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StitcherIt’s so normal for us, as a society, to avoid health check-ups out of fear of shocking medical bills. But in most cases, what you see on your medical bill isn’t the amount you actually have to pay. In this episode, experts share the most common medical billing mistakes, how to spot them, and steps to challenge charges, get discounts, and find hidden financial aid.
Use everything in your corner to get the best negotiation outcome on your own.
Jared Walker is the founder of Dollar For, a nonprofit dedicated to eliminating medical debt by making hospital financial assistance known, easy, and fair. Inspired by his own family’s struggles with medical bills, Jared started Dollar For in 2012, and it has since grown into a nationwide movement, erasing over $80 million in hospital debt.
Step 1: Ask for an Itemized Bill & Check for Errors
Up to 80% of medical bills have errors, so reviewing yours is a must. According to Scott Speranza, CEO of Healthlock, who’s audited over half a billion dollars in medical claims, start with asking for an itemized bill to check for duplicate charges, services you didn’t get, or coding mistakes. Flag any errors and follow up with billing.
If you need more clarity or you’re dealing with insurance issues, Jen and Jill also request specific claim forms. The UB-04 form (also known as CMS-1450) is used by hospitals, and the CMS-1500 form is used by individual providers like doctors. These forms can provide additional detail to help you identify billing errors and work through disputes more effectively.
Step 2: Apply for Financial Assistance (Even with Insurance)
The second step involves applying for financial assistance. According to Jared, these programs do exist, even if they’re not always easy to find. To start, you can simply call the hospital and ask to apply for their financial assistance program or search for it online.
In terms of eligibility, he mentions that most people assume they’re not eligible, but many actually are once they ask. It just takes stepping out of your comfort zone. And if you fall just short of the requirements, testimonials show that a letter of hardship can work wonders.
Step 3: Negotiate the Bill—Especially if You’re Paying Cash
According to Scott, many providers offer discounts for self-pay patients or for those who simply ask. Be sure to have the amount you’re able to pay in mind and know what you’re willing to negotiate. To start the conversation, politely explain your situation and ask, “Is there a discount if I pay in full today, or a prompt-pay discount?”
Smaller healthcare providers might be less open to negotiations, but some ambulance companies do offer compassionate care programs. These are often available, the catch is, you usually have to ask for them, as they’re rarely offered upfront.
Step 4: Use a Medical Bill Advocate
If resources like time, connections, or the ability to negotiate are limited, consider seeking help from someone who can advocate on your behalf. A certified medical bill advocate or services like GoodBill, Copatient, or even your insurance company’s ombudsman (if available) can help identify overcharges and handle negotiations for you.
What’s the most shocking medical bill you ever received?
- Jared: Line item for $50 ibuprofen
- Jill: $70k+ for giving birth
- Jen: $32k for hospital visit
Get more from Jared
http://dollarfor.org/frugalfriends
Instagram: @dollarfor
Bill of The Week
Thank you Jared for sharing your bill about eliminating medical bills.
Thanks so Much for Listening!
Thanks so much for listening. We love love love reading your kind reviews of our book Buy What You Love Without Going Broke and we especially loved this one from:
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Fun-filled, shame-free, actionable guide to value-discernment and practice. I recommend this refreshing book for anyone who needs help discerning current values, focusing on priorities, and learning how to be intentional with finances. This book is not for people looking for the next "get rich quick" scheme, nor is it for people who need to judge themselves harshly into paying off debt aggressively.
In "Buy what you Love without Going Broke," the focus is on learning how to do the inner work necessary to identify values, practice curiosity and compassion with past decisions, and implement communities and systems to enrich your finances and your life. I will note that I am a Frugal Friends podcast listener and enjoy the community Jen and Jill have created. You will not regret buying and reading this book, even if it is not part of your budget and it is an impulse purchase 😉
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