If you are anything like the rest of us, you are looking at your budget and wondering where you can cut back to save money on health insurance costs next year. With open enrollment for health plans starting November 1, most Arizonans who do not receive group health insurance from their employers are at least starting to think about what they can afford to pay in 2025 without sacrificing necessary coverage.
At Arizona Health Insurance Experts, we are here to help you with some practical strategies to help you save on health insurance costs in the Grand Canyon State.
Understand Your Health Insurance Needs
Before diving into money-saving tactics for individual and family health insurance in Arizona, you first need to assess your healthcare needs. Here are three factors to consider:
- Evaluate your health status and that of your family members
- Consider your typical medical expenses over the past year
- Think about any planned medical procedures or ongoing treatments
Understanding your needs will help you save on health insurance costs by not overpaying for coverage you won’t use, or worse, being underinsured and facing high out-of-pocket costs. With healthcare costs rising in Arizona and the rest of the US, those costs can be financially devastating.
Compare Plans Thoroughly
Since the world of health insurance can be confusing and intimidating, many individuals and families fall prey to the same mistake – settling for the first plan they see without exploring all the potential costs involved.
Sometimes, this is based solely on a monthly premium or on the yearly deductible. Take our advice (we are the Experts, after all), and don’t settle for the first plan you come across.
To save on health insurance costs, you need to take the time to compare different options—factor in deductibles, copayments, and out-of-pocket maximums when comparing plans.
Related: Where Can I Get Help Selecting Health Insurance During Open Enrollment
Find Out if You Qualify for Premium Tax Credits and Subsidies
Arizona participates in the federal Health Insurance Marketplace, which means you might be eligible for subsidies:
Premium Tax Credits: These can lower your monthly premium if your income falls between 100% and 400% of the Federal Poverty Level
Cost-Sharing Reductions: These can lower your out-of-pocket costs if your income is between 100% and 250% of the Federal Poverty Level
Don’t assume you won’t qualify – check your eligibility during the application process.
Consider a High-Deductible Health Plan (HDHP)
HDHPs typically have lower monthly premiums in exchange for higher deductibles.
If you’re generally healthy and can afford to pay more out-of-pocket for routine care, an HDHP could save you money. Plus, HDHPs often pair with Health Savings Accounts (HSAs), which offer tax advantages.
You Might Like: The Pros and Cons of High-Deductible Health Plans in Arizona
Utilize Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs)
If you opt for an HDHP, take full advantage of the HSA:
- Contribute pre-tax dollars
- Grow your savings tax-free
- Withdraw funds tax-free for qualified medical expenses
If an HSA isn’t an option, look into FSAs offered through your employer. While less flexible than HSAs, FSAs still give you the option of setting aside pre-tax funds for healthcare expenses.
Stay In-Network
One of the easiest ways to save on health insurance costs in 2025 is by staying within your plan’s network of providers:
- Always check if a provider is in-network before scheduling appointments
- Use in-network urgent care centers instead of emergency rooms for non-life-threatening issues
- If you have preferred doctors, make sure they’re in-network when choosing a plan
Take Advantage of Preventive Care
Health plans purchased under the Affordable Car Act must cover a range of preventive services at no cost to you, including annual exams, vaccinations and screenings for various conditions.
Like your mother says, an ounce of prevention is better than a pound of cure. By taking advantage of options for preventive care, you may be able to avoid more costly treatments down the line.
Explore Telemedicine Options
If your healthcare provider offers telemedicine appointments, consider scheduling these appointments instead of in-person visits. Here are three benefits of doing so:
- Lower copays than in-person visits
- Save time and transportation costs
- Convenient for prescription refills and follow-ups
While telehealth is not appropriate for all health concerns, it can help you save on health insurance costs.
Review Your Prescriptions
Before you commit to an Arizona health plan for your family, take a moment to consider your prescription medications. Did you know that each health insurance policy you look at will have its own formulary or list of medications the plan will cover?
If you currently take a prescription medication that is not on your insurer’s formulary, you may end up spending significantly more. In addition, you should ensure your insurer works with your preferred pharmacy.
Here are some additional ways to save on health insurance costs related to prescription medications:
- Ask about generic alternatives
- Use your insurance company’s preferred pharmacies
- Look into prescription discount programs
- Consider mail-order options for long-term medications
Maintain a Healthy Lifestyle
While not an immediate money-saver, adopting healthy habits during the coming year can help you save on health insurance costs over time. For instance:
- Exercise regularly
- Eat a balanced diet
- Quit smoking
- Limit alcohol consumption
Some insurers even offer wellness programs with financial incentives for healthy behaviors.
Consider Short-Term Health Insurance
If you’re between jobs or waiting for other coverage to begin, short-term health insurance can provide temporary coverage at a lower cost. However, be aware that these plans often have benefit restrictions and may not cover pre-existing conditions. For more information, check out our blog article How Do I Get Short-Term Health Insurance When Between Jobs?
Work With a Local Independent Health Insurance Broker
A local independent health insurance broker can be an invaluable resource in your quest to save on health insurance costs:
- They understand the Arizona market and available plans
- Can help you find subsidies you might have missed
- Tailor recommendations based on your needs and budget
- Their services are free
Consider connecting with a knowledgeable broker right in your neighborhood who can guide you through your options.
Review and Update Your Coverage Annually
This should come as no surprise – your family situation, health needs and financial circumstances can change from year to year. To make sure you are taking advantage of every opportunity to save on health insurance costs, during each open enrollment period, reassess your healthcare needs.
Have you had an unexpected medical diagnosis in the last year? Have you added to your family? Has your financial situation changed, resulting in a change to the subsidies you may be eligible for in the coming year?
If you choose to stay with the same plan from one year to the next, be sure to read the fine print of your new policy before signing on the dotted line.
By staying proactive, you can ensure you’re always getting the best value for your health insurance dollars.
To Save on Health Insurance Costs in 2025, Consult an Arizona Health Insurance Broker
Saving money on health insurance in Arizona requires a bit of research and effort, but the potential savings are worth it. By understanding your needs, comparing options, taking advantage of available programs, and making smart healthcare choices, you can strike a balance between coverage options and affordability.
Remember, the cheapest plan isn’t always the best, nor is the most expensive plan necessarily the most comprehensive. The key is finding the right fit for your unique situation. A local health insurance broker can provide personalized guidance tailored to the Arizona market.
Arizona Health Insurance Experts takes the guesswork out of finding the right insurance for you and your family by connecting you with a reliable, independent health insurance broker in your area. What are you waiting for? Connect with a broker today.
Stay informed, stay healthy, and keep your hard-earned money where it belongs – in your pocket.
