5 smart strategies for cutting healthcare costs

Healthcare costs keep rising, and for many employees, medical expenses can take a big bite out of their budget. The good news? There are simple ways to take control of your healthcare spending—without sacrificing quality care. By making informed choices and using the benefits available to you, you can keep costs in check. Here’s how:

1. Use your tax-advantaged accounts

If your employer offers a health savings account (HSA) or flexible spending account (FSA), take full advantage. These accounts allow you to set aside pre-tax dollars for medical expenses, reducing your taxable income and helping you save money.

• HSAs are paired with high-deductible health plans (HDHPs) and roll over year after year, making them a great long-term savings tool.
• FSAs work similarly but must be used within the plan year, so plan your contributions wisely.

Use these accounts to pay for things like prescriptions, doctor visits, and even over-the-counter medications.

2. Choose in-network providers

One of the easiest ways to lower your medical bills is to see doctors and specialists in your insurance network. Out-of-network care can cost significantly more, and sometimes isn’t covered at all. Before booking an appointment:

• Check your insurance provider’s website for in-network doctors.
• Call the provider’s office to confirm they accept your insurance.

A quick search can save you hundreds or even thousands in unexpected costs.

3. Compare costs before you get care

Not all healthcare services cost the same—even for the same procedure or medication. Prices can vary depending on the provider, location, and insurance plan. Before scheduling an appointment or filling a prescription:

• Use your insurance’s cost-comparison tool to check prices for doctor visits, imaging, and lab tests.
• Ask for the cash price—sometimes, it’s cheaper than using insurance!
• Consider urgent care or telehealth for non-emergency medical issues instead of an ER visit, which can be very costly.

A little research goes a long way in avoiding surprise medical bills.

4. Take advantage of preventive care

Most health plans fully cover preventive services, meaning you won’t have to pay anything out of pocket for:

• Annual wellness checkups
• Vaccinations
• Screenings for conditions like diabetes, cancer, and high blood pressure

By staying on top of preventive care, you can catch health issues early and avoid expensive treatments later.

5. Make the most of your prescription benefits

Prescription costs can add up quickly, but you have options to save:

• Ask for generics – They work the same as brand-name drugs but cost much less.
• Check mail-order options – Many insurance plans offer discounts for 90-day supplies of medications.
• Use discount programs – Websites like GoodRx or pharmacy savings programs can sometimes offer lower prices than insurance.
• Talk to your doctor – If a prescription is too expensive, ask if there’s a lower-cost alternative.

Cutting down healthcare costs doesn’t mean cutting corners on your health. By making small but smart decisions—like using in-network providers, comparing prices, and leveraging benefits like HSAs/FSAs—you can keep more money in your pocket while staying healthy.

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The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

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