Annoying medical bills? Study shows: Many individuals don’t take the decisive step to get these debts under control

Consumers often feel like their medical bills are rigid, inflexible and set in stone. But that's not at all times true: A brand new study shows that patients can often gain financial advantages by disputing seemingly incorrect bills or negotiating for financial relief.

86% of consumers who don’t contact their doctor to query a medical bill said they don’t imagine it could make a difference. – but “the experiences of those who have come forward prove the opposite,” says a brand new study from the University of Southern California. study.

According to the study, published in August, about 26 percent of people that called because they disagreed with a charge or couldn't afford it received an adjustment to their medical bill after contacting them. About 15 percent received a price reduction, 8 percent received financial assistance and seven percent had their bill canceled entirely.

“Most of those who came forward were able to get help through self-advocacy,” said report co-author Erin Duffy, a researcher on the USC Schaeffer Center for Health Policy and Economics.

The researchers surveyed 1,135 adults within the United States from August 14 to October 14, 2023.

About 1 in 5 respondents said they received a medical bill prior to now 12 months that they didn’t agree with or couldn’t afford, and about 62% of them contacted the billing office to resolve the problem.

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“If you can’t afford to pay anything, or [if a bill] If something doesn't seem right or doesn't match your experience of care, you should call and ask questions about it,” Duffy said.

The savings can amount to hundreds or even thousands of dollars, depending on factors such as the patient's health insurance and the type of doctor's visit or procedure, says Carolyn McClanahan, a physician and certified financial planner in Jacksonville, Florida.

A consumer protection office for financial issues from 2023 evaluation of medical bills for adults ages 65 and older found that patients “face a posh billing system with a high likelihood of errors and inaccurate billing.” Inaccurate bills often result from erroneous insurance claims and are more common among consumers with multiple sources of insurance, the CFPB said.

The most common errors included missing or invalid claim data, problems with authorization and preapproval, missing medical records, incorrect billing codes and failure to submit claims on time, the report said. Such errors contributed to the “denial of claims that will otherwise have been paid,” it said.

“[Bills] go in all places,” said McClanahan, founder of Life Planning Partners and a member of CNBC's advisory board. “And there isn’t any transparency or rhyme or reason as to how [providers] determine to attack.”

Doing nothing and avoiding paying medical bills might be not an excellent plan of action: It could have negative financial consequences, equivalent to late fees and interest, debt collection, lawsuits, repossessions and lower credit scores, in line with a separate CFPB Resource.

“If something seems outrageous to you, ask questions,” McClanahan said.

Consumers should ask upfront what a physician's visit or treatment will cost or inquire concerning the estimated costs, she said.

Sometimes consumers pay “a hell of a lot less” after they pay money fairly than through insurance, McClanahan said. But writing a check can produce other consequences, equivalent to the quantity not being counted toward the annual deductible, she added.

If you suspect you’ve been overcharged, Inquiry an in depth bill from the provider or hospital and search for errors or duplicate charges, in line with PatientRightsAdvocate.org. Find out the fair market price for a service and use that information to tell negotiations, the nonprofit says.

The telephone variety of your healthcare provider's accounting or billing office might be found in your statement, the CFPB said.

According to the regulator, you must also ask the next three questions on your itemized bill:

• Do the fees reflect the services you receive?
• If you’ve insurance, do the bills reflect your insurance payment and what the provider believed was covered?
• Do a number of the charges indicate that a service was “out of network” when it was not?

If you call a physician a few medical bill, keep a journal of the communication, McClanahan advises. Write down the names of the people and what was discussed, and get assurances about once you'll receive a response.