Health care costs are dangerous for a couple reasons:
1) They can be unexpected
2) They can add up quick
While there are thousands of stories of how health care costs have burned holes in people’s wallets, today I have a positive story of how I worked the system to save over $700 on a sinus CAT (or CT) scan.
Let me start from the beginning
I’ve had sinus problems off and on for the past few years. I went to an ENT two years ago and was told I have a deviated septum. In plain English, a deviated septum is when the matter between your nasal passages is curved instead of straight. It can cause irritation and sinus infections.
So for the first half of 2012 I had nasty sinus issues I tried to wait out. I finally gave in and went to the doctor, got prescribed antibiotics, took them, and ended up back in her office two months later after there was no change. That’s when I was told I needed a CT scan of my sinuses.
A little more background:
I have an Health Savings Account (HSA) that is essentially a high deductible plan because the first $2-$3k come out of your pocket. There are many perks to an HSA, and I think anyone who has the options should sign up immediately and max out their contributions, but that’s for another post. Needless to say, I was more than a little concerned about how much a CT scan was going to cost.
I was originally sent to a radiology office within my doctor’s “network” of providers. I wasn’t about to show up until I knew how much it was going to cost.
Here’s exactly what I did to save $700 on my CT scan:
1) I called the office that scheduled the CT scan. I asked for a quote of how much it would cost for the CT scan. They of course “didn’t know exactly” but said it would be around $1,050 not including a possible “radiology fee.”
2) I logged onto my insurance provider’s website where they have a “Health Care Cost Estimator,” a fairly new tool for the company and a very new concept within the health insurance industry. I punched in Sinus Ct Scan into the search criteria, and was able to see the estimated cost. They estimate the costs based on claims they have received (smart use of data already available). I found out that there was a provider whose claim was estimated at approximately $350, which was about $700 cheaper than where my doctor sent me.
3) I called this provider and the insurance specialist working there told me that the total cost would not exceed $500. I was obviously very happy about this.
4) I called my doctor’s office telling them I wanted to go somewhere else because the radiology offices they referred me to were too expensive. I told them the place I wanted to go, and asked them to send my paperwork to that place.
5) I get the CT Scan at the cheaper radiology office
6) I get a bill in the mail a month and a half later for $337. Even less than I expected!
It took me probably two hours or so to go through this process. The savings were huge, especially considering that small time commitment. When dealing with health care, do not always assume you need to go where your doctor tells you to go! There will always be times you should follow your doctor’s exact directions. As you can see, I still did as I was told and got a CT Scan, just not at the same place she told me to. Consider doing a little research before shelling out thousands when you may be able to get away with hundreds.
A few additional notes:
- Not everyone has access to a comparison tool I described. But thankfully this is the direction the industry is headed, and we should see more of these options in the future. If you do NOT have access to a tool like this, try to find a radiology office that is not connected to a hospital. The fact it is located in a hospital is going to raise the cost significantly. Google for radiology offices that are in more typical office buildings. That’s where you will find the cheapest rates.
- Quality matters. The radiology office I went to for my CT Scan had many good reviews. I also had a personal recommendation from someone in the health care industry who said it was one of the best places you can go for radiology. Look online for reviews of the office you are considering going to, and always remember that price does not always mean quality. Think of my situation: A CT scan is a quick simple procedure. There is not a lot of variance between providers as far as “quality” of the CT scan. There is a major price difference, though.
How have you saved money on health care? What tips do you have for others looking to save money?
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Photo by Liz West
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The health plan through my work offers an add-on for all employees that is basically a health care concierge, where they will track down the lowest cost provider in your area, and help you to book an appointment/etc. For example, when my wife needed to get some tests done a while back the doctor’s office referred her to get a scan at their normal clinic. Instead we called our health care advocate, they found a cheaper clinic that was still well reviewed, and we ended up saving a couple hundred dollars. So don’t always assume that your doctor will refer you to the best or most affordable provider. Do your homework, and if you have health care advocate available like we do, take advantage!
@moneymatters That’s awesome! Today’s health consumers “think for themselves” a lot more than a generation ago. That’s probably because of the internet, but it seems health care is the last place consumers are really finally taking responsibility for how they spend their money (and what they purchase). Doctors are there to tell you what you need, not who is going to provide it at the lowest price (assuming the same quality or better of course). I like the Health Care advocate idea, I would not mind outsourcing to a professional ; )
davidcarlson1 Totally agree about signing up for an HSA if the option is available. Employers love it when employees sign up for these plans because they save the employer tons of money, too. I once had an HSA through an employer that offered a win-win for all parties: the employer saved so much money that they reimbursed me for my out-of-pocket expenses ($2000 was the minimum limit at the time to qualify for an HSA). I actually “made” money because of the reimbursements and was still spending down the HSA account for more than a year after I left that position. Not all employers will be as generous as mine was, but HSAs are still a great deal.
@Ed_Advocate Very nice! We get $1k put into ours, so not quite $2k, but if you don’t have any major issues (which obviously is NOT the case for me this year…) you could very well “make money” as you described. I’m going to write a post next week about the “Triple Tax Advantage” that the HSA offers. I think everyone should get one if they have the option!
I actually just had two CT scans done this past Saturday. One on my head to see if I had a concussion and one on my lungs to see if there was any internal bleeding. I didn’t really get a chance to shop around though because I had to go to the ER. Wondering what that bill is going to be like. I’m not sure if my employer offers an HSA, might have to look into it and do some research.
@DebtnTaxes Sorry to hear about that, are you okay now? Yes my whole theory of saving money on medical costs lies on the assumption you have time to shop around and it is not an emergency. In your case it sounds like there was no time for shopping around. HSA is good but it is usually high deductible, which is the whole reason I cared about the price. If I was on a different plan with lower deductible or cost sharings right away I wouldn’t have cared as much.
@DavidCarlson1
Oh yah, all good now other than being really sore. Another rider and myself hit in mid-air during practice before a motocross race. I don’t remember anything after that.
I had to jump over and read about this. Not to bash doctors, but it would be nice if there wasn’t such a disconnect between providers and tertiary care as far as cost. It would be nice if the referring provider would let you have an idea on cost. I also think faciliies should have a price list. It is so hard to get a quote. Good job on shopping around.
@Eyesonthedollar It’s tough though, as the doctor referred me to a network hospital (I think they are essentially forced to). I agree with you that prices should be easier to access and more transparent.
The next big innovation in health care (in my opinion) is going to be price and quality transparency. It’s going to be driven by the health insurance companies (that’s how I found the place I went to). Providers will push back but in the end they can’t do much since health insurance companies have all the claim data needed to populate these estimates.
Connecticut’s other traditional industry is financial services; for example, insurance companies in Hartford and hedge funds in Fairfield County
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