How to Save Money on a Deductible

January 25, 2018

A deductible is how much you have to pay on your own for healthcare before your health plan kicks in and starts paying its share. You may have chosen a plan with a high deductible to save money on the monthly premium. But, you also can save money while you’re paying off your deductible. Here’s how.

An Ounce of Prevention

First off, the law requires most health plans to pay for certain preventive health services, regardless of whether you met the deductible or not. Preventive health services (which include immunizations and screenings) are designed to help keep you from getting sick in the future. Here’s a list of them.

Check What Your Plan Will Cover

Some plans cover services that come with a copay (what you have to pay up-front when you receive a medical service) even if your deductible hasn’t been met. Check your plan documents or call a plan representative to find out if yours does. When you go to see a doctor in your network, you might only have to submit a $40 copay instead of the full price of, say, $150. Some plans also cover prescriptions even if your deductible hasn’t been met.

Use Providers in Your Network

Doctors, hospitals and other healthcare providers in your health plan’s network have agreed to accept contracted rates for their services. Those rates are almost always lower than the rates you’d have to pay an out-of-network provider. When paying off your deductible, stick with in-network providers as much as possible. Some plans will require you to use an in-network provider in order to meet your deductible. That makes sense even after you've paid it off.

If You Have to Go Out of Network, Shop Around

If, for some reason you need to go out of network, shop around for the best price. If you compare two healthcare providers just a few miles apart, you might see that one charges a much higher price than another. You can use FAIR Health’s lookup tools for medical and dental expenses to learn what a procedure usually costs in your area. You may be able to use that information to negotiate your bill with your provider.

Does It Have to Be Done in a Hospital?

Another money-saving tip: Hospitals usually charge more for items like walk-in surgery, lab tests, X-rays, CT scans and colonoscopies. So unless you need to stay in a hospital overnight, it’s typically much cheaper to have these procedures done outside of a hospital.

Save Money on Prescriptions

Economize on prescription drugs. You can buy some drugs over the counter more cheaply than by prescription. These include medications for seasonal allergies, insomnia, joint pain and migraine headaches. Some warehouse clubs offer generic drugs for only a few dollars. That may be less than your prescription copay.

A Flexible Spending Plan

You can have pre-tax money deducted from your salary to fund a flexible spending plan, which you can use to pay for medical expenses. Because the money isn’t taxed, this is a way of stretching your healthcare dollars—and covering some of your deductible expenses.