Health Insurance Secret – How To Get Discounts on Out-of-Pocket Medical Expenses

Needing to control their monthly costs in a down economy, more people than ever are turning to high-deductible health insurance plans that offer lower premiums.

The U.S. Centers for Disease Control and Prevention reports that 47 percent of people with individual health insurance and 20 percent of those with group health insurance through their employers have enrolled in high-deductible plans, taking on annual deductibles of $2,400 per family and $1,200 for individuals.

Other health care insurance consumers have accepted incremental increases to their deductibles to offset rising premiums.

Either way, people are paying more out-of-pocket medical expenses. What many people don’t realize is that they may be able to reduce those out-of-pocket costs simply by paying attention to their care and asking for discounts.

Speak Up

Saving money starts by making the healthcare provider aware that you—not your health care insurance company—will be paying for the care. Many doctors are practicing defensive medicine, erring on the side of caution, under the assumption that the insurer is picking up the bill. When you make it known that you are paying out of pocket, many doctors will reconsider those borderline tests and treatments.

For example, a doctor’s standard annual physical may cost $300, which in most cases will fall within an annual deductible. If you make it clear that you do not want any unnecessary tests, you might be able to eliminate one or two, shaving $100 or more off the bill.  

Here are some other tips for saving money on health care:

Offer Cash

Setting up payment plans, sending out bills, even processing credit cards—getting paid consumes a lot of time and attention in the medical office. By offering to pay cash, you are offering to cut down on the workload, and you often will be rewarded with a discount. “Some healthcare providers give anywhere from 10 percent to 60 percent off for paying cash,” says Carrie McLean, a consumer expert with online health care insurance broker eHealthInsurance.com.

Manage Your Care

As study by the Dartmouth Atlas Project reports that nearly a third of all medical care is not necessary. One way to cut down on the waste is to pay close attention to your care, looking to eliminate duplication of tests and procedures. If you remember a particular test being performed recently, speak up. Many offices are not aware of what has happened in other offices.

Compare Pricing

Your doctor will recommend that you visit a particular lab or imaging center, but that does not mean you are locked in. If you are paying out of pocket for the care, call around to see if a different facility offers a better price. Larger facilities, such as hospitals, often charge more than small ones, such as an ambulatory care center.

Learn the Lingo

Every medical test and procedure has been assigned a special code that is used to bill Medicare and private health insurance providers. This code is known as the Common Procedural Terminology code, or CPT. When asking for estimates of cost over the phone or online, communicate by using the CPT code. That way you can avoid confusion and zero in on the best price.

Document the Process

Negotiating lowers prices can be a fleeting experience—and easily forgotten by busy medical staff. If you are going for a discount, be sure to get the agreement in writing. Keep in mind that most medical offices use outside billing services to handle medical billing. As a result, the chances of miscommunication are great. If you have your discount in writing, you will have a much easier time correcting errors and paying less.