Frugal Friends Podcast: How to Save Money on Medical Bills

Episode Release Date: July 8, 2025

Managing medical expenses can be a daunting task, often leading to financial strain and stress. In this episode of the Frugal Friends Podcast, hosts Jen Smith and Jill Sirianni delve into effective strategies for reducing medical bills. By exploring actionable steps and incorporating insights from experts like Scott Speranza and Jared Walker of the nonprofit $4.org, the episode provides listeners with a comprehensive guide to navigating and mitigating the costs associated with healthcare.

1. The Challenge of Medical Bills

Jen introduces the episode by highlighting the often surprising nature of medical billing. She shares a personal anecdote about receiving an unexpected medical bill of approximately $70,000 via email—a common experience for many. Jill echoes this sentiment, recounting a hospital's attempt to charge her $32,000 for a room rental, excluding surgeon and anesthesia costs. These stories set the stage for a discussion on the complexities and hidden pitfalls of medical billing.

2. Step 1: Obtain and Review an Itemized Bill

The first crucial step in managing medical expenses is obtaining an itemized bill. Jen emphasizes the importance of scrutinizing every charge to identify potential errors. She references a startling statistic:

"I've heard the stat that 80% of medical bills have some kind of error on them... [02:30]" – Jen Smith

Expert Insight: Jared Walker shares insights from Scott Speranza, CEO of HealthLock, who has audited over half a billion dollars in medical claims. Scott explains the intricacies of medical billing, noting that discrepancies often arise between Explanation of Benefits (EOB) and actual invoices. Common errors include:

• Overcharging: "If we see a bill that comes in at 100%, 200%, 300% over our market price, that's going to get flagged... [04:41]" – Scott Speranza
• Duplicate Services: Charging for multiple visits that essentially cover the same service.
• Upcoding: Assigning higher billing codes for simpler procedures to increase charges.
• Fraudulent Billing: Instances where providers or carriers submit false charges, exacerbated by increasing healthcare data breaches.

3. Step 2: Apply for Financial Assistance Programs

After ensuring the accuracy of your bill, the next step is to explore financial assistance options. Jen advises requesting an itemized bill via email to avoid potential charges and to simplify the review process.

Jared Walker’s Advice: Jared introduces $4.org, a nonprofit aimed at eliminating medical debt by making financial assistance programs accessible. He explains:

"Most hospitals hide the policy on their website or have a poster in the ER. The best way is to call the hospital and ask to apply for their financial assistance program... [09:23]" – Jill Sirianni

Jill elaborates on the generosity of these programs, dispelling the myth that only those in severe financial distress qualify. Examples include:

• Pacific Northwest Hospitals: "Most hospitals around here will waive one 100% of my medical bill if I am at or below 300% of the federal poverty guidelines... [12:54]"
• New York and San Francisco: Some hospitals extend assistance up to 800% of the federal poverty guidelines due to higher living costs.

Jen adds her personal viewpoint on the stigma of requesting aid but underscores the importance of seeking help to alleviate financial burdens.

4. Step 3: Shop Around and Compare Medical Costs

Proactive measures can significantly reduce medical expenses. Jen and Jill discuss the benefits of researching and comparing prices before undergoing planned medical procedures.

Jill highlights:

"If you are planning a surgery or something that you know you're going to get a medical bill, you can shop around... [15:33]"

Key strategies include:

• Comparing Prices: Utilizing websites to compare costs for services like MRIs, which can vary drastically between providers.
• Cash Pay Rates: Sometimes, paying out-of-pocket can be cheaper than using insurance, especially if it avoids high deductibles.

Jared’s Experience: Jared shares his personal experience of saving thousands by meticulously shopping around for his surgery. Initially quoted $32,000 for room rental, he negotiated down to $10,000 by exploring different providers and their pricing structures.

5. Step 4: Negotiate Your Bills and Utilize Medical Advocates

Negotiation is a powerful tool in reducing medical debt. Jen emphasizes the importance of advocating for oneself to achieve significant discounts.

Negotiation Tips: Jill provides practical advice on negotiating bills, such as:

• Set Clear Settlement Amounts: "What is the settlement amount?" is a critical question.
• Be Prepared with Funds: Approach negotiations with a predefined amount you can offer.
• Persistence Pays Off: Jen recounts Jared's determination to negotiate a $1,300 bill down significantly by persistently reaching out to supervisors.

Legal Insights: Jen notes a regulatory change:

"In January of 2025, a rule passed that creditors cannot put medical debt on your credit report... [21:06]"

This provides a year-long window to address and negotiate bills before they affect one's credit score.

Using Medical Advocates: When self-negotiation isn't feasible, medical advocates like goodbill.com can assist. These professionals typically charge a fee based on the savings they secure, often reducing bills by up to 50%.

6. Real-Life Success Stories: Eliminating Medical Debt

The episode features inspirational stories from $4.org's Slack channel, showcasing the impact of financial assistance and debt negotiation:

• Case Study 1: A woman facing a $430,000 medical bill after her husband's passing was able to have the entire debt waived, allowing her to continue her education without financial ruin.
• Case Study 2: Multiple bills ranging from $4,200 to $7,800 were eliminated, enabling individuals to allocate funds towards meaningful life pursuits instead of medical debt.

These narratives underscore the transformative power of proactive financial management and seeking assistance.

7. Accessing Further Assistance through $4.org

Jared Walker explains how $4.org streamlines the process of finding and applying for financial assistance:

"You can just go to $4.org, put in the qualifying information, and they help you through the application process... [36:45]" – Jill Sirianni

The platform provides:

• Comprehensive Database: Information on every hospital's financial assistance programs.
• Automated Applications: Simplifies filling out necessary forms by mapping user information directly into hospital applications.
• Advocacy Support: Assists patients in navigating the process and advocating on their behalf.

8. Conclusion: Empowering Financial Control Over Medical Expenses

Jen and Jill wrap up the episode by reiterating the importance of taking control of medical bills through systematic steps: obtaining itemized bills, applying for financial assistance, shopping around for services, negotiating debts, and utilizing medical advocates when necessary. They encourage listeners to leverage available resources to mitigate the financial impact of healthcare costs, emphasizing that proactive measures can lead to substantial savings and reduced stress.

Notable Quotes

• Jen Smith [00:31]: "Getting as much as half off the medical bills you have received in the mail."
• Jill Sirianni [09:23]: "Most patients assume they are not eligible, and then they find out they can get a discount."
• Scott Speranza [02:41]: "We've now saved well over $130 million for our customer base... 66% of all bankruptcies in the United States are due to medical bills."
• Jen Smith [25:39]: "Steps in your journey to getting a medical bill or even medical debt negotiated down."

Resources Mentioned

• $4.org: [Insert website URL]
• $4.org Slack Channel: For community support and bill elimination celebrations.
• Goodbill.com: Medical bill advocacy services.
• HealthLock: Medical claims auditing and error detection.

By following the strategies discussed in this episode, listeners can gain greater control over their medical expenses, reduce financial stress, and achieve a more secure financial future. Whether through meticulous bill review, leveraging financial assistance programs, or negotiating directly with providers, the Frugal Friends Podcast equips its audience with the knowledge and tools necessary to navigate the complexities of medical billing effectively.