Woman slashes $10,000 in medical bills by almost 30%. How you can, too
Filed under: Health, Economizer, Insurance - Health Insurance
When she came down with the stomach flu, MaryJane Sullivan, 52, was frightened -- not because she worried that the flu would do her in but rather she didn't think she could afford the trip to the doctor's office. Unfortunately, Sullivan ended up in the ER instead, as a result of dehydration."I got a bill for more than $10,000 for 18 hours in the emergency room," she says. Without insurance, Sullivan panicked. A friend suggested she try to "talk down" her bill. "She told me I might be able to talk to the billing department and get a discount," Sullivan says.
After months of "wheeling, dealing and pleading," Sullivan says she got the hospital to slash $2,700 off her bill. "I still owed a lot, but was grateful all the phone calls and letters shaved that much off."
Whether you're insured, under-insured or uninsured, it's possible to receive a substantial discount off the "full charge" rate when you negotiate, says Carrie McLean, consumer specialist with eHealthInsurance.com. "Some patients may even see discounts of up to 60% off the full price."
The uninsured can get as much as 20% off of a hospital bill purely by negotiating, she says. And, if you're able to pay the full tab within 30 days, they may knock off another 20% (paying the bill within 60 days could result in a 10% discount), says McLean. Offer to pay in cash and you could get another 20% off.
Even if you can't pay quickly or in cash, there are still ways to cut your medical bills.
Do your homework and act early
"Most doctors will be happy to negotiate, if not by lowering the price, at least by arranging a payment plan," says Dr. Margaret Lewin, medical director atCinergy Health, a health insurance provider.
"The ideal situation is to get a quote from your medical provider up front, shop it around, and negotiate an acceptable rate in advance, " says Jason Beans, CEO of Rising Medical Solutions, a medical cost containment company in Chicago. "Often for elective surgery or procedures [such as plastic surgery or fertility], this is normally how it's done."
Beans suggests patients research the rate Medicare reimburses a doctor for similar services. "Medicare might be too low, since they are the largest payer in the country and get nice discounts, or too high because they are the government, so they sometimes overpay. But this is a good baseline to see if your charges are reasonable or what the target range is you should try to negotiate down to," says Beans.
Hire a negotiator
If you don't think your powers of persuasion are up to snuff, there are services that you can hire to do the negotiating for you. Procedures for each medical negotiator vary, but generally speaking, they will review your bill, contact your doctor or other provider and request a lower price.
Of course, having someone do your bidding isn't cheap. But in most cases, you'll wind up paying a negotiation service a fraction of what you'd pay if they didn't intervene on your behalf.
"I paid 25% of the amount they saved me, but it was totally worth it. It took two phone calls and was very easy. I began the process with the yourinsurancenightmare.com folks by faxing my bills. They called me back with an offer from the hospital, which, naturally, I accepted." says Elaine Luther, a patient who cut a $5,000 bill down to $500.
Look for errors
"Unlike doctors' bills, hospital bills are rarely straightforward, because they can't estimate your costs prior to admission. That's why bills frequently contain errors and should not be paid at the time of discharge. You need time to go over the itemized bill in detail."
If billing errors exist or you can't understand the bill, speak with your carrier (if you have insurance) and with the hospital billing office for clarification. If you still aren't getting anywhere, you can turn to an advocacy group such as the Alliance of Claims Assistance Professionals. "Such groups are composed of professionals with backgrounds in insurance and medical billing who can negotiate on your behalf. They either charge an hourly fee or a percentage of your total bill," says Lewin.
Just keep in mind these groups aren't licensed, so you'll have to check them out carefully and do some comparison shopping.
Gina Roberts-Grey is a freelance journalist specializing in health, celebrity and consumer issues.
AP
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Reader Comments (Page 1 of 6)
2-12-2010 @ 7:12AM
oldgringo said...
No.s 1 - 2 - 3.....Get this non issue crap off the comments section it doesn't belong here or any where else for that matter. Nuff said.
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2-12-2010 @ 7:52AM
Sasha Louisa said...
I totally agree.
2-12-2010 @ 11:37AM
rosco said...
u r 100% right it pisses me off reading theese hard up asses looking for love on theese comment sections talk about hard up.
2-12-2010 @ 6:46AM
tony said...
I am pain in my side so I want to the ER about 12.00 PM and 1hr I was out I was so happy but I still had the pain couldn't find any thing .When I got the bill it was $15,000.00 thats right
$ 15,000.00 and like i said I still had the PAIN . Thank God I was On medicare so far no bills
but this is a joke
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2-12-2010 @ 7:24AM
Jackb said...
Does anybody really think hospitals are worth what they charge?
Is there any other business which is allowed NOT to disclose charges until they bill them?
It is time for healthcare reform and MAJOR racketering indictments against hospital CEOs
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2-12-2010 @ 8:06AM
Steve said...
Let's see, does your local mechanic or store owner or oil business have to give years of their lives to learn how to take care of you? No, not too many people do. Try school for 4 to 8 years or more after college and then tell me you are not worth it. If anyone deserves a high income, it is anyone who works in the health care business taking care of ill people.
2-12-2010 @ 8:34AM
frenchblue367 said...
@ Steve: First thing you must understand is that doctors and nurses are among the best-paid professionals in this country. They bill outrageous sums of money, agree to discounts and still make money hand-over-fist. This is why so many people from other countries get their educations in their native land, often on their own government's dime, then come HERE to practice because we have NO control over health care costs. The insurance companies are no better. They pay what they feel a procedure is worth, and the uninsured don't have that luxury and often end up paying the full amount, likely making up the dollars lost from the discounted bills.
That said, there's also the little issue of the illegals using our hospital emergency rooms as their primary care facilities. They get a hangnail, they show up at the ER, and after a few hours, they're treated, and since they're not documented, throw the bills from the hospital in the garbage when it comes in the mail with NO repercussions. Those are the costs that OUR big money is covering, NOT OUR OWN COSTS. So give me a break when you say how many other professionals spend years of their lives educating themselves, though you have a point, there's still this little issue of billing equaling highway robbery--only for those who HAVE the money or ARE documented citizens.
2-12-2010 @ 10:31AM
noel said...
i am a nurse that changed jobs and had to wait 6 months for the insurance coverage. Contrary to popular belief, we are not high paid. I had groin pain that increased steadily for three months until I could afford to seek help. 3 hours in the ER and just under 12,000 dollars for CAT scans, etc...and no diagnosis to explain the pain (found out I ahd a gall stone and diverticulosis,but neither was causing the pain). A simple x-ray several days later for 500 bucks showed a pinched nerve...I was in shock over the hospital bill and thought "How could I pay that if I didn't have insurance?". I have become an advocate for national coverage after that....the next month, I received an adjusted bill for less then 2,000 bucks.........
2-12-2010 @ 12:51PM
tyrebitre said...
"Steve said...
Let's see, does your local mechanic or store owner or oil business have to give years of their lives to learn how to take care of you? No, not too many people do."
Perhaps most don't, but lots of people ( esp. small businesses ) put their lives and souls into their businesses; work outrageous hours; and make little or ( highly likely ) fail and lose everything. If they screw-up, the odds of it costing someone's life are slim: plus, if they do multiple ( expensive ) tests, and tell you the reason your car pulls to the left is because it has the wrong spark plugs; you don't keep paying them when they turn out to be wrong and wish to try something else - this is standard operating procedure with the medical field
." Try school for 4 to 8 years or more after college and then tell me you are not worth it. "
Lots of folks go to school more than the standard 4 years: simply continuing to be in school should not guarantee you a superior wage. Granted, those who become doctors usually start from the upper levels in grades, but if you think that means all doctors graduate qualified, explain the thousands of deaths attributed yearly to medical mistakes and the millions of malpractice suits yearly.
"If anyone deserves a high income, it is anyone who works in the health care business taking care of ill people."
Only if they are dedicated individuals who have superior skills: this does NOT describe the huge majority of those in the medical field at ALL levels, the majority of whom do NOT make obscene wages. Facts are: the medical costs are far outrunning the rates of inflation; and doctors, medical facilities, and drug companies are ALL making huge sums from vastly over-priced services.
I'm also betting you work in the medical field.
2-12-2010 @ 7:32AM
ycav4424 said...
I went to the ER for pain and ended up with a bill for $145.00 to have my temperature and blood pressure checked. I still had the pain too. I tried to tell them that I was an illegal, but they already had my paper work done. It does not pay to be honest these days.
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2-12-2010 @ 7:39AM
non ya business said...
big news.... as soon as you walk into emergency its $500 right off the bat and the cost escalates from there.... $50 bucks for one aspirin is what i call WAY OVER PRICED.... talk about a 1000 percent mark up!!
All hospitals care about is there BOTTOM LINE, The same with ANY OTHER business today!
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2-12-2010 @ 11:49AM
jo said...
Emergency departments and hospital costs can not be negociated most of the time there is a set fee for the hospital then the doctor, then lab, xray, and the radiologist fee if those services are used. the hospital is not paying for the price of aspirin alone but the cost to keep the lights on and place running so the cost of the aspirin is not what is at the supper market. Niether is the ct scan , x ray. The public including myself and I am an ed doctor need to educate themselves and be educated. I as a doctor provide you a service that service is taking an history and physical determining what is your likely illness then confirming it some times it is easy and no test is needed, other times it not and I have to determine what it is by tests these rule out the problem we accept a mechanic doing this and billing us for his time, but determine to have the car fix or not, unlike the mechanic the doctor as expected to treat and fix as he finds out whats wrong because we are taking care of our fellow human beings. I have to make a living pay school loans back and by the way it costs 200,000dollars for medical school another 100000 for the educate to get in to medical school and thats not the interest on the loans it is estimated that a physician acculumated debt at the end of residency is 500000 -6000000 dollars. The banks and the government in there good will allow that to be paid off in 10 years. The average starting salary of physician is from 100000 to 400000 depending upon your speciality. Its a good salary but if you average the payment out over 10 years thats 50000 in principal aloan a year with interest rates between 6 and 10% that can be 60% of your salary by the way none of this is tax deductible , so a family practice doc makes 1000000 after 3 years in practice maybe 200000 AND 7 YEARS 250000 BETWEEN TAXES AND LOARN PAYMENTS NOTHING FOR FOOD AND WATER, FOR THE FIRST 3 YEARS OF PRACTICE THEN AFTER TAXES THEY GET THE SOME MONEY. NOT MUCH. REMMEMBER THE AVERAGE DOCTOR IS BETWEEN 25 AND 30 YEARS OF AGE WHEN THEY START PRACTICE . I LUCKED OUT I HAD A WIFE WHO WORKED DIDN'T DIVORCE ME AND SHE PAID FOR THE BREAD AND WATER THE FIRST 3 YEARS. NOW I PAY TO KEEP HER HAPPY I AM NOT COMPLAINING I AM INFORMING LIFE IS NOT ALWAYS GREENER, BY THE WAY THE LIFE OF A DOCTOR I SAW MY FAMILY ONE DAY LAST WEEK BECAUSE THE OTHER 6 WERE CONSUMED BY MY PATIENTS IN THE HOSPITAL , OFFICE AND SLEEP NEEDED. MY PATIENTS WORK HARD FOR THEIR MONEY AND I WORK HARD FOR MINE. THERE IS NO TAX CUT NO FREE RIDE FOR ANY ONE AND WE ALL HAVE OUR BURDENS
2-12-2010 @ 7:47AM
Tony said...
Medical is such a scam for $$ but we do need care.
I have a friend who has no insurance and when he goes to the hospital er he gives a phony name address. Screw them for there $$.
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2-12-2010 @ 8:42AM
Angela said...
They ALWAYS want to see ID... always
2-12-2010 @ 10:44AM
Melissa said...
Negative Angela... No ER can refuse service to anyone... If you show up after an accident with no ID you're expecting them to turn you away? Ha! Get your facts straight... anyone can go to any emergency room in the country and give a phony name and address and they get treated just like the rest of us
2-12-2010 @ 7:50AM
Aggie said...
I don't have insurance. I went to see my doctor, knowning I would have to pay more if I didn't have insurance. I paid the bill and two days later got a second bill for the "Use of the Room". I'm being changed for having a private conversation with my doctor. I called the billing office and was told, "We write it off if you have insurance, but in your case you have to pay the charge". WE NEED HEALTH CARE REFORM IN THIS COUNTRY.
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2-15-2010 @ 6:45PM
Frank said...
I recentely had 3 teeth exstracted, and when I went to the Dr all I had to pay was a copay, however the Dr's office said to me that that they could not give me a bill up front due they have to wait unil they file the claim with the insurance company. Then I got a bill however they fixed it so that I could make payments.
Just a hint if you don't make any kind of payments to any Dr's they will turn you over ot a collection agency.
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2-12-2010 @ 7:56AM
Sasha Louisa said...
Hospitals usually have a contract with your health provider. If you are uninsured, there usually is what is a called a "self-pay" discount given to the patient. The percentage varies. However, did you know that whatever the contract is between the hospital and the health provider that's usually the end of the bil. However, I have seen some hospitals go after people - they put their bill into collection and then the if you do not respond to any of the collection letters (and the collection co keeps detailed notes every time you call) and you own a home you can and will be sued for the balance owed. A judgment can also be placed against your name for non response after a period of time. Be wary and protect yourself!!!
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2-12-2010 @ 8:33AM
jnjarnold said...
As crazy as it sounds, I recently read an article about people going abroad to other countries for medical procedures and the difference in prices is significant....REAL significant! I am on a fixed income and cannot afford a gap policy and although that 20% out of my own pocket doesn't sound like much, I'm already struggling in deep water with the local medicals I have right now. The back surgery I need would bury me if I have it done here in the states...if it is possible to go under even further...and it is! I've tried the negotiating process with some small luck but nothing that has made a major difference, so I just got back on the phone and told them all that I've got a hat that I put all doctor and hospital bills into every month and draw a names and that's the bill I settle. If they want their bill in the hat they need to just hold their horses and get in line. In a household with a COMBINED income of $1300 a MONTH (and we do not get ANY OTHER assistance!), I'm doing the best I can, just like everyone else!
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2-12-2010 @ 8:01AM
nikolai said...
Uh,,,is this an insurance commercial?
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