Do hospitals make mistakes in billing?

Asked by: Herman King  |  Last update: January 18, 2026
Score: 4.3/5 (40 votes)

The vast majority of providers work ethically and submit appropriate claims for payment, but unfortunately, mistakes can happen that create unnecessary charges for patients and potential liability for organizations and for providers.

Are hospital bills accurate?

And it's worth your time and effort because mistakes are common: An estimated 80% of medical bills contain some kind of error. Not all of them are the kind that cost you money or are hard to fix. But it still makes sense to double-check your bill.

Can I sue a hospital for incorrect billing?

Yes, you can sue a hospital for false billing. First, there are a series of internal challenges and appeals that you can undergo with the hospital. If there is an insurance company involved, they can be included in appeals as well.

How do you know if your hospital bill is correct?

Contact your health insurance company (if you used insurance when you got care). The company might be able to fix billing errors with your health care provider. You can also ask the company for a copy of your explanation of benefits. Make sure the “your share” amount is the same as what's on your bill.

How can you tell if a billing statement is incorrect?

The only way to find mistakes is to review your charges and fees carefully. Compare your starting balance with the previous month's bill. Also look for anything unfamiliar, including “add-on,” or optional, fee-based products. The customer service phone number appears on your monthly bill or on the back of your card.

What Happens If You Don't Pay Medical Bills?

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How common are medical billing errors?

Medical billing errors are common, with 4 in 5 medical bills containing at least minor mistakes, and getting them corrected or resolved isn't always easy.

What happens if billing information is wrong?

Security Concerns: Incorrect billing addresses could also raise red flags for potential fraudulent activity. Financial institutions and merchants may suspect unauthorized use of the card, leading to account freezes or other security measures being implemented.

Can medical bills be wrong?

Medical bills can contain all kinds of errors for a variety of reasons. The actual medical provider could code a service incorrectly, the billing department could have a mixup, or even the health insurance company could get something wrong.

What are two of the most common ways medical charges can be coded inaccurately?

Two common ways medical charges can be coded inaccurately are unbundling and upcoding. Unbundling refers to billing for individual components of a procedure separately, resulting in higher charges. Upcoding involves assigning a higher-level code than what is justified, leading to overbilling.

What are unethical billing practices?

These may include sudden and significant bill increases without transparent explanations, discrepancies between agreed-upon rates and invoiced amounts, and vague or inconsistent billing practices.

Why is my Er bill so high?

Is this based on severity? Hospitals will bill you for a line item called “ER Visit Level” that is based on the complexity of your treatment. ER visit levels range from 1-5: ER visit level 1 is the most mild, while ER visit level 5 is the most severe.

How do I dispute a medical billing error?

How Can I Fight Medical Bills for Errors in Billing?
  1. Request an itemized bill.
  2. Review the itemized bill for errors.
  3. Write a letter to the billing office to dispute the bill.

How to lower hospital bill after insurance?

If you find any errors, document them and contact your provider's billing department to have them corrected. If you are trying to negotiate hospital bills after insurance has already gotten involved, it's not too late. Call your insurer or write a letter of appeal to get the charge reduced or removed.

Should you dispute hospital bills?

If you receive a bill that is at least $400 more than your Good Faith Estimate, you can dispute the bill. Make sure to save a copy or picture of your Good Faith Estimate.

How expensive can hospital bills be?

Meanwhile, in California, an average stay costs $18,815 and workers earn an average of $37.44 hourly. With residents needing to work 503 hours to afford a stay, California is in third. While California has the fourth-highest average hourly earnings, it also has the highest hospital stay costs of any state.

How does ER billing work?

Typically, you have a copay (a set dollar amount) or co-insurance (a percentage of the claim) due for services rendered. You pay a small part of the medical bill and your insurance company covers the rest. Your health insurance plan includes benefits for emergency room visits.

How often are medical bills wrong?

80% of all medical bills contain errors.

Believe it or not, healthcare was much different back then. More organizations were still transitioning towards going paperless. Even then, though, some experts believed that number to be closer to 80%. That's since been the belief of many.

How do you fight an incorrect bill?

Notify them in writing, using certified mail with a return receipt for proper documentation. Your letter should clearly state the disputed amount. It should also provide information about the charges in question. If you are in a billing dispute, following federal requirements is important.

What are the two types of hospital billing?

In addition, the way a facility handles medical records and billing can also differ. For people interested in becoming a medical biller, it's crucial to recognize that different types of medical billing exist. Healthcare providers may follow two types of medical billing: institutional and professional.

How to review a hospital bill?

When you get a bill from your provider or facility, compare it with the Explanation of Benefits to make sure you were billed for the correct services and supplies. Also, compare the amount on your medical bill to the amount the Explanation of Benefits says you owe to make sure the amount is correct.

Why are medical billing errors so common?

These errors can result from various factors, including incorrect data entry, lack of understanding of payer policies, and outdated billing practices. By highlighting common medical coding errors and how to prevent them, independent physicians can safeguard their practices against financial and legal pitfalls.

Why didn't my insurance cover my hospital bill?

Health insurers deny claims for a wide range of reasons. In some cases, the service simply isn't covered by the plan. In other cases, necessary prior authorization wasn't obtained, the provider wasn't in-network, or the claim was coded incorrectly.

What is considered a billing error?

For purposes of this section, the term billing error means: (1) A reflection on or with a periodic statement of an extension of credit that is not made to the consumer or to a person who has actual, implied, or apparent authority to use the consumer's credit card or open-end credit plan.

What is a false billing?

False billing is a fraudulent act of invoicing or otherwise requesting funds from an individual or firm without showing obligation to pay. Such notices are, for example, often sent to owners of domain names, purporting to be legitimate renewal notices, although not originating from the owner's own registrar.

What is not considered to be a billing error?

Computational errors.

For example, if a bank combines a periodic statement reflecting the consumer's credit card transactions with the consumer's monthly checking statement, a computational error in the checking account portion of the combined statement is not a billing error.