4 ways to cut health-care costs: this is the season for selecting a health-insurance plan. Here's how to choose wisely—and save hundreds

Shape, Nov, 2004 by Fran Kritz

4. SAVE ON DRUG COSTS

Even if you live a healthy lifestyle, you may still take some kind of prescription medication. Drug co-payments are one of the easiest areas to shift costs to workers, but there are some simple ways to save money.

* Always ask your physician if samples are available. Often the sample pack is a full course of the medicine you need. Doctors also may have coupons redeemable for samples at the pharmacy.

* Look online for coupons for popular drugs. At flonase.com, for example, you'll find a printable coupon for $5 off four prescriptions whether you pay cash or a co-pay for the allergy drug.

* Use mail-order pharmacies. A great option for drugs you take daily, such as asthma medication or birth-control pills; when you use a mail-order pharmacy it's standard to pay two co-pays and get a three-month supply.

* Ask your doctor about generic options. Like brand-name drugs, generics must be approved by the U.S. Food and Drug Administration and have an excellent safety record. The typical co-pay is $10 or less, compared with up to $25 for the brand-name version.

* Find out if the drug your doctor calls for is covered by your insurance before you fill the prescription. If it's not, ask your physician if another brand, or a generic, would work just as well, or you could be paying the entire cost of the medication yourself.

HOW IT WORKS If your company doesn't cover birth control, you'll pay $38 for a month's worth of Ortho Novum 7/7/7 at drugstore.com. Switch to the generic ($27) and you'll get an extra $132 in your pocket each year. Pay for it with pre-tax dollars from your FSA and your savings bump to $172 annually.

Now get going and start tackling that insurance packet!

RELATED ARTICLE: Crunching the numbers

Use this worksheet to compare costs among health-insurance plans offered by your employer for 2005. Have last year's information at hand; you can use the total cost of doctor visits, prescriptions, etc., to project likely expenses for next year.

                                               Plan A      Plan B
                               Last year       (projected  (projected
What to consider               (2004 amounts)  for 2005)   for 2005)

Your annual contribution
for coverage:                  $ ______        $ ______    $ ______
Prescription co-pays:          $ ______        $ ______    $ ______
                               $ ______        $ ______    $ ______
Other co-pays:
(ER visits, hospital stays,    $ ______        $ ______    $ ______
maternity care, mental-health
sessions, etc.)                $ ______        $ ______    $ ______
Co-insurance,
if applicable:                 $ ______        $ ______    $ ______
Deductible, if applicable:     $ ______        $ ______    $ ______
Doctor visit co-pays:          $ ______        $ ______    $ ______
TOTAL COST TO YOU:             $ ______        $ ______    $ ______

RELATED ARTICLE: New in 2005: Health Savings Accounts

A small percentage of companies will offer Health Savings Accounts (HSAs) next year, with more expected to follow suit in 2006. Like flexible spending accounts (FSAs), these are tax-free accounts to pay for health-care costs not covered by insurance, such as doctor co-pays, vision and dental care, insurance deductibles and some nonprescription drugs. Unlike FSAs, however, the new accounts can be rolled over each year--something the government hopes you'll do so you'll have money saved up to spend on health care when you retire. For more info on HSAs, visit the Department of Treasury at www.treas.gov/offices/public-affairs/hsa/faq1.shtml.>