Clark Howard: Cut your medical costs by paying with cash
Consumer expert Clark Howard’s column appears here each Thursday in conjunction with Deal Spotter, a weekly print section in The Atlanta Journal-Constitution.
If you’re looking to save money on medical bills, you might consider being a cash payer and shopping around for the lowest price on non-emergency medical procedures.
I take calls on my radio show all the time from people who have no insurance or just a bare-bones health insurance policy, and they’re always getting massive bills for medical services that have already been rendered. Unfortunately, you’re in a weakened position when it comes to asking for discounts after you’ve already had a procedure or test you need.
The key is to make a deal upfront when you have the time and opportunity to do so. I read an article in The Los Angeles Times that gave some concrete examples of how much money doing it like this can save you.
In one case, a blood test that would have cost an insured patient $415 could be paid for in cash — after negotiating — for $95. In another case, one major insurer was charging a negotiated rate of $2,400 for a CAT scan at a Los Angeles-area hospital. But that was reduced down to $250 when the reporter called to inquire about the cash price at the hospital.
Medicine doesn’t work like normal business with price lists posted and all the rest. It’s all in a fog; you have to clear out the fog if money matters to you. You don’t want to be in a situation with backbreaking bills or ruined credit after the fact.
Like in other areas of life, cash is king. The medical billing offices are already fatigued with all the insurance companies and would welcome a cash payer.
So if you do your homework and you shop services, providers and facilities, you can make a big impact on what kind of financial burden you’ll face down the road.
-by Clark Howard, Save More, Spend Less, Avoid Rip-offs
Find more answers to your consumer questions at ClarkHoward.com. Listen to his radio show live 1-3 p.m. Monday through Friday on WSB 750 AM and 95.5 FM.
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11 comments Add your comment
middle of the road
July 5th, 2012
6:44 am
So, Clark, it doesn’t bother you about the difference between the $2400 and the $250? What is the true price of the procedure? Or are they just gouging the people who have to have the procedure right away? This has long been a bone of contention that hospitals stick it to people who don’t have insurance to negotiate for them.
middle of the road
July 5th, 2012
6:46 am
By this logic, the gas stations that raise the price of gasoline along a hurricane evacuation route during a major hurricane up to $25 per gallon are correct since you don’t have any choice but to pay it. Seems like they created laws prohibiting that after 9/11.
Me Be Crazy
July 5th, 2012
7:28 am
I’ve been paying with cash for the past 5 years, after I was part of a company closing (10,000 pink slips). No hassle with Insurance equals 25% savings, if not more. Doctor told me Blue Cross is the absolute worst – taking up to 6 months for reimbursement. Cash in hand is always a good thing.
However, with requirement to MUST have health insurance, the cash method will be going away.
Clark Howard: Cut your medical costs by paying with cash | News Blogger Community
July 5th, 2012
8:02 am
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middle of the road
July 5th, 2012
1:52 pm
I am still outraged about the difference between the $250 and the $2400. Does that mean the hospital decides to lose money on the cash payer? Or does the CT scan actually cost $250 and the rest of the $2400 is going to pay the medical costs of the uninsured that the hospital sees but cannot collect from? I really want to know. This seems like the perfect argument for having everyone required to have health insurance. I am certainly outraged if my insurance company is paying $2400 for something that really should cost $250, just so “free riders” can take advantage of our health care system.
The Truth
July 5th, 2012
9:27 pm
Clark, funny this subject should come up at this time, after the Obamacare court ruling last week. Hey it doesn’t make that much difference soon. Apparently I will be paying for 5-10 family’s med costs while they pay $50-100/month for a family of 5-6. My tax rate will absolutley skyrocket many many thousands/year while the many freeload. Hey I started off in a sub-standard apartment and the job-wanted section, never got a chance to go to college, good family planning, now in the top 4 % income earners in the USA. But let me tell you it was a lot of overtime, 2 jobs, very very hard work, and steady planning. I guess, now 32 years in, I have been working and planning for a lot of other people right? So most of them (not all) but most will free load off my hard work. And they consdier me the greedy evil republican ????
The Truth
July 5th, 2012
9:37 pm
Oh did I mention they can have as many babies as they desire in the new health care system?, for nearly free, or, well $50 per month. Even a family of 7-8 and put it on my tab ?? Peach Care free, food stamps, housing subsidies, or no taxes, etc. At least I knew how to put a family planner on top of my family member.
Bernie
July 6th, 2012
4:52 pm
Me thinks Clark needs to do more homework on this subject. Hey Clark, why not provide your readers of some examples of fee negotiations with the likes Piedmont and Emory hospitals. The Hospital administrators as well as the physicians are on the floor laughing at this one. Let us know what they tell you….by the way good luck!
middle of the road
July 9th, 2012
11:10 am
“Even a family of 7-8 and put it on my tab”
This is happening even with my corporate health insurance provided by my company. “Family” coverage costs the same whether you are the Duggars with 20 kids or just my wife and I and 1 kid.
Johns creek
July 9th, 2012
10:40 pm
Better yet, don’t go to a doctor unless you have a real problem. Way too many hypochondriacs out there running up medical costs.
onechris
July 11th, 2012
10:17 pm
I asked a dentist about cash prices for a discount and he got mad telling me his services were not up for negotiation and that such a discount is unethical and could lead to him not having his medical license? I am confused then it this illegal or was he just being a freak?