Let’s Face It

Health care in the U.S. is complicated, expensive, and often just plain overwhelming. And yet, it’s one of the most important parts of your financial life—because one unexpected diagnosis or injury can derail even the most carefully laid financial plans.

So if you’re asking, “How can I save on health care costs?”—you’re asking the right question. And the good news? There’s actually a lot you can do to bring your expenses down without sacrificing on care. Here’s a rundown. 

Start with Open Enrollment: Don't Just Default To Last Year’s Plan

If you get your insurance through your employer, open enrollment is your once-a-year opportunity to make sure you’re not overpaying for the wrong coverage. But most of us? We just click the same box we did last year without even looking. Don’t do that.

Instead, take 30 minutes to really compare your options. Look at the monthly premiums, yes—but also check out options for deductibles, co-pays, and what’s actually covered under each plan. Sometimes the lowest monthly premium comes with sky-high out-of-pocket costs. Other times, a slightly higher premium gives you better coverage for chronic care, maternity, or mental health—and you’ll end up paying less overall.

And if you have a partner, compare their plan, too. Maybe your employer’s plan is more expensive this year. Maybe theirs just added great family coverage. Doing the math could save you hundreds (or sometimes even thousands) of dollars a year.

Check the Marketplace, Even If You Have Insurance

Even if you’re currently insured through COBRA or a freelance gig, don’t overlook the Affordable Care Act (ACA) marketplace. Go to Healthcare.gov or your state’s exchange and check your eligibility—you may be surprised at what you find.

Marketplace plans are income-based, and the subsidies have expanded in recent years. That means more people qualify for help paying premiums than ever before. Some plans even offer $0 premiums or low-cost options with robust coverage.

Make sure to compare silver and bronze plans, especially if you’re healthy and don’t anticipate needing a ton of care in the year ahead. And always look closely at the maximum out-of-pocket limit—that number can be just as important as the monthly premium.

Max Out Your HSA or FSA (If You’re Eligible)

If your employer offers a Health Savings Account (HSA) or Flexible Spending Account (FSA), make sure to take advantage. Here’s a quick rundown: 

  • An HSA is available to you if you have a high-deductible health plan. You contribute pre-tax dollars, it grows tax-free, and you can withdraw the money tax-free for qualified medical expenses—now and in retirement.
  • An FSA is also funded with pre-tax dollars, but it’s “use it or lose it”—so you have to spend the money within the year (though some plans allow a small rollover).

You can use these accounts for everything from co-pays and prescriptions to glasses, contacts, mental health care, and even first-aid kits and sunscreen. It’s basically a 30% discount on health care expenses—just for being organized.

Be a Smart Shopper—Yes, Even for Medical Care

Believe it or not, you can shop around for medical services just like you would for flights or hotels. If your doctor recommends a scan, bloodwork, or a procedure, ask what it will cost—and then compare. Prices can vary wildly between facilities, even within the same ZIP code. 

Websites like FairHealthConsumer.org, Healthcare Bluebook, and even your insurer’s online portal can show you cost estimates and in-network providers. And for prescriptions, a quick check for coupons at GoodRx or SingleCare can cut your out-of-pocket pharmacy costs dramatically—often lower than what your insurance would charge. And while we’re at it, always check your bills. Medical billing errors are shockingly common, and a quick phone call can sometimes knock hundreds off your tab.

Don’t Over-Insure

If you're generally healthy, you might not need a premium plan. It can be tempting to sign up for every supplemental benefit your employer offers—dental, vision, accident, hospital indemnity, critical illness—but take a moment to ask yourself: Do I need all of these? Or am I just insuring against every possible scenario out of fear? Sometimes it’s smarter to put that extra money into your HSA or emergency fund instead.

And Finally: Stay Out of the System (In the Best Way)

This might sound obvious, but one of the smartest ways to save on health care costs is to avoid becoming a high-cost patient in the first place.

That means:

  • Not smoking
  • Limiting alcohol
  • Moving your body daily—even a 30-minute walk counts!
  • Prioritizing sleep
  • Eating whole foods that fuel you instead of junk foods that inflame you

Preventive health isn’t about perfection—it’s about stacking small choices in your favor, so you’re not battling chronic diseases 10 or 20 years down the line. And yes, those little lifestyle changes now can save you tens of thousands over the course of your life.

The Bottom Line

Health care costs aren’t going down anytime soon—but your bill doesn’t have to go up. With a little planning, smart comparison shopping, and a dose of prevention, you can keep your care high and your costs low. Your wallet—and your future self—will thank you.