With new plan details coming out during Open Enrollment, you may be surprised to find that your deductible is increasing for the upcoming year. The deductible, or the amount you are responsible for before insurance pays, can play an important role in how much you pay for healthcare.
On one hand, having a deductible prevents you from going into medical debt because it caps the amount you will have to pay in medical expenses. But on the other hand, with increasing costs, many question having health insurance especially if their monthly premiums for health insurance are also increasing in the next year.
Here is what you can do to manage your healthcare expenses effectively:
Add On Supplemental Coverage
Adding supplemental coverage to your health insurance coverage can help manage your deductible, especially in the case of an accident or critical illness. These plans give you a cash benefit that you can use toward your medical bills/ deductible. By adding this to your plan, you can ensure you do not have gaps in your coverage, especially if you find yourself out of network or in a situation where insurance does not cover your treatment.
Understand What Your Plan Covers
Start by thoroughly reviewing your current health insurance plan to understand the specifics of your deductible and coverage. Knowing the details can help you plan better for upcoming expenses.
Utilize Preventive Services:
Many insurance plans cover preventive services, such as vaccinations and screenings, without requiring you to meet your deductible. Take advantage of these services to maintain your health and potentially avoid more substantial costs down the line.
Health Savings Account (HSA)
If you have a high-deductible health plan, consider opening an HSA. Contributions to an HSA are tax-deductible, and the funds can be used to pay for qualified medical expenses, which can reduce your out-of-pocket costs. Learn more about an HSA HERE.
Shop Around for Services
Prices for medical services can vary significantly between providers. Don’t hesitate to shop around and compare prices for procedures, tests, or medications. Some tools and apps can help you find the best prices.
Negotiate Medical Bills
If you’re facing a large medical bill, try negotiating with your healthcare provider. Many providers are willing to work out payment plans or offer discounts, especially if you can pay some or all of the bill upfront.
Stay In-Network
Whenever possible, choose healthcare providers that are within your insurance network. Out-of-network providers often come with higher charges that might not count toward your deductible.
Adopt a Healthy Lifestyle
While it may not directly reduce your deductible, maintaining a healthy lifestyle can prevent costly health issues. Regular exercise, a balanced diet, and stress management can improve your overall well-being.
Review and Update Your Coverage
During Open Enrollment periods, assess whether your current plan is still the best option for you. Consider whether increasing your monthly premium for a lower deductible might be a more cost-effective choice in the long run.
By taking proactive steps, you can better manage the financial impact of a higher deductible while ensuring you continue to receive necessary medical care.