Keep Your Healthcare Costs Down

Medical debt is the number one cause of personal bankruptcy in the U.S., a report from NerdWallet found. Another report from the Kauffman Family Foundation found that more than a quarter of Americans say that someone in their household is struggling to pay medical debt.

While troubling, these statistics aren't surprising. However, there are ways to help you keep your medical costs down as you work to build up your savings to help prevent this very situation.

Start with your insurance. When searching for the right plan, you must take into account the following:

• Premium: The premium is what you spend to buy the policy. This is usually paid monthly.
• Deductible: The out-of-pocket cost you pay for care before your policy begins to pay for most medical costs.
• Copayments: This is a pre-determined amount paid per visit or service.
• Coinsurance: Represents your portion of the bill, assessed as a percentage of the billable amount.
• Network: The healthcare providers and facilities that accept the insurance policy.
• Coverage: The care covered by the policy. Some services legally must be covered, but others, such as dental and vision, are optional.

If you and your family are relatively healthy, you can opt for a higher deductible with a lower premium in order to save a little more from month to month. If your medical expenses are typically high, it may be a better option to choose a lower deductible plan with a higher premium to save on your out-of-pocket costs.

Also, make sure you comparison shop. All insurance companies are not made equal. You could save hundreds—even thousands—just by being a smart shopper.

Under the Patient Protection and Affordable Care Act, all health insurance plans must include a number of preventive services free of charge, without any deductible, copay or coinsurance requirements. Take advantage of this! Many health issues that are detected early can save you money due to less aggressive and less expensive treatments. Don't forget eye exams and dental cleanings. While these services aren't usually free, they are imperative. You always want to be ahead of medical problems, not behind.

Lastly, your health starts at home. Making healthy lifestyle choices can go a long way in keeping your healthcare costs down. According to the CDC, chronic disease is responsible for 86% of the country’s healthcare costs. You can reduce your chances of developing a chronic disease by eating a healthy and balanced diet, exercising and reducing stress.

Medical expenses can be hefty, but taking these steps can help you not only live a longer life, but save you money.