The Family Transition Blog

Medical Billing Advocate Explains How to Read Your Bills

If you have medical insurance, you’ve probably received a paper titled “Explanation of Benefits” or EOB.  Typically, just below the title, it reads, “This is not a bill.”  That said, there are dollar figures all over it.  So if this is not a bill, what exactly is it?  The EOB is exactly what it says it is: an explanation of the benefits provided by your insurance plan for a particular service on a particular date.  Its purpose is to report to you (the subscriber) and your doctor or hospital (the provider) exactly how the claim was processed.  It is critical that you review each and every EOB you receive for accuracy and the need to take action.  Not doing so may cause you to become financially responsible for charges that otherwise would have been covered by your plan.  However, most people are intimidated by the EOB and have no idea what to look at or what to do about what they see.  Here then is your guide to your EOB.

While every EOB uses slightly different terms and formats, the key items you need to review are:

• Patient Name: is this you or your dependent? If not, call the insurance company immediately and report the error.
• Date of Service: refers to the date that the visit or procedure or other service happened.  Is it accurate?  If not, report it immediately.
• Provider’s Name: this is the doctor, hospital, or other entity that provided the service.  Often, you will know that Dr. Jones was your surgeon, but the provider on the EOB will be Everytown Surgical Associates.  This is okay, as long as Dr. Jones is indeed part of that group.  If you’re not sure, call the surgeon’s office and ask.  Likewise, sometimes you will receive a bill for a provider you don’t recognize.  If you had surgery, it’s very possible that this is an anesthesiologist, radiologist, emergency room physician, or pathologist who participated in your care and who bills separately.  When in doubt, ask.
• Procedure code or type of service: this is the shorthand where the provider communicates the service for which payment is being requested and is often a five digit number or an abbreviation.  You may see several codes for one date of service as when, for example, you visit the orthopaedic surgeon and have an office visit, x-rays, and a cast applied.  Likewise, when you have surgery there are often multiple procedure codes reported.  One common question occurs when a service is reported as “surgery” but when you don’t believe you had surgery, as when you had a skin lesion removed in the office.  This doesn’t mean that your provider is doing anything wrong or trying to get away with something; rather, it is simply the language of insurer-provider communications.
• Total charge or billed amount: this is your provider’s standard charge for the service.
• Allowed amount: this is the amount your insurance plan will pay under its contract with your provider.
• PPO discount: this is the amount that is “adjusted” off of the bill due to your insurance plan’s contract with the provider.
• Not covered amount: this is the amount your plan does not cover.  Sometimes, this refers to any charge that is above the allowed amount or the “reasonable and customary” charge, and other times this refers to services that are not covered under your plan.
• Copay, coinsurance, deductible: these are the amounts that are the subscriber’s responsibility under the terms of your insurance plan.
• Patient/subscriber responsibility: This is the total dollar amount that you may be billed directly for the date and services reviewed on the EOB and may include amounts that you have already paid at the time of service.  Typically, you will pay this directly to the provider.
• Remarks/remark code/message code: This is the method by which the insurance company communicates with both you and your provider to explain how the claim was processed.  Most often, the codes will be several letters or numbers next to the particular service.  Elsewhere on the EOB you will find the “key” to these codes, which might read something like, “Duplicate charge” or “Not covered on the same date of service as the related charge” or “Not covered due to lack of timely filing”.  There are many, many codes and they vary by insurance company, but this is where you will learn what you or your provider might need to do to have the claim processed and paid correctly.  You MUST review this and take the appropriate action in a timely fashion.
• Payment assigned to provider: This means that whatever payment is being made by the insurance plan is going directly to the provider because he or she is a participating provider in your plan and you signed authorization with the physician to submit the claim on your behalf and receive direct payment.  Where this is not the case, as when you use an out-of-network provider, the check may come directly to you and you are responsible for paying the provider.

If you are confused or overwhelmed by your medical paperwork, a medical billing advocate might be helpful to you.  These professionals are well versed in the ins and outs of medical billing and can help you get problems with your claims resolved quickly and efficiently.

©2010 AttackMedicalBills.com, a division of LifeBridge Solutions, LLC.  All rights reserved.

Fight Medical Bill Errors

Medical bill errors, including those on hospital bills, can quickly become a nightmare for you, the patient, if you don't keep on top of them.  The longer an error goes uncorrected, the less likely it is that you will be able to successfully fix it.  Hospitals, physicians, and other providers are likely to send your account to collections if it is not paid within a few months.  While each entity follows its own guidelines with regard to how quickly it considers an account to be delinquent, most expect your bill to be paid in full unless other arrangements have been agreed to within 90 days of the date of service or 45 days of when your insurance plan has processed the claim.  Failing to pay your medical bills is very likely to affect your credit, and unpaid hospital bills are a major reason why people file personal bankruptcy.

It is particularly critical that you stay on top of billing errors if you have health insurance.  This is because there is something known as "timely filing" in the insurance business.  If you have medical insurance, the plan documents must indicate how long you or your provider has to submit claims.   Once that time has passed, it is permissible for the insurance company to deny your claim because it wasn't submitted within the required time period.  At this point, the entire bill becomes your responsibility.  Similarly, if you don't agree with how your claim has been processed, you have a finite period of time to appeal the decision and escalate it through the insurance plan's dispute resolution process.  If you miss the appeal deadlines, you're usually out of luck.

There are many different kinds of medical bill errors so you must have an eagle eye when you review your bills.  Perhaps the simplest error for a lay person to find is a charge for a service that was never provided.  For example, if you were billed for a hearing test that you never took, make sure to dispute it.  The fact that the clinician ordered the test and marked it on the "superbill" at the time of the visit is irrelevant if the audiologist never performed the test and recorded the results.  Your medical record is the governing document when it comes to these disputes.  If it's not in the records it shouldn't be billed.   If you find yourself in this situation, request a complete copy of your medical records and a detailed itemized statement.  Then, take the time to compare what's in the records with the statement and dispute any discrepancy.

Another common situation is duplicate charges where the provider has billed you for the same service more than once on the same day.  While this makes sense sometimes, such as when you have an x-ray of both your right foot and your left foot, the provider needs to use a special code called a modifier to explain this to the insurance company.  In addition, keep watch for charges for things that the hospital or doctor isn't supposed to bill for separately.  For example, if you have had surgery, the follow up care should be included in the "global fee" for that service.  For major procedures, that means that you shouldn't be charged for a follow up visit within 90 days of the date of the surgery.  You can, however, be charged for additional services other than the office visit itself, such as an x-ray or cast.  Similarly, if you are hospitalized, the hospital shouldn't charge separately for sheets for your bed or your hospital gown, both of which are included in the "room and board" charge.

If all of this seems a bit overwhelming, you might wish to retain a medical bill advocate.  Billing advocates are trained to spot errors, negotiate with providers, and where possible help you to reduce your bills.  You can learn more about medical billing advocacy at http://www.attackmedicalbills.com/ or http://www.billadvocates.com/. 

Medical Billing Advocate Shares Tips

Certain patterns seem to emerge again and again.  During a recent phone call with a new client, I began to feel like I should produce and automated recording since my initial conversation with consumers regarding the medical bill woes so often sound the same.  As a result, here's my list of the top five mistakes people make when dealing with medical bills.

Mistake # 5: Ignoring the mail

Why is it that so many of us receive mail from a medical provider or insurance company and put it in the "I'll get to it later" pile on the kitchen counter, often unopened?  The most common responses I receive when I ask a client "why" include:

• The paperwork intimidates me
• I don't understand what I'm looking at
• I have insurance, so I don't need to review this stuff
• I can't pay it anyway, so why open it and stress out about it?

While I can certainly understand each of these reasons for avoiding the medical bill mail, the reality is that taking this approach is very likely to come back to haunt you in the form of being sent to collections. 

If you don't understand the bills or explanations of benefits (EOBs) you receive following a medical service, ask someone to explain them to you.  You can call the patient billing specialist at your provider or try the customer service representative for your insurance plan.  If necessary, you can enlist a medical billing advocate to help.  Everyone needs to review their medical bills and how the claims were processed, even if you believe that you have "good" insurance or Medicare and a supplement.  Billing mistakes can and do happen, and you, the patient, are often responsible for paying for them.  While you have the right to appeal, you must do so within the timeframe required by your plan.  By ignoring the mail, you risk missing this important appeal deadline.  If you're worried that you can't pay what you owe, you're always better off to negotiate a payment plan and possibly a reduced charge than to simply ignore the demands for payment and end up damaging your credit.

Mistake # 4: Not asking for (and then reviewing) itemized statements

The best way to avoid medical bill problems is to make sure that the charges are correct in the first place.  While no one expects you to be an expert in medical terminology, by requesting and reviewing a detailed itemized statement following every episode of care you can often avoid some of the obvious problems.  For example, I recently saw a man's bill for his annual physical.  The charges included a line for a pap smear which even most lay people know is a test that is only performed on women.   Had he reviewed the bill right there at the check-out window, that charge would have been removed before the claim was ever sent in to the insurance.   I also recently saw a hospital bill that itemized 77 of the same item at $198 each.   That's more than $15,000 of charges.  This item is something that no one could have done to them 77 times in the space of a three day hospital admission.  Can you guess?  We're talking about a urinalysis.  Not only was the charge itself very high but the number of tests just didn't make any sense.  If this patient had requested and reviewed the bill, I'm pretty sure she would have picked this up.  Always take the time to ask for and look at an itemized bill and if you see something that doesn't make sense try to get it resolved immediately.  If you feel you are being charged for services you did not receive, ask for a copy of your medical record.  A medical billing advocate can match what is documented in your chart with the charges applied to your account and if she finds discrepancies, she can use this to negotiate with your provider.

Mistake # 3: Not asking for what you need

Many insurance plans limit the amount of services you are eligible for under your plan.  For example, physical therapy visits are often limited to a certain number within a period of time.  While this works out okay in many instances, sometimes a patient just needs more sessions in order to optimize her recovery.   When that happens, asking your physical therapist and/or physician to write a "letter of medical necessity" IN ADVANCE of the provision of services.  Don't wait until you've run out of visits before you ask your providers to help advocate for you.  It's your responsibility to be aware of the limits on your policy and not to just assume that your providers are on top of it. 

In other situations, doctors will prescribe a certain drug, not realizing that a particular patient's plan only covers a less expensive alternative.  There is no way that a physician can keep track of the frequently changing approved drug lists for each of her patients, so if you, the patient, go to fill the prescription and found out that the drug your doctor prescribed is not covered, it is perfectly reasonable to let your doctor know and find out whether something that is on the list will be a reasonable alternative.  If your doctor feels very strongly that you need the specific drug, don't hesitate to request that the doctor's office make a phone call or prepare a letter of medical necessity.  He may not succeed, but if you don't ask you definitely won't get the intended medication.

Mistake # 2: Not reading what you sign

What can I say?  You know that you should never sign something you haven't read and understood.  When the clipboard is shoved in your face, it's tempting to just "Sign here."  However, when you do that, you are making yourself responsible.  Another tricky point is signing for someone else.  If you are the caregiver for a patient who cannot sign medical paperwork himself, it is very important not to sign your name.  When you do, you are accepting financial responsibility for your care recipient.  Instead, if you hold power of attorney, it's better to sign their name and then your own name alongside it with "as power of attorney" noted.  If you don't hold power of attorney, it's better if you don't sign at all.  If the provider insists on a signature prior to rendering treatment make sure you sign your care recipient's name and then your own name and add "as representative".    Whatever you do, don't accept financial responsibility for another adult, even your spouse.

Mistake #1: Not understanding your coverage in the first place

The most common mistake I see are patients who have no idea how their insurance works and are shocked and confused when they owe money for medical services.  It is critically important that you as the consumer take responsibility for understanding how your health care is paid for, what is covered, the types of services that require referrals or pre-authorization, and so on.  As painful as it can be to take the time to slog through this material at the start of each plan year, the more informed you are the more benefit you will receive from the coverage that you have.

©2010 AttackMedicalBills.com, a division of LifeBridge Solutions, LLC.  All rights reserved.

What Is A Daily Money Manager?

 

Dear Sheri:

My husband recently passed away and he always handled our household bills and budget.  I don't even know where to begin to get everything in order.  Is there someone who can help me with this?

Intimidated Irene

Dear Irene:

First off, please accept my condolences to you on your loss.  It may help to know that your situation is not at all unusual.  Often, one spouse handles the family finances.  This works out well from the standpoint of division of labor, but leaves the other spouse at a real disadvantage when the situation changes, especially if it is a sudden and unexpected change.   As a new widow, I'm sure you have a lot on your mind, not to mention the piles of paperwork you're probably handling to settle your late husband's estate.

Fortunately, there are professionals who specialize in helping people in your situation.  They are called Daily Monday Managers, or DMMs.  DMMs offer a range of services, including helping you to manage your mail and set up a system for paying your bills, assisting with check writing and maintaining bank accounts, helping  you create a realistic budget and stick to it, and developing a tax planning and organization system.  In addition, many DMMs have expertise in medical billing advocacy and can make sure you are paying only those medical bills that have been correctly billed and processed.  A DMM can also help you with the many tasks that are necessary to settle an estate, including obtaining various records, closing accounts, and gathering items needed by attorneys and accountants.

Be sure to choose a daily money manager who is bonded and insured.  Also, be sure the person you choose specializes in working with older adults and their families and is not simply a bookkeeper for businesses.  Many DMMs are members of a national organization called the American Association of Daily Money Managers.  You can learn more about this profession, as well as search for a DMM to help you, by visiting their website at http://www.aadmm.com.

Does Your Aging Parent Need Help With Medicare?

Have you ever walked into your aging parent's home and seen a stack of Medicare papers on the kitchen table?  Has the thought crossed your mind that maybe you should have these papers come directly to you since they seem so confusing to your Mom?  Is your Dad asking you which Part D drug plan he should select, or whether he should consider a Medicare Advantage program?  Have claims been denied that your parents thought were for covered services?   If so, you're not alone.  Many seniors find dealing with their medical paperwork to be overwhelming.  

Dealing with the sheer volume of medical paperwork can be intimidating for many beneficiaries.  It is important that the explanations of benefits that are received from both Medicare and any supplemental insurance policy be reviewed promptly and if errors are detected, those should be reported immediately.  Similarly, if claims are denied, they must be reviewed and possibly resubmitted if you believe they were denied in error.  Time is of the essence for these matters, since there is a time limit for appealing the carrier's decision.  If you decide that handling these tasks are too much for your parent, you might consider handling it for them or enlisting the help of a medical billing advocate who will review all of the paperwork on a monthly basis, ensuring that your parent is getting the benefits for which she has paid.   In either case, you should be aware that Medicare will only send the paperwork to the beneficiary's address on file with the Social Security Administration or to a properly documented Representative Payee.  (Further information is available at http://www.ssa.gov/.)

What about if your parent simply needs help selecting the right plans?  Each year, Medicare-eligible people are allowed to switch their plan during "open enrollment".  This process begins on November 15th and ends on December 31st.   The best place to start is the Medicare website at http://www.medicare.gov/.   There you can learn about "original Medicare", as well as about "Medicare health plans", "Medigap policies", and "Medicare prescription drug plans."  Which offering is right for your parent will be determined based on a number of factors, including their overall health, finances, and the degree of choice they desire.  You may find that while one approach works well for Mom, Dad is better off on a different plan due to the maintenance medications he takes.  It is perfectly fine for your parents to each select the coverage that works best for him or her as an individual.  Again, if you find that this selection process is overwhelming, a medical billing advocate may be a helpful resource.

War Stories from the Medical Billing Advocate Battlefield

Today was a very interesting session at the Medical Billing Adovcates of America's (www.billingadvocates.com) annual workshop.  We spent the day hearing interesting speakers from the Florida Attorney General's office talk about fraud and abuse as it applies to medical billing.  We also spent time with an attorney who specializes in helping patients fight with their insurance plans and providers.

There seems to be no end to the tactics that providers, especially hospitals, will go to in order to capture extra dollars from payors and patients.  They will try to charge for the drapes and gowns in the operating room, even though they are already being paid for the use of the OR and are supposed to include (or "bundle") those items into the facility fee.  Or, I'm sure you've heard the one about the "infection control device" charge for $17.44 that was actually a box of tissues.  I can tell you that spending the day with more than thirty medical billing advocates reinforces my belief that the profession we are in is absolutely critical to any chance of meaningful health care reform!

I'm especially proud when I hear from colleagues about the many thousands of dollars they have saved patients.  The really nice part, is that so often, in the process of helping their clients, they are also saving "the system" money either directly or by uncovering sytematic fraud that can then be reported to the appropriate authorities.  As we learned today, once a reporr has been filed, the state has the responsibility to investigate and if they find sufficient evidence, they will pursue civil, and sometimes criminal, action against those conducting the fraudulent activity. 

While your medical billing advocate is typically not an attorney and can't provide you with legal advice, we can identify the errors and sometimes outright fraud that is found on an estimated 90% of provider bills.  And once we find these things, we will work on your behalf to get them fixed so that you only pay what you really owe.  From time to time, we will hit a brick wall and advise you to consult with an attorney who specializes in these matters.

More from the battlefield tomorrow.

Tales From the Medical Billing Advocate Battlefield

I have the distinct pleasure of attending the Medical Billing Advocate of America's (www.billadvocates.com) annual workshop this weekend in beautiful Boca Raton, Florida.  Over the next few days I plan to entertain you with war stories I hear from other advocates.  I understand there will be about thirty of us here for the workshop, so I'm certain there will be no shortage of tales from the trenches.

One idea I was kicking around with a few of my fellow advocates tonight was that of creating an "Ask the Advocate" column where people can send in their questions.  If you have an opinion on this idea, we'd appreciate it if you'd share it with us.

In the meantime, stay tuned ... and enjoy.

Medical Claims Made Complicated By Secret Prices

There was a terrific article over the weekend by Carla K. Johnson of the Associated Press regarding the lack of price transparency in health care.  As Ms. Johnson writes, "Finding out how much a medical procedure costs is more difficult and mysterious than buying a new car.  With a new car, there's a sticker price.  With health care, there's no starting line for haggling.  The deal making happens behind closed doors long before patients get involved ... For the uninsured, the hopsitals and doctors charge more -- sometimes much more -- than what they charge insurance companies."  (check out the article at www.associatedpress.com and search for "Health-care marketplace thrives on secret prices")

As a medical billing advocate, I can tell you first hand that the lack of even a "suggested retail price" for medical services makes it so difficult for even informed consumers to make rational decisions when purchasing care.  Consider this case study: 

You find out you need surgery.  Your doctor recommends three surgeons.  Two of these surgeons participate in your preferred provider plan.  Your doctor's first choice does not.  Since you trust your doctor, you call her preferred surgeon first.  You speak with the office manager, who tells you that the surgeon's fee for your type of case is about $50,000 and does not include the hospital or the anesthesiologist, etc., but she quickly adds that she will "work with your insurance company to get your case processed out-of-network."  After you take a deep breath to recover from the sticker shock, you ask her to get clearance from your insurance plan before you schedule a pre-op consultation. 

About a week later, having heard nothing from the surgeon's office, you call back to speak with the office manager once again.  She tells you that she has submitted the "codes" to your insurance company and they have agreed to cover the surgeon out-of-network.  She then tells you that you will need to pay a deposit prior to surgery "just in case", but that the insurance companies "always" pay her doctor in these situations.  You decide to proceed, pay a $7500 deposit, and have your surgery.

About a month after your surgery, you receive paperwork from your insurance company, indicating that the "allowed amount" based on "usual and customary" for your surgeon was just under $5,000 and that your "patient responsibility" is the balance of the charge, since the provider was out-of-network.  Imagine your shock when you realize that you STILL OWE nearly $40,000!  How can this be? The surgeon's office told you that your insurance plan had agreed to cover your case.  What gives?

The first issue is that "usual and customary" (UCR) is a closely guarded secret. Even if you had called your insurance company upfront with the specific procedure codes, they might not have told you those amounts.  If they had, you would have found out that UCR in your surgeon's zip code was about $8,500 nowhere near the $50,000 your surgeon charges.  Had you know that, you would have known that your plan would only pay 60% of UCR since that is all your out-of-network benefits cover.  You could then have made an informed decision about whether you were going to use that particular surgeon.

So what is an informed medical consumer (otherwise known as a patient) to do? Ask questions up front.  Lots of them!  And if you need help, consider engaging an medical billing advocate before you make any of these decisions.

What Can A Medical Billing Advocate Do For You?

Terminology and complexity are the rules of today's healthcare system.  Most consumers are not even aware that there may be hidden problems with their bills.  When you are busy or not feeling well, you often don't have the time to do the necessary work to get corrections made.  You might not even realize that you are being overcharged!

All kinds of errors are found on medical bills.  We see examples of billing more than once for the same service, billing for services or supplies you didn't receive, using the wrong diagnosis and procedure codes, unwarranted denials by the insurance company, and plain old human error.  All of these causes can add up to you, the patient, paying more than you should be for your health care services.

Medical billing advocates help individuals review medical bills for errors.  We make sure that what you are being asked to pay is something that you actually owe, that you are not being over-billed, and that your insurance company (if you have one) is paying the amount it is obligated to pay.   You can think of us as medical bill analysts too.  We analyze your bills and your coverage and make sure you get the benefits you are paying for.

National reports show that 90% of medical bills have errors, and they are not to your favor!  Most people do not ask for and do not receive an itemized statement showing what they are being charged for.  If you went to the grocery store and they handed you a receipt that said, "produce $40, meat $100, and canned goods $50, total $190" you probably wouldn't accept it.  Why do we accept these types of bills from medical providers?

If you are interested in hiring a medical billing advocate, where do you find one?  As with most professional services, the best way is through word of mouth.  You can also check out http://www.billadvocates.com/, the website for the Medical Billing Advocates of America.  This site offers a feature that allows you to search for an advocate.  Since most of what medical billing advocates do is done by telephone and email, it isn't necessary to hire someone who lives near you.  It's best to hire someone who has a background in health care, insurance, or related fields.

At LifeBridge Solutions, our medical bill consultants conduct an initial NO-COST telephone review to help you determine if hiring a medical billing advocate makes sense for you.  If it does, we offer two payment methods.  You can choose to pay us hourly for the time we actually spend on your case, or you can pay us a small retainer and then a percentage of the money we save you.  If we don't find savings, you only pay the retainer and any costs associated with obtaining copies of your medical records.  Give us a call or send us an email to get started. 239.325.1880 or info@LifeBridgeSolutions.com