The sad part of this story is that recent data suggests that many insured Americans are already now forgoing health care because of the cost. And if those costs get higher, which it appears they will, more of this behavior will follow. There's a better than even chance that you're going to find out that your 2011 health insurance costs will be higher, as companies pass along the rising cost of health care to their employees. According to the Kaiser Family Foundation, your
Here are some ways, according to Money Magazine, to keep costs under control without having to sacrifice your health.
1. First, when the opportunity arises this fall, select the right plan. Kaiser says that about half of workers will have more than one plan to choose from during open enrollment. Premiums for PPO (Pay Per Office Visit) and HMO (Health Management Organization) options probably won't differ by a lot. But deductibles and coverage amounts will vary widely, even among same-type plans, making comparison difficult. Your employer may provide projections of your costs in each option, or tools to help you figure this out. But if not, start by adding the premium and deductible for each.
Weed out any plans that don't include your favorite doctors in network. Then, under the remaining choices, estimate how much you might pay for care you use regularly. With co-insurance (you pay a percentage) increasingly replacing co-pays (where you pay a flat fee). You may need to call your providers to find out their full rate.
2. Second, look at each plan's out-of-pocket maximum, or the most you'll pay if you get sick -- and know what counts toward it. If you're healthy and can bank enough to cover possible costs, you save a lot of money by picking a high-deductible health plan combined with a tax-deferred health savings account (HAS) High deductible plans usually have the lowest premiums, and you can put up to $6,150 tax-free for medical expenses into an HSA. Unlike a flexible spending account (FSA) where you lose whatever money you don't use, money in an HSA rolls over if you don't use it.
3. A small but growing number of large companies are offering modest reductions on premiums or deductibles to employees who fill out health-risk assessments or keep chronic conditions in check. So don't miss out on any breaks for healthy behavior.
4. If your employer offers a flexible spending account, you may want to sign up because if you know how much you spend each year on medical costs, you can set aside pretax cash up to $1,500 which could save you upwards of $500 in payroll taxes. Just remember that you will lose any funds that go unused by year's end. And starting in 2011, you can no longer use your FSA for over-the-counter drugs unless you have a prescription.
5. Another tip that could save you some money is to negotiate with your medical provider. With co-insurance growing more common, and co-pays and deductibles going up, you may be surprised at how much more you'll pay for care. So ask your doctor or his billing manager what the charges will be upfront. And if you're below the deductible, say so; you may get a deal. Also, offer to pay at the time of your visit. Some providers will give a discount of 20% to 40%.
6. For plans the cover prescription drugs, the average co-pay for generic medication is $11, while brand names cost $28. Therefore, using generic drugs will help keep costs down. If there is no generic version of your drug, bring the plan formulary -- a list of how meds are covered -- to your doctor to see if there's a preferred drug that's a good substitute. And if your plan offers a mail-order option, you could save up to a third by using it to get a 90-day prescription filled. You could also ask your doctor to write a prescription for twice the dosage per pill and then cut the pills in half.
