How to save on health insurance
Health insurance is a major expense, but subsidies, the right plan choice, and tax-advantaged accounts can lower what you pay.
Key takeaways
- Many people qualify for marketplace subsidies with higher income limits than expected.
- Match the plan's premium and deductible to how much care you actually use.
- Medicaid, HSAs, and preventive care can all lower total costs.
Health coverage is expensive, but many people pay more than they have to because they don't know about subsidies or how to match a plan to their needs. A few steps can meaningfully reduce your costs.
Ways to lower health insurance costs:
- Check the marketplace for subsidies: many people qualify for premium tax credits that cut monthly costs, and the income limits are higher than most expect
- Match the plan to your usage: if you rarely see a doctor, a lower-premium/higher-deductible plan may cost less overall; if you have ongoing needs, a higher-premium plan may save on care
- See if you qualify for Medicaid, which offers free or very low-cost coverage
- Use an HSA (with a high-deductible plan) to pay for care with tax-free money
- Stay in-network and use preventive care, which is usually free
Open enrollment is the main window to switch plans, but major life changes (job, marriage, a baby, moving) open a special enrollment period. It's worth re-checking your subsidy and plan each year, since both your situation and the available plans change.
If coverage still feels out of reach, a local marketplace navigator or 211 can help you find the lowest-cost option you qualify for.
What this is
Why it matters
What you can do next
Related FAQs
Common questions about this topic, answered simply.
How do I know if I qualify for a subsidy?
Check your state or the federal health insurance marketplace and enter your household size and income. Many people qualify for premium tax credits that lower monthly costs, and the income limits are more generous than most expect.
Is a high-deductible plan cheaper?
It can be if you're generally healthy and rarely need care, because the monthly premium is lower and you can pair it with a tax-advantaged HSA. If you have ongoing medical needs, a higher-premium plan may cost less overall.
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