Even if you are covered by health insurance, a single traumatic event or diagnosis can quickly lead to a mountain of bills adding up to hundreds of thousands of dollars.
You or someone you know might already have experienced this issue, and you're not alone. One in five Americans struggle with medical debt, and it is actually the leading cause of personal bankruptcy. Fortunately, there are ways you can reduce your medical debt to something more affordable.
Review Your Bills
Make sure to review all of the bills you receive for treatment with a fine tooth comb. Up to 80 percent of medical bills contain errors or overcharges so it's in your best interest to look them over.
In particular, be on the lookout for the following:
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- Double Charges – Getting charged twice for a single item or service is one of the most common billing errors across all industries.
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- Inflated Room Rates – Hospitals will often mistakenly charge patients for a full day in a room when they are only there for a few hours.
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- Mischarged Prescriptions – It is not uncommon for hospitals charge you for the prescriptions you personally bring to the hospital.
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- Routine Supplies – Gowns, gloves and sheets should not be included in your bill as they should be part of your daily room charge.
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- Other Innacuracies – It’s possible for various other errors – including charges for services you didn’t receive – to wind up on your bills. So be ready for them and have them removed if you show up.
Comparison Shop
Just like you would shop around for the best rates on a mortgage or credit card, you can do the same for hospital charges.
There are online tools you can use, such as Medicare's Hospital Compare service, to determine the cost of common procedures in your area. If you find a significant discount somewhere, call up your health care provider’s billing department and negotiate for a matching rate.
The best part is you can do this even after a procedure has been performed. Many hospitals are more than willing to reduce your costs if it ensures they will receive payments. You can also use Medicare rates as a guide for negotiation. Typically Medicare negotiates a 73% discount of an average hospital bill. While most hospitals likely won't agree to the amount, it's a good alternative if you your comparison shopping didn't yield bigger discounts.
Negotiate Payment Timing
Many hospitals are more than willing to set up a monthly payment plan, and it is relatively easy to do so. Explain your circumstances to the billing department and work out a plan that benefits both of you.
On the flip side, if you do have the money to spare you can often get a cash discount for paying down the amount all at once.
Hire a Professional
Hospital bills can be difficult for people to navigate, and most of us don't have hours to spend on the phone haggling with medical billers. If you are daunted by doing the negotiating yourself, consider hiring a patient or medical-billing advocate.
Most of them will charge a percentage of the amount you save on your bills. As experts in the field, they can potentially save you much more than you would have on your own. Just make sure to thoroughly vet any company or professional you decide to work with, and avoid anyone offering a deal that is too good to be true.
No one should have to fear going to the hospital for necessary treatments due to the prohibitive costs, and luckily no needs to as long as they either have the proper negotiating skills or someone on their side who does.
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