Medical debt has become the leading cause of personal bankruptcy, with $88 billion of outstanding medical bills currently in collections, according to the Consumer Financial Protection Bureau.
Unexpected medical bills aren’t just difficult financially, they are also difficult emotionally.
"Despite the fact that record numbers of Americans are insured, a lot of us are still getting unexpected medical bills,” said Kevin Brasler with Consumers' Checkbook.
Brasler said before you panic and pay the bill immediately, take some time to investigate the charges because there could be errors.
CFPB’s report defends that statement, saying, “medical bills are rife with errors, and billing systems are complex. Confirming an unpaid bill often depends on whether you contact the provider, the billing department, or the insurance company.”
Brasler said it’s important that you confirm you are being billed for the services you actually received.
"We had one patient who was in the hospital in New York for a long, extended stay and was charged for a bone marrow transplant, but she never received a bone marrow transplant,” said Brasler.
Brasler said there was a coding error and it's an example of why you should wait before paying your bill. He said waiting will allow you time to make sure the healthcare provider submitted the claims correctly. As for how long you should wait to submit payment, providers typically wait 90 days before turning a bill into collections.
When talking about medical bills, it’s important to know about the federal No Surprises Act. It went into effect in 2022 and aims to protect people from surprise medical bills.
According to the Centers for Medicare & Medicaid Services, the law, “[restricts] surprise billing for patients in job-based and individual health plans who get emergency care, non-emergency care from out-of-network providers at in-network facilities, and air ambulance services from out-of-network providers.”
It's also worth mentioning the other price transparency laws that are in place across the country. Effective 2021, all hospitals must provide patients with the option to look up the cost of their care before getting a procedure.
The Problem Solvers have done several reports on the Hospital Price Transparency Rule and learned patients can price match and “shop around” at local hospitals through their online tools.
However, if you get a procedure and the final bill is correct, according to the procedure a patient received, Brasler said to ask about payment plans.
“A lot of hospitals and even doctor's offices have programs where they'll forgive a certain amount of debt,” he said. “In some cases, they'll just take whatever they could get from the insurance company and forgive the rest, so long as you can show that you're not going to be able to pay this bill otherwise.”
Medications are also a huge burden for patients. Brasler advises people to ask what medications are available rather than using the first ones offered.
“We see this all the time where an insurance company will approve one medication, but not another because it's more expensive, or they have a different relationship with a drug manufacturer – basically,” he said.
While it can feel intimidating to ask these questions, there are patient advocates who can help. Locally, the Patient Advocate Foundation is a nonprofit organization that provides case management services and financial aid to Americans with chronic, life-threatening and debilitating illnesses.
If you have a story about medical debt or another consumer issue that you want the News 3 team to investigate, email problemsolvers@wtkr.com.
