Mark Cuban Says Hospitals Are Increasing Bills: 6 Ways To Save
Written by
Ashley Donohoe
Edited by
Rebekah Evans
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While costly health insurance premiums are already straining many Americans’ budgets, some are also facing higher-than-expected hospital bills. Billionaire entrepreneur Mark Cuban believes that high healthcare costs are partly due to how the profit-driven system disadvantages patients and employers.
In a post on X, Cuban said hospitals often add facility fees and other miscellaneous charges. He said in some cases, if there’s a chance they think an insurance company could agree to pay a higher amount than what was originally billed to the patient, they may even submit an increased charge to the insurer.
These passed-on costs can quickly complicate your finances. Whether you’re planning for a procedure or already struggling with an unaffordable hospital bill, these strategies might save you some money.
Confirm What Your Insurance Covers
If you accidentally use an out-of-network facility or provider or get a service that your specific insurance plan excludes, you can face a large bill that is hard to get out of.Â
So take time to understand what your specific policy does and doesn’t cover before you book any surgeries, tests or other hospital procedures. Also, check whether you need your insurer’s authorization to get coverage and know your copayment, coinsurance and deductible amounts.
Healthcare.gov noted that there’s an important exception to out-of-network rules for necessary emergency care at the nearest hospital. In that case, you’ll only need to pay in-network costs.
Compare Costs Beforehand
While less practical for emergency situations, comparing charges across different hospitals can help lower your out-of-pocket bill. You’ll just need to know the names of the expected procedures or services and possibly the billing codes.
According to the Centers for Medicare and Medicaid Services (CMS), all U.S. hospitals must provide pricing information to consumers online in an accessible format. Often, this takes the form of a downloadable list or online estimate tool on their website.Â
Some states, such as Florida, also have hospital price transparency websites. Plus, the Fair Health Consumer website is helpful for quickly checking the typical in- and out-of-network costs in your area.
Check Your Itemized Bill
Receiving a big medical bill can not only be frustrating but also confusing, especially when you can’t make out what that balance includes.
Hospitals must legally provide you with an itemized bill that breaks down every charge, helping you spot errors and items to dispute. You might already find it on your provider’s online portal (like MyChart) or you might need to call and request one.
Pay special attention to any charges that are duplicated, unusually expensive or not relevant to the services you received. The No Surprises Act could also work in your favor if you realize certain out-of-network charges, such as for emergency care, have led to an unexpected medical bill.
Research Financial Assistance Programs
Many hospital systems offer financial assistance programs, sometimes called charity care, to people who show financial need and meet certain income requirements. These programs may be open to you even if you have health insurance but face high out-of-pocket costs.
For example, UCLA Health offers a 100% discount to those earning 400% or less of the federal poverty level (FPL) and partial discounts to those earning up to 450% of the FPL. The Cleveland Clinic offers free or discounted care to those making no more than 400% of the FPL and higher earners can qualify if they have catastrophic bills or face special circumstances.
Look for an application on the hospital’s website or ask the billing department for one. Expect to provide extensive details and documentation about your family’s income sources and possibly your bank accounts and other liquid assets.
Additionally, don’t overlook considering applying for government insurance programs like Medicaid, which can even retroactively cover some of your recent hospital bills.
Negotiate Discounts
If you don’t qualify for income-based financial assistance programs, you can still try negotiating discounts. For example, you might get a generous percentage off certain hospital charges if you don’t have insurance or if you agree to pay your bill in full by a certain deadline. You’ll typically have better luck with discounts if the services are considered medically necessary.
Pay Using Tax-Advantaged Accounts
While it won’t directly reduce your hospital bill, consider paying your share of the cost with a flexible spending account (FSA) or a health savings account (HSA). Since you fund these accounts with pre-tax dollars and pay no income taxes on withdrawals for eligible medical expenses, it’s like getting an indirect discount on your out-of-pocket costs comparable to your marginal tax rate.
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