What Should I Do About Billing Problems When Using HSA Money?

If you run into a billing problem or misunderstanding with a hospital or doctor's office for which you're planning to use money from your Health Savings Account (HSA), you could be in trouble.

This article will help you understand how hospital and doctor visits are different when paying with a Health Savings Account. Not better or worse, just different.

If you have an HSA, you must have health insurance. It's a requirement. However, if you are using money from your HSA, it means that you haven't hit the deductible of your policy yet.

In this particular situation, life is a bit different when it comes to resolving billing disputes with hospitals.

Insurance companies have a comprehensive system for dealing with billing disputes when they have covered a hospital stay or doctor visit. But when they haven't covered it because you are still within your deductible, that comprehensive dispute resolution system doesn't necessarily apply.

Here are some points to keep in mind when you are dealing with a hospital in a billing dispute, and you have paid with HSA money. I learned these important points when I was talking to an expert in this field named Dr. Vincent Riccardi, who is the owner of American Medical Consumer (www.medconsumer.com), a company dedicated to helping people resolve billing disputes with hospitals and doctors.

Here's what Dr. Riccardi has to say:

  • First, discuss the issue with your physician. Sometimes the problem stems from an incorrectly applied billing code and the doctor can easily change it to please the hospital and resolve the problem on the spot.
  • Negotiate in person. Especially if you just don't have the money to pay a bill, it makes the best sense to negotiate face-to-face with the person at the hospital who has the authority to reverse or reduce the charges. Hospitals would often rather be paid part of a bill than risk losing the entire bill. Be honest and forthright and you may have a good chance in negotiating a reduced fee from the hospital. This includes the situations where it was a misunderstanding on your part. It's at least worth a try.
  • Don't bother going to the State Medical Board. In most cases, they are not able to help you. This is the case with most government agencies. Even the Departments of Insurance cannot help, because this isn't an insurance problem, it is technically a fee-for-service situation.
  • Recourse to a lawyer is usually not fruitful unless there is a big amount involved. For amounts less than $5,000 (which is what most HSA-style deductibles are), a lawyer probably won't be able to help you.
  • Remember that the only things that count in negotiations like this are the things that have been written down. If a doctor mentioned something to you but didn't write it down, it probably won't help you. Get things in writing all the way through the process.
    • I think of HSAs as a way to "be your own insurance company" for the small stuff (under your deductible). That is its power. But it also means that when it comes to disputes, you also have to "be your own insurance company" and take charge of the negotiations with the hospital, just like an insurance company would. Your willingness and ability to negotiate will influence your ability to get unfair charges reversed or, at least, lessened. But it's a "do it yourself" situation, so be aware of that when you sign up for an HSA.

    Daryl Kulak is the author of the book "Health Insurance Off the Grid - A Wonderful Way to Use Alternative Medicine and Save Money on Insurance Using the New Health Savings Account (HSA)."

    The book provides a nine-step plan to get your self-employed or small business health insurance costs under control using a unique approach you won't find anywhere else. The book is available for sale as an e-Book or paperback at the Website http://www.healthoffthegrid.com

    In The News:

    pen paper and inkwell


    cat break through


    Buildings Insurance and the Threat of Flood

    What is the impact of increased flooding risk in the... Read More

    Filing Homeowners Insurance Claim Forms: What Steps to Take

    Filing a homeowners insurance claim can be done with ease... Read More

    Why Do You Need Homeowners Insurance?

    The biggest single investment most people make in their lifetime... Read More

    10 Ways To Save On Car Insurance

    For most people car insurance is a the single largest... Read More

    How Will an HSA Save Me Money?

    The Health Savings Account (HSA) is a tool to help... Read More

    What is Life Insurance?

    Life Insurance is an insurance policy that provides an agreed... Read More

    Discount Insurance - Get Affordable Coverage For All Your Insurance Needs

    Insurance is an important part of our lives. If you... Read More

    Underinsurance Can Spell Disaster For Homeowners

    Insurance is meant to give homeowners peace of mind, but... Read More

    Life Settlement Overview

    A "Life Settlement" is a lump sum settlement paid to... Read More

    How Much Car Insurance Should You Buy?

    Car insurance is one of the most dreaded chunks in... Read More

    Should I Buy Rental Car Insurance?

    Rental car agencies have a menu of insurance policies they... Read More

    Saving on Home Insurance: Tips for Cutting Costs

    Everyone is searching for a way of cutting costs, a... Read More

    Guide to Life Insurance

    Here is a useful guide to life insurance. Simply put,... Read More

    Car Insurance Monitoring for Discounted Insurance Rates - Privacy Devouring Monster Eating Us One Bi

    For a price, would you let car insurer along for... Read More

    Term Life - Who Needs It?

    If you've read any of the books or articles by... Read More

    Consumer Driven Health Plans [ CDHP ]

    Do you know that skyrocketing health care costs have been... Read More

    Travel Health Insurance - Understand the Benefits

    If you're planning an overseas trip, you need travel health... Read More

    Types of Homeowner Insurance

    There are 6 different types of homeowners insurance in general... Read More

    Do An Auto Insurance Comparison And Benefit From The Savings

    It is very important to do an auto insurance comparison... Read More

    Flat Insurance in the UK

    What are the factors involved in flat insurance? Do I... Read More

    Choosing Long-Term Care Insurance

    A little over sixty percent of the folks who reach... Read More

    Is an HSA a Type of Insurance?

    A Health Savings Account (HSA) is not a type of... Read More

    Health Insurance Online - Save Today

    It is now possible to thoroughly research and buy health... Read More

    Factors That Affect Your Car Insurance Premium

    Many factors affect the premium you will pay for auto... Read More

    How Much Can My Auto Rate Increase After One Accident?

    Accidents almost always make your insurance rates increase. Whether or... Read More

    Term Life Insurance - A Safeguard for Small Business Owners

    Term life insurance can offer protection for a small business... Read More

    Why Boats Are A Pleasure... But You Still Need Boat Insurance

    One of the greatest pleasures that a man can have... Read More

    Insights Into Your Med-Pay Insurance Coverage

    While Legal Romantics would like to characterize the trial of... Read More

    Health Insurance Providers Online - Benefits to Applying Online

    Health insurance providers are going online to find new customers.... Read More

    Health Savings Account (HSA): Useful for Women in Childbearing Years?

    The Health Savings Account (HSA) is an amazing tool that... Read More

    Disability Insurance For The Long Term

    Disability insurance covers you for an extended period of time.... Read More

    Independent Insurance Agents Unite! Insurance and Financial Discussion Forums are all the Rage

    The online discussion forum has emerged as the medium of... Read More

    Young Driver Car Insurance

    It has become increasingly difficult to get young driver car... Read More