How to Lower Medical Bills

Medical debt is an unsecured debt.

Regardless of whether you are uninsured, insured or use an out-of-network provider, you can reduce your medical bills. While insurance companies receive group rates, the uninsured may pay four to five times higher medical bills, according to ConsumerReportsHealth.org. Be your own patient advocate by negotiating your own medical bills.

Instructions

1. Ask for a discount before you incur the medical bill. Ask how much the visit will cost and if a discount is offered. If you wait until the appointment, ask your doctor whom you should speak to about a discount.

2. Ask your doctor about lower cost treatments for your condition. Ask if the doctor or hospital will do an outpatient procedure instead of hospitalization or if an inexpensive diagnostic test is available over a costly one.

3. Turn down a credit line offer from the hospital. This eliminates your ability to negotiate your bill. Do not pay your medical bills with a home equity loan either. A home equity line of credit is a secured debt, and you might lose your home if you are unable to pay it.

4. Ask for an itemized hospital bill, and examine the bill for any errors, such as personal information or billing code mistakes. Billing code errors may appear as the wrong procedure or condition. Look for duplicate billings of fees, procedures and tests. Check the number of days you were charged for a hospital room and ensure no additional charges were made for sheets or towels, which are a basic service that should be included in your room fee. Request a corrected bill should you find errors. If you are insured, ask the hospital to re-file the claim with your insurance provider.

5. Ask the hospital their charges-to-cost ratio. This is the markup beyond the hospital's actual costs. According to "Kiplinger" magazine, this markup averages three to one, nationally. Offer to pay the discounted price immediately. Compare coverage on the bill to that of your insurance plan. Contact your insurance provider about deductible, co-pay or other insurance coverage errors.

6. Involve a claims specialist or medical-billing advocate to examine large medical bills and negotiate for you. "Kiplinger" magazine suggests looking for a professional through the Medical Billing Advocates of America or the Alliance of Claims Assistance Professionals.

7. Participate in your employers' Flexible Spending Account or Medical Spending Account, suggests "Smart Money" magazine. These plans allow you to spend pretax dollars on medical expenses not otherwise covered by your health insurance. Most plans allow contributions of $3,000 to $5,000 annually. Contributions are collected equally from each paycheck, but the anticipated total contribution can be used at any time during the year.

Tips & Warnings

• Call your state's department of insurance if attempts to negotiate an inflated bill fail. They may represent you in your negotiations, according to Bankrate.com.

References

• Consumer Reports Health; Negotiate Your Medical Bills and Check For Errors; October 9, 2008
• "Kiplinger"; Save Thousands on Your Medical Bills; Elizabeth Ody; August 2008
• MSN Money; 5 Tips For Haggling Over Medical Bills
• "Smart Money"; The Best Way to Save on Health-Care Costs; January 25, 2011
• Bankrate; 7 Ways to Cut Health Care Costs; Vanessa Richardson; March 23, 2010

Resources

• Medical Billing Advocates of America: Find An Advocate
• Alliance of Claims Assistance Professionals: Find a Claims Assistance Professional to Help You