How Paying Cash For Your Healthcare Can Save You LOTS of Money
You want quality healthcare when you need it—without paying more than necessary.
With the rising cost of healthcare, it’s important to take a closer look at your best options. If you have traditional health insurance, it means your medical provider deals with a middleman—your health insurance provider. They deliver information back and forth through a complicated billing system before the bill lands in your hands.
The traditional routine goes something like this:
You pay a monthly premium to maintain your insurance policy. (You’ll never see that money again, by the way, whether or not you receive medical services.)
When you go to the doctor or pick up a prescription, you pay a copay determined by your insurance provider. You may also pay everything out of pocket until you reach your insurance “deductible.”
Then, depending on the insurance network, type of medical service, insurance may pay all or some of your remaining medical bills. (Although might also need to pay “coinsurance” out of pocket too.)
Under this complicated model, it’s hard to know what services your health insurance will pay for. It’s also hard to tell how much you’ll end up paying out of pocket.
Patients often get a nasty surprise when they finally open their medical bills. It can take months for these types of payments to be settled.
While insurance serves an important purpose for many people, especially those with chronic medical conditions, many healthy individuals pay more for their insurance than for their actual *healthcare.*
Luckily, we have an alternative solution for you: cash pay. (Also referred to as “self-pay,” or paying “out of pocket” for medical care.)
What is Cash Pay?
Cash pay medical is an alternative to the traditional approach of receiving medical care. Cash pay is when you pay for your medical care directly. Meaning, you don’t wait for your doctor, clinic, or pharmacy to bill insurance. The cost is given to you upfront and you pay for your care as you do with other products or services.
Think about how you normally pay for things when you make a purchase. From everyday costs like food to larger expenses such as flights and hotels—you know the price. How often do you pay without knowing upfront what your cost will be? Almost never.
We don’t think healthcare costs should be mysterious either.
More often than not, it’s your better option when it comes to paying medical expenses. Most people don’t take advantage of this approach. However, paying in cash can help you save so much you can actually grow your own personal savings account for future medical needs.
It’s a simple transaction—no worrying about being responsible for unexpected costs later on. And NO insurance claims involved.
And want to know the best part?
Many medical providers often offer a *discounted rate* for cash pay patients. Doctors often prefer to avoid messing with insurance and offer more reasonable rates for direct payment. Meanwhile, you can reduce anxiety while saving money on your healthcare. It’s the ultimate win-win situation!
But what about the big stuff you can’t afford to pay for in cash?
If you’re generally healthy and don’t have frequent medical costs, paying in cash instead of paying for an expensive insurance plan can save you lots of money. However, it’s important to have something in place in case of an emergency or major medical need.
This is why we recommend a high-deductible insurance plan with a low monthly premium. Or (even better, in many cases) a health share membership.
Health shares are communities made up of members who contribute to a shared fund. They use this fund to pay each other’s medical expenses in times of need. If it’s a good fit for you, you can contribute to a health share, pay cash for your minor medical expenses, and STILL have money left over as compared to using insurance. And when a major medical needs come up—like surgeries, ER visits, or maternity care—the community has your back.
We recommend Big Stuff Health Share as an alternative to traditional health insurance.
When is Paying Cash for Medical Care a Good Idea?
Have you been putting off a doctor’s visit because of the cost? Or maybe it’s time for a preventive care check-in, or some general health advice?
If your answer is yes, you’re not alone. Millions of Americans avoid getting healthcare they need. And the sad truth is, it's usually due to cost. (1) In the U.S., about 40% of adults have delayed or completely gone without medical care in the last year due to cost. And about one in four adults say they or family members “have not filled a prescription, cut pills in half, or skipped doses of medicine in the last year because of the cost.”
Taking the savvy approach of cash pay can give you greater access to healthcare while cutting overall costs. This includes taking advantage of cash-pay discounts.
Some healthcare needs are more likely than others to have cash-pay discount. Some services with special cash-pay rates include:
Ultrasounds
X-rays
CT scans
Therapeutic and out-patient services
Lab work
Certain prescription drugs
Labs, and other diagnostic procedures.
However, even the BIG medical procedures can have cash-pay discounts too—such as labor and delivery or orthopedic surgeries.
Direct primary care services like Alive & Well may be able to guide you to the best cash-pay rates near you.
How to Pay for Your Healthcare in Cash
Although we’ve been conditioned to associate insurance with medical care, paying with cash doesn’t have to be intimidating!
3 Simple Steps to Paying Cash for healthcare
Ask the receptionist at the doctor’s office or clinic if there is a cash-pay (or self-pay) option. (Or call ahead to save time.)
Then, ask if there is a cash-pay *discount* and how much you will have to pay on the spot to receive care. (If you’re a responsible credit card holder, you may also receive cash back and points by paying with your credit card—say yes to cash back and free vacations! Of course, pay credit card statements off on time to avoid any fees or interest.)
Receive the healthCARE you need. Ditch the aftermath of health insurance billing.
Cash-Pay Primary Care— Why DPC is The Better Option
If you want constant access to cash-pay healthcare, direct primary care (DPC) is your new best friend.
Direct primary care (DPC) is a cash-pay membership model for receiving basic healthCARE. DPC allows healthcare professionals to spend more time with patients. Plus, it minimizes overhead costs. There is a shift of focus from health coverage to providing the best possible healthCARE.
DPC is a convenient alternative to traditional health insurance. You receive direct access to physician assistants, nurse practitioners, and other healthcare professionals via telemedicine. (Some providers even offer good, old-fashioned house calls!)
Alive & Well is a highly rated direct primary care service. Members of Alive & Well receive 24/7 access to medical professionals who care. We meet your everyday healthCARE needs over the phone or in person, and at your home or workplace. And when it comes to paying for healthcare, we believe simpler is always better. So we recommend using our cash-pay monthly membership to take care of your everyday needs.
In the meantime, we encourage you to build up your personal health savings so you’re not trapped within an insurance system.
You shouldn't have to worry about costs, time, or travel factors related to your health. Providing cash-pay healthCARE, Alive & Well is a super affordable and accessible option.
If you’re curious you can learn more here about Alive & Well’s cash-pay membership. Or click here to see if Alive & Well is a great fit for you.