11 simple ways to slash your medical costs
Filed under: Bargains, Budgets, Insurance, Saving Money, The Dolans, Health
Americans spent more than $2.3 trillion on health care last year. That's more than $7,600 per person -- and it's going to get worse! The government projects that in less than a decade, you'll spend 20% of your annual income on health care.
Health care has been a major theme during this year's Presidential election, and we're paying close attention to the Presidential candidates' plans for how they will fix our badly broken health care system. But let's be honest here: The odds of any real change happening anytime soon are slim to none, so let us help you deal with this budget buster. We're going to show you how to save big bucks on your health care costs right now.
Cost Cutter #1: Get prescription drugs at a big discount
The cost of prescription drugs is a serious problem for many Americans...both young and old. The good news is that a fierce price war among some of our nation's biggest retailers can save you money.
Wal-Mart and Target have greatly expanded their drug discount programs. You can now get a 90-day supply of many medications for just $10 and more than 1,000 over-the-counter medications for $4. Lots of other stores are jumping into the drug discount fray to compete for business. We found a similar program just by calling our local grocery store, Publix.
So, do as we do: Next time you need that prescription drug, head to Wal-Mart or Target, or check with your supermarket's pharmacy. The savings are too good to pass up!
Cost Cutter #2: Ask for free samples
The next time your doctor writes you a prescription, don't leave the office before you ask him a simple question: Do you have any samples that you can give me?
Drug companies spend millions giving doctors free samples in the hopes that the doctor will prescribe their product. Doctors' offices are overflowing with all the free drug samples they get and will gladly hand them over if you just ask. This is also a great way to try out a medication to be sure it works, doesn't have any negative side effects, etc. before you spend money on having a whole prescription filled.
Cost Cutter #3: Use generics
According to the Food and Drug Administration (FDA), you can save as much as 52% on the cost of your prescription drugs by going with the generic drug over a brand name.
The number one reason most people don't say "yes" to generics is concern that generics aren't as effective or safe as the brand name. Generic drugs look different because certain inactive ingredients, such as colors and flavorings, may be different, but these ingredients do not affect the performance or safety of the generic drug.
The FDA makes it tough to become a generic drug in America. IF your doctor or health provider says that you may fill a prescription with a generic drug vs. a brand name one...why pay more?
Cost Cutter #4: Use a Flexible Spending Account
We're big fans of the Flexible Spending Account (FSA), so ask your company if they offer this benefit and be sure to enroll if they do. An FSA is a tax-sheltered account that you use to pay for the family medical expenses that your health insurer won't reimburse (everything from insurance co-pays to non-prescription medication to root canals to new eyeglasses). All of your contributions are made in pre-tax dollars, so your taxable income is lower and your money has more buying power. A couple filing jointly may contribute up to $5,000 a year.
The only hitch to FSAs is that if you don't spend the money by the end of the year, you don't get back whatever is left over. It's use it or lose it. Keep that in mind as you decide how much to contribute.
Cost Cutter #5: Deduct your medical expenses on your tax return
If certain medical expenses are greater than 7.5% of your adjusted gross income, you qualify to deduct them from your taxes. That 7.5% might sound like a high hurdle, but it might not be out of reach once you add it all up.
You can include medical expenses for yourself, your spouse and all your dependents. All the standard medical costs count -- doctors, prescription drugs, surgeries, tests, etc. But you can also deduct your insurance premiums, dental expenses, acupuncture, fertility treatment, weight loss programs prescribed by your doctor, chiropractic, special education and much more. Get a copy of IRS publication 502 for a full list of what expenses you can and can't deduct.
Cost Cutter #6: Get free care at clinical trials
Choosing whether or not to take part in a clinical trial can be a tough decision. There's no guarantee the experimental treatment will work, but it can save you a ton of money because many -- if not all -- of the costs are taken care of. (And in many cases, patients actually get paid to participate.)
And who knows? You just may be responsible for finding a new drug or procedure that not only saves your life, but the life of others as well.
Here are two resources that can help you find thousands of clinical trials - first, on the National Institutes of Health web site at http://clinicalstudies.info.nih.gov/ and also at http://clinicaltrials.gov/.
Cost Cutter #7: Get the "insurance" discount
Insurance companies negotiate deep discounts of up to 60% with hospitals, doctors, labs, etc. When you don't have insurance or something isn't covered, you end up paying full price. But it doesn't have to be that way.
The key is to ask for a discount. Insurance companies get as much as a 40% to 60% discount, so ask for that first. According to a survey by Consumer Reports National Research Center, only 31% of Americans have even tried to negotiate their medical bills; of the ones who have, though, 93% were successful in getting a discounts, so go for it!
Just make sure you talk to the right person -- usually that's the head of billing. If he or she doesn't have the power to negotiate, ask to speak to someone who can.
Cost Cutter #8: Review bills carefully
Everyone makes mistakes. But hospitals sure do make a lot of them. In a recent review, eight of 10 hospital bills had errors, and those errors cost patients an extra 25% on average!
Be sure you get an itemized bill from the hospital so you can look at each charge line by line. Look for common mistakes such as duplicate charges, coding errors that charge you for the wrong thing, tests you didn't have, and wrongly applied insurance deductibles. Plus, check your admission and discharge dates to be sure they are correct. Call the hospital's billing department to correct errors.
Cost Cutter #9: Don't Take "No" for an Answer
The old saying "If at first you don't succeed, try try again" certainly applies to getting your medical claims paid. Many times a claim is denied because of a simple billing or coding error that can be easily fixed. If your insurance company denies your claim, call your insurer and have them explain in detail the reason for the denial. Be sure to take accurate notes of whom you spoke with and what was said. If the problem isn't resolved in that call, then request a formal appeal from your insurance company. If you need help, get free assistance from the Patient Advocate Foundation. Your appeal should include a letter stating the reasons why your claim should be paid, along with any support documents you might have.
Keep in mind that more than 40% of claim denials are reversed due to appeals. You're paying good money for that insurance -- make sure you get every penny's worth!
Cost Cutter #10: Buy medical equipment and supplies yourself
A visit to the hospital or doctor sometime leads to you needing a medical device or equipment, like crutches, a foot brace, a breathing nebulizer, etc.
If your insurance covers 100% of that expense, great (a quick call to your insurance provider before you buy will tell you whether they'll reimburse you). If not, think twice before buying what you need from your physician or hospital because you'll pay a mark up. You can probably save a bundle by buying those products on your own -- either through a local medical equipment dealer or online.
It may not be as convenient as picking up the equipment at the time of your treatment, but it can save you 25% or more, and who couldn't use that kind of savings in these tough times?
Cost Cutter #11: Stay in your provider network
We can't emphasize this enough: If you're part of a network of healthcare providers, such as a Preferred Provider Organization (PPO), it's mission-critical for you to see only the physicians within that network.
If you don't, you may pay 30% or more of your medical bill, as opposed to having all or most of it covered if you stay within your network. Not to mention that going out of your network typically means both more paperwork and out-of-pocket expense for you. More times than not, you'll have to pay your entire bill up front and then submit for reimbursement from your insurance company.
You don't need that kind of headache and extra expense. Stick with your network.
These 11 tips can help you slash thousands of dollars off your medical costs with ease. But medical costs aren't the only place to save big bucks right now. Visit Dolans.com now for dozens of ways to save money TODAY on everything from groceries to bank fees to credit cards to insurance.
Reader Comments (Page 1 of 2)
10-15-2008 @ 8:07AM
Dr. Byrd said...
This sounds like it was written by an MD or big pharma. Get drugs cheap, take more drugs, how can we live without drugs?
Oh my god how can we live if we live if we don't have drugs???
Try this... get healthy and you won't have to utilize this disease care system. There was a typo in the above article it said "health care." Clearly the article is referring to "disease care."
About insurance networks, I would never use a doctor who has to be in an insurance network to have a successful practice.
Don't be fooled America! It's more disease they want.
Get healthy naturally and you won't have to treat the disease.
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10-15-2008 @ 8:49AM
Mel said...
You forgot one... and this one actually doesn't involve pills!! (gasp!)
Cost Cutter #12: Take Care of Yourself
Exercise for at least 20 minutes per week, drink at least eight cups of water a day, take your vitamins (not the synthetic type) and quit smoking.
The money you spend on vegetables and vitamins is a lot less than what most spend on cigarettes per month.
Healthy lifestyle = healthy body = lower medical expenses!!
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10-15-2008 @ 9:03AM
tina said...
Dear Mel,
You are correct that people should take care of themselves but don't be so arrogant. Exercise doesn't prevent all disease some are inherited... I can speak of this because I'm a 37yrs old female that suffers from Systemic Lyupus and it has nothing to do with my lifestyle or my lack of exercise and Vitamins.....Don't be ignorant
10-15-2008 @ 8:49AM
Steve Reznick MD said...
Sage advice but sometimes the best doctor for your problem is not in your network. You want a physician with experience in performing the procedure you are having or someone who has seen and successfully treated multiple patients with your disease state. Sometimes going out of network is necessary to make the diagnosis or best treat the disease.
Since most individuals health plans are employer driven and since most companies reassess and change policies yearly, patients are asked to change doctors yearly to stay within the new network. There is a price you pay as a patient for each year starting over with a new doctor who is unfamiliar with you as an individual and you as a patient. There is a distinct advantage to having a doctor who knows what you look like when you are healthy and knows you well enough to be your health care advocate. Changing doctors annually to be in the network is good for the bottom line but not necessarily good for you.
In many cases generics are equivalent to brand name drugs. More and more European studies are beginning to discover that the brand name drug works better than the generic.In the USA generics must be within 20% bioavailability of the brand product. The research is no longer done directly by the FDA but dependent on the pharmaceutical company to submit data from its studies on the product for the FDA to review. It is like asking the fox to guard the hen house. In addition nobody tells you that the kindly pharmacist gets an incentivized rebate from certain generic pharmaceutical companies for prescribing the generic over the brand drug.
While the advice in this blurb is excellent from an accountants point of view, and may apply to young healthy men and women with no health problems and a clean healthy lifestyle, it doesnt apply well to individuals with complicated or chronic illnesses. Other financial experts tell us " You get what you pay for." That may be sage advice in this instance as well.
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10-16-2008 @ 6:47PM
Margie said...
I agree with you. I am an RN in an internal medicine practice. I am constantly faced with the agonizing task of distributing samples of meds to patients....we used to get a case of Lipitor from our reps. Now we are lucky to be given 2 boxes. There are always "free trial" coupons and patient assistance programs. They do require paperwork on the part of the patient and staff. Insurance companies that dictate what drugs can be prescribed at the lowest tier have no idea of the plethora of prior auth forms, phone calls and medical documentation we must do for our patients. Medical offices need to hire staff for that purpose alone. Let's not even mention precertifications for diagnostic studies. Patients generally do not realize the precious time this all takes. Time that I wish could be used to deliver superior patient care.
Out of network insurance plans can be very costly. If the powers that be agree that there is no other physician that can treat a particular disease or problem, then they may consent to an out of network referral.
I would prefer that my patients go to Target or Wal-Mart to buy generic drugs rather than order them via the internet from Europe or Canada.
Quest Lab has a patient payment plan. New profiles for lab tests are in the works. They will be phased in starting next month. Medicare guidelines will become more strict and existing profiles will be discouraged, in favor of more streamlined individual tests.
It goes on and on. This country needs help.
10-22-2008 @ 5:26PM
Tara said...
Children's Health System of Alabama doesn't do the 40-60% on medical bills, they will only do a flat 10% off the top, which is rediculous!! I paid 40% at my hospital when I had my child, was admitted for kidney stones while pregnant... but Children's won't budge... is there a law to back up the discount??
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10-15-2008 @ 3:27PM
Sheena Lance said...
I do not have insurance and I already have medical bills totaling over $6,000.00. I am still going through tests to figure out what's wrong with me, but I do not want to spend more in medical bills. Any advice you could give would be helpful!
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10-28-2008 @ 7:29AM
Dennis said...
You can try a bill negotiation service such as www.myinsnet.com. They review any medical bill you have over $200.00. They charge a fee based on a percentage of the amount saved and there is no fee if they don't save anything off your bill!
10-15-2008 @ 9:49AM
Chrisw320 said...
Another tip that can sometimes save you time and money is to ask for a copy of any laboratory test or other test / procedure that you have done. This is especially important if you have to go to a new doctor or specialist (tests may not need to be repeated; records from your old doctor may not arrive in time, etc). The new doctor or specialist can get up-to-speed on your case much faster and you will get better care. Keep your results in a file - make copies for new doctors- but save your own copy too.
Also, if a doctor recommends a specific medication, diagnostic procedure, or treatment, ask "what information will that give us?" and "what are the alternatives?" and "does insurnace usually cover that expense?"
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10-16-2008 @ 10:38AM
John said...
Just a little out of date - you did not know about HSA accounts and the correct $$$ dollar amount for a couple &/or single individual.
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10-15-2008 @ 12:24PM
Kris said...
I recently caught my physical therapists overcharging me. Physical therapists charge in 15 minute increments also known as (1) unit. My treatments were 45 minutes and she was charging 75 minutes to my insurance company and myself. This is Insurance FRAUD!
I have a high deductible so I was to pay full price until I reached my deductible amount. Each person needs to compare there Explanation Of Benefits document they receive from their Insurance Company. This tells you what your medical provider can charge you under their contract. My therapist charged me the full $224 and refused to charge me the contracted rate she had with the insurance company which was $151.00.
Also, the above charges applied to 75 minute treatments not the correct 45 minutes. So, my therapist was overcharging my insurance 30 minutes for a total of $57.00 and overcharged me $84.00. Total overcharge after audit was $10,000.
It is very important that you check you inusrance EOB document with your doctors billing. Also, contact your insurance company and file a grievence complaint if you Medical Provider refuses to comply. I learned the hard way and after exploring this womans billing practice she is also overcharging Medicare.
The inursance company is currently investigating her however, they can only go back 3 years to collect their overcharge amount. I had to file litigation which is very costly. Insurance companies cannot request the Medical Provider to pay back the overcharges.
Does anyone know of an oganization that helps victims like me recover their overcharge payments without having to litigate? Or an organization that will audit doctors bills?
Thanks and stay healthy.
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10-28-2008 @ 7:38AM
Dennis said...
Kris - Your physical therapist may indeed be committing fraud, but billing your insurance company the full price and not the contract price is not fraud. It is your insurance companies responsibility to reimburse the bill at the contracted rate or at least inform you via the Explanation of Benefits what they contracted rate is.
For over 20 years I have negotiated medical claims for insurance companies. I recently created a patient advocacy service which helps individuals save money on their high deductible medical bills. Please visit www.myinsnet.com and contact me if you have any questions.
10-15-2008 @ 11:24AM
Kathy said...
I take a BP medicine and I have been on it since 1970. It works and I have tried the generic for it and it does NOT work. My BP shot up to 200/190 with a migrane too. I became really sick and could'nt function for about a week. So if you can't take generic what do you do? My med jumped from 115.00 in Aug. to 242.83 and now 245.83. A pharmacy in Calif. said that on generics it depends on the drug company on how much filler they use in the pill on whether it works or not. Well the generic of mine does NOT work. I also have tried other BP pills and they don't work. So what is a person to do? I have no medical ins. or drug coverage and on a set income and retired.
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10-15-2008 @ 1:55PM
pate said...
Be nice to your doctors staff and ask nicely for samples-- BP medicine is tough to take for some people. See if Sam's club or Walmart has it on their $4 list-- find a pharmacy in Canada and see if its cheaper
10-15-2008 @ 11:26AM
Hank said...
Genrics are NOT the same as brand name drugs! Most generics are now compounded with ingredients imported from China(over 50%) where there is very sub-standard Quality-Control of both the measurements and contents in these drugs.
If you can afford brand names, don't risk your health on generics!
-A pharmacist
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10-15-2008 @ 11:27AM
hank said...
Genrics are NOT the same as brand name drugs! Most generics are now compounded (over 50%) with ingredients imported from China where there is very sub-standard Quality-Control of both the measurements and contents in these drugs.
If you can afford brand names, don't risk your health on generics!
-A pharmacist
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10-15-2008 @ 11:42AM
Summer said...
enough said by the rest of yah...i agree with you all!
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10-15-2008 @ 11:51AM
Jim in AR said...
"The FDA makes it tough to become a generic drug in America." HA! HA! HA! HA! "Get free care at clinical trials." HA! HA! HA! HA!
How about taxing the drug companies for their incredible executive salaries? How about aking away tax benefits for drug companies that waste research on the 150th new pill for stomach acid?
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10-15-2008 @ 11:52AM
A Doctors Husband said...
My wife's a doctor so I tend to see & hear it all. Add it all up (2 hours of charts every night) and she works an 80hr week ... no, she wishes no ill will on anyone and for those who've had the good fortune of good health (genetic) as well as those who diet & exercise properly, kudos to you as well! At 57 I've yet to see the inside of a hospital and much as I love her, she's had nothing to do w/ it ... so far. My point in writing is that the "free samples" may soon be disappearing. It's something of a quid pro quo thing wherein the pharma reps try to get a moments face time w/ a doc whose already running an hour (or two behind)... not, contrary to popular belief, because they've overbooked but rather because emergencies and the unforeseen have occurred. John, w/ the sore toe is actually about to go into cardiac arrest; Joan, w/ the runny nose is actually on the verge of committing suicide ... these unpredictable events seem to occur w/ regularity in her office and no, she doesn't smile and say "well, your 15 minutes are over, make another appointment." Back to the pharma reps who are trying to educate the docs on the abstracts of their particular product. For more face time they often bring lunches. These are not caviar and lobster deals, but rather pizza, subs or some other portable item, pasta and a salad. With this face time they leave samples. However, for some inexplicable reason, the powers that be have decided that these lunches are unethical, as are the pens, notepads and whatever other sales trivia is left behind by the reps. Being in sales now for over 30 years, I'm a bit shocked by the "high ground" generally espoused by deskbound administrator/physicians who wouldn't know how to apply a bandaid but who are obviously feeling quite left out. I've been taking clients out to lunch and dinner for years and as part of the relationship building process we do a great business together. That means service-service-service, not graft-graft-graft. Arguably, the research doc whose family is flown to China on a 3 week boondoggle by a sponsoring pharma company is one thing, as are free cars and such. But now the pendelum is about to take away the pens, crummy little note pads and lunches ... and along w/ those you can expect the sample cabinet to shrink accordingly. Unless they choose to balance bill, or pay up front, work it out w/ your insurance company, Physicians revenues are regulated by the Government & Insurance Industries who have no apparent appreciation for the fact that doctors expenses continue to rise as well ... they have to pay rent, utilities, employees, benefits and the like yet on a $100 invoice, they (their group) get's a $50 reimbursement! In 17 yrs My wife has never been sued yet as a Family Practioner she pays $22,000 in malpractice per year and, as I'm retired, another $10,000 off the top for our annual (and modest) health insurance plan. Indeed, we tell kids to look to the trades... be a plumber, electrician or what have you ... you get paid the hours you work and bill for, no malpractice, government regulation, insurance manipulation of care, and a bill for $100 nets a check/payment of $100! Oh, back to the top ... good luck w/ the free samples ... apparently the same moralist who ran Wall Street into the ground are now on the medical band wagon. One last entry, noting the pharmacists' comment, he's spot on, generics are not always the same.
A husband who'd like to see his wife again!
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10-15-2008 @ 1:57PM
pate said...
You have my sympathies- I'm in the same boat you are. If your wife is a specialist and makes over 250K (judging from your reply she is primary care so it unlikely she makes that much) You might see her home more next year when Obama wins. In Ohio anyone making over 250K under Obama's plan will take home 37.5 cents for every dollar earned above $250,000. What is the incentive to keep working 80 hours? Especially when there are no more free pens! I know Medicine is about helping people but at what cost to the Family they leave behind? Unlike your wife, my husband has be sued. Eventually the suits are dropped but the damage is done! We still have a suit from 2002 and we are waiting to go to trial- they fired their expert witness in 2005 but they had a year to re-file and they did. Everybody wants healthcare in America but Nobody wants to pay for it. And god help the Doctor who makes the wrong guess! Hello Canada Hear we come!!!