CFP Physician Declares System Failure: An Urgent Wake-Up Call
TL/DR –
The author describes his experience with medical bill confusion, highlighting how difficult it is to determine upfront costs of procedures due to opaque billing and insurance systems. Carolyn McClanahan, a physician and certified financial planner, recommends three steps to manage this issue: getting to know your insurance thoroughly, shopping around for the best price, and negotiating your medical bill. The process can be complex and time-consuming, but could potentially save patients significant sums of money.
Understanding Medical Costs and How to Handle Them
Several months back, I found myself anxious about an upcoming medical procedure. Not because of potential health risks associated with a colonoscopy, but rather the unclear financial burden it might put on me. This concern is widely shared, as navigating the healthcare billing system can be a daunting task.
Despite my diligent efforts to determine the cost of the procedure, I faced a cycle of miscommunication between my doctor, insurance company and the clinic’s billing department. Ultimately, I was left uncertain about the charges until the bill arrived.
As Carolyn McClanahan, a Florida-based physician and certified financial planner explains, the opaqueness of the healthcare billing system is a common problem. Unexpected and fluctuating costs can put patients into financial instability.
If you’re anxious about potential medical costs, McClanahan suggests the following three steps to mitigate this issue.
Getting Familiar with Your Insurance Coverage
Understanding your insurance coverage is a crucial first step. This includes knowing the type of your plan, the extent of the coverage, out-of-pocket maximums, and the network of doctors under your plan. Particularly, if you have a high deductible plan, it’s essential to understand the threshold you must meet before your coverage commences.
Comparing Medical Procedure Prices
Even with a thorough understanding of your insurance, determining the exact cost of a prospective treatment can be challenging. It’s beneficial to inquire about the rate your insurance company has negotiated with the provider, especially if you have a high deductible plan. It also pays to compare rates among different providers in your network. Offering to pay in cash rather than filing a claim through your insurance might also help to significantly reduce your bill.
Negotiating Medical Bills
In unavoidable situations, you may receive a surprisingly high bill. When faced with an unexpectedly high medical bill, scrutinize the charges and question any discrepancies. Depending on your insurance and the cost of the procedure, you may be able to negotiate for a lower bill.
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