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The average cost of health insurance for an individual in the U.S. is a whopping $440 per month. Are you making the most of your healthcare coverage? Could you be leaving money on the table?
If you’re going to spend upwards of $5,000 a year on health insurance premiums, you want to be getting something for it. But like everything related to the healthcare industry, you’re going to have to work for those extra benefits.
Around 40% of people spend less than 15 minutes choosing their health plan, and many of those on employer-provided benefits have a tendency to go on auto-pilot during enrollment season. But you may be missing out both on financial benefits and improvements for your health. Here’s how you can maximize your benefits in 2020 and even improve your wellbeing in the process.
Start by Reading Your Plan
What does your insurance plan cover? Few of us know, particularly if you have an employer-based plan. After all, insurance policies aren’t exactly bedtime reading, and for many Americans, the most important factor is price not coverage.
Your first task is to read your insurance plan and take note of what it offers. What does it cover? What doesn’t it cover? What items are better to pay for in cash than to bill your insurance for? Knowing the answers to these questions is important for saving money while also maximizing your benefits.
Pro tip: look out for any ‘free’ services and write them down. The Affordable Care Act (ACA) guarantees certain screenings and tests. (No, they aren’t ‘free,’ but they also won’t cost you anything extra either. So you might as well use them, or at least ensure you don’t get billed for them.)
Reading your plan also prepares you to read your medical bills. In 2017, 54% of Americans got a medical bill that they didn’t expect (they thought it was covered by insurance). And 53% of people got a bill that was much higher than they anticipated. Medical bill errors are increasingly common, and they’re bad for you in two ways: first, they increase what you pay out of pocket. Second, they usually create a higher bill for the insurer, which ultimately returns to you in the form of a higher premium. So ask for an itemized bill and compare it with your plan.
Use Preventive Care to the Max
How often do you go to the doctor? Do you wait until you’re really, really sick? If so, why? While 20% of Americans avoid the doctor because of the cost, people have a lot of reasons for skipping their annual check-up, including a lack of perceived need, time constraints, or just not liking their doctor.
Most insurance companies prefer to cover only preventive care, and they largely do this because they’re required to by various legislation like the Affordable Care Act. Preventive care is a range of services that include check-ups, physicals, screenings, and other services that identify or prevent health problems, both in individuals and within public health. In the past, there was a belief that preventive care cut costs. As it turns out, that’s not completely accurate, but preventive can help you live longer and while also improving your quality of life.
Use your new knowledge of your insurance plan and talk to your provider about what kind of preventive care makes the most sense for you. Are you a retired worker with asbestos exposure? Start getting screened for mesothelioma, as there is no way to avoid the disease if you have been exposed to asbestos. Did you previously contract pneumonia? Ask whether you’re a good candidate for a flu shot. Get into the habit of going to the doctor for these check-ups, and if you don’t like your doctor, find a new one who works with your insurance.
Will you save money? Maybe. However, you’ll get the most out of your plan and likely improve your quality of life as you grow older.
Look for Places to Cut Costs
What else can you do to make the most of your benefits and maybe even save?
The best place to save is usually in prescriptions. Americans use up 11% of all their healthcare spending on retail prescription drugs. To lower your costs, you can do things like find out if there’s a generic, shop around for prices, or switch to a different brand that your health insurance covers more fairly. You can talk to both your pharmacist and your doctor about your options: they have insight about what drugs are comparable and may even be able to help you with samples.
Are you considering a non-emergency procedure or service? If you can, wait until later in the year, particularly if you have a high deductible. Then, you can better plan for the amount you’ll pay to cover your deductible, or chip away at it over time across the year.
If your insurance comes from your employer, don’t forget to ask about other employer-specific benefits that could save you money. For example, covered employers offer Family Medical Leave Act that allows you to take job-protected leave if someone in your immediate family is facing a serious health condition; however, it’s not guaranteed to be paid. You may also find other voluntary benefits that you’re not using, like student loan assistance or pet insurance.
Health insurance of some type is vital for protecting your health. It’s expensive, but you can work to make sure you get the most from it. In exchange for a little bit of effort, you can save some money and live a longer, healthier life.
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