Wondering how to reduce medical spending?
But how can you do that when there’s high inflation around us now?
Inflation has hit us all.
The US has hit its all-time highest inflation rate. The last time inflation was this high was some forty years ago.
But what can we as everyday citizens do about this?
While there are many articles out there that can guide you financially, I’m here to give you some not-so-great news.
The truth of the matter is this: The cost of medical care is on the rise. When it comes to your medical spending, you should expect to pay more as you grow older. For example, what you pay $100 for today will not get you the same in the foreseeable future.
According to a Healthview report, a 55-year-old couple today could see lifetime medical expenses grow by more than $160,000 over previous projections, for a total lifetime expected expense of nearly $1.1 million. Premiums have also jumped!
This impact is as real as it can get. I’ve already heard horror stories from clients who are slammed by unexpected health bills and just have no idea what to do about it.
So how can you at least be ready for or try to reduce medical spending?
Here are some tips on how you can reduce medical spending to save money in times of high inflation.
1. Increase contributions to your tax-free health accounts
Increase contributions to your tax-free health accounts, and take advantage of catch-up HSA contributions. HSA is an opportunity to put aside tax free money for unexpected medical expenses. In case you end up not using your HSA dollars for medical expenses, it also doubles as a savings account where you can use the funds for other needs. Win-win. A little money spent today to spot and address problems early can save a lot of big expenses down the line.
2. Be proactive about preventative care
This is the single best thing you can do for your wallet and your health. Being proactive about getting your annual physical will help to catch chronic illnesses BEFORE they start, and or help to treat major illnesses before they progress to more serious health issues, which in turn can turn out to be very costly to treat and manage. And naturally, knowing this information will help you reduce medical spending that you probably don’t want to add on to your already heavy financial burden during high inflation.
3. Opt to seek care at urgent care before the emergency room
Most minor illnesses and small fractures and lacerations can be treated at your local urgent care facility. Opting to get care at an urgent care facility rather than the emergency room is a smart choice because urgent care facilities will bill less for the same services and you can expect lower bills and much shorter service times.
4. Research prescription costs to reduce medical spending
Always research lower prescription costs before picking up your medication!
Nowadays, prescription coupon services have gained such popularity, that they often offer rates for common medications lower than traditional insurance. Offshore pharmacies are also a well kept secret that can save big bucks on higher tier medications (pharmacychecker.com). This is one great tip to ease the burden of medical expenses and, naturally, will help to reduce medical spending over the long run.
Feeling the pangs from high inflation? Wondering how health insurance can help you cushion the marketing volatility and reduce medical spending?
Schedule a chat with me to discuss your health insurance needs.