10 Proven Strategies to Slash Your Health Care Costs and Save for the Future

Health care costs continue to rise, placing a heavy burden on many American families. In fact, nearly 1 in 5 Americans describe health care expenses as a major financial strain. Whether it’s the cost of prescription medications or co-pays, managing health care costs can feel overwhelming. However, there are effective strategies you can implement today to reduce your medical expenses and better prepare for future health care costs.

Here are 10 ways to cut your health care bills now and keep them lower in the future.

1. Be Proactive with Preventive Care

Preventive care is one of the most cost-effective ways to maintain your health and avoid more expensive treatments down the line. Services like immunizations, annual physical exams, dental cleanings, and cancer screenings are often available at little or no cost through your health plan. These early interventions can help catch potential health issues before they become serious, saving you thousands of dollars in future medical expenses.

Benjamin Isgur, vice president of health care thought leadership at Fidelity Investments, emphasizes, “Take advantage of all the preventive care that comes with your plan. Don’t leave anything on the table.” By staying on top of routine checkups and preventive measures, you invest in your long-term health and savings.

2. Choose the Right Health Plan for Your Needs

Researching and selecting the best health plan can have a significant impact on your long-term health care costs. Each plan comes with its own set of premiums, deductibles, and in-network providers, so it’s crucial to compare your options carefully. Higher premiums usually mean lower deductibles, while lower premiums often come with higher deductibles.

When choosing a plan, consider your past and expected health care usage, including any prescription medications, doctor visits, or potential medical events like pregnancy. Many health care organizations offer online tools to help guide you through the decision-making process, making it easier to find a plan that meets your needs without overpaying.

3. Stay In-Network Whenever Possible

One of the easiest ways to avoid excessive out-of-pocket costs is by ensuring that your health care providers are in-network. When you use in-network providers, your insurance covers a higher percentage of the cost, reducing your medical bills. Out-of-network providers, on the other hand, can leave you paying significantly more.

If you have a chronic condition that requires regular visits to specialists, it’s especially important to confirm that those specialists are in-network. Over time, out-of-network costs can add up quickly, particularly for ongoing treatments or long-term care needs.

4. Utilize a Health Savings Account (HSA)

For those enrolled in high-deductible health plans (HDHPs), contributing to a Health Savings Account (HSA) can provide major financial advantages. HSAs allow you to contribute pre-tax dollars to cover qualified medical expenses, from doctor visits to prescriptions. One key benefit of an HSA is that the funds roll over from year to year, so you can save for both current and future health care needs, including retirement medical costs.

The IRS limits for 2024 allow contributions of up to $4,150 for individual coverage and $8,300 for family coverage. The tax advantages are threefold: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.

5. Maximize Your Flexible Spending Account (FSA)

Similar to an HSA, a Flexible Spending Account (FSA) lets you set aside pre-tax dollars for qualified medical expenses like prescriptions, co-pays, and over-the-counter supplies. For 2024, employees can contribute up to $3,200 to an FSA, which can result in significant tax savings. However, FSAs typically operate on a “use it or lose it” basis, meaning you must spend the funds within the plan year or risk forfeiting them. Some employers offer a grace period or allow small carryovers, so check your plan’s rules.

FSAs can be especially helpful for covering predictable medical expenses such as annual physicals or recurring prescriptions, reducing your out-of-pocket spending throughout the year.

6. Take Full Advantage of Employer Benefits

Many employers offer health-related benefits that go beyond basic insurance coverage, such as gym membership reimbursements, free mental health services, or access to nutritional coaching. These perks are often underutilized simply because employees aren’t aware of them.

Benjamin Isgur suggests taking a closer look at all the benefits your employer provides. “There’s potentially a lot to take advantage of,” he says. Maximizing these benefits can not only save you money on health care but also help you maintain a healthier lifestyle, further reducing your medical expenses.

7. Save on Prescription Medications

Prescription drugs can be one of the biggest health care expenses, but there are multiple ways to save. Whenever possible, ask your doctor if a lower-cost generic version of your medication is available. Generics are often just as effective as brand-name drugs and can be significantly cheaper.

Additionally, consider using your insurance plan’s preferred pharmacy or opt for a 90-day mail-order supply of your ongoing prescriptions. Mail-order services typically offer medications at a reduced cost compared to filling a 30-day supply at a local pharmacy.

8. Double-Check Your Medical Bills

Billing errors are more common than you might think. A recent survey revealed that 43% of adults have received a medical or dental bill they believed contained an error. Mistakes like being billed for services not received or charges that should have been covered by insurance are not uncommon.

Always review your medical bills carefully before making a payment. If something looks incorrect, don’t hesitate to contact your health care provider’s billing department to request a review. Correcting these mistakes could save you hundreds or even thousands of dollars.

9. Address Health Issues Early

Delaying medical treatment can lead to more serious (and expensive) health problems later on. Addressing health concerns early, whether it’s a lingering cold or a nagging pain, can prevent complications that may require costly treatments or surgeries. The earlier you seek care, the less you’re likely to pay in the long run.

As Aditi Sharma, vice president on Fidelity’s Financial Solutions Team, notes, “The sooner you face it, the better off you are.” Avoiding the doctor now can lead to bigger problems — and bills — down the road.

10. Commit to a Healthy Lifestyle

The best way to reduce future health care costs is to invest in your health today. A healthy lifestyle that includes regular exercise, a balanced diet, quality sleep, and stress management can help prevent chronic conditions like diabetes, heart disease, and hypertension, all of which come with hefty medical costs.

Aditi Sharma reminds us that “If you invest in your health now, that will pay dividends.” By prioritizing your health, you’ll not only save on future medical bills but also improve your overall quality of life.

By taking these steps, you can start reducing your health care costs today while also preparing for future expenses. Whether it’s utilizing preventive care, making the most of your health savings accounts, or adopting a healthier lifestyle, each small action can add up to significant savings over time.