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Survey: Billing errors common, hit patients hard in the wallet

Case Management Weekly, October 26, 2005

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A recent Consumer Reports survey reveals that 5% of medical bills contain "major" errors, translating into more than $10 billion a year in costs on overcharges to healthcare payers, reports Medical Billing Associates of America, a patient advocacy group.

Many of the errors go undetected because of the complexity of medical terminology and because most insurance companies routinely pay through automated bill-payment systems.

The mistakes can affect the insured consumer in three ways. First, most insured patients pay about 20% of their bill. Second, these mistakes may result in higher co-payments and less coverage. Third, many health insurance plans place a lifetime maximum dollar amount on the individual, and overcharges - some in excess of tens of thousands of dollars - take the individual closer to the cap.

Source: The Hartford Courant

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