SavvySugar

6 Tips to Spend Less on Health Care

Kiplinger — Mon, 26 Mar 2012 00:15:48 PDT

Many people pay a lot of money for medical expenses. Kiplinger shares a couple of ways to cut your health bills.

Spend less on drugs

Switching to generic drugs is one of the easiest ways to save - especially now that some big-name medications, such as Lipitor, have gone generic (see Brand-Name Lipitor at Generic Prices). Some brand-name drugs don’t have a generic clone but do have a therapeutic equivalent, which is in the same class of drugs but is a little different chemically. You can look up generics and therapeutic equivalents at www.drx.com (or through your insurer’s Web site) and also see how much you can save by using mail order. Ask your doctor about lower-cost alternatives.

Spend less at the hospital

Physicians often work at outpatient surgery centers as well as hospitals, and the cost of treatment can vary widely by location even though you’re getting care from the same doctor. Before scheduling a procedure, ask whether the doctor works at any other facilities. Then call the hospitals or outpatient centers to compare costs. Fees for the doctor and the anesthesiologist might be the same, but you’re likely to save on the facility fee.

Read on for more.

HMO vs. PPO: Which One Should You Pick?

Emily Co — Thu, 08 Dec 2011 03:05:00 PST

Sometimes all these acronyms can make your head spin. All you want to do is pick an insurance plan that will cover your needs - so which one is right for you? Read on to find out:

You should pick a PPO if:

You like the flexibility of choosing out-of-network doctors even though you might have to pay more for them.
You don't want to jump hoops and request a referral from a primary care physician if you see a specialist. A PPO lets you see a specialist without a referral.
You don't mind paying the doctor directly and going through the hassle of filing a claim with the insurance company.
You're willing to pay a deductible and higher copays in exchange for flexibility.

You should pick an HMO if:

You don't want to bother with filing claims and would rather leave it up to the doctors and physicians to file the claims to get paid.
You don't want to pay a deductible.
You're OK with sticking to the in-network doctors.
You want lower monthly fees and copayments.
Note that there may be some limitations on services it covers. You can always appeal it, but it's not certain if you will succeed.

In a nutshell, if you're in good health and aren't picky about doctors, an HMO would be the right plan for you. But if you have favorite doctors that are out-of-network or if you have special needs, get a PPO with a low deductible.

8 Ideas to Use Up Your FSA Before the Year-End

Emily Co — Tue, 06 Dec 2011 05:00:15 PST

Now that it's nearing the end of the year, there are some money chores you need to take care of, such as making sure you've spent the money in your Flexible Spending Account because it will expire before the New Year. You're actually allowed to file an extension if you haven't used up all your FSA dollars, but you need to check your company policy to see if they allow that. Don't fret if you can't extend, here are some last-minute ideas to use your FSA money:

Over-the-counter items: We're not allowed to spend our FSA dollars on over-the-counter medicines without prescriptions but there are plenty of nonmedicinal products that we can still use the FSA money for. For example, band aids, crutches, first aid kits, and rubbing alcohol.
Acupuncture: Acupuncture is covered by your FSA, so if you have a condition such as pain, consider acupuncture.
Chiropractic: Your FSA also covers chiropractic visits, so now may be the time to schedule an appointment with your chiropractor.
Birth control: Contraceptives are covered by the FSA, although some require prescription.
Glasses and contact lens: Schedule a vision exam and use your FSA dollars to buy a new pair of glasses or supplies of contact lenses.
Prescription medicine: Buy prescription medicine if it makes sense for you to do so. Most insurance policies will only let you buy a month's supply at a time, so you can't exactly stock up on medicine.
Doctor's visit: Your FSA will cover the copay so if you're due for a doctor's visit, try to go before the end of the year.
Medical monitoring and testing devices: If you need a gadget to measure and monitor your blood pressure or ovulation, perhaps it's time to buy one now. Pregnancy and glucose test kits also qualify.

FSA is best used when it covers items that your health insurance doesn't generally pay for. Remember to use them or you'll lose them before the year's up!

How to Save Money on Health Insurance When You're Young

Kiplinger — Mon, 31 Oct 2011 11:57:00 PDT

We're thrilled to present this smart Kiplinger story here on Savvy!

I recently asked my twentysomething friends what they'd like to know about getting health insurance. The most common response? "Everything." Evidently, and understandably, those of us navigating the maze of health insurance for the first time are less than clear on the ins and outs. Plus, paying for health insurance coverage can be a drag when you don't have much cash to spare. SEE ALSO: Our Quiz on What Young Adults Need to Know About Health Insurance

But skipping it could be even more costly. Although the number of uninsured young adults is falling, thanks to new federal rules requiring most insurers to allow children on parents' health plans up to age 26, more than one-fourth of young people remain without coverage. In 2010, about 27% of 18-to-24 year olds and 28% of 25-to-34 year olds had no health insurance, according to the U.S. Census Bureau. "I have seen so many stories about young people who ended up saddled with enormous medical bills," says Kathleen Stoll, deputy executive director of Families USA, a health-coverage advocacy organization. "It's not a risk you want to take if you can find an affordable source of coverage." Here's how to get good coverage without going broke:

Individual Coverage

Even if you have the option of employer or parental coverage, you may be able to find less-expensive coverage on your own. In most states, healthy, young people can find individual policies in the private market with premiums of about $150 to $200 a month, says Ankeny Minoux, president of the Foundation for Health Coverage Education. A high-deductible policy may run closer to $100 a month. On average, single coverage through an employer costs an employee $921 a year in premiums, or about $77 per month, according to the Kaiser Family Foundation. But the cost varies widely by employer. You can shop for and compare policies at sites such as eHealthInsurance.com. Or find a broker who will help you get coverage through www.nahu.org.

Check your plan options carefully, says Aaron Smith, executive director of Young Invincibles, an organization that advocates for health care for young people. You may find that, say, certain prescriptions or doctors you visit regularly aren't covered. And keep in mind that premiums you pay through an employer will be deducted from your paycheck before taxes, a perk you won't have with individual coverage.

Read on for more.

9 Secrets to Shrinking Your Medical Bills

Emily Co — Thu, 13 Oct 2011 03:05:29 PDT

Medical bills can be very expensive - the US spends $3 trillion annually on healthcare expenses - but I recently learned from the book 101 Ways to Save Money on Health Care that there are many tricks to shaving off costs. The book is full of advice, and here are some of author Doc Cindy's recommended tips:

Have your doctor choose a medicine from your insurance formulary and bring a copy with you to every visit. Savings: $5 to $50 on a prescription co-pay.
Comparison shop between pharmacies - jeans cost more at one store than another, and so do medications. Savings: $5 to $30.
Get a flu vaccine at your local health department. Savings: $10 to $30.
Take advantage of health fair screening tests for cholesterol testing. Savings: $100.

For more tips, read on.

Don’t Miss Open Enrollment!

LearnVest — Wed, 28 Sep 2011 00:15:57 PDT

We're thrilled to present this smart LearnVest story here on Savvy!

Never has there been a more dreaded phrase than “out-of-network.”

Well, maybe. But anyone who’s ever had health insurance knows the headache that is copayments, referrals and reimbursements.

Given that, staying on top of the maze of paperwork can sound about as appealing as a lobotomy. But this is the season for open enrollment, the one time of year (often no more than two weeks long) when many employers let their employees make changes to their insurance policies.

For the most part, you can’t change your health care choices at any other time of year, unless you’ve had a major life change like getting married or having a baby. That’s why it’s time to act now.

From getting your paperwork under control to getting money back by negotiating your bills, we bring you the ultimate guide to turning health insurance into a (healthy, brisk) walk in the park:

Figure Out Your Window

Call your HR representative to find out exactly when your open enrollment period begins and ends. The specific dates vary from company to company; if you miss your window, you’ll still receive the same medical, dental, vision and life insurance coverage as the year before, but you won’t be able to make changes to your accounts or sign up for a flexible spending account, for which you need to re-enroll each year.

LearnVest tip: Make a calendar reminder for yourself so you won’t forget to talk to HR.

Read on for more tips on open enrollment.

7 Insurance Policies You Can Live Without

Emily Co — Fri, 16 Sep 2011 15:00:02 PDT

It's always better to be safe than sorry, and insurance policies can sure make you feel well protected. However, buying your peace of mind can be quite expensive, so you want to make sure that you're spending money on the right insurance policies. Here are insurance policies you should consider forgoing:

Pet insurance: If you total the medical costs incurred in a pet's lifetime versus the cost of pet insurance coverage, the policies are often found to be unnecessary, Bob Hunter, the director of insurance at Consumer Federation of America tells SmartMoney. Unlike human insurance, you also have to pay all the costs up front and wait for the providers to reimburse you because there isn't a co-pay system.
Trip cancellation: If you can't make it to a flight because something came up at work or a pre-existing medical condition, you won't get your money back if you bought a trip cancellation policy. On most of the trip cancellation policies, the reasons that will get you a refund are pretty extreme - you or a family member has to suffer from an illness, injury, death, natural disaster. Unless you invested a lot of money in the trip, you might want to skip this policy.
Divorce or wedding insurance: If you've been paying for divorce or wedding insurance, you'll be covered if you have the misfortune of canceling your wedding or getting a divorce. This option isn't favored by a lot of the people because of the negative image it, and financial planners aren't fans as well. Glenn Daily, an insurance consultant, tells the WSJ that a good emergency fund would easily foot the expenses that divorce or wedding insurance would cover and describes it as "insurance you could live without."
Extended warranties: Extended warranties on products are generally something you can do without. In fact, you are probably already protected with the manufacturer's warranty or your credit card company. Consumer Reports found that appliances generally don't break during their warranty period and if it does break down, the price it takes to repair the product will cost the same as warranty.

Read on for more insurance policies you don't need.

Savvy Tip: Always Try to Negotiate Your Medical Bill

Emily Co — Thu, 15 Sep 2011 16:31:57 PDT

Although the clinic you go to certainly isn't a farmers market, you can still haggle over your medical bill - the numbers aren't set in stone. Dr. John Santa, an internist and the director of the Consumer Reports Health Ratings Center, says you should always try to negotiate because patients are paying more these days due to larger deductibles. Here are some of his tips:

Tell your doctor you want to cut costs from the get-go. The best time to talk to your doctor about costs is when you're healthy, before the costs start adding up. Even if you're in good health, your doctor will still take your financial situation into consideration and may do things like prescribing generic medicine or holding off a nonurgent expensive diagnostic test to cut costs.

Deal with large bills in a savvy manner. When you unexpectedly get a large bill you can't afford, don't pay it off until you have done the following things. Sit with your doctor and run the costs over with him to see why it was so high. Make certain that the procedures were necessary and that they are priced fairly. You can check the standard prices of the procedure on healthcareblueblook.com. Let the hospital know that you're looking for a discount or a feasible payment plan and if that doesn't work out, consult groups like INSNET or Medical Cost Advocate that will help you lower your bills for a fee.

Be smart with elective procedures. Since these procedures are planned, you get time to do your research and to shop around for the best price. Be wary of prices that sound too good to be true, shortcuts, and doctors that you've never heard of. Always ask the provider for an itemized list of the potential charges and remember that you can always bargain for a fair price.

Who to Reach Out to If Your Medical Claim Gets Denied

Emily Co — Wed, 13 Jul 2011 13:12:37 PDT

Don't get frustrated if your medical claim has been denied and if you're wondering how you're going to pay off the expensive bill, there are still several things you can do to raise your chances of having a successful appeal. Don't take their rejection as a final "no," and do your best to prepare an appeal. If you're feeling overwhelmed, be sure to reach out for help to those around you. Here are a list of contacts you can approach who will help advice you on what steps to take:

Your company: If you receive coverage from your employer, you can even contact HR or the case manager assigned to your company to provide you with guidance or even support your appeal.
Nonprofits: Research nonprofit organizations that might be able to help you with this process. For example, the Patient Advocate Foundation will help manage your case for free or provide educational reading materials and live chat help support without costing you a dime.
Your doctor: Another person you can reach out to is your doctor, who can help you write your appeal letter or write a letter of medical necessity to help with your appeal.
Companies that advocate for you: Patients who have health insurance coverage from their employers can reach out to companies like Health Advocate for help in navigating their health insurance problems. However, your company has to be contracting with Health Advocate. The firm also provides help for a fee to those who buy their own insurance at Health Proponent.
Government: The U.S. Department of Labor’s Employee Benefits Security Administration has a staff that will answer questions you have, and help you obtain your benefits. You can visit their website and fill out a form to explain your predicament or call them at 1.866.444.EBSA.

Happy Women’s Health Week! Do These 7 Things Today

LearnVest — Wed, 11 May 2011 00:15:11 PDT

We're thrilled to present this smart LearnVest story here on Savvy!

Money is only as good as what it can get you: security, independence, freedom. The point of LearnVest isn’t to talk about your money to the exclusion of all else-it’s about using money as a tool to live the life you want.

Yesterday began National Women’s Health Week, and there’s no better investment than in your health. After all, the best investment portfolio ever won’t be fulfilling if you’re not healthy enough to reap its benefits.

(Of course, we do still want you to have a kick-ass investment portfolio. Click here for how to pull it off.)

So, in honor of National Women’s Health Week, we bring you the top 7 things you can do for your health that will save you in the long run:

1. Have The Right Kind Of Health Insurance

First, any kind of health insurance is better than no kind. Going without insurance means you’re totally responsible for all costs if disaster strikes. If, heaven forbid, you got into an accident or needed surgery, you could easily face thousands upon thousands of dollars in debt. Once you’re covered, evaluate your options: If, for example, you’re relatively young and healthy, you may choose a plan with lower regular payments but a high deductible. If you need regular doctor visits and prescriptions, you’ll want a policy that covers all of your needs. For a rundown of the various types of insurance and what’s right for you, click here.

2. Go In For Regular Checkups

Don’t miss crucial checkups each year, since the cost of preventative medicine is way less than the price tag to actually treat your woes (not to mention that it will save you lots of grief). For a rundown of which doctors you should see and how often, check this out. If you’re over age 40, remember to get regular mammograms-they save lives.

Read on for more great health tips.