Health Insurance

Health Insurance, Health Literacy, Healthcare Basics

14 Smart Ways to Save Money on Healthcare

Drowning in medical bills? These tips can help.

July 25, 2017

Frank Hone

My wife and I are generally pretty savvy shoppers. Well, she is – and I get the benefits. She clips coupons, looks for bargains, and buys certain items only when they’re BOGO (buy one, get one free). Why pay full price when you don’t have to?

In healthcare, we’ve rarely had that option. For a long time, the cost of a healthcare treatment or test didn’t even come up until after the bill came. For most of us, health insurance covered the majority of the cost, and our responsibility was limited to a small co-pay.

That’s changing now as the trend toward consumer-directed health plans (CDHPs) grows, and many of us are spending more out of pocket. In 2016, nearly one-third of all employer-sponsored health plans were CDHPs.

As a result, patients are getting choosier. And as the healthcare system continues to evolve, we need to be more proactive. We need to get smart about where to go for care, how to pay, and how to prepare. These tips can help:

How to Save

Your primary care physician is likely your go-to source for most of your healthcare needs. But there are times you may want to consider these alternatives:

Some health plans offer telemedicine, which can give follow-ups, help manage chronic conditions, monitor medications, and provide other clinical services all through electronic communication. Depending on your condition, telemedicine can save you both time and money.
For problems that are serious but not life-threatening, such as a sprained ankle, bad cough, or fever, urgent care centers can be a good alternative to the emergency room. Be sure the center is in network for your insurance plan. Co-pays for visits should be listed on your insurance ID card or on the plan’s web portal or mobile app.
Websites like FAIR Health may help you figure out the costs of some medical care.
Teaching hospitals in some communities may offer discounts for certain medical needs.
For prescription drugs, ask your doctor or pharmacist if generic versions are available. They’re often a fraction of the cost of a brand-name medication.

How to Pay

Using credit cards to pay off big medical bills may be tempting, but it can add up to mountains of debt. Make sure you know your options:

If you have a high-deductible health plan (HDHP), you can open and put money in a Health Savings Account (HSA) with pre-tax dollars. Many employers will contribute to your HSA as well. HSAs can be used for a wide range of healthcare expenses – from sunscreen to X-rays – and the balance carries over year to year.
With Flexible Spending Accounts (FSAs), you can use pre-tax dollars to pay for most healthcare-related products and services. Some FSAs operate on the “use it or lose it” rule, meaning you must spend all the money in your account by the end of each year or lose any remaining balance. There are exceptions, though, so check with your employer.
Hospitals and certain providers may consider payment plans for larger expenses. Be sure to ask about them if you anticipate big bills or find yourself with higher-than-expected costs.
Finally, keep in mind that most healthcare organizations will take into account your ability to pay. You may be able to negotiate some expenses, or they can suggest programs that can help out.

How to Prepare

Here’s the key to saving on healthcare: Do your homework. Costs for tests, procedures, and treatments can vary widely, regardless of where you live or what plan you use, so take these steps:

Choose the right plan based on your age, health history, and the care you expect you’ll need.
Be sure your provider is in-network.
Talk to others who’ve been through similar medical issues or procedures, and learn from their experiences.
Ask questions – not only about what to expect from the service, but about how much it will cost. Healthcare is one of the most expensive services we purchase, so don’t be shy about asking questions whenever your doctor recommends tests or procedures, or prescribes medications.
Be proactive: Practice good health habits, eat smart, exercise, and take advantage of free screenings, flu shots, and other preventive steps.

Paying for healthcare will never be like shopping for groceries. But as things continue to change, there will likely be more and more similarities – and in time, smart shoppers will get better deals.

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Frank Hone is a consumer marketing strategist who focuses on the business impact of engagement strategy for health and well-being improvement... read more

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Health Insurance, Health Literacy

10 Health Insurance Terms You Need to Know

Confused by health plan buzzwords? Here's a guide to the lingo.

June 28, 2017

Jerry Gulley

Health insurance plans can seem like they’re written in secret code. Between trying to decipher mysterious acronyms—like HSAs, FSAs, and HDHPs—and remembering your portal password, it’s easy to feel overwhelmed. But digging into the details is well worth the effort, says Scott Spann, a financial planner with Financial Finesse, a provider of workplace financial wellness benefits. “Many of the people we work with feel overwhelmed with the process of choosing the right health insurance plan options,” he says. “The majority of Americans are anxious about rising premiums and choosing the right type of coverage. But as high deductible healthcare plans continue to grow in popularity, it’s important to at least take time to understand the basics.” In fact, he adds, “failing to take the time to review your options can be a costly mistake.”

Can’t find your decoder ring? This primer can help you get started (EdLogics members can find more in the Glossary of Terms on our Health Insurance page.)

Benefit: A treatment, test, or other healthcare that health insurance helps pay for.
Co-payment: A fixed amount you pay for a doctor’s visit, medication, or other healthcare expense. You usually pay it when you have the visit or get the medication.
Deductible: The amount you have to pay in a benefit year before your insurance kicks in. If your deductible is $2,000 and your first bill of the year is $3,000, then you would pay $2,000 of the bill, and your health plan would help pay for the rest.
Drug formulary: A list of prescription medications a health plan helps pay for.
Enrollment period: Period of time when people are allowed to sign up for a health plan. For many people, enrollment periods happen every November. You might be able to sign up at other times if you have a qualifying event, like losing a job or getting divorced.
Health savings account (HSA): A special savings account that you put money in for healthcare costs. You don’t pay taxes on money in HSAs, so you can save money. HSAs are usually used with high-deductible health plans.
High-deductible health plan (HDHP): Health insurance that costs less up front (lower premiums), but you pay for more of your healthcare costs before your insurance kicks in.
Network: A group of doctors, hospitals, and other healthcare services that work with your health insurance. Health insurance covers more costs for healthcare in-network than out-of-network.
Out-of-pocket: Healthcare costs your plan won’t pay for. You are responsible for paying these costs yourself.
Premium: A fee you pay regularly for health insurance. Most people pay their premiums every month, but it can vary from company to company.

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Jerry Gulley currently serves as EdLogics’ Chief Content Officer. He trained at the Culinary Institute of America in Hyde Park, New York and has held positions with Cooking Light, Health, and AllRecipes.

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Health Insurance

5 Ways to Get the Most Out of Your Health Plan

June 21, 2017

Frank Hone

Let’s face it: Health insurance is complicated. And if you’re like many policy holders, you don’t have time to dig into every detail of your plan. Instead, most of us are content to know the basics, like our co-pay amounts and in-network providers. But with a little effort, you can uncover a lot of added value. Try these tips:

Connect online. Most health plans provide members with a secure online portal and mobile app. You can use these to find general information about coverage and benefits, as well as details on recent doctor visits and other personalized health information. You might also be able to find out which doctors, urgent care centers, hospitals, and other facilities are in your network. It’s usually up to each member to enroll in the portal – so if you haven’t done so, go to your health plan’s website to learn how.
Take advantage of discounts and rewards. Many plans offer discounts for gym memberships, massages, LASIK surgery and other health and wellness services. Some plans have programs that can help you save money on insurance premiums, or earn points for reaching certain wellness or fitness goals or completing online learning modules.
Get free health checks and preventive care. Along with an annual flu shot, your health plan may cover screenings for blood pressure, cholesterol, and body mass index (BMI). You might also be able to get one-on-one meetings with a food expert for little or no cost. Some also offer health risk appraisals, an in-depth questionnaire that gives a more complete picture of your overall health. You may even be able to call a free health coach for ways to reduce your risk for certain conditions.
Use hotlines, online programs, and other services. Ready to quit smoking – for real? Need to ask a nurse what to do for your child’s fever? Many plans offer services like quit-smoking coaches, nurse hotlines, online support groups, Internet-based wellness programs, and much more. Some plans provide free classes – virtually or in person – on topics like diabetes, asthma, heart disease, birth control, and breastfeeding. They may provide a tool to help you predict how much treatments will cost. Some offer special case management programs, which help guide you through the challenges of managing complex conditions. Your health plan might even give you access to telemedicine, so you can have a virtual doctor’s appointment for certain conditions through your computer or mobile device.
Save money. As more people choose high-deductible health plans (HDHPs), managing out-of-pocket expenses becomes even more important. If you select an HDHP, you can enroll in a flexible savings account (FSA) or health savings account (HSA). Either one lets you use pre-tax dollars to pay for certain expenses, so you can save on healthcare costs by setting tax-free money aside before you need to use it. Pay attention during open enrollment – usually around November – because you may be able to make changes only once a year.

Your health plan may have other benefits as well. Be sure to ask questions during the enrollment period, and explore your plan’s website. The time you spend is well worth it.

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Frank Hone is a consumer marketing strategist who focuses on the business impact of engagement strategy for health and well-being improvement... read more

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Health Insurance, Health Literacy

Program Spotlight: Smart Use Insurance Education

The University of Maryland Extension's Unique Program Is Helping Increase Insurance Literacy

May 12, 2017

Jerry Gulley

The University of Maryland Extension had developed a unique program designed to deliver health insurance education to consumers. Just as Americans were beginning to understand how to work with Obamacare, congress is working on a replacement, the American Healthcare Act. It’s not surprising that health insurance is confusing to most people. In fact, nearly half of all adults say they can’t understand or act on the health information they get, and that includes information on how to find and use health insurance.

Now it it’s third year, trained educators have delivered the program through workshops in seven states. And the results show that the program is really making a difference.

Participants saw a 25% increase in their confidence in making good health insurance decisions
Participants saw a 15% increase in the likelihood they would take a positive action – like comparing insurance plans or researching if they could get cheaper medications

After review of the pre- and post-surveys and other data, the program administrators crafted a strong hypothesis:

“If confusion could be reduced and confidence and capability increased, consumers would be able to make Smart Choice health insurance decisions.”

Features of the program include:

Explaining key terms that may be confusing to consumers, such as “copayment”, “deductible”, “HSA” and “PPO”
Showing consumers how to make “good guesses” on what their out-of-pocket health expenses may be so they can better prepare and plan
Detailing how consumers can save for health expenses using Flexible Spending Accounts and Health Savings Accounts
Helping consumers understand the benefits and advantages of different types of insurance plans and choose the right plan for them
Educating consumers about where to get reputable health insurance information and which sources shouldn’t be trusted

New opportunities are being explored to expand the program even further. Through technology even more consumers could benefit from the education.

For more information, visit the University of Maryland Extension web site.

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Jerry Gulley currently serves as EdLogics’ Chief Content Officer. He trained at the Culinary Institute of America in Hyde Park, New York and has held positions with Cooking Light, Health, and AllRecipes.

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