Table of Contents
Infographic: How to Cut Your Medical Bills by Thousands
The Secret Rules of Hospital Billing (That 99% Don’t Know)
Imagine getting a $9,000 hospital bill, paying it in full, and then finding out you could have saved $3,000.
Studies show up to 80% of hospital bills have mistakes that cost Americans thousands – and hospitals are betting you’ll just pay it.
I passed the CFP® exam at 16 and have helped millions improve their finances, and here’s exactly how to fight back during and after your visit so you never overpay again.
What You Can Do: During the Hospital Visit
During your visit, make sure to ask if each procedure or test is necessary or urgent. You could save hundreds on blood work or an MRI by getting them at a different facility later, since they’re often not time-sensitive.
And here’s a law most people have never heard of: the No Surprises Act.
If you end up in an emergency room at any facility, in-network or out-of-network, out-of-network providers generally cannot bill you beyond what you’d pay in-network.
Just remember that ambulances and the care provided after you return to stable condition are excluded.
If your bill violates this, you have the right to challenge it. Most people just pay because they don’t know about this, but now you know better!
What you can do during the visit is powerful, but most people leave serious money on the table after their visit. Here’s how to avoid that.
What You Can Do: After the Hospital Visit
Start by requesting an itemized bill.
Studies consistently find that up to 80% of hospital bills contain errors:
- Duplicate charges
- Billing for a more expensive service than was provided
- Charging for items that are already part of another charge
- Separating services that should have been billed together
You have the right to see, and potentially dispute, every single line item – so ask for it.
Then negotiate the balance based on your situation. Hospitals routinely accept 40 to 60 cents on the dollar from uninsured patients, and insured patients can negotiate their remaining balance too.
Just call the billing department and ask directly if the amount can be reduced or if financial assistance programs apply to your situation.
And apply for charity care, especially at non-profit hospitals which are legally required to have financial assistance programs.
These programs can significantly reduce the cost, even for families who earn 6-figures, but the vast majority of people never even ask.
If you don’t have the money to pay in full, request a 0% interest payment plan. Most hospitals offer one if you just ask, and you’ll save hundreds compared to putting it on a credit card and paying 20% interest for years.
And if you’ve got a truly large bill, say over $5,000, consider hiring a medical billing advocate who can find errors for you and dispute them.
Many work on contingency, meaning they’re paid 25-35% of whatever they save you, so there’s low or no upfront cost. Just make sure to ask how much they charge before you hire one.
But you have the most leverage before you even need to go to the hospital.
What You Can Do: Even Before the Hospital Visit
First, know these three numbers related to your health insurance:
- Deductible
- Coinsurance, and
- Out-of-pocket maximum
Your out of pocket maximum is the single most important figure, since it’s the most you can owe in a given year for covered services.
Then build your emergency fund. If you already have 3-6 months of expenses saved, that’s great. But if you’re not there yet, try to at least save up to your out of pocket maximum.
Next, if you have a high-deductible health insurance plan, use an HSA, or Health Savings Account.
It’s the only account with a triple-tax advantage, which means money goes in pre-tax, it grows tax-free, and you pay zero taxes when you withdraw for medical expenses. This is better than a 401(k), Roth IRA, or any other account.
And for any non-emergency procedure, call your insurer ahead of time to confirm that your healthcare provider is in-network.
Get it in writing if you can. Because with most health insurance plans, you pay way more for out of network providers – and with some plans, out of network providers may not be covered at all!
But hospitals aren’t the only ones ripping you off. Check this to find out how banks earn millions by exploiting our psychology, and how to fight back: The Dark Psychology Your Bank Uses Against You (And the Exact Fixes)