Opinions on hospital bill finance plan

disneysteve · #1 (**permalink**) 11-14-2006, 04:15 PM

I just wanted to get your thoughts on this deal. My wife had surgery recently. After insurance, our bill (deductible and copay) is $4,307. I spoke to the hospital today and if I pay in full, they will give a 35% discount, making the bill $2,799. The other option is to apply for their credit plan, handled by GE Financial. I can select 3, 6 or 12 month payment plan at 0% interest AND still get the 35% discount. That sounds like the way to go for me. I figure why spend the money sooner than I have to if they are going to give me 12 month 0% financing AND the discount.

Any reason that wouldn't be the best plan? I have excellent credit so qualifying for the plan isn't an issue.

Ima saver · #2 (**permalink**) 11-14-2006, 04:18 PM

As long as you are going to get the discount, that is the way I would go. I have found that you do get a discount if you pay in cash at a doctor's office.

fairy74 · #3 (**permalink**) 11-14-2006, 04:48 PM

I would want to see everything in writing about the finance plan offer, particularly regarding the 35% discount, but if that is correct, I would do the GE Financial at 0%.

safari · #4 (**permalink**) 11-14-2006, 04:50 PM

I am not sure why they are calling it a discount if they are giving it to you regardless of the payment method. Maybe if you talk to them you can negotiate a lower price if you pay cash. Personally, I'd just charge it all to my credit card and get a cash back because I don't like opening new credit lines, especially if the amount is that small (relatively speaking) and I can easily pay it without taking money away from my EF. Of course, you can get a 0% loan and put that money in a savings account, which will earn you a fraction more than the casback would, but to me it's not worth it.

I don't know about hospitals, but some doctors and dentists can help you avoid paying deductibles and copayments. For example, my dental plan covers only 60% of the cost of a root canal, but I didn't have to pay a penny. Here is how it works. Let's say my dentist charges $400 for a root canal and my insurance pays 60%, or $240, so I have to pay $160. However, when my dentists sends a claim to the insurance company, she puts down $666 instead of $400 as the cost of the procedure. The insurance company reimburses 60% of $666, which is $400. So my dentists gets her $400 and I get a root canal done for free. Of course this is not exactly legal, but I am not losing my sleep over it.

creditcardfree · #5 (**permalink**) 11-14-2006, 06:00 PM

Amazing that they have that much of a margin in their billing!!

Honestly, I don't mess around with credit any more than necessary. I would just pay the discounted amount in full. I assume you will gain would gain interest in holding on to the money longer. That is a plus, but I think I would just be glad they discounted the bill...that in itself is a huge savings.

I like simplicity!!!

frugalmomof1 · #6 (**permalink**) 11-14-2006, 06:10 PM

Quote:

Originally Posted by safari

I don't know about hospitals, but some doctors and dentists can help you avoid paying deductibles and copayments. For example, my dental plan covers only 60% of the cost of a root canal, but I didn't have to pay a penny. Here is how it works. Let's say my dentist charges $400 for a root canal and my insurance pays 60%, or $240, so I have to pay $160. However, when my dentists sends a claim to the insurance company, she puts down $666 instead of $400 as the cost of the procedure. The insurance company reimburses 60% of $666, which is $400. So my dentists gets her $400 and I get a root canal done for free. Of course this is not exactly legal, but I am not losing my sleep over it.

My insurance won't pay anthing over what is "reasonable and customary" so if most of their claims for root canals are for $400 they will only pay $400.

safari · #7 (**permalink**) 11-14-2006, 06:19 PM

Quote:

Originally Posted by frugalmomof1

My insurance won't pay anthing over what is "reasonable and customary" so if most of their claims for root canals are for $400 they will only pay $400.

"Reasonable and customary" charges can vary quite a bit from one dentist to another, especially in a large city with hundreds of dentists. My dentist charges less than most, which allows some flexibility when dealing with the insurance company.

frugalmomof1 · #8 (**permalink**) 11-14-2006, 06:40 PM

I know! DH and I go to different dentist and for the same service (cleaning) there is a $30 difference. I get my cleanings for free, but I have to pay $20 or something toward his.
The worst part about this is that any charges that are above the "reasonable and customary" amount does not go toward our deductable either! GRRRRRRRRR!!!
DH refuses to change dentists because he has been going to him since he was a kid.

getforfree · #9 (**permalink**) 11-14-2006, 06:58 PM

I would charge it to my cc which gives me 5% back and plus the discount. Unless you can invest those money and make more than 5% in about 11 and a half months (has to be more than 5% because you will have to pay tax on the interest you earn and it counts as your income). If you can invest those money at 7% or more than getting 0% financing for 12 months would be the best.

But make sure you pay off your cc on time so you don't pay any interest.

disneysteve · #10 (**permalink**) 11-14-2006, 08:34 PM

Quote:

Originally Posted by safari

Personally, I'd just charge it all to my credit card and get a cash back because I don't like opening new credit lines

Quote:

Originally Posted by creditcardfree

Honestly, I don't mess around with credit any more than necessary.

This is kind of how I feel too. I can't remember the last time I opened a new line of credit - probably when we bought our bedroom furniture about 8 years ago.

Just to be clear, I don't need to finance this. I can afford to pay the $2,800 up front. I might just charge it to my Marriott card and get the reward points and be done with it.

One other factor which is still to be determined - I think there is an error on the bill for between $500 and $700. I have to speak to a different department to dispute that. If I'm right, that could knock this bill down to as little as $2,300. I would agree that it just isn't worth opening a new line of credit for that little.

PRICEPLUS · #11 (**permalink**) 11-14-2006, 11:25 PM

Medical bills are many times incorrect. It is always best to check them as it can save you serious bucks at times!

Aleta · #12 (**permalink**) 11-15-2006, 08:28 AM

We are having the same problem as you Steve. We have a private plan and for a surgical procedure that my husband had recently, this insurance company was billed over $5.000 and they only paid the surgeon $220.00. We pay over starting in December $1256. a month and we have a cap of 100 thousand per condition. We're defintely getting jerked around. Like usual, I will have to go to the insurance commissioner to get this company to pay more. Just because it says usual and customary doesn't mean anything. If your're in a big city like I am, our prices are higher and the insurance commissioners's know that. So, if you are planning to dispute any of the charges, you don't have to pay anything until it is finalized. I feel your pain.

scfr · #13 (**permalink**) 11-15-2006, 09:17 AM

If you go with the GE Financial plan, you might end up getting all sorts of junk mail and phone calls offering you all kinds of things. That is what happened to us when we bought our appliances through Sears with one of those "pay 0% interest for xxx months" deals. Like you, we had the cash to pay for them, but wanted to take advantage of being able to hold on to our money for a bit longer and earning some interest on it. We started getting all sorts of sales calls and junk mail to the point where it was really annoying.

disneysteve · #14 (**permalink**) 11-15-2006, 10:06 AM

Quote:

Originally Posted by scfr

If you go with the GE Financial plan, you might end up getting all sorts of junk mail and phone calls offering you all kinds of things.

That's good to know. One more reason to just pay the bill myself.

cmoreland · #15 (**permalink**) 11-16-2006, 05:50 AM

Quote:

Originally Posted by safari

I don't know about hospitals, but some doctors and dentists can help you avoid paying deductibles and copayments. For example, my dental plan covers only 60% of the cost of a root canal, but I didn't have to pay a penny. Here is how it works. Let's say my dentist charges $400 for a root canal and my insurance pays 60%, or $240, so I have to pay $160. However, when my dentists sends a claim to the insurance company, she puts down $666 instead of $400 as the cost of the procedure. The insurance company reimburses 60% of $666, which is $400. So my dentists gets her $400 and I get a root canal done for free. Of course this is not exactly legal, but I am not losing my sleep over it.

That's insurance fraud, my friend. And you SHOULD lose sleep over it, because if your dentist (or any other physician) gets caught you will pay for it in the long run. There are many insurance companies that need to see proof of patient payment or billing. SOME insurance companies actually have you reimburse THEM the percentage. And then there are the insurance companies that make you pay ALL of it and then they reimburse YOU what you weren't responsible for. Basically, what I'm saying is, don't count on this method.

dossin1 · #16 (**permalink**) 11-16-2006, 07:47 PM

Quote:

Originally Posted by cmoreland

That's insurance fraud, my friend. And you SHOULD lose sleep over it, because if your dentist (or any other physician) gets caught you will pay for it in the long run. There are many insurance companies that need to see proof of patient payment or billing. SOME insurance companies actually have you reimburse THEM the percentage. And then there are the insurance companies that make you pay ALL of it and then they reimburse YOU what you weren't responsible for. Basically, what I'm saying is, don't count on this method.

Insurance fraud ends up costing all of us more in the long run. Plus insurance companies are not stupid, they have fraud investigators who look for suspicious billing patterns, plus a disgruntled patient may rat on them.

vishenda · #17 (**permalink**) 11-17-2006, 12:09 PM

Sounds too good to be true...

Of course the latter part sounds best if you only have to make payments on the $2799.oo with no interest !! If you are sure there is NO CATCH then definitely take the 12 month option and pay it all off in 11 months no later!!!!

Check it out one more time to make sure you have it all right and get it in writing!!

Good luck!

justbee · #18 (**permalink**) 11-18-2006, 09:08 PM

Ok I wasn't going to respond but this topic really fries me. I can't believe only a couple of people are bothered by safari's insurance fraud scam, including the dr. who started this thread.

How would you like to be the person who isn't poor enough to get their medical bills paid by the state and yet works but has no insurance. That way when your kid gets deathly ill and you go the dr.'s office after she receives i.v.s and a couple of injections, you get the whopping 1,800.00 bill which by the way the dr. already discounted down from 2400.00. Then you have to make weekly and monthly payments for 10 months to pay it off because it's morally wrong to stiff the doctor and you don't want your credit to be damaged.

For every fraud and scam artist out there, there is an honest person picking up your slack, all so you wouldn't have to pay a 20% copay on your 400.00. And every one feels it when their med. insurance company decides to reduce benefits and raise deductibles to make up for rampant fraud.