U.S. health care spending runs into the trillions, and medical costs remain high. For additional context on how medical bills affect consumers, see Health Insurance Costs and Medical Debt.
Aside from the relatively few people who seem extraordinarily healthy, most of us feel a financial impact from continually rising medical expenses. It only takes one trip to the emergency room or a referral to a specialist to be hit with costly bills. The good news is you can take practical steps now to lower what you pay.
Ways to reduce your annual health care expenses
- Trade in your name brand prescription for a generic equivalent. Generic drugs usually carry a lower co-pay and can save you $10–$50 per prescription. Ask your physician about generic alternatives when you start a new medication or review current prescriptions.
- Select a primary care physician. Urgent care centers are convenient for acute needs, but they rarely provide routine wellness care or continuity. Choosing a primary care physician helps you build a relationship with a provider who knows your history and can often address problems before specialist care is needed.
- Routinely review all medications you take. Your primary care physician should regularly review each medication. Discuss how long you've been taking each drug, its effectiveness, and any side effects so you can discontinue or change treatments that aren't working.
- Don't automatically get on the new drug bandwagon. New drugs are often heavily advertised and may offer only marginal benefits over older, less expensive options. Ask about cost differences versus added benefit before switching.
- Only make an appointment with a specialist when it's truly necessary. Many issues can be managed by a primary care physician without the higher cost of specialist visits. If you feel you are being referred too often, discuss referral patterns with your doctor.
- Remember that emergency rooms are for emergencies only. For non-emergencies, make an appointment with your primary care physician, use an after-hours clinic, or visit an urgent care center to avoid higher ER costs. Before an emergency occurs, know your emergency room co-pay, the hospitals in your network, and what ambulance services your plan covers.
- Question the necessity of expensive testing. Some tests are essential, while others may have limited benefit. Ask whether a test is absolutely necessary and how the results would change your treatment before agreeing to it.
- Don't go overboard with screening. Screening can catch disease early, but unnecessary screening can lead to false alarms and extra procedures. Let your age and medical history guide which screenings are appropriate.
- Don't jump the gun. Many minor aches, colds, and stomach upsets resolve on their own or with over-the-counter remedies. Give symptoms a few days to improve before scheduling a visit, unless you suspect a serious condition.
- Be healthy. Maintaining a healthy weight, exercising regularly, moderating alcohol, avoiding tobacco, keeping routine check-ups, and taking medications as prescribed all help reduce medical costs and keep chronic conditions under control.
To understand how insurance networks and plan design can affect out-of-pocket costs and care choices, see Understanding Health Care Independence and Costs.
You may also want to compare plan features such as benefit limits and provider coverage; see Medical Expense Limit/StorageFirst and Medical Care Providers Insurance for examples of how plans can differ.
If you want personalized assistance, talk to an agent about options in your area.
Frequently Asked Questions
Are generic drugs as effective as brand-name drugs?
Yes; generics contain the same active ingredients and are approved as equivalent, though you should discuss any concerns or side effects with your doctor.
When should I go to urgent care instead of the emergency room?
Use urgent care for non-life-threatening issues like minor fractures, infections, or flu symptoms; reserve the ER for severe or life-threatening conditions such as chest pain or stroke signs.
How can I check whether a test or specialist visit is necessary?
Ask your primary care provider how the test results will change treatment and whether there are less costly alternatives or a watchful-waiting approach.