Suggestions about how to save money on health care

Americans on average spend more on health care than they do on groceries, according to the Bureau of Labor Statistics’ latest Consumer Expenditure Survey. Saving money on medical care is a lot tougher than saving money on food, however. Two big culprits: opaque pricing and everchanging insurance company rules about what’s covered and what’s not.

For help in cutting costs, I turned to a uniquely qualified individual: Carolyn McClanahan, an emergency room doctor turned certified financial planner. McClanahan, director of financial planning at Life Planning Partners in Jacksonville, Florida, frequently speaks at industry conferences, teaching other advisors how to help their clients best navigate the health care system.

These are the three questions she suggests everyone ask:

How do I use health care?

Nerd Wallet People who have a high-deductible plan should have enough savings to cover that deductible. The downside of such plans is that they may discourage people from seeking the care they need. Earmarking cash to cover the deductible can help thwart that tendency.

McClanahan divides people into low, medium and high health care users. Low users are generally in good health and rarely go to the doctor. High users tend to have chronic health conditions or young children and visit the doctor several times a year. Both can be good fits for highdeductible health care insurance , McClanahan says.

People who spend a lot on health care will quickly meet a high deductible and often end up spending less overall on high-deductible plans, which have lower premiums.

Conversely, people who use very little health care may also spend less on a low-premium, high-deductible plan. It’s people in the middle — who do visit the doctor, but likely won’t spend enough to meet a high deductible — who should consider lower-deductible plans, she says.

One caveat: People who have a high-deductible plan should have enough savings to cover WESTON >> PAGE 6