Did you know the number one cause of bankruptcy is medical bills. Many people do not realize that their health insurance may not be enough to protect them, especially in the event of a major health crisis. The last thing someone in a healthcare crisis needs is a surprise medical bill that they had no idea they would be receiving. This can cause undue stress on the patient and their family. What is the solution? Know your plan, what is covered and how much it will cost before you secure services. This requires not only reading your health plan benefits booklet but also liaising with the provider of services to ensure the services are covered. You must also know if any pre-authorization from your insurance company is required ahead of time. All services must be reviewed to ensure they are in-network, which means they have a contract with your insurance company and your coverage of services will be optimal. If the provider is out of network, you could get a large bill for those services that would not be covered by your insurance plan.
It has been reported that 80% of hospital bills have errors in them and this can be very costly. It is critical to review a detailed bill from a hospital or any medical bill to check for accuracy. This is not always easy to decipher and may need professional input.
It is extremely important to understand the Explanation of Benefits otherwise known as an (EOB) that your insurance company provides. The EOB is a report to you and the provider of services on exactly how the insurance claim was processed. It is essential to review this to determine what the insurance company has paid and what you are responsible to pay. The claim submitted can take a few rounds of review and adjustments before a final EOB is issued.