Ask provider directly about billing practices

The check was for $42.81. The radiology people sent me $27.84.

I went to their office and asked what happened to the $14.97. I was told they are allowed to keep this amount, by law. How could this be? – M.M., Cleveland, Ohio

Dear M.M.: I haven’t any idea. Ordinarily, if the patient pays the amount of the bill and the health provider receives payment from the insurance company, the entire amount is refunded to the patient. I see no reason for them to charge a surcharge, unless they say, because the bill was very late, they are entitled to a percentage. But given the amount of the bill ($40) against almost $15, that would be entirely too high a percentage to extract.

I would go back and ask them under what law they made this deduction. Further, I would take it up directly with the radiologist. I would think he would be embarrassed to have a practice such as this in his hospital.

Reasonable return at low risk?

Dear Bruce: I have power of attorney over my 81-year-old bachelor uncle’s matters, and I am co-executor of his will. Because of the progression of his Alzheimer’s, I have had to place him in a home. I have sold his car, and I am in the process of selling his home. Altogether, he will have somewhere around $550,000 cash when it’s all over. His retirement money and Social Security cover his current living costs, but they will soon be on the rise, owing to increased medical needs as the disease progresses. Where should I place the cash to get a reasonable return at low risk, yet be able to liquidate within a matter of months? What would you recommend? – S.H., Duvall, Wash.

Dear S.H.: We get to the classic question of reasonable return and low risk. Regarding keeping his money liquid, you could afford to tie up the biggest part of his cash, and keep perhaps $50,000 liquid and as a result get a higher return. That said, something on the order of $30,000 does not seem like an unreasonable return before taxes.

When this is combined with his retirement and Social Security, the likelihood is this will take care of your uncle’s affairs for the remainder of his life, without attacking the principal.

Even assuming a $50,000-a-year reduction of principal, which is way more than one can anticipate, he would still have more than enough money for 10 years. It would be highly unlikely his life expectation is that long.

Bruce Williams is a national radio talk show host and syndicated columnist. He can be reached at bruce@brucewilliams.com.[[In-content Ad]]