How We Save Money with Deductible-Free Year-End Medical Purchases

Our medical and dental coverage includes a fairly steep deductible, around $1,750 annually. The deductible begins anew every Jan.1. When we've paid off the deductible, we save money by taking advantage of that window of better insurance coverage. You can, too. Here's how.

Save medical bills and EOB

This step is crucial if you want to accurately track health insurance benefits. Insurance companies mail out EOB, or Explanation of Benefit forms for each claim sent to them. For each medical service rendered, you should receive an EOB. If the procedure involved several medical practitioners, each providers charges will be listed. Lab work, primary care provider, hospital, medical imaging, for example, will each submit charges for service. As bills come in, match them with the EOB for that particular service. Track patient and date of service.

Contact health care provider if EOB and bill don't match

If your EOB shows that you owe a lesser amount than your health care provider is billing you for, contact the provider. In most cases, it's only a clerical error and they will charge you the amount listed on your EOB. Be sure to save all EOBs for proof.

Pay medical bills after insurance portion has been paid

The EOB will explain your portion of the bill. Pay only after your insurance has been billed. I once received a $4,000 hospital bill for services not billed to my insurance. After it was properly billed, my portion was only $400.

Monitor your deductible amount

At the beginning of the year, most costs are applied to any deductible. This means you will owe for that service until your deductible is met. Items are applied to the deductible until it is met. If you have a family deductible, each covered person's medical bills are applied to the deductible. Track the deductible portion you still own on the bottom of each EOB statement. Some items, like wellness checks and certain lab fees may be paid in full before the deductible is met.

Take advantage of deductible-free medical care

If you have a fairly healthy year, it may take you until the end of the year to pay off the deductible. When it is paid, you will be able to use your insurance according the 80-20, 75-25 or whatever co-payment amount you have. This is the time schedule routine appointments, elective surgery, or to stock up on durable medical goods. I use a CPAP (Continuous Positive Air Pressure) machine. Supplies, like new mask or tubing, are expensive. I buy these at the end of the year when my deductible is met, so I don't pay at the higher amount.