It’s no secret
that health care
costs have been
spiraling out of
control for
years. To fight
back, your best
bet is to be a well-informed
consumer: Know the true costs
of medical procedures, supplies
and medications so you can
bargain effectively; carefully
anticipate and track medical
expenses; and stay on top of
your bills.
But sometimes, even when you
follow the rules you still can get
burned. I’ve heard many
appalling stories about people –
even those with comprehensive
insurance – who have been
denied benefits, over-charged,
sent to collections or even
forced to file for bankruptcy
because they couldn’t pay their
medical bills.
Here are a few coping
strategies:
Carefully review each doctor, lab
or hospital bill and match it
against the Explanation of
Benefits statement that shows
how much they were
reimbursed by the insurance
company. Also, watch for items
that may have been charged to
you by mistake such as:
• Medications, supplies,
treatments or meals you didn’t
receive while hospitalised or
getting an outpatient
procedure.
• Duplicate charges for a single
procedure (such as x-rays, MRIs
and lab work), including those
that had to be redone due to a
technician’s error.
• Charges for a full day’s
hospitalisation when you
checked out early; or private
room rates when you shared a
suite.
The summary hospital bill you
were sent probably doesn’t
contain many details, so ask for
an itemised bill along with a
copy of your medical chart and a
pharmacy ledger showing
which drugs you were given
during your stay.
If you’re having difficulty paying
a medical bill, don’t simply
ignore it. Like any creditor,
doctors and hospitals often turn
unpaid bills over to collection
agencies, which will wreak
havoc with your credit score.
Contact creditors as soon as
possible, explain your situation
and ask them to set up an
installment payment plan or
work out a reduced rate.
Many people with no insurance
discover that they’re often
charged much higher rates than
those negotiated by insurance
companies, Medicare and
Medicaid. Don’t be afraid to ask
for those lower rates and to
work out a repayment plan –
just be sure to get the
agreement in writing. Most
doctors and hospitals would
rather accept reduced payments
than have to deal with collection
agencies and possibly no
reimbursement at all.
Ask the hospital’s patient liaison
to review your case and see
whether you qualify for financial
assistance from the
government, a charitable
organisation or the hospital
itself. Most will forgive some or
all bills for people whose income
falls below certain amounts tied
to federal poverty levels. Also
pursue this avenue with your
doctor or other provider –
ideally before they’ve begun
collections.
A few additional cost-savings
tips:
• Ask whether your employer
offers flexible spending
accounts, which let you pay for
eligible out-of-pocket health
care and/or dependent care
expenses on a pre-tax basis.
• Use online price-comparison
services like Healthcare Blue
Book and OutofPocket.com to
research going rates for a
variety of medical services.
• Unless it’s a true emergency,
try to avoid emergency rooms
and use an urgent care network
facility affiliated with your
insurance company or ask your
doctor for recommendations.
Bottom line: Know the cost of
health services and don’t be
afraid to negotiate. You’ll haggle
over the price of a car – why not
your health?