Five Ways to Cut Your Health Care Costs

Money magazine (one of my favorite magazines, by the way) has an article on how to Cut Your Health Care Costs. Good thing they have it too, because we all know it can be very expensive. But Money tells us just how expensive:

"Americans pay more for health care per person than citizens anywhere else in the world -- as much as 53 percent more than any other country."

Here are their recommendations for minimizing health care costs:

1. Flex your medical spending -- Employees should consider flexible spending accounts. Depending on your company, you can enroll in an FSA beginning as soon as September. These FSAs are a great deal because it's all pre-tax dollars. An employee chooses to set aside a specific amount, which is usually up to $4,000 or $5,000 annually, according to John Lipold of the IRS. With every paycheck, a proportion is distributed into the account. The money in your FSA can pay for things like over-the-counter medication and doctor co-pays.

2. Just say no -- Consider that drug companies spent over $7 billion last year to send drug representatives to doctors' offices, according to pharmaceutical consulting company IMS Health. And all those TV and magazine ads? That cost the drug industry about $4 billion last year. So don't be swayed. Those drugs that are heavily advertised usually have the highest cost, too. Do your homework and comparison shop.

3. Screen yourself -- Early detection can save a ton of money, if not your life, in the long run. For a free, personalized on-line health evaluation, go the Great American Health Check at www.cancer.org.

4. Think generic -- The cost of brand name drugs increased at three times the rate of inflation last year, says Steve Hahn of the AARP. So get generic drugs when you can. By using generic drugs you could save $1,200 to $2,000 per prescription annually, according to Consumers Union. Generic drugs are just as effective as their more expensive counterparts. And they have to meet the same FDA guidelines. Or, get comparable drugs that may be less expensive, advises David Gross of the AARP.

5. Deduct it -- You can write off your medical expenses each year if costs exceed 7.5 percent of your adjusted gross income. While this is a high threshold, you can make the numbers work in your favor. Don't forget to scrutinize the medical expenses of everyone on your plan. Your spouse and dependents (even your parents) can count toward reaching this limit. You can also deduct travel expenses to and from medical facilities or uninsured medical treatments like hearing aids. In some cases you can get deductible medical expenses from certain smoking cessation or weight loss programs. Check out Publication 52 on the IRS Web site, www.irs.gov, to get a complete list of what could count toward your medical deductions.

Comments

[will barrette]

I am not agree with you American now pay more attention for health care then before

[Andrew Spark]

I think health awareness is a key area where about every thing which related to health care are visible progress has been made in modern time.

[kim]

When you have a health care plan, look for doctors and health care providers that are within the insurance company’s network. This can save you a lot of money. However, if you need a specialist and you cannot find one in the network, put your health needs first.ISn't it another way ?