10 Ways to Be a Smart Consumer

Thrivent.com
March 2009

A recent survey of 70 of the nation's largest health care insurers reveals you can expect to pay as much as 10 percent more at the doctor's office and pharmacy in 2009. But before you forgo that annual physical or cut back on your prescription medication, consider this: "People don't realize they can save quite a bit on health care by doing a little legwork and shopping around," says Fred Brock, author of Health Care on Less Than You Think (Times Books, 2006).

Surprised? Here are 10 smart ways to make the most of your health care dollar.

1. Get Regular Check-ups and Vaccinations

"If you don't invest in your body up front, you're going to get dinged down the road," says Dr. Nancy L. Snyderman, chief medical editor for NBC News. Between lost time at work, doctor's visits, lab tests and prescriptions, getting sick gets expensive. An annual physical can nip chronic ailments like high blood pressure and diabetes in the bud, while vaccinations for the flu and pneumonia can guard against preventable illnesses.

2. Ask Your Doctor for Samples

The next time your physician prescribes a new medication, ask if he or she has samples. These allow you to test-drive your new medicine for side effects before you actually invest in it. Or, see if your doctor has sample cards. These are like drug company-sponsored gift cards, and you can redeem them at your pharmacy for a free short-term supply of your new medication.

3. Get to Know Your Pharmacist

Your pharmacist is your best friend when it comes to helping you save money on medication. One way is by splitting pills for you. "Some pharmaceutical companies price their medications per pill—not by strength," says Thrivent Financial for Lutherans member Jay Beyer, a pharmacist and owner of Beyer's Pharmacy in Aurora, Indiana. "If you take half of a higher dosage, you only pay half the price."

Your pharmacist also can speak to your doctor to make sure you are getting the least expensive medication to treat your condition. What's more, he or she can ensure you receive generic drugs whenever they're available—a choice that can save you between 35 and 60 percent.

4. Be a Comparison Shopper

You might think lab tests, X-rays and outpatient procedures all cost the same, but prices can be surprisingly inconsistent. "The cost of a colonoscopy varies immensely around the country, even within a given region," says Brock. "Depending on where you go, it can vary by hundreds of dollars." Rather than going to the lab around the corner or the outpatient facility next to your doctor's office, call around for the best price.

5. Don't Be Afraid to Negotiate

Did you know that your hospital charges a person without health insurance substantially more than they'd charge an insurance company? That's because hospitals and insurance companies routinely negotiate prices. And you can, too.

"If you are facing a big medical bill because you don't have insurance, are underinsured or are opting to go out of your network, the trick is to negotiate with your health care provider on the costs of surgeries and procedures," says Brock. "That way, you can get your provider to accept something close to what they would have accepted if you had adequate insurance."

A reasonable goal is half of what you owe. Once you've settled on a figure, don't be afraid to ask if you can pay in installments, instead of in one lump sum. Note, however, that this tactic won't work if you have adequate health insurance and are staying in network, as costs already have been established between your health care provider and your insurance company.

6. Skip unnecessary screenings and procedures

Regardless of your health care coverage, out-of-pocket expenses such as co-pays can add up quickly. Talk to your doctor about tests and procedures he or she has ordered and find out if they are necessary for your particular situation. "If you're going in for elective surgery, find out how much it will run you," says NBC's Snyderman. Be clear that while you want excellent care, you also need to take a close look at line-item costs. "Find out about the anesthesia charge, the surgeon's charge and if these charges are more expensive in a hospital or at an outpatient facility."

7. Use a Medical Expense Flexible Spending Account (FSA)

If your employer offers a flexible spending account for medical expenses, enroll in it. Medical expense FSAs allow you to set aside pretax dollars from your paycheck to take care of uncovered medical expenses like co-payments, deductibles and even eyeglasses. Because these accounts have a use-it-or-lose-it rule, experts recommend funding your account with slightly less money than you think you'll use. That way, you won't end up forfeiting the unused balance at the end of the year.

8. Pick a Health Plan that Meets Your Needs

Employers often offer several types of health insurance plans. Make sure you're choosing the best plan for you and not paying for services you'll never use. For example, if your family is unlikely to need substance abuse treatment or mental health coverage, picking a plan that doesn't cover these things can be less expensive. So can a plan with a higher deductible.

"A high deductible can substantially lower your monthly premiums," says Bruce A. Fear, vice president of Protection Products and Solutions at Thrivent Financial. "For healthy young individuals and families who don't have many medical expenses, it can be a really great way to save dollars." And since tax-free FSAs (see Tip #7) can be used for unreimbursed medical expenses, including health insurance deductibles, using a medical expense FSA in combination with a high-deductible health insurance plan can be a money-saving approach.

Of course, once you commit to a plan, you'll want to be sure to stay in network by only going to hospitals and providers that accept your insurance.

9. Consider Disability Income Insurance

If you were unable to work due to illness or an accident, would your loss of income make it hard to pay for the portion of your medical expenses that your health insurance doesn't cover? "If the answer is 'yes,' you seriously need to consider disability income insurance," says Fear. "Usually group disability coverage from your employer only covers up to about 60 percent of your income. And very few people have the means to make up the other 40 percent for more than a few weeks."

10. Take Good Care of Yourself

For optimal health, the Department of Health and Human Services recommends that adults get a minimum of 2 ½ hours each week of moderate exercise (e.g., walking briskly) and eat a nutritious diet. "Staying healthy is a pretty low-tech and cheap way to save your pennies," says Snyderman. Ask your doctor about the exercise goal and ideal weight that are right for you.

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