Medical Bills? Protect Yourself

Health insurance horror stories like those in documentary "Sicko" happen everyday. No one wants to learn that their health insurance company won't pay a major doctor's bill.

Here are 3 tips to help protect against unexpected medical bills and get the most our of your health insurance coverage:

1) Check for benefit limitations. Read through coverage details, especially the "exclusions and limitations."

Some health plans include a "lifetime maximum," which represents the maximum amount of medical expense the health insurance company will pay for all medical claims in a lifetime (typically $2-$5million)

2) Make sure the doctor prescribes only drugs that are covered (if at all possible). Some health insurance companies maintain lists of all the prescription drugs that they are willing to cover (called a formulary). A doctor may or may not be aware of the health insurance company's formulary. Get a copy of the drug formulary from the health insurance company and consult it when your doctor writes a prescription.

3) Preauthorization. Health insurance companies will typically only cover services they consider medically necessary. When considering an expensive procedure , even one ordered by a doctor, make sure to apply for preauthorization.