Many American experience negative impacts of medical, especially once the unpaid debt turns into a derogatory mark on their credit reports.
According to the Consumer Financial Protection Bureau (CFPB), one in five Americans is dealing with medical debt, collectively amounting to $88 billion. With 43 million credit reports showing medical debt in collections, the issue of high medical bills has continued to be seen across the United States, according to the Associated Press (AP).
Although the healthcare system can be frustrating and daunting, the AP shared some strategies you can use if you find yourself needing to reduce costly medical bills.
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Charity Care Programs
Check to see if you are qualified for your hospital’s financial assistance program, which can eventually cover your bill or even offer refunding payments if you have already made payments, depending on household income.
Nonprofit hospitals are required by federal law to offer financial assistance programs as part of their tax-exempt status. To determine if you qualify, search the hospital’s name along with “charity care” or “financial assistance policy.” Organizations like Dollar For also provide tools to make this process easier.
Utilize the No Surprises Act
For those with private or marketplace insurance, the No Surprises Act can be useful. This federal law ensures that insurance companies must cover out-of-network emergency services and some non-emergency services at in-network rates. If you receive a bill that seems higher than expected, it may be in violation of this law.
To dispute such charges, you can contact the Centers for Medicare and Medicaid Services (CMS) for assistance. Additionally, many states offer consumer help programs to guide you through insurance disputes.
“The complexity of our healthcare system is a major part of the problem,” Kaye Pestaina, a researcher at KFF, a health policy organization told the AP. “Many people aren’t aware of the protections available to them under federal law.”
Request Itemized Bills
If charity care isn’t an option and the No Surprises Act doesn’t apply, you can still take steps to reduce your medical bills. According to the AP, medical billing is notoriously error-prone, so it’s recommended that you request an itemized bill from your provider to check the billing codes for accuracy. This can help if you find discrepancies in charges that you can then contest with your provider.
The Health Insurance Portability and Accountability Act (HIPAA) mandates that providers share this information.
Another tactic is to compare the charges with what insurance companies typically pay for similar services. If your bill is significantly higher, you have grounds to negotiate a lower amount or even take the matter to small claims court.
Persistence
Dealing with medical bills can be daunting, but persistence often pays off. Even if your initial attempts to lower or eliminate a bill are unsuccessful, you can always appeal the decision with your insurance company. Data shows that those who appeal are often successful in getting their bills reduced or overturned entirely, according to the AP.
“What we’ve seen in our research and the data is that those folks who appeal—and there are few who appeal—but for those who appeal, there’s a high level of overturning,” Pestaina told the AP.
Additionally, you can also reach out to your state insurance commissioner for additional support if needed.