New Year, New Deductible: Managing Your Healthcare Expenses

January 9, 2024 – 6 min read

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As the clock struck midnight on New Year’s Eve, it not only marked the fresh start of 2024, but also marks the rest of many health insurance deductibles.

Did you know 38% of people said their resolutions were tied to improving their finances?

Understanding how to navigate your healthcare expenses throughout the year can certainly help with that. Let us explore the basics of health insurance, the differences between high deductibles and premiums, and important tips for minimizing your medical imaging expenses.

Understanding Health Insurance Terms

Health insurance can sometimes feel like solving a complex puzzle. Before jumping into plan comparisons and cost saving tips, it is essential to be familiar with the basics.

Deductible – The amount you pay for covered healthcare services before your insurance plan starts to contribute, With the new year, your deductible often resets.
Premium – The amount you pay for your health insurance every month, regardless of whether you use healthcare services. This is a fixed cost that can be adjusted by switching your plan during an open enrollment period.
Copayment (Copay) – A set amount you pay for covered healthcare services after you’ve paid your deductible. For example, you might have a $20.00 copay for a primary doctor visit.
Coinsurance – The percentage of costs you pay for covered healthcare expenses after you have paid your deductible. If your coinsurance is 20%, you pay 20% of the covered costs, and your insurance covers the rest.

Is A Higher Deductible or Higher Premium Better for You?

Choosing between a higher deductible and a higher premium involves weighing your potential healthcare needs against your monthly budget. Here are the positive and negative aspects to consider with both types of plans.

	High Deductible	High Premium
Pros	– Lower monthly premiums, making it more budget friendly. – Access to a health savings account (HSA), offering tax advantages on your medical related expenditures.	– Lower out-of-pocket costs for each visit. – Manage health care expenses easier if you develop a serious illness or get injured.
Cons	– Higher out-of-pocket costs before insurance kicks in. – May discourage you from seeking necessary medical care.	– You pay more each month, whether you use the healthcare services or not.

When making the decision to alter your health insurance plan, please consider your health history, anticipated medical needs, and financial situation to determine what option works best for you.

Don’t Wait Until You’ve Met Your Deductible to Schedule Care

A common misconception is waiting until you’ve met your deductible to schedule healthcare appointments. This delay can impact your well-being and lead some conditions into becoming more serious.

Many preventative services are covered before you meet your deductible. This includes vaccinations, screenings, and annual check-ups. Scheduling these early ensures you prioritize your health without waiting for your deductible to be met.

Become familiar with the medical services covered without meeting your deductible. Familiarizing yourself with what is and what is not considered preventative care can help you get the most out of your health insurance coverage.

Plan for potential out-of-pocket expenses by budgeting for your deductible. This way, you can comfortably schedule necessary care without any financial surprises arising throughout the year.

Tips for Minimizing Healthcare Expenses

Now that you know your health insurance plan inside and out, let us go over some practical tips to minimize your healthcare expenses and make the most out of your coverage.

Utilizing In-Network Providers – Staying within your insurance network often means lower costs for covered services. Check your provider directory or reach out to the practice directly to ensure they are in-network with your plan.
Explore Telehealth Services – Telehealth services can be a cost-effective alternative for certain medical consultations, saving you time and money compared to in-person visits. Often times, these savings can be used to address other medical expenses such as diagnostic imaging studies, procedures, and more.
Take Advantage of Preventative Care – Schedule regular check-ups and preventative screenings covered by your insurance plan. Detecting potential issues early can prevent more significant health problems and expenses later on.
Research Cost Estimates – Before undergoing a study or procedure, research cost estimates from different providers, especially independent vs. hospital-based providers. Prices can vary, and choosing a more-cost effective option can lead to substantial savings.
Build An Emergency Fund – Having an emergency fund specifically for healthcare expenses can provide financial security in case unexpected medical needs arise.

The Cost Advantage of Choosing Independent Healthcare Providers

Independent outpatient facilities often have lower overhead costs compared to hospitals, resulting in more cost effective options for many studies and procedures.

Independent facilities tend to provide transparent pricing, allowing you to know the cost upfront. This transparency enables for better financial planning and decision making, and avoiding any surprise bills.

Independent facilities have a specialization in a particular set of medical services. This specialization can translate to cost savings without compromising quality results and outcomes.

Independent facilities have shorter wait times and extended hours (evenings and weekends) for appointments. This not only makes it easier to get the care you need when you need it, but can contribute to cost savings when time off from work and other associated expenses are factored in.

How To Schedule Your Appointment With Us

For over 80 years, South Jersey Radiology Associates (SJRA) has helped the South Jersey and Philadelphia area prioritize their health through diagnostic and advanced imaging services costing up to 60% less than hospital based centers.

Same-day and next-day appointments with evening and weekend hours are available across select office locations. To make an appointment, easily self-schedule online or reach out to any of the following locations below:

Learn more about the board-certified, subspecialized radiologists who read, analyze, and interpret our studies here at SJRA.

Frequently Asked Questions

Can I change my deductible or premium mid-year?

Changes to deductibles and premiums typically occur during the annual open enrollment period. However, life-changing events, such as marriage or job loss, may allow for adjustments outside this period.

Are all preventative services covered before meeting the deductible?

While many preventive services are covered before meeting the deductible, the specific coverage varies by insurance plan. Review your plan documents or consult with your insurance provider for details.

How do I know if a higher deductible or premium is right for me?

Consider your health history, anticipated medical needs, and budget. If you anticipate frequent medical visits, a higher premium might be beneficial. If you’re generally healthy and want to save on monthly costs, a higher deductible could be suitable.

Can I negotiate healthcare costs with my provider?

Yes, in some cases, you can negotiate healthcare costs with your provider. Discussing fees, payment plans, or seeking financial assistance are options worth exploring.

What happens if I need significant medical care early in the year before meeting my deductible?

If you require significant medical care before meeting your deductible, you’ll be responsible for the full costs until the deductible is met. After meeting the deductible, your insurance plan will share the costs based on the terms of your coverage.