Are you someone who thinks that soaring health care costs are hammering your budget and not letting you stay within it? If answered yes, you need not fret as you’re not along. Research suggests that 1 among 4 people on Medicare laid 35% or more of their income on healthcare. It is true that healthcare costs are rising faster than the prices of any other services and goods and this is something that is letting the seniors spend sleepless nights, especially those who are totally dependent on their Social Security income.
Since the last year, medical costs have increased by 5% and still Social Security income has remained the same. This is why soaring costs are exerting a pressure on retiree budgets. If you want to shove off some of that unnecessary pressure, you have to follow some of the money-saving tips.
- Monetize on your spouse who is younger than you
If your spouse is still not signed for Medicare but he or she has been insured through some high-deductible health insurance plan, choose the benefits which are related to your spouse, thereby starting an HSA or a health savings account. Though you can’t contribute to HSA when you have Medicare, your spouse is allowed to do so. Remember that money that is unused in an HSA can be carried forward to future years. HSAs can let money to grow tax-deferred for the descendents of a holder.
- Play the game of deductible
Regardless of whether you have Medicaid, Medicare, private insurance or even a combination of both, you need to know how each of them works. If you have already paid off the deductible for the year, you can schedule a medical process then and there. On the contrary, if you didn’t spend enough towards the deductible, you can delay going through this procedure till next year when you will be almost there to meet your deductible.
- Avert incurring out-of-network costs
If you wish to rein in your expenses, make sure you select doctors who are included within the health plan of your network. Don’t forget that the use or non-use of the network can have a drastic impact on the person’s out-of-pocket costs. With regards to Medicare, try your best to use medical supply, doctors and equipment vendors which take assignment. This means that the doctors should accept the approved Medicare amount in full. You require paying only the deductible and the coinsurance. Providers who deny accepting assignment can charge up to 18% more than the approved Medicare amount.
- Watch out for free preventive care
There are many preventive healthcare services which are given to health plan members without any cost. In case you’re a Medicare holder, you will yearly flu shots and shots to prevent hepatitis B from affecting you. Smokers can even go through smoking-cessation counseling free of cost.
So, if you think that your healthcare costs are soaring out of control, take into account the above mentioned ways of saving on your healthcare, especially if you’re a retiree.