A study last year by The Commonwealth Fund found that more than one-third of Americans go without recommended care, do not see a doctor when sick or fail to fill prescriptions in an effort to save money – all of which may be detrimental to their health. However, there are ways to cut medical costs without compromising quality or your health.
1.) Use a flexible spending account or health savings account. Depending on the type of insurance plan you have, you may be able to sign up for a flexible spending account or health savings account. Both allow you to put tax-deductible dollars into an account that can be used for out-of-pocket medical expenses such as copayments, deductibles and prescription medications. HSA funds roll over year-to-year, while FSA funds must be used by the end of the designated year or else you lose them. Both options can offer significant savings when it comes to tax time, especially if you use many health services, because contributions to these accounts lower your taxable income.
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