Ways to Save Money on Your Medical Bills

Ways to Save Money on Your Medical Bills

As health care costs have skyrocketed, more and more employers have stopped covering 100% of employee health insurance, passing those costs, or a portion of them, along to the employees themselves. Small businesses, which generally have to stay within a stricter budget, have been especially hard hit, as costs of all services have risen over the past few years.

In addition, many small business owners aren’t sure what effect the new health care reform bill will have on their businesses. The good news for small business is that no later than 2014, states will be required to set up SHOP (Small Business Health Options Programs). This will allow small businesses to pool their resources to buy health insurance. It is forecast that premiums will fall about 1%-4% while coverage increases by 3%. Businesses with 10 or fewer employees making less than $25,000 per year will be eligible for a tax credit of 35% of their health care costs. (“Larger” small businesses will be eligible for partial credits. Check with the IRS for particulars of the tax credits.) When small businesses buy through the state-established exchange, the credit will continue for the first two years, and go up to a 50% savings on health care costs.

When considering health insurance, do use an agent. Health insurance coverage can be tricky to pin down, and do-it-yourselfers may be surprised by hidden expenses when they or their employees go to use the coverage. A broker can help you find low-cost, affordable health care, and will be familiar with a variety of methods to save you money. For instance, Health Reimbursement Accounts are available in some states. Under an HRA, the employer reimburses employees for claims as they arise, up to a maximum declared by the employer. HSAs or Health Savings Accounts let employees choose what kinds of benefits they want and can use the money in the account for doctor visit co-pays, prescriptions or whatever other combinations of coverage they need.

HMO and PPO plans are more affordable than unrestricted coverage plans, but again, a broker can guide you through the morass of plans and costs, so that you don’t break the bank.

There are other tips that you, as a business owner, and your employees, can take advantage of. Few people know that most hospitals will give you a discount for paying cash, if you ask. Because so many people, especially the uninsured, default on medical bills, hospitals are glad to offer 10% – 20% discounts for cash payers. Another idea? Go to www.healthcarebluebook.com to compare the costs of procedures at different hospitals. They can vary dramatically, and taking the time to do some comparison shopping can save thousands of dollars.

Common sense tells us that avoiding the ER can save money. Encourage your employees to go to the doctor before health problems turn into hospitalizations, and visiting “Minute Clinics” at participating grocery stores and pharmacies can save money on routine check-ups and inoculations.

Finally, while offering health insurance is a great way for businesses to attract employees, the costs may be outweighing the benefits in today’s market.

Not everyone is aware that businesses do not have to provide health insurance. Although not

having it may cost you some employees, in today’s market, many people are willing to work without it. While offering health insurance is the right thing to do to show you value your employees’ health and welfare, it may not be the right time to do it if the premiums will put your business in financial danger. If you are serious about offering it when you can afford to, your employees may be willing to cover their own costs until you can offer insurance options.

Kyle Simpson writes for Medical Coding Certification website where you can find information on a career in medical billing and coding industry.

Tagged as: health care blue book, medical billing, Save Money, small business managment, small business survive