Many individuals neglect to tackle their medical debt effectively, according to a study.

• Numerous individuals do not challenge possible inaccuracies on their medical invoices, believing it to be futile.
• A study by the University of Southern California found that contacting a health provider about a financial concern can help reduce or eliminate one's bill.
• Failing to pay on time may lead to late fees, interest, debt collection, lawsuits, garnishments, and lower credit scores.

Patients can often benefit financially by challenging medical bills that appear incorrect or by negotiating for financial relief, contrary to the belief that these bills are inflexible and unyielding.

A study by the University of Southern California found that 86% of consumers who didn't question a medical bill did so because they believed it wouldn't make a difference. However, the experiences of those who did reach out provide evidence to the contrary.

The study found that approximately 26% of individuals who contacted the medical facility because they disagreed with a charge or couldn't afford to pay it had their bill corrected after outreach. Additionally, 15% received a price reduction, 8% were given financial assistance, and 7% had their bills canceled entirely.

According to report-co-author Erin Duffy, a research scientist at the USC Schaeffer Center for Health Policy and Economics, most of the people who contacted her got some relief through self-advocacy.

Researchers polled 1,135 U.S. adults from Aug. 14 to Oct. 14, 2023.

Over 62% of the 1 out of 5 respondents who received a medical bill they disagreed with or couldn't afford within the past 12 months contacted the billing office to resolve the issue.

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If a bill doesn't seem right or match your care experience, you should call and ask questions about it, Duffy advised.

A patient's savings can range from hundreds to thousands of dollars based on factors such as their health insurance and the type of medical visit or procedure, according to Carolyn McClanahan, a physician and certified financial planner in Jacksonville, Florida.

Bills 'go all over the place'

The CFPB's 2023 analysis of medical bills for seniors found that they often face a complex billing system with a high likelihood of errors and inaccurate bills. This is often due to erroneous insurance claims, which occur more frequently among consumers with multiple sources of insurance.

The report found that errors such as missing or invalid claim data, authorization and pre-certification issues, missing medical documentation, incorrect billing codes, and untimely filing of claims contributed to the rejection of claims that would otherwise be paid.

"McClanahan, the founder of Life Planning Partners and a member of CNBC's Advisor Council, stated that bills go all over the place and there is no transparency or rhyme or reason for how providers decide to charge."

Failing to pay medical bills could lead to unfavorable financial outcomes, including late fees, interest, debt collection, lawsuits, garnishments, and lower credit scores, as per a CFPB resource.

"If something seems egregious, question it," McClanahan said.

How to manage medical bills

It is recommended to inquire about the cost of a medical visit or procedure beforehand, according to her.

Paying in cash instead of via insurance could result in significant savings for consumers, McClanahan stated. However, writing a check may have unintended consequences, such as the amount not contributing to one's annual deductible, she cautioned.

To avoid being overcharged, request an itemized bill from the provider or hospital, and check for errors or duplicate charges, according to PatientRightsAdvocate.org. Additionally, research the fair market price for a service and use that information to negotiate, said the nonprofit group.

Your medical provider's accounting or billing office phone number will be included on your billing statement, as per the CFPB.

According to the regulator, here are three other questions you may want to ask about your itemized bill.

• Do charges reflect the services you received?
• Does your insurance accurately reflect the payment of your bills and the provider's understanding of what is covered?
• Were any of the charges on the bill incorrectly labeled as "out-of-network" when they were actually in-network?

Keep a journal when communicating with a medical provider about a bill, recording people's names and the discussion, and obtain a promise of when you will receive a response.