Ep. 70 - Navigating a Broken System: How to Save Money on Healthcare

economy finances healthcare Jun 28, 2023
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Ep. 70 - Navigating a Broken System: How to Save Money on Healthcare

Healthcare costs are a considerable concern for most Americans today. However, many of us aren't fully aware of how to navigate these costs effectively. 


In our latest episode, we glean insights from Eric Ross, CSO of Two-Twelve Benefits, in a candid conversation about healthcare and its intricacies to offer some practical tips on saving money.


Who Profits from Healthcare Transactions?

First, we need to understand why costs look like they do. In truth, large insurance carriers, big pharmaceutical companies, and massive hospital systems predominantly dominate the current healthcare landscape. 


They often hold the deepest pockets, profiting the most from healthcare transactions, which is a significant reason why they're the biggest entities in the sector.


Understanding Your Healthcare Spending

Most Americans, around 74%, receive their insurance through their employer. Whether you're part of a small business with 10 employees or a massive corporation with 10,000, it's crucial to understand how you're spending your money on healthcare.


People often select their health insurance based on the lowest cost, but that might not be the best decision for their specific needs. After you've chosen a plan and received your insurance card, you need to make informed decisions about how to use your healthcare services.


Making Wise Healthcare Decisions

One significant way to save money on healthcare involves careful facility selection and understanding what constitutes a true emergency. Often, people head to the emergency room (ER) for conditions that could be handled in less expensive settings, like urgent care centers or primary care clinics.


A common issue is the frequent advice from primary care physicians to go to the ER or call 911 when they're off the clock. It's a protective measure for them but can lead to excessive patient healthcare costs. Recognizing when an ER visit is necessary and when other care options might be more appropriate and cost-effective is essential.


Another area where healthcare spending can be trimmed is on medications. People often overspend on medications either because they're buying them incorrectly or taking unnecessary medications. 


Lifestyle changes to improve health can sometimes reduce or eliminate the need for certain medications, saving money.


The Importance of Outsourcing Risks

There's also a time and place for outsourcing risks. For instance, performing potentially dangerous tasks like tree cutting could result in injuries requiring costly medical attention. 


While it may cost to hire a professional, the potential healthcare savings from preventing an accident outweigh the initial outlay.


Bottom Line

In conclusion, saving money on healthcare comes down to making informed decisions. Understanding the intricacies of your insurance, making wise decisions about where to seek care, managing your medication costs, and knowing when to outsource risky tasks can all contribute to significant healthcare savings. 


Remember, education and prudent decision-making are the keys to navigating the complex healthcare system.