Health insurance is one of the biggest monthly expenses for many individuals and families. The good news? There are several proven ways to reduce your health insurance costs without losing essential coverage. This guide breaks down the smartest strategies to help you save money while still getting the care and protection you need.
Compare Plans During Open Enrollment (Don’t Auto-Renew)
One of the most common (and costly) mistakes is automatically renewing your plan each year. Health insurance prices and coverage change annually, so always compare:
- Premiums
- Deductibles
- Copays and coinsurance
- Out-of-pocket maximums
- Provider networks
- Prescription drug formularies
You may find a plan that offers better value with similar or improved benefits.
Choose a High-Deductible Health Plan (HDHP) If You’re Healthy
If you rarely need medical care, an HDHP paired with a Health Savings Account (HSA) can significantly reduce your monthly premiums.
Benefits of an HDHP + HSA:
- Lower monthly premium
- Tax-deductible HSA contributions
- Tax-free withdrawals for medical expenses
- Funds roll over yearly
- Long-term savings growth
Just ensure you can afford the higher deductible if you do need care.
Take Advantage of Subsidies and Tax Credits
If you buy insurance through the Health Insurance Marketplace, you may qualify for:
- Premium tax credits (lower your monthly premium)
- Cost-sharing reductions (lower deductibles and copays on Silver plans)
Many households qualify without realizing it. Always check eligibility when enrolling.
Stay In-Network Whenever Possible
Going out of network is one of the fastest ways to rack up medical bills.
To lower costs:
- Choose a plan with your preferred providers in-network
- Confirm specialist coverage before appointments
- Use the insurer’s app for real-time network checks
Staying in-network can save hundreds—or thousands—on a single visit.
Use Preventive Care Benefits (Usually Free)
Most health insurance plans include no-cost preventive services, such as:
- Annual physicals
- Vaccines
- Screenings (blood pressure, cholesterol, diabetes)
- Well-woman visits
- Birth control
- Pediatric checkups
Using preventive care helps you stay healthier and avoid expensive medical issues later.
Use Generic and Preferred Prescription Drugs
Prescription drugs can be a major ongoing cost. To reduce expenses:
- Ask your doctor for generics
- Check your plan’s formulary
- Compare prices across pharmacies
- Use your insurer’s preferred pharmacy network
- Look for 90-day supply discounts
You can also use price comparison apps to find lower cash prices than insurance copays.
Open a Flexible Spending Account (FSA) or HSA
Both accounts let you pay for medical expenses tax-free.
FSA
- Available through many employers
- Use-it-or-lose-it (with small rollover)
HSA
- Available only with HDHPs
- Funds roll over and grow tax-free
- Can be used as long-term savings
Using these accounts effectively lowers your overall healthcare spending.
Choose Telehealth for Non-Urgent Care
Telehealth visits often cost significantly less than in-person visits.
Telehealth can handle:
- Common illnesses
- Medication refills
- Behavioral health
- Routine follow-ups
Many plans offer telehealth with low or no copays.
Review Your Coverage After Major Life Changes
Update your plan after:
- Marriage or divorce
- Income changes
- Having a child
- Moving to a new state
- Changing jobs
- Turning 26 (aging off a parent’s plan)
You may qualify for cheaper plans or new subsidies.
Avoid Surprise Bills by Understanding Your Plan’s Rules
Unexpected costs often come from misunderstandings about:
- Prior authorizations
- Referral requirements
- Emergency room vs. urgent care
- Out-of-network lab work
- Balance billing rules
Knowing the rules helps you avoid surprise expenses.
Keep a Healthy Lifestyle (Yes, It Affects Costs)
Some insurers offer lower rates or rewards when you:
- Maintain a healthy weight
- Exercise regularly
- Quit smoking
- Manage chronic conditions
- Participate in wellness programs
Staying healthy reduces both medical expenses and insurance costs over time.