Let’s be real: health insurance is supposed to make healthcare more affordable, but sometimes using your insurance can cost you more than paying cash. If you’re like most millennials, you’re trying to make every dollar count, and sometimes that means rethinking when to whip out your insurance card.
Here are a few examples of when paying out of pocket might actually save you money at the doctor’s office:
- You Won’t Meet Your Deductible
If you’re healthy and don’t go to the doctor much or need super expensive treatments, then you may not meet your health insurance deductible by the end of the year. Health plans often come with a stated amount—you might need to pay $2,000 or even $5,000—before insurance kicks in heavy-duty. If you’re pretty sure you won’t meet your deductible, paying cash at the medical provider’s office could actually be less expensive than the out-of-pocket costs of using your insurance.
- Cash Pricing vs. Insurance Rates
The cash price from a doctor or other medical provider is sometimes well below the rate they have negotiated with an insurance company. Providers may offer different prices for a patient who pays directly because they avoid billing processes, claim management, and waiting for insurance company reimbursement. You can sometimes find that the total out-of-pocket is significantly lower if you ask upfront about cash pricing.
I learned it the hard way myself: I once needed a mole removed and thought I’d be smart by going through my health insurance. It turns out it would cost $1,200, which barely touched my deductible. If I had asked for cash pricing, I could have saved a lot, considering how that medical bill turned out to be quite high.
- Network and Provider Considerations
Another thing to consider is your health insurance network. If you’re out of network, your medical bills climb very high, and often your coverage doesn’t apply much toward your deductible. In these cases, it’s always smart to ask the doctor’s office if they offer any cash pricing. You might be surprised at how much lower your total bill could be.
Ultimately, it pays to do a bit of math before visiting the doctor. If you’re close to meeting your deductible, using health insurance makes sense. But for one-time treatments or small procedures, consider paying cash.
The next time you’re spending time in a doctor’s office, think twice before automatically handing over that insurance card—your wallet may thank you in the long run.
