How to Read a Medical Bill: 4 Steps

Opening your mailbox to find a medical bill is never fun—and not just because that means you needed medical care and now owe money. For many people, medical bills are incredibly confusing and stressful due to the complexity of health care pricing, insurance coverage and billing systems.

At the same time, it’s smart to know how to read medical bills because errors in billing are common and understanding what you’re looking at can help you detect mistakes and save money.

Keep reading to learn how to navigate a medical bill.

1. Confirm Names & Addresses

Most medical bills have basic information at the top, including the name, address and contact information of the provider or facility, as well as your own name, address and personal information. Ensure all this information is correct and confirm that you understand which provider or facility is billing you.

2. Check the Summary

Also on the top of the bill is often a summary that includes your account number (a number assigned by the provider that’s unique to you), a due date (when you need to pay by), and amount due (how much you owe). The amount due is often highlighted with red ink or bold text so you can easily find how much money you need to pay.

3. Review the Description of Services and Costs

Beneath the summary is typically a section that gives more detail about what services you received, how much they cost, what your insurance paid, and what you owe. Look for the following information:

• A description of the services you received and the dates you received them: Sometimes the descriptions are general or have complex medical terms or billing codes. If you don’t understand what you’re being billed for—or believe you’re being billed for services you didn’t receive—contact your provider.
• The amount: This is how much the facility charges for covered health care services.
• Adjustments: This is an amount the facility subtracts from the total charges because they have agreed to a discount with your insurance or charge a lower amount for the service.
• Insurance payment: The amount your insurance paid.
• Patient payment: What you may have already paid to the provider at the time of service, such as a copayment.
• Balance due: This is the amount you still owe to the provider after adjustments and insurance.

If you have any questions about the breakdown of your costs, contact your provider.

4. Determine How to Pay the Bill

Instructions on how to pay the medical bill are usually located at the top and/or bottom of the bill. There are usually multiple options, such as payment by phone, mail, text, QR code, or website. Sometimes, there’s a detachable slip that you should tear off and send with your payment.

Remember to Ask for Help if You Need It

By following these steps, you should have a better understanding of what your medical bills mean. If you receive a large bill that’s difficult to pay, remember that you can call your provider’s billing department and ask about payment plans, financial assistance, discounts or hardship programs.

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