Health insurance premiums in America could rise to ‘highest in decades’ in 2025 — here are 3 ways to cut your healthcare costs ASAP

1. Choose the right insurance

If you haven’t elected your health coverage yet for the new year, make sure to crunch those numbers carefully. It’s common for employers to offer both a low- and high-deductible health insurance plan, and picking the right one could cut down your costs significantly.

Deductibles and premiums typically have an inverse relationship. The higher one is, the lower the other is.

If you’re a generally healthy person, you may want to stick with a health plan that offers a higher deductible and lower premiums. But if you have known health issues, then a plan with a lower deductible and higher premiums could make more sense for you.

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Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

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2. Get a tax break to offset your healthcare bills

Contributing funds to a tax-advantaged health savings plan could help offset the costs you’re facing. If you’re on a low-deductible health plan, see if your employer offers a flexible spending account (FSA).

FSAs max out at $3,300 in 2025, but you do generally need to use up your balance by the end of your plan year or your company’s grace period, or otherwise risk forfeiting the remainder.

If you’re on a high-deductible plan, a health savings account (HSA) may be a better choice. HSAs offer the benefit of not putting an expiration date on funds like FSAs. In fact, you’re encouraged to carry an HSA balance forward because unused balances get to enjoy tax-free investment gains.

HSA contribution limits for 2025 are $4,300 for self-only coverage and $8,550 for family coverage. If you’re 55 or older, you can contribute an additional $1,000.

To qualify for an HSA in 2025, your health plan needs to have a minimum deductible of $1,650 for self-only coverage or $3,300 for family coverage. And your out-of-pocket maximum can’t exceed $8,300 for self-only coverage or $16,600 for family coverage.

3. Use generic drugs when possible

As of March 2024, 21% of U.S. adults said they did not fill a prescription because of the cost, per the KFF. And about 10% of adults have either cut pills in half or skipped doses to reduce their costs.

Rather than struggle to cover the cost of medication, ask your provider to switch you over to a generic version of the pills you're taking. The Association for Accessible Medicines reports that brand-name drugs cost patients almost nine times more than generic drugs. And 93% of generic prescriptions are dispensed at a price point of under $20.

If the medications you take don’t have a generic form, see if the manufacturer has a patient assistance program you qualify for. And don’t forget that medical offices receive free samples of pills all the time. If you’re paying a lot, your doctor may be able to hook you up with some of those samples to lessen the financial burden.