How to Take Control Health Bills

Surgery and a week-long hospital stay can equal a bill of tens of thousands of dollars. Even with insurance you can still end up paying several thousand in out-of-pocket expenses. Insurance companies typically negotiate with hospitals for lower bills – but most people don’t realize they can do that too.

Tips for Negotiating Health Care Bills

The first and most important step is simply asking. According to a survey from the Consumer Reports National Research Center, only 31% of Americans have tried to negotiate medical bills – but of those who did try, 93% were successful, and a full third saved over $100. When you apply this to the massive expense of a hospital stay, it could mean a very significant saving.

Around 80% of doctors prescribe generic drugs, but only 40-50% consider price when they recommend diagnostic tests or in-patient care. Ask your doctor if less expensive options are available when discussing your options.

When it comes time to settle your bill, however, your doctor may not be the person to talk to. Particularly if a hospital is involved, it’s far more likely you’ll need to speak to someone in charge of billing, with the power to make adjustments to your bill.

Finally, offering cash is often a good strategy, if your own finances allow it. Cash is generally easier for hospitals to deal with, so you have a negotiation advantage if you offer to pay this way.

Understanding Your Hospital Bill

And what of the bill itself? It is an unfortunate fact that some hospitals to go to outrageous lengths to obscure their own bills so that customers don’t know what they’re paying for – allowing the hospital to overcharge for its services. How can you overcome that impossible hospital language?

• Check your insurance policy before your hospital stay, and read the section on exceptions and exclusions closely, to find out what’s not covered.
• Phone the billing department of the hospital and ask what your room charges are, and what they cover.
• Bring your own disposables, such as tissues and toothpaste, if the room charge doesn’t cover them. Hospitals charge particularly outrageous prices for those items.
• Bring your own prescription medications from home, to avoid paying hospital prices for them.
• Make sure all the medical personnel involved in your case participate in your insurance plan.
• Keep a record of tests, treatments, and medications you receive.
• When you receive your Explanation of Benefits (EOB), read it closely. This tells you what the hospital is charging, what’s covered by insurance, and what you’ll have to pay.
• Do not, under any circumstances, pay your bill before you leave the hospital (not even if you’re told you must). Your negotiating power is gone once you pay the bill.
• Once your bill arrives, compare it to your records and the EOB.
• Call the hospital billing department and ask them to explain any costs you don’t understand, or can’t see a reason for.
• Demand a fully itemized bill – which all hospitals in every state are required to supply by law.
• As a last resort, appeal in writing to the patient ombudsman.

photo credit: weegeebored

This entry was posted on Wednesday, December 3rd, 2008 at 1:30 pm and is filed under Health Insurance, Health Tips, Top Lists. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.