Tip # 723 - SURE. AND THERE'S A TOOTH FAIRY, TOO!

Sunday, July 26, 2026

Doris received a $900 bill from her hospital. Knowing she had reached the Out of Pocket max of her insurance plan months ago, she tried calling her provider.

Long story short; the provider had billed her before submitting the claim to Doris’ insurer.  Why? And why did she have to spend hours on the phone, getting transferred from department to department, to get this settled. 

Then there’s Larry.

Like Doris, he knew the balance on his hospital bill for $2,181 was wrong, but getting someone to correct it was beyond frustrating.  It took so long, in fact, he was sent to collection, resulting in a judgement. Just prior to garnishing his wages, the provider finally jumped back in and acknowledged the error. Larry owed just $451, which he promptly paid.

Doris and Larry both asked why their providers made it so difficult to correct billing errors. 

For smaller amounts like these two examples, do you suppose providers bank (literally) on you just throwing in the towel? 

Doris. Larry. Did you know Medicare processes roughly a billion claims annually. Private health insurers another 3-5 billion. 

You don’t suppose billing errors are just accidents, do you?