10 Smart Ways to Slash Your Health Care Bills
Before you fill that prescription or enroll in an insurance plan, read this guide on how you can trim thousands from your medical costs—without compromising your care.
by Anne Marie O'Connor
CO-PAYS. DEDUCTIBLES. OUT-OF-POCKET EXPENSES. It may feel like you need to empty your savings account to stay healthy. You're not alone: One in six Americans spends at least 10 percent of his or her annual income on prescriptions, premiums, and medical care. "Many women assume these costs are nonnegotiable," says Michelle Katz, author of 101 Health Insurance Tips. "But it's easy to save hundreds of dollars on your bills each year by speaking with your doctor or choosing another insurance plan." Here, learn why you're paying too much—and how you can put that money back in your pocket.
- Choose a plan carefully When it
comes time to re-enroll this year,
don't blindly check the box next
to your current policy. "Re-evaluate
your plan annually to ensure it meets
your current needs," says Kimberly
Lankford, author of The Insurance
Maze. The first question you should
ask is whether you have a favorite
doctor or a medical condition that
requires a specialist's care. If you
answered yes to either, your best bet
may be one of the pricier preferredprovider
organization (PPO) or pointof-
service (POS) plans, which give you
the freedom to visit any physician, says
Lankford. Generally, an in-network
doctor will charge $10 to $25 per visit;
out-of-network M.D.'s bill you for 30
percent of their fees. But if you only
see your physician a few times a year,
a health-maintenance organization
(HMO) may be a better fit. These
offer a limited selection of doctors for
cheaper premiums and co-pays.
If you're self-employed or your employer doesn't offer medical insurance, check out Web sites like ehealthinsurance.com, which offers price and coverage comparisons by state. "Take into account your prescriptions, regular care needs, and mental health and vision expenses," says Lankford. "Also consider if you're planning on becoming pregnant within the year, because not all plans cover those costs." Once you've pinpointed all the services you'll require, crunch the numbers with an online calculator such as money-zine.com. "Don't be scared off by policies with high deductibles, the amount you have to pay out of pocket before insurance coverage kicks in," says Lankford. "Those plans have cheaper monthly premiums, so they may be worth it if your medical needs are minimal."
- Question your tests "Doctors aren't necessarily aware of what screens and exams are covered by your insurance," says Katz. To avoid pricey surprises, bring a list of approved labs to your first appointment with a new physician. Also check with your insurance provider before you schedule any treatments or tests, such as X-rays, MRIs, and breast ultrasounds; you may need to get written or verbal approval beforehand. Write down everyone you talk to and the time and date you spoke," says Lankford. "A paper trail is crucial if there are any questions or disputes later on."
- Bargain with your doctor If you're paying your bills out of pocket, don't be shy or embarrassed to ask your doctor for a discount. "Explain your situation," says Katz. "Say, 'You're not in my network, but I wouldn't trust anyone else to handle this. Is there any way you can adjust your fee for me?' " This tactic worked for Katz: As an uninsured graduate student, she asked a well-known local neurosurgeon to treat her injured back. "At my first appointment, I discussed my financial concerns with him," she says. Not only did he refer her to the least expensive hospital for her surgery, he also agreed to perform an operation for half his usual fee. What's more, he allowed her to pay off the cost on a monthly schedule, saving her a total of $14,000. "The key is establishing a personal relationship with your doctor and the staff," says Katz, who recommends arriving on time for your appointments and always expressing your appreciation.
