How to Reduce Your Hospital Bills

The medical industry, unlike virtually every othercharged for a room and what that charge
business, loves to keep their prices secret. Theyincludes. If it doesn't include something you might
do this, very simply, so they can make moreneed, such as tissues, bring your own.
money. Only by shopping your medical care,Ask your doctor to estimate your cost of
demanding price transparency, negotiating for thetreatment.
best price, and carefully reviewing your bill canBring your own prescription medications to avoid
you be assured that you are getting a fair price,paying top price for medications purchased from
and not being ripped off.the hospital.
A dramatic example is the price hospitals chargeIf possible, keep your own lists of tests,
of open heart surgery. The Valley Hospital Medicalmedications, and treatments. Hospitals have been
Center in Las Vegas, Nevada charges $233,259known to charge men for pregnancy tests and
for open heart surgery involving a heart valveadults for newborn tests.
replacement. The Mayo Clinic, recognized as oneNever pay the bill before leaving the hospital. You
of the top heart care centers in the world,may be told this is required, but it is not. Before
charges $79,601 for the same procedure. Aspaying your bill read it carefully, and compare it to
another example, The Miami Herald recentlythe estimated costs you were given before being
published an article about hospital pricing in Florida.admitted.
A woman going to Palmetto General Hospital inDemand an itemized bill, and ask for a detailed
Hialeah for physical therapy following a carexplanation for any items you don't understand.
accident had tried to find out what the treatmentDon't accept generic answers like "lab fees" or
would cost her, but to little avail. After eleven"miscellaneous fees".
sessions she started receiving the bills - $1,560Health Savings Accounts Promote Price
per visit. She was able to find the same serviceTransparency
at Memorial Regional hospital in Hollywood, FL forHealth Savings Accounts (HSAs) are plans that
only $50 per visit.have a high deductible, and a savings account in
Hospital Overchargeswhich tax-deductible contributions can be placed.
Anyone who has ever tried to decipher a hospitalThe money in the account can be used to pay
bill knows that they can be next to impossible todeductibles and other charges not covered by
understand. This conveniently makes it easy forhealth insurance.
hospitals to hide improper charges by usingThe great promise of health savings accounts is
mysterious medical technology and codes.that they will re-inject market competition into the
Whether through deliberate overcharges orhealthcare market. As all of us who were
honest errors, experts estimate that hospitalsfortunate enough to take Economics 101
overcharge patients by $10 billion a year, or anunderstand, the balance of supply and demand
average of $1,300 per hospital stay.provides the public with the greatest value at the
Hospitals have been known to charge $129 for alowest possible cost. If company B can produce
"mucus recovery system" that was really a $2and distribute the same quality widgets as
box of tissues, $57.50 for a "free" teddy bear,company A, but at a lower cost, then the
and even $1,004 for a toothbrush. Most peopleaverage price of widgets will fall, more people will
never see an itemized statement, and so have nobe able to afford more widgets, and the average
idea what they're being charged for.quality of a widget will increase, as businesses
Nora Johnson, a medical billing advocate, wascompete for customers. This is a wonderful
quoted in a recent article saying that over 90%system, and is part of what has made the United
of the hospitals bills that she has audited have hadStates the wealthiest country in the world.
gross overcharges.Unfortunately, this system has not been in play
Hospitals often go to extraordinary lengths towhen it comes to healthcare, because the
discourage you from delving too much into yourconsumer has not typically been paying the bill. As
bill. Nevertheless, there are some specific thingsa result, the consumer doesn't care what the
you can do to make sure you're not gettingservice costs, and most doctors, hospitals, and
taken for a ride.pharmacies are very reluctant to reveal their
If possible, call the hospital's billing department(high) prices.
ahead of time and ask them what you will be