How to Lower Medical Bills

Nearly one in 12 American adults has medical debt, with 3 million of these individuals owing more than $10,000.¹ Navigating medical bills can be challenging, but there are ways to minimize costs along the way. Understanding medical bills and knowing your rights can help equip you to take control of these unplanned expenses.

Seven Ways to Help Control Costs Before Receiving Care

Lowering medical bills begins before you ever receive care.

Choose in-network providers. If you have a health plan, use in-network providers for the lowest rates.
Use preventive care. Look at your plan details to find what is considered preventive care, which is often covered at no additional cost to the health plan.²
Use wellness tools and programs. Take advantage of low- and no-cost programs that may be available through your health plan, such as virtual care, diabetes management or cost savings for medical procedures. Check out some wellness tools available with some GuideStone health plans.³
Take advantage of a Health Savings Account (HSA). If you’re enrolled in an HSA-qualified High Deductible Health Plan (HDHP),⁴ you may be able to pay for qualified medical expenses using pre-tax dollars.
Shop around. Evaluate different health care services because costs can vary across providers and facilities.
Ask for discounts. If you don’t have a health plan, ask your provider for a cash-pay discount. Many offer discounts because cash payments reduce administrative costs and eliminate delays in health plan payments.
Know your rights. The No Surprises Act provides protection from surprise medical bills from out-of-network providers or facilities during a medical emergency. You are not required to sign a notice and consent form, which waives your surprise billing protection. Do not sign the form if you don’t have a choice of health care providers when receiving care.

Find more ways to reduce health care costs.

Five Ways to Reduce Medical Bills After Receiving Care

After receiving care, take time to review, dispute or negotiate your medical bills.

1. Review medical bills for errors.

Proper coding: If you received preventive care, make sure it is coded as such so there’s no additional cost. Let the provider know if the service was billed as diagnostic care in error. Learn more about the difference between preventive and diagnostic care.
Accurate services: Ask for an itemized bill. Verify that you received the listed services and check for any duplicate billing.
Alignment with the Explanation of Benefits (EOB): Compare the bill to the EOB from your health plan provider. This is a breakdown of how your plan covered the services — it’s not a bill. The items on the EOB should match the medical bill.
Surprise medical bills: If you received emergency care at an out-of-network facility, the most the provider can bill you is your health plan’s in-network cost-sharing amount (such as co-payments and co-insurance).
Duplicate billing: If you receive duplicate bills, it could be caused by an administrative error or a delay in timing. Verify that claims have been processed correctly and that payments have been applied accurately.

2. Dispute incorrect medical bills.

If you find an error, promptly report the discrepancy to the health care provider and notify your health plan administrator. If you need additional help resolving the issue, a Consumer Assistance Program⁵ in your state may be able to help. You may also consider reaching out to a medical billing advocate for assistance.

3. Negotiate large medical bills.

A car accident or health crisis can create a financial burden of medical debt. Make every effort to negotiate medical bills. Start with the health care provider or facility and explain your situation. They may agree to settle for a lower amount or allow you to set up a medical bill payment plan.

If your medical debt is turned over to a collection agency, you may be able to negotiate a payoff amount lower than the total bill. For example, ask whether they are willing to write off 25% of the bill if you pay the remaining balance now.

If you agree to a payment settlement, whether with a medical facility or a collection agency, get the terms in writing before sending payment.

4. Explore potential tax deductions.

Sometimes, the IRS may allow you to “deduct the medical and dental expenses you paid for yourself, your spouse and your dependents during the taxable year to the extent these expenses exceed 7.5% of your adjusted gross income for the year.”⁶ This applies to qualified, unreimbursed medical care expenses and excludes expenses paid for from an HSA or Flexible Spending Account (FSA) because those funds are tax-advantaged.⁶

5. Seek additional help to pay medical bills.

Search for financial assistance programs⁸, grants or charitable organizations that may be able to provide some relief. Also, the Affordable Care Act (ACA) requires nonprofit hospitals to establish a Financial Assistance Policy (FAP), which may provide free or discounted services for those who meet the criteria.⁹

Stay Resilient With GuideStone^®

Our vision is that every servant of Christ finishes well, and that includes providing resources and tools for your well-being. For more information about faith-based health plans that align with your biblical values, contact us at Insurance@GuideStone.org or 1-844-INS-GUIDE (1-844-467-4843), Monday through Friday, from 7 a.m. to 6 p.m. CT.

GuideStone welcomes the opportunity to share this general information. However, this article is not intended to be relied upon as legal advice, tax advice, or medical advice, diagnosis or treatment.

¹HealthSystemTracker.org/brief/the-burden-of-medical-debt-in-the-united-states
²Preventive care is covered at no additional cost when using in-network providers and facilities for eligible routine preventive care.
³Not available for Cigna Healthcare^® International and Medicare-coordinating plans.
⁴IRS.gov/publications/p969
⁵CMS.gov/cciio/resources/consumer-assistance-grants
⁶IRS.gov/taxtopics/tc502
⁷Intuit.com/tax-tips/health-care/can-i-claim-medical-expenses-on-my-taxes/L1htkVqq9
⁸ConsumerFinance.gov/ask-cfpb/is-there-financial-help-for-my-medical-bills-en-2124
⁹IRS.gov/charities-non-profits/financial-assistance-policies-faps