How to Lower Your Health Insurance Costs
Health insurance is expensive, but most people have more options to reduce costs than they realise. These ten strategies can save you anywhere from a few hundred to several thousand dollars per year.
Check your ACA subsidy eligibility
Save: Up to $500+/moPremium tax credits can reduce your monthly cost to as low as $0 if your income is below 150% of the Federal Poverty Level. Even at 300-400% FPL, subsidies can cut your premium by 20-40%. Use HealthCare.gov or your state marketplace to see your exact credit before buying any plan.
Choose an HDHP if you are generally healthy
Save: $50-150/mo on premiumsHigh-Deductible Health Plans can cost 30-40% less per month than a PPO. If you rarely use healthcare, the lower premium savings often outweigh the higher deductible. For 2026, an individual HDHP must have a deductible of at least $1,600.
Max out your Health Savings Account
Save: $300-700/yr in tax savingsIf you have an HDHP, you can contribute up to $4,300 (individual) or $8,550 (family) to an HSA in 2026. At a 22% tax bracket, maxing out your individual HSA saves approximately $946 in taxes annually. HSA funds never expire.
Compare your employer plan to marketplace options
Save: Varies significantlyEmployer plans are often cheaper due to the employer contribution, but not always. If your employer's plan is deemed unaffordable (more than 9.02% of household income in 2026), you may still qualify for marketplace subsidies. Always compare both options before enrolling.
Choose a Silver plan if you qualify for cost-sharing reductions
Save: $1,000-3,000/yr in out-of-pocket costsIf your income is 100-250% of the Federal Poverty Level, Silver plans come with automatic cost-sharing reductions (CSRs) that lower your deductible and copays. A CSR Silver plan can give you Gold-equivalent coverage at a Silver price.
Use in-network providers exclusively
Save: $200-2,000+ per incidentOut-of-network care can cost 2-4 times more than in-network care. Before any procedure, verify your provider is in-network for your specific plan. Even at in-network hospitals, some doctors such as anaesthesiologists or radiologists may be out-of-network.
Use generic medications
Save: $50-300/mo on prescriptionsGeneric drugs are bioequivalent to brand-name versions but cost 80-85% less on average. Ask your doctor whether a generic is available. For maintenance medications, also compare prices at GoodRx, Costco Pharmacy, and Mark Cuban's Cost Plus Drugs.
Use preventive care which is free under the ACA
Save: $100-500/yrThe ACA requires all marketplace plans to cover preventive services at zero cost. This includes annual physicals, certain cancer screenings, immunizations, blood pressure tests, cholesterol tests, and more. Using these instead of diagnostic visits avoids deductibles and copays.
Consider a short-term health plan if between coverage
Save: 50-70% cheaper than ACA plansShort-term health insurance covers basic medical needs at a much lower premium. Plans are not ACA-compliant and exclude pre-existing conditions, but they provide a safety net for healthy individuals between jobs. Federal rules allow plans up to 4 months, extended by some states.
Check Medicaid eligibility every year
Save: $0-300+/moIf your income drops below 138% of the Federal Poverty Level in an expansion state, you qualify for Medicaid with no premium and minimal copays. Medicaid eligibility is based on current income, so check whenever your financial situation changes. 41 states have expanded Medicaid as of 2026.