5 Ways to Lower Your Medical Bills

Would you take your car to a mechanic to have a dent repaired and not ask for a cost estimate up front? Would you trust the shop owner if he told you there was no way to know the actual cost of your repairs until after he'd completed the job? Would you agree to the repair without checking on the reliability and cost of other auto body shops in your area? Most likely, if you're a cost-conscious adult who's learned the value of comparison shopping; your answer to all three questions is "No! Of course not!" So why do so many of us fail to shop smart for our health care, which can be far more costly?

According to a recent survey by Consumer Reports National Research Center, only 31 percent of Americans have tried to negotiate the price of their medical bills.

However, research shows that with a little time and effort, you can lower your costs by speaking up. Of those patients who tried, 93 percent have been successful at least once, and more than a third saved more than $100 when they took the time to haggle.

Here are five ways that you can lower your medical bills:

1. Do your homework. HealthGrades and other websites publish cost reports detailing the average price for specific medical procedures, diagnostic tests and doctors' visits for your area.
2. Know the difference between the "rack rate" or "list price" that hospitals and physicians charge and what the providers actually get paid. Almost no one pays full price. Insurance companies and the government negotiate substantial discounts, typically paying only about 30 percent of the "official" charges.
3. Pay cash. It's easier to negotiate deeper discounts if you are willing and able to pay cash up front at the time of your visit or procedure. This is especially helpful if you have a high-deductible health plan or are a self-pay (uninsured) patient.
4. If you have full insurance coverage it's still a good idea to shop around. Most health plans now require patients to pay what's called co-insurance, which can require you to pay a percentage, typically between 10 and 20 percent, of your total bill. The cost of procedures varies widely hospital to hospital, so you could avoid thousands of dollars in unnecessary expenses by planning ahead.
5. Stay away from the emergency room if you're not experiencing a truly life-threatening illness or injury. Urgent care clinics charge far less for the same medical care, and, if your medical condition can wait until normal physician office hours, you'll pay even less.