternatively, you have the option to open one on your own and handle the contribution yourself.
Some Other Things to Do Include:
- Budget for Out-Of-Pocket Expenses Post the First Year– December is the ideal time to conduct an audit on your medical spend. Check what your ongoing expenses are and which have been one-time expenses. If you notice that you have overpaid for procedures or used out-of-network providers, avoid those mistakes, and make changes next year.
- Set Aside Money Each Month– Tally all your overall out-of-pocket expenses. Divide the figure by 12 and include that as a line item in your monthly budget. When you set aside money like this each month, it’s much easier to manage the more significant bills when they arrive.
- Plan for Non-Emergency Procedures– If you’ve been deferring a particular non-emergency procedure, begin planning for it now and save for it each month. Some providers offer discounts when you pay in cash, and you can benefit from this.
When it comes to managing a high deductible health plan on a tight budget, it all boils down to shopping for the best options, discounts, and solutions. You need to plan things and be consistent about managing your finances to include your health insurance costs comfortably.
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Reply →It’s great that you mention taking advantage of health screenings and other free services. My friend is worried about his family’s health. I’ll let him know that he can look into health screenings.
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