Nothing Can Inflate Your Debt Quicker
Than Hospital Billing Errors

If you, or a loved one, are in need of hospitalization typically you are not going to sit around and fret over billing accuracy concerns. Obviously there are more pressing concerns on your mind and besides, the hospital and the insurance company will make sure that the bill is correct. Or will they? Consumers Report conducted a survey that may dispute the notion that hospital patients have nothing to fear when it comes to billing. On the contrary, their study revealed that many patients accrued excessive debts for procedures and services they did not receive.

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Consumers Report surveyed 21,000 readers in regards to their satisfaction in relation to a hospital stay. Out of this group, 11,000 of them claimed to have reviewed their itemized bill. A full 5% of these patients discovered serious billing errors. In fact, those people who paid more than $2,000 in out of pocket costs were twice as likely to be billed incorrectly. (1) And in a hyper-inflated environment where a single Tylenol can cost several dollars these mistakes can add up quickly. If these additional charges are not addressed you will be expected to pay off the full amount of debt. A failure to do so could put your credit rating in jeopardy. Protect yourself by knowing what to look and for, and what to do if you find a mistake.

• Charging for canceled work.
• Upcoding. This happens when a patient is charged for a costlier procedure than they actually received.
• Charging for extra time in the OR. Operating rooms are billed by the hour.
• Unbundled charges. Many charges are reduced if they are "bundled" together. This is similar to the idea of receiving a bulk discount. However, if these charges are viewed as separate then the bill goes up.

• Keep records. Record details of procedures and medications and compare them to your bill.
• Check your insurance records. Your insurance company will provide a statement which you should cross check with your hospital bill.
• Be alert for common billing mistakes. (mentioned above)
• Be aware of what your insurance coverage includes.

In the unfortunate even that hospitalization becomes necessary make sure that you do not become a victim of inaccurate billing procedures. Billing errors can take a major toll on your credit, as well as, wrongfully increasing your levels of debt. Be alert, and be prepared to contact the hospital billing department if an error is discovered. If they do not correct the problem to your satisfaction you may need to contact the consumer protection office of your state's Attorney General.

(1) http://www.erwaxman.com/Errors_Hospital_Bills_Contain.html

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.