November 2, 2022

You’ve probably noticed that each year your health care costs go up. This ongoing trend can significantly impact your budget. While it’s difficult to control all the factors that contribute to rising medical costs, here are a few tips to help you stretch your health care dollars.

If you have questions or concerns about these tips or your health care benefits, please contact your employer’s benefits administrator.

Use in-network providers.
Participating providers (in-network providers) charge discounted rates for plan members. When you go to an out-of-network provider you will pay a higher deductible and coinsurance percentage. Your out-of-pocket costs may also include the difference between the out-of-network provider’s billed amount and the amount covered by your plan.

Utilize freestanding surgery and diagnostic centers.
If you need surgery, you might save money by having it performed at an ambulatory surgery center (a freestanding center often not associated with a hospital). These locations usually charge less than hospitals or hospital networks’ outpatient surgical centers. Freestanding diagnostic centers are also available and charge less for certain tests like MRIs, CT scans, X-rays and bone density scans. Ask your provider if this is an option.

Only go to a hospital Emergency Department for emergencies.
If you need medical care when your regular doctor is not available, consider going to an urgent care center rather than a hospital emergency department. An urgent care center typically costs less and is quicker than a hospital. If it is a true medical emergency — or if you have any question that your situation is an emergency — always err on the side of caution and either call 911 or go to the nearest emergency department.

Make thoughtful decisions about prescription drugs.
Prescription drugs are the fastest rising area of health care costs and one of the biggest reasons behind dramatic increases in total medical costs nationwide. Here are some ways you can reduce your prescription drug costs:

  • Request generic drugs whenever possible. Before your physician writes a prescription, ask for the generic equivalents of brand name drugs to treat the same condition. Generics are sometimes available for over-the-counter medications as well.
  • Use the mail order pharmacy program. Ordering prescriptions by mail (and in 90-day increments) can save you often 10 to 15 percent. Mail order also is convenient for patients who take medications on an ongoing basis; this will minimize risk of running out of medications as prescriptions are typically renewed, filled and mailed automatically.
  • Compare prices. Costs for prescriptions can vary drastically. Shop around for the pharmacy that offers the best value for your needs. Use websites like goodrx.com to source coupons and check prices at local and mail-order pharmacies.
  • Consider pill-splitting. Some medications can be obtained at double the prescribed dose, and then split in half. You must be sure your medication is appropriate for splitting, so talk to your provider first.
  • Look into manufacturer aid programs. Most major drug manufacturers have programs to subsidize the costs for patients who are not able to pay for medications they need. This need is typically based on household income.

Reduce health care costs with better choices

Medical costs are tied directly to utilization; when you use your health plan more, there are more claims. And the higher the claims, the more you and your employer must contribute to pay for those claims. Remember, the most effective way to reduce health care costs is to make better decisions about the way you live — including the way you eat, exercise and spend your medical dollars.

For more information, talk to your benefits administrator or carrier.