8 Ways on How to Save Money on Health Insurance in 2025

8 Ways on How to Save Money on Health Insurance in 2025.

Health insurance costs have been rising steadily over the years, becoming a significant burden for many individuals and families. According to the National Health Expenditure Accounts (NHEA), U.S. health care spending reached approximately $4.3 trillion in 2021, a significant portion of which was attributed to insurance premiums. As health care inflation continues to outpace general inflation, finding ways to save on health insurance is more important than ever.

With premiums, deductibles, and out-of-pocket costs on the rise, the need for smarter approaches to managing these expenses is crucial. Fortunately, there are numerous strategies to save money while still maintaining access to quality healthcare coverage. In this article, we will explore 8 effective ways to cut costs on your health insurance in 2025.

1. Shop Around During Open Enrollment

Open enrollment periods present an opportunity to review your health insurance options and choose the best plan for your needs at the most competitive price. According to the Kaiser Family Foundation, the average annual premium for employer-sponsored family health insurance was $22,221 in 2023, with workers paying about $6,000 of that cost. During open enrollment, consider comparing plans not only from your employer but also through the Health Insurance Marketplace, which often offers more affordable plans.

Many people automatically renew their coverage without considering alternative plans, which can lead to unnecessary overpayment. By comparing the full range of options, including deductibles, copayments, and provider networks, you can find a more cost-effective solution. In 2025, savvy consumers who take the time to shop around could save hundreds, if not thousands, of dollars annually on their premiums.

2. Consider a High-Deductible Health Plan (HDHP)

High-deductible health plans (HDHPs) can be a great way to lower your monthly premiums while still providing adequate coverage in the event of major health issues. In 2023, the IRS set the minimum deductible for an HDHP at $1,500 for individuals and $3,000 for families. While the deductible is higher, the tradeoff is that your monthly premium is significantly lower.

HDHPs are often paired with Health Savings Accounts (HSAs), which allow you to save pre-tax money for medical expenses. According to the National Center for Health Statistics, more than 30% of Americans now choose HDHPs, drawn by the lower upfront costs. If you are generally healthy and do not expect to need frequent medical care, an HDHP might be an effective way to cut your insurance expenses in 2025.

3. Take Advantage of Preventive Care Benefits

Many insurance plans offer free preventive services, such as vaccinations, screenings, and wellness check-ups, which can help avoid expensive treatments later on. The Affordable Care Act (ACA) mandates that insurance plans cover preventive services at no cost to you when using an in-network provider. By utilizing these benefits, you can detect and address potential health issues early, preventing the need for more costly interventions down the line.

Studies show that for every $1 spent on preventive services, there is a $3 return in terms of reduced healthcare costs. In 2025, making use of these preventive measures can lead to long-term savings by avoiding high-cost medical procedures in the future. Be sure to check your insurance policy for the full list of covered preventive services and schedule regular check-ups.

4. Explore Telemedicine Options

Telemedicine has grown exponentially, especially since the COVID-19 pandemic, with a report by McKinsey & Company revealing that the use of telehealth services surged by 38 times in 2020 alone. The convenience and lower costs associated with telemedicine consultations make it an attractive option for routine care, mental health support, and follow-up visits. Many insurance providers now cover telehealth visits as part of their basic plan offerings, and the costs are often much lower than in-person visits.

In fact, a 2023 study by the American Journal of Managed Care found that telehealth consultations can be up to 50% cheaper than traditional office visits. By opting for telemedicine when appropriate, you can significantly reduce your out-of-pocket expenses and overall healthcare costs in 2025.

5. Utilize Health Savings Accounts (HSAs)

Health Savings Accounts (HSAs) are tax-advantaged accounts that allow you to save money for medical expenses while reducing your taxable income. For 2025, the contribution limit for individuals is expected to be $4,850 and $9,800 for families. Funds in an HSA roll over year to year, allowing you to accumulate savings for future healthcare needs.

Contributions to HSAs are tax-deductible, and withdrawals for qualified medical expenses are tax-free. According to a 2022 report by Devenir, the average HSA balance reached $3,336 in 2021, and this amount continues to rise as more consumers recognize the value of these accounts. By taking full advantage of an HSA, you can save on taxes and reduce your overall healthcare costs in 2025.

6. Consider Catastrophic Health Insurance

Catastrophic health insurance plans are designed to protect you from major medical expenses in the event of a serious health crisis. These plans typically have low premiums but high deductibles, making them an excellent option for individuals who are generally healthy and do not expect to incur significant healthcare costs. According to HealthCare.gov, catastrophic plans are available for individuals under 30 and for some low-income people who are exempt from other ACA plans.

In 2023, the average monthly premium for a catastrophic plan was around $130 for a 30-year-old, compared to $400 or more for a mid-tier ACA plan. If you are young and healthy, catastrophic insurance can save you money while still offering the protection of major medical coverage in the event of unexpected health issues.

7. Review Your Prescription Drug Coverage

Prescription drug costs can add up quickly, especially for individuals with chronic conditions or those requiring ongoing medications. In 2023, Americans spent an average of $1,200 per person on prescription drugs. Many insurance plans offer prescription drug coverage, but it’s important to review the formulary (the list of covered drugs) to ensure your medications are covered at a reasonable cost.

Consider using generic medications, which can be up to 80% cheaper than their brand-name counterparts. Additionally, enrolling in a prescription drug plan (PDP) or a Medicare Advantage plan that offers robust drug coverage can help reduce out-of-pocket prescription costs. By being proactive in managing your prescriptions, you can save significantly on health insurance-related expenses in 2025.

8. Look into Employer Wellness Programs

Many employers now offer wellness programs that can help employees save on health insurance premiums by incentivizing healthy behaviors. According to the Employee Benefit Research Institute, more than 50% of employers offered wellness programs in 2023, with many providing discounts on premiums for employees who complete health screenings, quit smoking, or engage in regular physical activity.

These programs can reduce your overall health insurance costs by lowering the risk profile of the insured population, which can result in lower premiums. If your employer offers such a program, it’s worth taking advantage of any available incentives to lower your costs. In 2025, participating in workplace wellness programs can provide both immediate savings on premiums and long-term health benefits.