Huge Medical Bills You Shouldn't Pay ... CBS Evening News Aug. 29, 2008

[Guest guest]

Huge Medical Bills You

Shouldn't Pay CBS Evening News And Business Week Investigate

Illegal "Balance Bills" STONINGTON,

Conn., Aug.

29, 2008 (CBS) For families squeezed by falling

incomes and rising prices, the last straw can be an unexpected medical bill.

Even those with health insurance can see huge bills for the uncovered portion

of their care. But a CBS News/Business

Week investigation found that many of these so-called

"balance bills" are seriously out of balance - and shouldn't be paid.

Several months after back surgery, Burdick sat holding a hospital bill

for almost $60,000.

And this was after her insurance had paid its share of the bill. She had no

idea she'd be billed for anything close to that amount.

"And just said to my husband, 'Oh my God, we're going to owe $60,000 to

the hospital. How are we ever going to pay that?'"

The bill Burdick received is called a "balance bill." When the

insurance company doesn't pay the total charge, doctors and hospitals often

bill patients for the balance. The problem is, millions of balance bills these

days are either illegal - or they are highly inflated.

Last year in California alone, the insurance industry reported that 1.7 million patients had been

"balance billed" $528 million above what the patients owed.

Burdick hired two billing investigators. After demanding an itemized

accounting, health care navigators Lin Osborn and Beth believe Burdick

was overcharged by $40,000, for items like six surgical screws - at $1,750 each. They say overbilling is now the

norm.

"Outright wrong is 100 percent," Osborn said. "I've never seen a

hospital bill that I thought followed all the regulations correctly. Not once." Burdick's

hospital, the Beth

Israel Deaconess Medical Center in Boston ,

declined an on-camera interview, but said in a statement that her bill was set

by her insurance and "is not determined by the hospital." Hospital

officials said they have "no evidence of overcharges in her bill, but

would be willing to correct any mistakes."

Burdick also asked her state attorney general, Blumenthal, for help.

Blumenthal's office has handled thousands of balance bill complaints.

"There's no explanation for some of them except purposeful balance billing

or overcharging," Blumenthal said.

"If you don't fight, you are going to lose," Burdick said.

Burdick's fight applies to anyone with a suspect medical bill. All patients

have the right to an itemized bill. Any charge can be disputed directly with

the hospital. Patients

can complain to their state attorney general and, as did, contact a

medical billing advocate. Burdick says she's still working with

Beth Israel Hospital hoping to bring

that $60,000 bill into better balance.