Clark Howard's Tips

May 13, 2008

We often hear about how people are uninsured, but we don't hear about how they're underinsured. A lot of people have coverage, but it may only be minimal for some procedures. Figuring out what's covered and what's not is like reading hieroglyphics.

Smart Money magazine reports that consumers can really benefit by negotiating upfront for non-emergency care. The classic example of this is an uninsured pregnancy. The list price can be as much as 900% above what an insurance company can negotiate. The key is to negotiate beforehand; after the fact, you'll have no recourse.

Consumers need to know that the price difference from hospital to hospital is all over the map. So Clark's advice is negotiate, negotiate, negotiate. About two-thirds of people who haggle do get a lower price.

Whenever Clark gives this advice, medical professionals get hot under the collar. They often allege that he's turning medicine into Wal-Mart. But they need to understand that medicine is the only thing we buy that we don't know the cost of until after consumption. Doctors also need to know that a customer with a cash payment represents more money in their pocket than a negotiated insurance claim.

Clark recalls that before the "dot bomb" era, there were a lot of websites offering Internet price shopping and bidding services for medical care. They all went bust in the tech crash, but their time is coming again as consumers take on a larger portion of health costs. Having the ability to shop based on price makes perfect sense to Clark.

Consumer advice courtesy of