How to Save Money on Health Insurance: A Guide to Frugal Healthcare

Health insurance can be a major expense, but there are ways to save money without sacrificing coverage. Here’s how to do it.

General Tips

Shop around: Don’t just stick with the first insurance company you find. Compare quotes from multiple providers to get the best rate.
Consider a high-deductible plan: High-deductible plans have lower monthly premiums, but you’ll have to pay more out-of-pocket if you need medical care. If you’re healthy and don’t expect to have major medical expenses, a high-deductible plan could be a good option for you.
Take advantage of discounts: Many insurance companies offer discounts for things like bundling your home and auto insurance, being a member of a certain club or organization, or having a healthy lifestyle.
Use a healthcare savings account (HSA): HSAs are tax-advantaged accounts that you can use to pay for qualified medical expenses. Contributions to HSAs are tax-deductible, and withdrawals for qualified medical expenses are tax-free.

Employer-Sponsored Insurance

Contribute to your employer’s plan: If your employer offers a health insurance plan, contributing to it can save you money on your taxes. The premiums you pay for employer-sponsored health insurance are typically deducted from your paycheck before taxes are taken out.
Maximize your contributions: Most employer-sponsored health insurance plans have a maximum contribution limit. If you can afford to, contribute as much as you can to your plan. This will reduce your tax liability and give you more money to spend on other things.
Consider a flexible spending account (FSA): FSAs are tax-advantaged accounts that you can use to pay for qualified medical expenses. Contributions to FSAs are made on a pre-tax basis, so you save money on taxes.

Individual Health Insurance

Use a health insurance marketplace: The health insurance marketplace is a government-run website where you can compare and purchase health insurance plans. If you qualify for subsidies, you may be able to get a discount on your monthly premiums.
Consider a catastrophic plan: Catastrophic plans are designed for people who are healthy and don’t expect to have major medical expenses. Catastrophic plans have very low monthly premiums, but you’ll have to pay a high deductible if you need medical care.
Get insurance through your state’s Medicaid program: Medicaid is a government-funded health insurance program for people with low incomes. If you qualify for Medicaid, you could get free or low-cost health insurance.

Saving money on health insurance is possible, but it takes some effort. By following these tips, you can find a plan that meets your needs and your budget.