For truly daunting medical bills, experts say it's important to remember that most are negotiable. "The number one mistake people make is assuming they have to pay a bill they receive from their doctor," says Joshua Greenberg, president of Copay Solutions, a financial management firm in San Mateo, Calif. "Many times, doctors will accept lower fees if they are paid quickly."
Another negotiating tip: Ask for the insurance price of each medical procedure. It's always less than the billed amount. This is especially crucial for the uninsured. "After all, why should someone who is uninsured be charged more than an insured person for the same procedure?" says Gail Cunningham of the National Foundation for Credit Counseling, an umbrella group based in Silver Spring, Md.
Clients who have insurance but are still facing onerous bills may have to challenge their insurance carriers. Combating a denial of coverage can be aggravating and time-consuming, but often it comes down to a simple technicality such as an incorrect procedure code. "The key is to understand the [insurance] processor's perspective," says Jeffrey Phillips, chief investment officer at Troy, Mich.-based Rehmann Financial, a full-service consulting firm. "You just need to provide the required documentation."
If all else fails, your clients should consider hiring a mediator. "Mediators make sense when the medical team deems something medically necessary but the insurance company rejects it," says Christine Moriarty, president of MoneyPeace, a financial planning concern in Bristol, Vt. "But before you get to the challenge point, talk directly to the provider. Providers often have programs to lower bills or write them off."