Health insurance is an immense help when paying off your medical bills. But insurance plans do not always pay for all of your expenses. Depending on the insurance plan, you may be expected to cover 10%-100% of your healthcare costs. These out-of-pocket expenses for medicine or other services are a great source of stress for more than 60% of Americans. Many may neglect their health because of out-of-pocket costs.
The good news is that with proper planning, you can save on these costs and manage your bills without the stress. If you want to learn everything about out-of-pocket prescription costs and ways to manage them efficiently, keep reading.
What Are Out-of-Pocket Expenses?
Before we give you tips on saving, we need to talk about what out-of-pocket cost is. And it is more than just the cost of your medication.
- Health insurance premium: This is the monthly or yearly fee you pay to keep your insurance plan active. Your employer may pay a part of this amount.
- Deductible: This is a specific amount you have to pay annually before your insurance plan starts to pay. It can differ based on your location and coverage.
- Coinsurance: This fee is the percentage of out-of-pocket expenses you pay after meeting your deductible. You typically have to pay 20% while the insurer covers 80% of the costs.
- Copayment: This is the set rate you have to pay out-of-pocket for your doctor’s visit and prescription medication. Many insurance plans do not include copayments.
Out-of-Pocket Prescription Costs
If you are uninsured or your plan does not cover prescribed medication, you have to pay for them yourself. Whether buying meds safely online or from a pharmacy, these out-of-pocket expenses can add up.
If you have insurance, you may still have to pay the entire price of your medication until you meet your deductible. Even after paying your deductible, you may still need to pay a portion of the costs. A five-year report shows that almost 3 million people on Medicare had out-of-pocket drug costs above the catastrophic threshold. So medicine has a big part in the extra costs.
Services Not Covered by Insurance
Insurance plans do not cover all types of healthcare services. Examples of the types of treatments not covered by most insurers may include:
- Hair loss treatments
- Contraceptive treatments
- Over the counter supplements and medicine not prescribed by the healthcare provider
To know what the out-of-pocket cost is for these treatments, you can ask the providers beforehand.
In some cases, for instance, when you need a piece of special medical home equipment or massage therapy, your doctor can write a letter for the insurance. They may reimburse you later for the out-of-pocket expenses if they find you eligible.
Strategies to Save on Your Out-of-Pocket Costs
1. Take Care of Your Health and Plan Ahead
The best way to avoid hefty medical bills is to take care of your health with preventative care and a healthy lifestyle. Staying at a healthy weight, staying consistent with your annual doctor visits, regularly exercising, and giving up smoking are things you can do to lower your healthcare expenses. Plus, you can use the benefits of your insurance plan and get regular checkups to catch problems early. Treating problems early on can help you save out-of-pocket expenses later.
But staying healthy is not as easy as it sounds, and you will probably need medical care at some point. Learn to detect medical emergencies and plan for them. If you are not experiencing a life-threatening condition, visit an urgent care clinic instead of the ER. This alternative can save you time and money
2. Choose the Right Healthcare Plan
Another way you can save on out-of-pocket expenses is by choosing the right plan for yourself and your family. Opt for a higher premium plan if you have a particular medical condition and need regular care. If not, you can choose a healthcare plan with a higher deductible and lower monthly payments.
You also want to compare the prices of different plans and their medication coverage. Ask what the expected out-of-pocket cost is and save for your deductibles to be prepared if you need medical attention.
3. Use Telemedicine
It is now easier than ever to get the medical care you need without visiting a clinic. Virtual consultations with a doctor in non-emergency situations can reduce your out-of-pocket expenses immensely.
Plus, you can save on your out-of-pocket prescription costs by buying your medicine from virtual pharmacies. Learning ways to avoid online pharmacy scams and purchasing from the comfort of your home makes the whole process more convenient, too.
4. Choose In-Network Doctors and Talk About Your Concerns
One of the mistakes most people unknowingly make is visiting out-of-network doctors. Your insurance company has contracts with a network of healthcare providers for lower rates. If you go to those providers, you can reduce your out-of-pocket expenses significantly.
When you visit the doctors, discuss your financial concerns with them to see if you can negotiate for a lower price. If you need a procedure, ask your doctor if you can get it in an outpatient clinic instead of a hospital to reduce the costs.
5. Save on Out-of-pocket Prescription Costs
Prescription medication can cost a lot, even with insurance coverage. You can ask your doctor to switch to a generic drug instead to lower these costs. Generic drugs have the same active ingredients as the brand names, but they cost about 85% less.
6. Use a Flexible Spending Account (FSA) or a Health Care Savings Account (HSA)
Your employers will own the FSA without earning interest. They have to use it by the end of the calendar year. The HSA belongs to you. You can gain tax-free interest and transfer it to a new employer.
Start Saving Today
Now that you know what the out-of-pocket cost is, you can use the strategies above and start saving. Do not neglect your medical needs or settle for cheap, low-quality drugs to save on your out-of-pocket expenses. Instead, visit Inhouse Pharmacy to buy affordable medication from home. We offer free worldwide delivery and 7-day-a-week customer service for our quality medication to make healthcare easier for you and your family. Contact us today to learn more about how we can help you!
The above information is for informational purposes only and is not meant to treat or diagnose a condition or replace the advice of a medical professional.