Insurance Errors Costing Americans Millions Out Of Their Pockets

MIAMI (CBS4) – If you've ever received a medical bill that didn't sound quite right you may not be alone.

It turns out about 20 percent of health claims are rejected based on simple errors. On top of that, according to the American Medical Association, 20 percent of properly submitted claims are mishandled or rejected, leaving the consumer holding the bill.

"Some of the most obvious reason claims get rejected are eligibility or not filling out the forms completely, or a wrong code," said Amy Ford Keohane, CEO of OffYourDesk.net.

"Off Your Desk" is one of several companies which try to help people correct these bills. For a monthly fee, they will review all of your medical statements and resolve any issue that doesn't seem right.

Individuals thinking about pursuing claims on their own may find it intimidating, but the process can become much easier with the right information. First, always ask the doctor for an itemized bill. That way it can be compared to the statement from the insurance carrier for any obvious errors.

Also, avoid any unnecessary medical charges. Before any procedure, call the insurance company and find out what's covered. Most importantly if referred to another doctor, make sure that physician is in your network.

"Even if you're going to an in-network hospital and have an in-network doctor, it's often that the anesthesiologist assigned to you is out of network, so if you're having a baby and checking into the hospital, you should request an in-network anesthesiologist," said Keohane.

Finally, if a bill does seem suspicious, call the company and question the charge. Avoid the busiest hours of 8 to 10 o'clock in the morning and be persistent. It may be the most profitable 20 minutes you ever spent making a phone call.