First thing is to get a Health Savings Account (HSA), which is one of the few home-run investing vehicles out there. The four bases covered:
- Contribute annually on a pre-tax basis up $7,300 for a family; $3,650 for an individual.
- HSA funds can be invested, and grow on a tax-free basis.
- When used to pay for medical costs, HSA funds are withdrawn tax-free.
- You take your HSA with you if, and when you leave your employer.
Choose a high-deductible health plan (HDHP) if your Health is Generally Good
If relatively healthy, go for the high deductible health care plan. You pay lower monthly premiums, but you will be out-of-pocket more for the medical services that you do use. But most importantly, choose a healthcare plan that is right for your expected future (1-3 years) needs. You can ask your insurance company which plan makes most sense for you given your history of care needs.
General ways to reduce cost
- Get routine checkups and screenings to catch health problems early.
- Use free and discounted services (gym, eyewear, vaccines, etc).
- Stay in-network.
- If you have an emergency, decide whether you can go to an urgent care center instead of an emergency department. If your child slices their finger, you may get faster care at an urgent care. It will certainly be cheaper!
- If you need a procedure or surgery, ask your provider if you can have it done at an outpatient clinic. Typically, care at a clinic is much cheaper than at a hospital. This one is critical! If you get a procedure done at a hospital, you will receive a hospital bill covering all the overhead related to running an expensive hospital, PLUS a fee from your doctor provider. Get the same procedure in a doctor’s office, and you will get only the doctor’s bill.
- Be aware of your annual individual and family deductible.
- Bucket your healthcare checkups in a given year to max out on your in-network deductible.
- Call providers BEFORE you receive care and find out how much it will be. If getting a non-urgent MRI, for example, call around. Rates can vary from as little as a few hundred dollars to thousands for the same scan.
- Know that for the vast majority of care, receiving it in a hospital will cost you much more (usually multiples more) than if you get it done in an outpatient setting or doctor’s office.
- Stay healthy by eating well, sleeping well and exercising.
