Money Rehab with Nicole Lapin - How to Negotiate Medical Bills

Episode Date: January 27, 2022

If you’re having problems with your health, the last thing you should have to deal with is financial stress. And yet it does happen. If it happens to you, here’s what you should do. Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.

Money rehabbers, you get it. When you're trying to have it all, you end up doing a lot of juggling. You have to balance your work, your friends, and everything in between. So when it comes to your finances, the last thing you need is more juggling. That's where Bank of America steps in. With Bank of America, you can manage your banking, borrowing, and even investing all in one place. Their digital tools bring everything together under one roof, giving you a clear view of your finances whenever you need it. Plus, with Bank of America's wealth of expert guidance available at any time, you can feel confident that your

money is working as hard as you do. So why overcomplicate your money? Keep it simple with Bank of America, your one-stop shop for everything you need today and the goals you're working toward tomorrow. To get started, visit bofa.com slash newprosmedia. That's b-o-f-a dot com slash n-e-w pros p-r-o-s media. bfa.com slash newprosmedia. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player, GameStop. And should I have a 401k? You don't do it? No, I never do. You think the whole world revolves around you and your money.

Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. Nicole Lappin. Sometimes it feels like all the financial rules are stacked against us.

And no industry is more guilty of making us feel this way than the healthcare industry. In Money Rehab episode 160, titled 411 on hospital bills and medical debt, my guest Shelly Rosenfeld, who is the co-director of the Cancer Legal Resource Center, pointed out that medical debt is the number one cause of bankruptcy in America. I hate that statistic. I really do. If you have problems with your health, the last thing you should have to deal with is financial stress. And yet, it happens. A lot. And it is happening to a listener who DM'd us on Instagram, at Money Rehab Show, and wants to remain anonymous. So let's just call her Michelle. Michelle reached out to me and said she recently

had a miscarriage. And because of the medical care she received during her miscarriage, she is now in medical debt and needs help. This story truly breaks my heart. When you're grieving, you should not have to deal with financial strain ever. A health complication is hard enough to weather without the added stress of bills you simply can't pay. If you're going through a difficult time, you need the space and the time to process and take care of yourself. I know firsthand how important it is to have that. I had a miscarriage last year and it was one of the hardest days of my life. In my own experience, when I first had my miscarriage, it was hard to say out loud to anyone, even to close friends. And even now, it's still hard to say out loud. It makes my heart heavy just to think about Michelle being

forced to have that conversation and explain her experience over and over again to bill collectors who are not the warmest and fuzziest of people before she's ready to do so. I talked about my own miscarriage in episode 26 called The Hidden Cost of Miscarriage. And in that episode, I brought on a then new friend, Ayana, a journalist and a blogger extraordinaire. Like me and Michelle, Ayanna also had a miscarriage and she wrote a powerful piece about it in the Washington Post. In my episode with Ayanna, she does mention that she was able to negotiate her medical debt after having her miscarriage. So I know that other people in Michelle's situation have been able to negotiate those kind of medical bills.

But I also know that medical bills can be negotiated in other cases as well. I've also negotiated medical debt over the years for a variety of issues. I'm going to tell you one story, but before I do, I just want to say to Michelle, thank you for reaching out and sharing what you're going through. You are in my heart, and I'm sorry for your loss. So here's my experience with negotiating medical debt. When I set out to start my own business, I filed for COBRA, which allowed me to continue the health insurance I had with my last employer as long as I paid the full premium, which was expensive, around $600 a month. But then I made a late payment. I got no mercy. The next thing I knew, I was booted off the program. I had to find

another individual health plan, which I did for $1,100 a month, nearly double what I had been shelling out before. And as if the universe hadn't paid me back enough for losing track of that bill, before my new plan kicked in, I came down with a nasty stomach virus, I will spare you the details of, that sent me to the ER. Guess what? Not covered. It was a $2,000 nightmare. I panicked, naturally. Then I negotiated my butt off. People think that when they get a bill from a hospital, it's set in stone. It's not. Any money rehabber will tell you that no bill is set in stone. So here's what you should do. Get an itemized hospital bill. Yes, even if you have all the money in the world, get an itemized hospital bill so that you can see exactly where the charges are coming from.

As it turns out, I was on the hook for an $800 x-ray that I'd never even had. I mean, come on. Stomach viruses are bad, but they don't need x-rays. I'm not a doctor and I know that. There wasn't much they could say to that argument. So they gave in on that. But even the remaining $1,200 was still way too much for me. So I kept haggling until the bill came down to about $600. That's right, I negotiated my medical bill. Here's the secret. The hospital knows from the outset that there's a small chance they'll never recover the full and typically outrageous amount from you. So with a little pushback, okay, well, sometimes a lot, they'll take care of what they can. Next, you should look around online for the fair market price for a procedure or treatment before you pay a cent. Average costs, of course,

vary by region or even city, so you should know what you're getting into. Then call your healthcare provider and plea your case openly and honestly, offering to work with a payment plan or pay a reduced rate in cash if possible. If they think they'd have a better chance of collecting 75% of the total cost than 100% of the total cost from you, they'll likely work with you to make that reduced rate happen. And this should go without saying, but get your negotiation on before the bill is due. The provider will be much more accommodating if the bill is still active, not late. After all, sticking the bill collectors on you is not only annoying, but think about it, it's also costly for them too. Your health is priceless, of course, but that doesn't mean you should be sticker blind

when it comes to your health care costs. Oh, and pay your premium. Or you'll pay a premium. For today's tip, you can take straight to the bank. If your medical bills are in collections, For today's tip, you can take straight to the bank. If your medical bills are in collections, you are not powerless. You have important rights that need to be observed and respected. Tune in to tomorrow's episode where I'll be talking about all of those rights and how to make them work for you. Money Rehab is a production of iHeartRadio. I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Mike Coscarelli.

Executive producers are Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy. Huge thanks to OG Money Rehab team, Michelle Lanz for her development work, Catherine Law for her production and writing magic, and Brandon Dickert for his editing, engineering, and sound design. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all.