How to manage costs while meeting your health insurance deductible

If saving money is top-of-mind for you and your family, you’re likely looking for ways to save on healthcare costs. Many families choose health insurance plans with high deductibles to have lower monthly premiums. However, this trade off can leave you wondering how to pay for healthcare needs until you meet your high deductible.

If this sounds familiar, you’re not alone. There are many different strategies that can help you keep your healthcare costs down year-round.

One of the most important things you can do to keep your healthcare budget in check is understand your plan and common insurance terms. Most health insurance plans have what’s called a “deductible.” This is the amount that you must pay for healthcare in a plan year before the plan starts sharing costs with you.

Not every healthcare expense counts toward your deductible. For example, most plans do not count prescription drug costs toward your deductible. Furthermore, many plans fully cover preventive services like vaccines even before you meet your deductible.

An HDHP plan is a type of health insurance plan that offers low monthly premiums and high deductibles. Choosing an HDHP also allows you to open a health savings account (HSA), which lets you use pre-tax money on healthcare costs.

The United States Internal Revenue Service (IRS) determines the limits for what counts as an HDHP. For 2027, a plan must have an individual deductible of at least $1,750 or a family deductible of at least $3,500 to qualify as an HDHP.¹

An HDHP may be a great choice for you or your family for many reasons. However, paying for healthcare needs until you meet your deductible can stretch your budget.

You may want to stick to an HDHP if you can use an HSA to cover expenses, don’t have ongoing medical needs, or can’t afford the premiums on another plan.

You can only switch health insurance plans during open enrollment or if you have a qualifying life event (QLE). Open enrollment is typically from November 1^st through January 15^th in most states, including for ACA Marketplace plans. Occasionally, employers may have different open enrollment periods for their plans.

An HSA is a special kind of account that can help you save money on your healthcare. You or your employer can contribute money to the account without first paying taxes on that money. Then, you can spend your HSA funds on approved healthcare expenses, including doctor’s visits, labs, and other medical services.

Using an HSA is a tax-advantaged way to cover healthcare costs before you meet your deductible. Some employers offer HSAs to employees on their eligible plans. Sometimes, the employer will even contribute to the HSA as part of your benefits package.

If you get benefits through your employer, be sure to check with your HR department to learn more. If you don’t get your insurance through your employer, you may be able to open an HSA through Optum Bank or another option. You just need to be sure that you’re eligible for this type of account.

These are all insurance terms for different types of plans that typically have lower premiums and higher deductibles. If you’re not sure if your plan qualifies, check your plan details.

Your network is the group of healthcare providers that are contracted with your insurance company. This includes doctors, clinics, hospitals, pharmacies and more. The insurance company has vetted in-network providers to ensure they provide quality healthcare at negotiated rates.

When you choose providers who are in your plan’s network, you may pay less for your services. Exactly what you pay for any healthcare service depends on the service, whether you’ve met your deductible, if the provider is in-network and more. In most cases, you will pay less for care from an in-network provider. You can find network providers by checking with your insurance company or contacting specific providers. UnitedHealthcare members can sign in to their member account to find a network provider.

Lab work, imaging, doctor visits and surgeries all have different costs depending on the provider. If you need a surgery or procedure, compare prices at local hospitals. Many hospital systems list prices online.

If not, you can call and ask for transparent pricing. Hospitals in the United States are required to provide this information.³ You can also compare prices at labs and imaging centers. When you know what care you need, call and ask about pricing with insurance.

There are many online tools that allow you to compare prescription prices. These tools will often show the cash price, but some will take your insurance coverage into consideration as well. Your insurance provider may also show prices in your member portal.

Talk to your doctor about using generic medications rather than brand name options. Generic drugs are just as effective and cost less. You may also consider online pharmacies that provide delivery.

What counts as preventive care can change from time-to-time, depending on laws and regulations from the federal government.