Here
in American and all across the world, it is common for consumers to negotiate
with vendors for lower rates. When houses, cars, and other expensive items
are bought and sold, negotiation is quite common.
Yet
for some reason many people feel they cannot negotiate for medical services.
This
is hogwash!
If
you have a high deductible health insurance plan,
then you need to get the best price you can for the medical services you purchase,
and you should never be afraid to ask for a lower price. We pay a lot
of money for medical care in this country, and there is often some “wiggle
room” on the price. And I don’t believe you should ever
pay more than you really have to.
Here
are some of my best tips to help you negotiate with your healthcare providers
for lower rates.
1.
Research the Market
As
with the sale of goods or services in any industry, there is a huge price
variation from vendor to vendor in the healthcare industry. Often the
most expensive doctors and hospitals are not necessarily the best.
As
a consumer, how can you be sure that you are getting the best possible rate
for the healthcare services you require? The answer is simple: do your
research. Here are some effective methods that you can use to research
what healthcare providers are charging – and what people might actually
be paying – for services:
- Call
different healthcare providers and ask them how much they charge for the service(s)
you need. Even if you prefer to use your current healthcare provider, you
may be able to negotiate a lower rate with your current provider if you can
find a lower rate elsewhere and propose that your current provider charge
you the lower rate. Remember: it’s okay to ask and your current
healthcare provider shouldn’t be offended by your spending savvy.
- Go
online to see what you can find out about rates for services in your
area. Some healthcare providers post rates for common services on their
Web sites. Compare the rates of as many local healthcare providers as
possible. You can use these rates to negotiate with your current healthcare
provider if your healthcare provider has a higher rate than another local
healthcare provider. Also, researching local rates will help you to
understand the local market better.
- Check
out online forums. Not all healthcare providers will post their
rates on their own Web sites, but you may be able to find forums
in your area where consumers just like you have posted feedback about a provider
they have used or have heard about. You can also look for forums where
consumers discuss the quality of care that they have received from
their local healthcare providers. Both price and quality are important when
looking for healthcare services.
- Find
the rates that Medicare pays for services (learn more
about Medicare below). Ask your healthcare provider to give you
the same rate that they give Medicare recipients.
Important
consumer tip: Not all healthcare services are truly comparable, even
if the price for their service is comparable. Along with the price of
a service, it is also important that you consider the quality of the service
and exactly what is included in the quoted price. Ask about
those “hidden” or “additional” fees that may also
be charged:
How
do you know what fees to ask about? A good place to start is by asking
your healthcare provider what the total fees could be for all services that
may be rendered. For example, if you need to have surgery, you may not
only need to pay a surgeon’s fee, but you may also need to pay a fee
for use of the operatory and anesthesia, in most cases. A service provider
should disclose this information to you up front.
Likewise,
if you are looking for a dentist for a regular check-up, make sure that you
not only find out what the fee is for the office visit, but find out what
is included in the visit. Does the visit cover X-rays? Fluoride
application? Dental hygienist fees? Asking about not only the
main fee for service, but for additional fees is an effective way to ensure
that you really are finding the most affordable healthcare provider –
and comparing fees fairly.
2.
Check Out What Medicare and Other Government Programs are Paying
The
federal government is the largest payor of the American healthcare market,
thanks to 3 well-used programs that pay for the medical expenses of participants:
Medicare, Medicaid, and TRICARE. Medicare pays for the medical expenses
of 44 millions, Medicaid pays for 42 million Americans, and TRICARE covers
9 million Americans.
As
the largest healthcare payor, the government has the privilege of setting
the rates it will pay for healthcare services. Healthcare providers,
therefore, are legally obligated to charge the rates set by the government
if they agree to accept Medicare, Medicaid, and TRICARE. These rates
may be adjusted based on geography and severity. For example, healthcare
providers located in regions where people have higher average incomes may
be eligible to receive higher reimbursement rates than providers in regions
where the population earns less.
In
order to find the lowest possible rates for healthcare, a good place to start
may be to look at public records for Medicare reimbursement rates. These
public records may help you to negotiate rates that are close to (or equal
to) the Medicare rates for services. To find out what Medicare rates
your local healthcare providers are charging, check with your state’s
health department, your state’s Social Services department, or your
State Corporation Commission (SCC).
3.
Ask for a Flat Rate Fee
Some
healthcare providers, such as hospitals, may agree to charge a flat rate for
services rendered – before you are actually admitted. In such
a scenario, the Hospital will charge you a predetermined fee, regardless of
what procedures need to be performed during your visit.
The
hospital, in essence, is taking a gamble that their costs will be less than
the flat rate. In the long run, the provider may benefit by securing your
business for years down the road, even if they lose money on the initial service
they provide to you.
4.
Negotiate Before a Service is Rendered
In
order to get the best possible outcome during your negotiations with a healthcare
provider, be sure to negotiate before a healthcare service is rendered, if
at all possible. Many doctors are more willing to negotiate on fees
if you approach them upfront before they begin work. Often if they simply
understand that you are looking for the most affordable service provider,
they will adjust their rates to meet your budget.
5.
Shop for the Right Pharmacy
As
with healthcare services, there is a huge price discrepancy for medications.
In fact, according to one survey, the price differences for retail medications
may vary by as much as 40 percent from one pharmacy to the next. Simply
put: you cannot afford not to shop around for the best prescription
drug rates. Also, be sure to look online for discount pharmacies located
within the U.S. that may provide extra-low rates for medications – and
eliminate the need for you to travel to the pharmacy to pick them up!
Heads
up: generic medications may be available for many popular retail medications.
Many pharmacies offer lower rates or fixed rates for generic medications.
If there is a generic option available for your medication, look for a pharmacy
that will sell you that medication for a fixed rate of $4 or $10, such as
Walmart or Target.
We
offer prescription
drug and lab
fee discounts to our HSA for America
members. Click
to learn more about how these benefits may help you save money.
6.
Use Our Bill Negotiation Service
Many
consumers find that they are able to get lower bills when they turn to a third-party
negotiator who will act on their behalf to lower their medical bills from
healthcare providers. We recommend a Bill
Negotiation Service to all of our customers. This provides you with
a third-party negotiator who will work with your healthcare providers to attempt
to lower your medical bills. If the negotiators are able to lower your medical
bills, you will receive 70 percent of the amount of money saved. If
they are unable to lower your medical bills, you will not be charged for the
service.
Remember,
it’s your money, and a lot of other people want it. Spend it wisely,
and do not be afraid to ask for a lower price.
To your health and wealth,
Wiley
Long
President - HSA
for America
P.S.
- Next month we’ll take a look at healthcare
reform, and how coming changes may affect you.
