Healthcare expenses: Smart ways to cut costs

Healthcare bills can shock anyone. You don’t need a finance degree to save money on care. Use straightforward moves that lower bills today and protect you later.

Start by knowing what you owe. Ask for an itemized bill and compare charges to your insurance’s Explanation of Benefits (EOB). Mistakes happen—duplicate charges, wrong service dates, or billing codes that overcharge. Call the provider’s billing office, point out errors, and ask for corrections. Often a single call saves hundreds.

Understand insurance and negotiate

Know your deductible, out-of-pocket maximum, copays, and what counts toward them. If a service is out-of-network, ask if it can be billed in-network or if the doctor will accept your insurance. For big bills, don’t be shy—negotiate. Hospitals often have sliding-scale discounts or financial assistance programs. Ask for a payment plan with no interest; many hospitals accept monthly payments that won’t damage your credit.

Appeal denied claims. If insurance refuses payment, request a written denial, gather medical records and a letter from your doctor explaining medical necessity, then file an appeal. Keep copies and follow deadlines. Persistence often turns denials into approvals.

Cut prescription and care costs

Generic drugs are cheaper and usually just as effective. Ask your doctor for generics or therapeutic alternatives. Use price-check sites and apps like GoodRx, or compare local pharmacy prices—sometimes an independent pharmacy beats big chains. For chronic meds, switch to 90-day mail-order supplies to lower per-month costs and avoid frequent copayments.

Explore manufacturer coupons and patient assistance programs for brand-name drugs. Many drug makers offer discounts or free meds for people who qualify. Pharmacies sometimes have discount programs for uninsured patients—always ask the pharmacist what options exist.

Use telehealth for minor issues. Virtual visits often cost less than urgent care and save time. For preventive care—vaccines, screenings, annual checkups—use in-network providers; many preventive services are free under insurance plans, and catching problems early avoids expensive treatment later.

Shop smart for procedures. Compare facility fees and total cost estimates. Ambulatory surgery centers or outpatient clinics often charge far less than hospital operating rooms for the same procedure. Ask for a cost estimate in writing and check whether labs or imaging will bill separately.

Build a simple health fund and track spending. Put a small amount aside monthly to cover copays and unexpected visits. Keep records of all medical payments for taxes or reimbursement claims. Finally, ask questions—about cheaper alternatives, whether a test is necessary, or if a nurse visit could replace a specialist consult. Small questions add up to big savings.

Use tax-advantaged accounts and free tools. An HSA or FSA lowers taxable income and pays copays and prescriptions; pick an HSA if you have a high-deductible plan. Try price-transparency tools from your insurer or state websites to compare costs. If debt mounts, consider a medical billing advocate or nonprofit credit counselor who can negotiate and apply for charity care. Small planning now keeps a single health event from wrecking your finances. Start with one change.