Saving money is a popular New Year’s resolution.
If you’re looking for ways to cut your budget in 2023, healthcare is a good place to start.
According to the Centers for Medicare & Medicaid Services, US healthcare spending will reach $4.1 trillion ($12,530 per person) in 2020 (latest data available).
Wow!
6 ways to save on healthcare costs in 2023
Here are 6 ways to save on health care costs in 2023 and keep your body, mind and wallet healthy in the new year.
- Please join health insurance.
- Or review your current health insurance.
- If you have Medicare, check your options during open enrollment.
- Find free or low-cost mental health services.
- Negotiate your medical expenses.
- Check your credit report.
1. Get health insurance
Giving up health insurance may seem like an easy way to save money each month. If you’re young and healthy, paying monthly premiums for a plan you rarely use may seem like a waste of money.
However, short-term decisions to save money can come at a cost when a catastrophic health event occurs.
Open enrollment for plans on HealthCare.gov, a health insurance marketplace where you can buy and sign up for affordable plans, is now open until January 15th.
The Health Insurance Marketplace was created as part of the Affordable Care Act to target people who cannot obtain coverage through their employer. This includes part-time employees, freelancers, gig her workers, college students, the self-employed or unemployed, early retirees under 65, etc.
Most of the 14.5 million people insured through the public market receive subsidies to reduce their premiums.
This will save you health insurance coverage for 2023.
The breakdown of these subsidies is as follows:
- At 150% of the federal poverty level ($20,385 for individuals and $27,465 for couples): Get an ACA plan without monthly premiums.
- If you earn up to 400% of the federal poverty level ($54,360 for individuals and $73,240 for couples): You may be eligible for tiered subsidies to lower your premiums.
- If you earn 400% or more of the Federal Poverty Level: Potential savings with 2023 Marketplace Insurance Plans. We pay no more than 8.5% of household income in premiums.
Ready to get started? Here’s how to sign up for the 2023 Affordable Care Act Health Insurance.
2. Or review your current health insurance
Most companies hold open registration events at the end of the year. While it may be tempting to re-enroll with your current policy, considering all options is the best way to save money.
One cost-effective option for employers is high deductible health insurance (HDHP). These plans keep your monthly premiums low, but require more out-of-pocket payments before your insurance company starts paying your share.
Because these plans are less burdensome for employers, many companies are trying to encourage employees to join by offering pre-tax contributions to HSA, a savings account that can be used only for medical expenses. increase.
If you’re trying to save money and you’re healthy, a high deductible health plan makes sense. subject to
Be realistic about your health insurance needs. Yes, monthly premiums are lower for his HDHP, but deductibles can be $3,000 or more for him.
If you have a chronic illness or ongoing medical problem, it may be cheaper in the long run to pay a higher monthly premium for coverage if your plan has a low deductible.
3. If you have Medicare, check your options during open enrollment
From October 15th through December 7th of each year, those already enrolled in Medicare will have the opportunity to review and change their plans during open enrollment.
If you’re satisfied with your Medicare coverage, you don’t need to do anything.
But reviewing your current health insurance plan, especially with a trained nonprofit counselor, is a good way to avoid overspending.
The State Health Insurance Assistance Program (SHIP) is a national network of trained volunteers who provide one-on-one support, counseling, and education to Medicare beneficiaries and their families.
Unlike insurance agents, SHIP counselors never try to sell you anything. Instead, it helps you check your current coverage. If your Part D or Medicare Advantage Plan no longer meets your needs, your counselor can help you choose a new plan using the Medicare Plan Finder tool.
You can also see if you’re eligible for the Medicare Savings Program or other assistance based on your income.
SHIPs can be located using the online SHIP Regional Locator tool. Alternatively, you can call the National Network Hotline at 1-877-839-2675.
4. Find free or low-cost mental health services
Your health insurance plan may include mental health benefits, but there are many other ways to save on counseling and treatment whether you have insurance or not.
The NAMI HelpLine is a free, nationwide peer support service that provides mental health information, referral resources, and guidance.
There are several ways to contact a counselor at NAMI (National Association of Mental Illnesses), including phone (800-950-6264), text, online chat, and email.
The helpline itself does not offer counseling, but can help connect you to low-cost or free programs in your area.
Another option is an employee assistance program. More companies offer these programs and can cover health insurance benefits for mental health care plus some free counseling sessions.
Check with your Human Resources department to see if your organization offers this type of benefit and ask how you can take advantage of it.
5. Negotiation of medical expenses
If you have high medical bills, you can negotiate to get a lower price.
You can negotiate medical costs with both your provider and your insurance company. There are several ways to do this.
You may be able to clear most of your bill by calling your doctor or hospital and offering to prepay a portion of the total amount in cash.
Let’s say you receive a $1,000 hospital bill. You can make an offer by calling the hospital’s billing department.
“I don’t have $1,000, but if I can settle this bill, I can give you $250 today. Can you work with me on this?”
Another option is to call your provider and ask them to set up a repayment plan. This won’t reduce your total, but it will soften the hit to your budget by spreading out your payments. (Be careful not to charge interest.) A payment plan can also help prevent medical bills from falling into arrears.
Here’s a step-by-step guide on how to negotiate your medical bills to save money in 2023.
6. Medical expenses could be removed from credit reports in 2023
In the first half of 2023, recovered medical expenses under $500 will be removed from your credit report.
This is great news for millions of Americans with lingering medical debt.
One reason for the change is that medical debt is a poor predictor of whether other types of debt can be serviced.
Even if the medical bill disappears from your credit report after you pay $500 or less, you still have to pay the full medical bill.
Still, the new rules could significantly improve your credit score. Having an account sent to a debt collection agency can lower your score by 100 points or more. Clearing it off your credit report will help you qualify for better auto and mortgage terms.
That’s what to expect in 2023.
Rachel Christian is a Certified Personal Finance Educator and Senior Writer for The Penny Hoarder.
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