Strategy for paying off medical bills

[kv968]

TIME magazine did a special report a month or so ago on the healthcare system. It is probably one of the best articles ever written on the topic. If you are interested, head over to the library and find the issue and read it. It is very eye-opening. I've been in the medical field for over 20 years and I learned a lot about what goes on from the business end of things from that issue.

I had that issue but I never got around to reading it. I'll have to see if I still have it lying around.

One thing I always find "amusing" (or should I say frightening?) is when I look at the claims on my health insurance. The difference between what the claim amount is and what is actually paid is astonishing.

For example, I recently had a whole battery of eye tests done. The submitted bill was for $655. The insurance company paid $158.48 of it and I have a $30 deductible. So in all only about 29% of the actual "bill" was paid and they were happy with it.

A more extreme dispersion was when I had a thorough blood test done but nothing too extravagant (Vitamin D, PSA, Lipid profile, etc...) The "bill" was for $930.85 The insurance paid $79.16 and with my co-pay that came out to be about 12% of the original bill.

I understand there's negotiating power in numbers (i.e. insurance companies) but that seems to be quite a drastic difference in what I assume they would charge me if I went in without insurance and what they'll take if you do.