The Power of Questioning Your Medical Bills: New Study Reveals Insights
Key Takeaways:
– Consumers can often gain financial benefits by disputing medical bills or negotiating for relief.
– 26% of those who disputed a bill had it corrected; and about 15% received a price reduction.
– About 62% of respondents who had bills they disagreed with contacted the billing office.
– Consumers are advised to upfront ask about costs and consider getting an itemized bill.
– Keeping track of the communication with the provider’s office is advised.
In light of a recent study conducted by the University of Southern California (USC), many patients may find they can receive unexpected financial benefits by disputing any charge on their medical bills, they perceive as incorrect or negotiating for financial relief. The study contradicted the pervasive belief – held by 86% of consumers who didn’t question their medical bills – that their efforts would yield no positive result.
Driven by Self-Advocacy
The study, published in August, found that about 26% of people who called the billing office because they disagreed with a charge or couldn’t afford to pay it had their bill corrected. Additionally, about 15% got a price reduction, 8% received financial assistance, and a notable 7% had their bills completely canceled.
“Of the people who did reach out, most of them got some recourse through self-advocacy,” said Erin Duffy, a research scientist at the USC Schaeffer Center for Health Policy and Economics, and co-author of the report. The researchers surveyed 1,135 US adults during an August-October 2023 period.
A Complex Billing System
In conjunction with the USC study, the Consumer Financial Protection Bureau’s 2023 analysis of medical bills provided further backing for these findings. It underscored that the medical billing system remains complex, likely to issue inaccuracies and errors, especially among people with multiple insurance sources.
These errors often spring from missing or invalid claim data, issues with authorization and pre-certification, incorrect billing codes, and late filing of claims. Carolyn McClanahan, a physician and certified financial planner expressed concern over the lack of transparency in the process.
Tackling Medical Bills
Despite the challenging environment, avoiding medical bill payments is not a recommended strategy. The potential financial consequences include late fees, debt collection, lawsuits, garnishment, and negatively impacted credit scores.
McClanahan urged patients to be proactive while managing their bills. She suggested consumers should ask upfront about the cost of a medical visit or procedure or inquire about the estimated cost. Sometimes, cash payments could end up costing significantly less than insurance. However, this could also mean that such payments may not count towards one’s annual deductible.
Scrutinizing all charges on an itemized bill can help identify mistakes or any duplicate charges. Furthermore, researching the fair market price for a service and using this data to negotiate can be very beneficial.
Navigate Successfully Through the System
On initiating a conversation with a provider about a bill, McClanahan also recommended maintaining a journal to record the names of the individuals spoken with, the points discussed, and when you can expect to hear back from them.
While the medical billing system may seem daunting, the findings of the USC study emphasize that exploring the potential financial relief through self-advocacy, disputes, and negotiations can lead to significant savings. The key lies in questioning, understanding and actively managing your medical bills.