3 Tips on Managing the Cost of Healthcare

- May 18, 2011 by Beverly Ingle, Healthcare Account Director

We all intrinsically know that healthcare is expensive. We hear about it in the news and from our friends and family, and most of us feel it once a year as we renew our health insurance plan and deal with another increase in the cost of our premium. “Knowing healthcare is expensive” takes on a whole new meaning when slapped in the face with the hard data.

The latest Milliman Medical Index is out, and it isn’t pretty. The report indicates that the total cost of healthcare for a typical family of four covered by a preferred provider plan (PPO) rose 7.3% to $19,393 in 2011.

In Texas, the median income for a family of four is about $64,500, which means 30% of that income is spent on healthcare. That’s as much as most lending institutions and financial advisors say you should spend on housing. In fact, according to the rule of thumb for living expenses propagated by folks such as Lending Tree should be no more than 25% of your total income, and “living expenses” includes food, clothing, entertainment, gifts, etc. in addition to healthcare.

We also all intrinsically know three easy ways to manage our healthcare costs. They are basic and straightforward, so much so that it seems silly to repeat them. So, why am I repeating them? Because they only work if you use them! And we can all use a reminder now and again. Remember, you truly can bring your healthcare costs under control without diminishing the quality of care you receive or going without the care you need. Use these three tips to empower yourself to make the best decisions for your family:

1. Ask questions. You are your own best advocate for yourself and your family. Don’t be afraid to ask questions of your physician or other healthcare providers. Ask questions about why certain tests or recommendations are made, what the costs of those are, if they’ll be covered by your insurance, etc. If your provider doesn’t know the answers right off, ask them to help you find the answers.

2. Make preventative care a priority. Now, under the health reform measures, most preventative care visits and procedures are provided at no cost to the patient. If free isn’t incentive enough, realize that visiting your physician for regular check-ups and other preventative care such as blood pressure screenings, etc. will help you stay healthy and will identify illness and more serious health concerns early, when they can be treated more easily and less expensively.

3. Understand your options and make wise choices.There are numerous resources available to help you determine how to get the right care at the right time and at the right place. Resources such as nursing hotlines, websites and smart phone applications, and patient care advocates can help you understand your symptoms, your care options and your potential costs. Knowing how to access those resources and the information they can provide will equip you to make the best health and financial decisions for you or a family member the next time one of you has a 101˚ fever and a sore throat at 7pm.

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