10 Ways to Save on Health Care

No matter what your opinion on U.S. health care reform, chances are, you're paying more for medically related expenses than you ever expected. In fact, according to the National Coalition on Health Care, Americans are currently spending more on their health than at any time in history.

Fortunately, there are steps you can take to save on medical expenses, such as insurance, tests, and prescriptions, without compromising the quality of your care. What's more, you may even be able to obtain important exams and services for free. To get started, check out these 10 simple ways to save.

1. Weigh all your options. As with most things, it pays to shop around for health insurance. Be sure to compare prospective plans carefully and read the fine print before you select one. According to the National Committee for Quality Assurance, providers vary widely in the service levels they offer, as well as their approaches to preventative care and accessibility of treatment. Along these lines, even if you've had the same insurance plan for years, be sure to shop around periodically to check that your benefits and costs are competitive.

2. Get in shape-and stay in shape. All too often, people wind up paying a small fortune in medical bills because they've neglected their health. To that end, if you maintain a healthy weight, you'll not only lower your disease risk; you'll reduce the amount you have to spend. If you're a smoker, make quitting your top priority (once you've been smoke-free for a year, some insurers will reduce your payments). And if you don't exercise regularly, consider starting a fitness regimen, especially if your employer offers a gym discount or financial incentive to employees who participate in wellness initiatives.

3. Consider investing in an HSA. If you're currently enrolled in a high deductable health plan (HDHP), think about investing in a tax-advantaged health savings account (HSA). With these accounts, you can place a certain amount of money from each paycheck into an account for future medical expenses tax-free. And if you don't use all the funds in a given year, no problem-you can simply roll it over into the next year.

4. Consider investing in an FSA. Similar to HSAs, flexible spending accounts (FSAs) provide a tax-advantaged way to set aside money for future medical expenses. But with an FSA, you don't have to be enrolled in a high deductable health plan. Keep in mind, however, that FSAs are "use it or lose it"; in other words, you must spend all funds you've saved within the year. With both HSAs and FSAs, always remember to check with your provider to make sure your health expenses are deemed a qualified medical expense by the IRS.

5. Be on the lookout for freebies and discounts. It might seem like your health is one thing you wouldn't want to scrimp on, but you may be able to access freebies and discounts that will enhance, rather than sacrifice, the quality of your care. Call your health insurance company to see if your plan offers free exams, wellness services, or screenings, such as mammograms or prostate specific antigen tests (PSAs). Some providers even offer free exams to monitor your blood pressure or cholesterol levels. If you don't have health insurance, look for neighborhood or government-sponsored screening programs.

6. Go generic and shop around. Just because prescription prices are rising, that doesn't mean you have to pay top dollar for medications. If you need a one-time treatment, be sure to ask your doctor if he or she can give you samples. For recurring conditions or chronic therapy, remember to request generics, if available, and compare prices at local drugstores as well as mail-order pharmacies.

7. Always have a safety net. According to the U.S. Census Bureau, nearly 46 million Americans are uninsured. Studies have found that the uninsured receive less preventive and therapeutic care, have higher mortality rates, and are twice as likely to have medical debt than their insured counterparts. For these reasons, it's essential to always have coverage. If you've been laid off or switched jobs, see if COBRA is available to you. If not, consider a short-term family insurance plan, or contact your state department of health to see if you're eligible for a low-cost or free plan.

8. Check your bills carefully. Studies have shown that medical billing errors are commonplace, so it's important to review your bills carefully for mistakes and inconsistencies. Refer to your insurance plan booklet to make sure your provider is paying the correct contribution, and don't be afraid to ask questions. If you do find an error, write a letter to your insurance company, send it certified mail, and follow up in a few weeks by phone to make sure they've corrected it.

9. Don't take no for an answer. Oftentimes, an insurance company will refuse to pay for a service, but that doesn't mean you have to accept their decision lying down. If you are convinced that the service should be covered, contact your provider to appeal the decision. If the company still refuses to pay, call the insurance commission agency in your state. If the commission offers to mediate, it could end up saving you thousands of dollars in medical bills.

10. Start early. If you're young and healthy, insurance might not seem like a necessity, but if you get an insurance policy while you're still young, you'll get a lower rate than if you wait until you're older or really need it. In addition, remember that anyone can get sick or have an accident at any time. For this reason, you should try to get a policy while you're still young, preventing emergency expenses that could deplete your savings down the road.

For additional cost-cutting ideas, be sure to visit our guide to Maintaining a Healthy Lifestyle on a Budget and Ways to Lower Personal Care Expenses. For more helpful advice, check out our Health and Fitness for Less Tips.

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