Oct 15, 2024
Medical costs are a big problem in the U.S. In fact, according to the Kaiser Family Foundation, Americans owe at least $220 billion in medical debt.
Sadly, some people face a bigger burden than others — around 14 million people individuals have at least $1,000 in unpaid medical bills, and about three million owe more than $10,000.
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Having significant medical debt can seriously impact your finances. But the good news is, there are ways to fight back and potentially minimize what you owe.
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One popular video by Erika Kullberg, an attorney behind the YouTube channel ErikaTaughtMe, sheds light on the steps you should take before paying any medical bills. Her advice could save you a lot of money, so it’s worth trying her steps first before flipping the bill.
1. Ask for an itemized bill
Kullberg noted the first thing to do is call your care provider to ask for an itemized bill that includes billing codes. An itemized bill allows you to see exactly what and how you were charged. You can confirm you received all of the services and weren't double charged for them.
According to Akasa, an AI think tank for healthcare expenses, four in five medical bills contain errors. Evidence suggests as much as $68 billion is wasted each year paying inaccurate or fraudulent medical bills. Asking for an itemized list helps you to avoid your share of these billions as you can appeal any charges you don't believe belong.
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2. Call your insurance company for help
Second, Kullberg suggested calling your insurance company and requesting an explanation of benefits. This illustrates what your insurer paid so you can compare their payouts with the doctor's bills. You can confirm you aren't being charged for a service your insurer covered. You can also ensure the policy covers what it's supposed to.
Around 15% of all claims submitted to insurers are denied. Most denials come from requests for more expensive care. If an insurer declines coverage incorrectly, you could be stuck paying for procedures and could waste hundreds, if not thousands of dollars.
The good news is, you have an option to appeal a denial of benefits. You have up to six months to file your appeal and request an internal review, according to the National Association of Insurance Commissioners. If that's unsuccessful, you can request an external review so a third-party organization can perform an audit of the insurance company’s process.
Appealing a denial could mean your insurer ends up paying.
3. Ask for the financial assistance policy
Finally, Kullberg advised asking your hospital for the financial assistance policy. The Affordable Care Act mandates hospitals prepare both a written Financial Assistance Policy and a written Emergency Medical Care policy and they must publicize both.
The hospital should provide information on how to apply for assistance and eligibility. Some states have charity care laws and also require hospitals to provide free or discounted care when requirements are met. A $15,000 hospital bill could be dropped to as low as $150 or even $0 if you qualify for financial assistance, according to DollarFor.org.
By taking steps to avoid unfair charges, making certain your insurance covers as much as possible and claiming financial help available to you, you could save a fortune on your medical bills — and hopefully avoid becoming one of the millions in medical debt.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
