When it comes to medical expenses, do you – or anyone you know, for that matter – find them to be surprisingly high on occasion? Do you ever wish that you could cut those costs just a bit to free up more money for other expenses? Or, better yet, for savings?
Many of us would answer yes to at least one of those questions.
A recent article from Yahoo! Finance offers a strategy that may help make that happen. Apparently, one person was able to save $1,000 off a $4,000 medical bill by making a phone call and using this scripted dialogue:
“Hey, my friend told me that if I offer to pay the bill in full over the phone, I get a 25 percent discount.”
That’s it. No negotiating involved. He got the hospital, anesthesiologist, and pediatricians to reduce the charges associated with the birth of his child.
It’s interesting how cash is king, and immediate payment reaps a benefit, even when dealing with medical professionals.
I had always assumed that there wasn’t much wiggle room when it came to medical bills. That perception changed when I had some dental work that needed to be done some years back. After years of having no cavities, my soft drink habits caught up to me and I found out that I had multiple cavities and needed a root canal. While in the dentist chair at that visit, I casually asked about tooth whitening (mostly to distract myself from the cavity situation). The dental assistant and I joked that if I got all the work done, they could throw in free teeth whitening for a future appointment. It was almost something like wheeling and dealing for health care.
When you think about doctors, dentists, and other health professionals, why should they be perceived so differently than other business owners? For example, if we buy a car, we haggle. If we want someone to do handywork around the house, we negotiate. Let’s face it: while most prices of goods and services are “fixed”, many are clearly negotiable. So why can’t we try to “negotiate” health care?
In terms of the specific situation described above, I think the guy took a novel approach, and commend him for saving $1,000 just by simple effort. What I don’t agree with is the specific language used about a “friend” telling him he would get a discount if he paid by phone. Is that entirely – or even partially true? Not sure about that.
A more genuine, above board way to pursue the discount would be to say: “If I pay my bill right now, over the phone, I would like a 25% discount”. Yes, I”m nitpicking words, but I’m a stickler for integrity in such situations.
Anyway, the bottom line is that this example illustrates how many things can be negotiable – including a seemingly non-negotiable expenditure such as health care. The thing is, you have to take the initiative to make it happen.
What do you think about negotiating healthcare costs? Would consider taking this type of approach to reduce expenses?
We didn’t have the same greatness happen, but by offering to pay in cash, we saved 5% off of a $2780 dental bill for Mr. BFS (saved $139).
I’ll keep the line “If I pay my bill right now, over the phone, I would like a 25% discount” in mind next time we have a big doctor’s bill…
BFS – that’s still great though. The idea that you proactively asked for a discount by paying cash is something most people proably haven’t done when it comes to medical care. 5% still helps.
We recently got 40% off our emergency room visit from both the hospital and the ER doctor bills. Even with insurance our bill was high. All we did was call and ask for a discount and that is what they did. They really do want quick payment and if you can afford it it is worth a shot to try.
Christy – thanks for the comment. That’s a remarkable figure, 40%! I’m getting even more motivated to ask for discounts next time:)
I have found some of the medical billing to be so outrageous, that it borders on fraud. Once, I was out of work (uninsured) for two weeks and my daughter got sick. She was in the hospital for an hour, they gave her an IV antibiotic and an asprin and tried to charge me $4,300. When I requested an itemized billing, there was a $2200 charge that had nothing to do with her treatment. It’s out of control. They just dial up your SS# and see how much they can soak you for.
Bret – I concur. When you take the time to analyze the bills in detail, and itemize line item by line item, you can find some surprising charges.
It reminds me of how a friend of mine recently told me about outrageous costs a theme park, of all places. He rented a small locker, probably the size of a school locker the way he described it, and paid $17 dollars for a day. We both agreed they charged it because the could get away with it.
I think the same goes for some of these crazy medical bills. If simply stating you should get 25% off will get it for you, it implies a big margin. I don’t know how true that is, but it’s how many people perceive it.