Don’t Let Medical Bills Ruin Your Financial Health
June 21, 2016If you have read my posts, you know that my family has been in the emergency room so often that during one visit, the nurse was able to get our information from memory. This experience gave me a taste of what people with ongoing medical expenses go through. We are lucky that most of our visits needed little to no follow-up and we are all healthy though.
Not everyone is so fortunate. A study by Harvard University showed that medical expenses are one of the top reasons for bankruptcies. If your medical expenses are crippling your finances, consider doing the following:
Shop around for prescription medication. The same drug can cost wildy different prices depending on where you go to get the medication. This is because the price of the drug typically depends on the pharmacy’s deal with the supplier, the pharmacist’s overhead and profit margins. FDA regulates the drug, not the price. Shop around for the best price or use websites like GoodRx.com or LowestMed.com to shop around for the best price in your area.
Bonus Tip: Typically, you do not need to be a member of warehouses like Costco or Sam’s Club to use their pharmacies.
Before you get a medical procedure, find out the average cost. Even though your doctor may be covered by your insurance, the facility where you are getting your procedure may not be, so be sure to verify insurance coverage. The price of a procedure can cost three times or more as much at one facility vs. another. Call local hospitals or use websites like Healthcare Bluebook to gauge how much your medical bill may cost. Finally, try to negotiate the cost of your procedure before you get the service.
Bonus Tip: Even after you have your procedure, still do a cost comparison. If your bill is much higher than the average for your area, use that information to negotiate your medical bill.
Contact your hospital if you cannot afford to pay. Many hospitals have programs for people who are uninsured or under-insured. Contact your medical provider before the procedure if you feel like you might not be able to cover the bills. The billing office may be able to find alternate ways to pay for the bill.
In addition, ask the hospital for a written financial assistance policy. The policy should spell out eligibility and the process of applying for assistance. Make sure any deals and/or discounts you get are in writing as well.
Bonus Tip: Medical bills are notorious for errors. After your procedure, ask for an itemized bill and your medical records. Any items on your bill that do not match your medical records should be disputed.
If you do not have the time, patience or ability to negotiate on your own, consider hiring a medical bill negotiator. Years ago, I was involved in a car accident and quickly mounted several thousand dollars in medical bills. After going back and forth with the insurance company and lawyers, I hired a medical bill negotiator to review my bills and they found errors that saved me thousands of dollars. The cost of the services varies. A company may charge by the hour. Others charge as a percentage of service. You can search for a medical bill negotiator on websites like the National Association of Healthcare Advocacy Consultants, the Alliance of Claims Assistance Professionals, and the Patient Advocate Foundation.
Bonus Tip: See how much you can negotiate on your own before hiring a professional.
Remember that you have a lot more negotiating power than you think when it comes to your medical expenses. If possible, consider using the resources mentioned in this blog post to shop around for the best price for your medical needs and to proactively check your bill for these. This can go a long way to slashing your medical costs.