How Challenging Medical Bills Can Lead to Financial Relief, USC Study Finds

New research from the USC Schaeffer Center indicates that challenging a problematic medical bill can lead to significant financial relief, highlighting the importance of patient self-advocacy in navigating complex health care billing.

In an era where unexpected medical bills often add financial strain for many Americans, new research from the USC Schaeffer Center for Health Policy & Economics offers a glimmer of hope. Published in JAMA Health Forum, the study reveals that patients who take the initiative to challenge their medical bills frequently find financial relief.

According to the research, about 1 in 5 people have received a medical bill they either disagreed with or couldn’t afford. Of these, an impressive 61.5% who contacted a billing office for assistance reported receiving help or had the bill corrected.

“Many people are hesitant to pick up the phone to question the accuracy of a problematic medical bill or explore financial options, but our findings indicate it’s worthwhile and typically takes less than one hour,” Erin L. Duffy, director of research training at the Schaeffer Center and the study’s lead author, said in a news release.

The study, which drew from a nationally representative sample of 1,135 U.S. adults through USC Dornsife’s Center for Economic and Social Research, found that taking action could lead to considerable changes. About 1 in 4 individuals who reached out for any reason saw their bill corrected, while roughly 1 in 7 received a payment plan or price reduction.

The implications are significant. The findings highlight the often-overlooked power of patient advocacy in managing health care costs, providing a potential remedy for one of the many stresses in navigating the U.S. health care system.

For individuals challenging billing errors, 74% confirmed that the mistake was rectified. For those confronting unaffordable bills, 76% obtained some form of financial relief and 62% succeeded in negotiating a better price.

Though many may perceive the process as daunting, the study suggests otherwise. Most patients reported that their interactions with billing offices, primarily conducted by phone, were respectful, straightforward and typically took less than an hour.

However, disparities exist. The study pointed out that individuals without a college degree, those with lower financial literacy and those without health insurance were less likely to seek out assistance, underscoring a critical gap that could exacerbate medical debt among vulnerable populations.

“Current health care billing practices generally require patients to practice a lot of self-advocacy, and those who cannot self-advocate well are missing opportunities for financial relief,” added Erin Trish, co-director of the Schaeffer Center and study co-author . “Simpler billing processes and more transparency about financial options could make the system work better for patients.”

The findings also suggested that personality traits play a role; those who are more extroverted and have less agreeable personalities were more inclined to challenge their bills

This study underscores the importance of patient empowerment and transparent communication in health care billing. It’s a call to arms for patients to take control and for health care providers to support these efforts through improved billing practices and clearer information on payment options.

Co-authored by Melissa A. Frasco, the study adds a critical layer to the ongoing conversation about health care affordability in the United States and advocates for systemic changes that could ease the financial burden for many.