Get Health Care Costs Under Control

Even if health care isn’t a major expense category for you now, it likely will be at some point. Here are some ways to keep that spending in check: • Get and stay as healthy as you can, to reduce your likelihood of needing costly care. Eat nutritious meals and exercise regularly. See your doctor regularly, and get preventive screenings (such as mammograms or colonoscopies) on schedule. • Take advantage of free or discounted services offered by your health plan and/or employer, such as flu shots, gym memberships, nutrition consultations or smoking cessation classes. • Choose the health insurance plan that offers the most value, given your budget. Health maintenance organizations (HMOs) typically cost less than preferred provider organization (PPO) plans. High-deductible plans cost less, too, and can be especially good for healthy young people. If you’re married and each of you has employer-sponsored health plans available, see which serves you best. • With a high-deductible plan, you may be able to set up a Health Savings Account (HSA) to which you can contribute tax-deductible dollars to be spent on qualifying health care expenses. A Flexible Spending Account (FSA) is similar, but requires you to use all the cash you put into it each year — or lose it. • Prices for drugs vary by pharmacy, so shop around, and ask for generic versions of drugs when available. Look into mail-order options, too, as those often charge less. • Keep tabs on your health care spending. If you spend more than 10% of your adjusted gross income (AGI) on it, you may be able to take an itemized deduction on your federal tax return. • Scrutinize any bills you receive from health care providers and hospitals, as you might find some errors or overcharges to correct. Search for “ways to save on health care” online, and you’ll find many more profitable tips.