Patients have long struggled to pay off medical debt, which is why legislators recently enacted the No Surprises Act, providing federal protection against unexpected medical bills. To understand the benefits of this legislation for patients and why it was created, Software Advice surveyed 500+ adults who received unexpected medical bills from out-of-network providers in the past five years.
Software Advice’s survey found that 39% of patients received bills for out-of-network care that were more than $1,000, and 22% have no way of paying this bill without financial help. With U.S. Census data putting the medium income for American households at ~$67,000, this means an unexpected medical bill of $500 would be a whopping 18% of the household paycheck—equating to at least two weeks of groceries for a family of five.
Despite the No Surprises Act, patients are still going to be in debt for years to come
The No Surprises Act may help patients with future medical costs, but those with existing bills are still struggling to pay off their debt. In fact, 38% of respondents who were or are on a payment plan say it has taken or will take one to 10 years to pay off their medical bill. Over half (52%) of patients on payment plans pay a monthly payment of $0-$100 and nearly a third (28%) pay $101-200 per month. Taking out payment plans can be a slippery slope for hardworking American families.
Patients aren’t seeking out-of-network care on purpose
In most out-of-network situations, patients are unable to make an informed decision about who they seek care from. Nearly half (46%) of surveyed patients were under the impression the provider(s) caring for them at the time were covered by their insurance. More alarmingly, 37% of patients were in an emergency medical situation and lacked the time or ability to make an informed decision about in-network care at the time.
Patients expect more from providers when it comes to price transparency
Almost a third (30%) of patients want providers to discuss the costs of procedures with them in-person before performing them, and 21% want itemized bills to clearly show which charges are their responsibility. One in five (20%) patients want providers to disclose treatment prices before even scheduling the appointment.
As the No Surprises Act takes effect, medical practices need to ensure they’re following all compliance measures and communicating honestly with patients. View the full report here to learn how providers can maintain transparent communication with patients and leverage comprehensive medical billing software to mitigate potential legal issues.
About Software Advice
Software Advice simplifies software buying. Through 1-on-1 conversation and trusted insights, industry-specific advisors guide buyers to top software options in as little as 15 minutes (and it’s 100% free). Founded in 2005, Software Advice has helped nearly 900,000 businesses find the right software for their specific needs. Software Advice also features over 1.5 million verified user reviews to ensure people feel confident in their technology decisions. For more information, visit softwareadvice.com.
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