National health expenditures rose 7.5% year-on-year in 2023 to $4.9 trillion, or $14,570 per person, according to data recently released by the Centers for Medicare and Medicaid Services. The 7.5% increase represents a much faster pace of growth than the 4.6% increase in 2022.
The 2023 report, “Unnecessary Services,” provided by the Medical Institute, contributed to $210 billion in medical expenses and emerged as the main contributor of wasted spending. In other words, unnecessary spending for overuse ranges from 10-30% of total medical expenses.
According to a 2022 Consumer Financial Protection Agency report, consumers lose $88 billion a year in inaccurate medical expenses. As healthcare costs continue to rise, there are more and more numbers that are likely to be higher now.
Scott Speranza, CEO of Health Lock, a healthcare billing and billing expert, says Americans are paying billions of dollars for health care they have never received.
Speranza tells Florida every day that there are tips to follow when consumers receive their bills.
Do not pay the initial invoice received from your provider. The initial invoice received is often not final. You may need to apply insurance adjustments, discounts, and modifications. Paying immediately can be locked in fees that may be adjusted or negotiated later.
Always compare your invoice with the benefits description (EOB) from your insurance provider. EOB outlines what your insurance covers and what you owe. Look for inconsistencies between the EOB and the bill. If you notice it, please request an itemized statement from your provider that will make it easier to identify the error. Once your provider corrects the error, contact your insurance company to make sure your claim is being handled correctly.
Don’t be afraid to ask for discounts. Today’s providers would like to offer discounts and get paid faster than waiting for insurance payments. If you are unable to pay the full amount in advance, ask about your payment plan or a disappointment for your hard work.
Speranza points to some interesting statistics about the health industry.
The issuer of Healthcare.gov rejected 19% of claims in the network in 2023. In total, the insurers reported that 49 million people rejected in-network claims at the planning level for the 2023 coverage year.
45% of insured working-age adults reported receiving medical bills or reporting that they had received an out-of-payment charge in the past year. . Lack of awareness about the right to challenge the bill was the most common reason, especially among young people and low-income people.
