Healthcare expenses can be an unexpected strain on any budget. Luckily, there are strategies available to you that can help save money on prescription costs and out-of-pocket expenses.

Utilizing free preventive care services and discount tools like Good Rx is one way to be an informed health insurance consumer. Here are five strategies that can help make you an intelligent health insurance buyer:

1. Know Your Coverage

Health insurance involves many moving parts, making the details seem foreign at first glance; but understanding your coverage helps save money in the long run.

Human resources departments at your employers can be an excellent resource to answer questions about your plan and its features, as well as determine if subsidies in the marketplace could make coverage more cost-effective.

Your health insurer provides an easy-to-read summary of benefits and coverage (SBC) on their website or mobile app that provides easy-to-understand information that allows for direct comparison between plans. Furthermore, coverage examples give details about what the plan would cover under two common medical situations.

Always review your premium due dates to ensure that your coverage remains active. Failing to make payments can result in gaps of coverage when needed – some plans offer short-term insurance to help maintain coverage during these instances.

2. Know Your Deductible

Your health insurance deductible is one of the biggest healthcare costs you’ll encounter, so it is crucial that you understand its definition and operation so you can make informed decisions regarding your healthcare coverage.

Deductibles are the annual amount you owe before your health plan starts sharing costs of covered services with you. Your plan may also set separate deductibles for family members and in-network and out-of-network care providers.

Selecting an optimal deductible level requires striking a balance between financial flexibility and potential healthcare needs. Individuals who rarely require healthcare may opt for higher deductibles, lowering monthly premiums while at the same time protecting against unexpected medical costs that could quickly deplete savings if not properly planned for.

Others find solace knowing they won’t have to come up with large sums before their health plan starts sharing costs with them, so they opt for lower deductible plans with slightly higher monthly premiums but will reach their deductible faster and start saving sooner.

3. Know Your Network

Many health insurance plans provide access to networks of doctors and hospitals with whom they’ve negotiated discounted rates, known as in-network providers; those outside the network are known as out-of-network. When possible, staying within your plan’s network saves money as most cost sharing structures such as deductibles, copayments and coinsurance tend to be higher when treating out-of-network care.

As part of open enrollment or when switching plans, when reviewing or changing plans make sure your current and/or prospective healthcare providers are included in their network. Furthermore, knowing whether you will pay a flat copay or have part of your bill covered can make a big difference in how much healthcare costs.

If you currently have a high-deductible plan, take steps to lower out-of-pocket expenses by switching to a plan with lower or even zero deductible costs. While people usually don’t think about their health insurance until they need it, revisiting coverage options periodically can help avoid unexpected bills in the future.

4. Compare Plans

Health insurance premiums, copays, deductibles and out-of-pocket maximums all impact your costs; thus it is crucial that when shopping for new coverage you compare plans. You can do this using data tables on marketplace websites or asking your employer for a summary of benefits.

As soon as selecting a plan, it’s important to consider its deductible amount. This amount represents what you owe each year before your plan begins paying its share of costs; if you expect to require extensive care services in the coming year, one with a high deductible might not be the ideal fit for you.

If you visit doctors frequently or take prescription medicines regularly, a plan with higher monthly premiums and reduced out-of-pocket costs could be beneficial. When making this choice, make sure that any plans considered include your preferred doctors and hospitals because that ensures discounted rates with them through GetCoveredNJ. Use our shop and compare tool to get an estimate of how each plan might impact your household budget.

5. Know Your Options

Health care costs can be managed effectively in various ways. Exercise regularly, eat well, and manage stress to bring down medical costs. preventive care services as well as staying within network can further keep costs in check.

Smart choices can also be made when it comes to selecting plans during open enrollment. Opting for a high-deductible plan with higher monthly premiums will reduce out-of-pocket expenses and allows you to fund expenses pretax through an FSA or HSA account.

Negotiate and shop around for services you frequently use, like cell phone plans, insurance rates and cable and internet packages. Making small adjustments like purchasing store brands instead of premium ones or cutting back on convenience purchases will add up over time. It is also smart to explore ways of increasing your income to reduce debts faster while saving more in savings – this may involve working additional hours or getting a raise; alternatively you could consider side gigs that generate extra funds.