Read My Mail: “Never Pay the First Bill” Helps People Save BIG on Health Care

Getting equipped and empowered to fight unfair medical bills and insurance denials pays off. These readers saved between $969 and $65,500.

I dedicated my book, “To anyone who’s been pushed around by the American health care system.”

That’s pretty much all of us.

Working Americans and employers have been getting bullied for decades by medical billing fiascos, insurance runarounds, ridiculous prices and more. So the best part of publishing “Never Pay the First Bill: And Other Ways to Fight the Health Care System and Win” is hearing from people who have applied its tactics to save huge money on health care. I call these “Victory Stories” and I invite you to share yours with me. Telling others how you beat a health care Goliath is important. We learn useful tips and get inspired when we share these stories.

This column features my readers sharing their Victory Stories in their own words – a young mom, an immigrant from India, a daughter caring for her dad, my friend from my childhood, a paramedic and a benefits insider. Their savings ranged from $969 to $65,500 – all because they got equipped and empowered with the book.

I am sharing what these readers sent me with their permission. I lightly edited their testimonies for the sake of clarity. I hope that you find them encouraging!

Leah Sargeant and her daughter, Beatrice (pictured above) – saved $1,442

I went to my pediatrician in Princeton, New Jersey from the time my daughter was born to 18-months-old. She received a range of ordinary care, including her pediatric vaccines. The doctor and front desk staff were fantastic. But after some of her appointments, I would receive a bill charging me hundreds of dollars for routine vaccines.

I knew that pediatric vaccines should be covered at no cost to me. I messaged my insurer to ask to see the corresponding EOBs. My insurer said there was no corresponding claim. So, at first, I ignored the bills, thinking they were sent in error. But then the doctor's office wouldn't let me keep scheduling checkups, since I owed money. I had to pay the first bill to be able to stay on track with appointments.

I called and called the billing office, but almost never got through to a person. My insurer also called to try to figure out what was going on, and also was unable to reach the billing office or get a callback. The front deck tried to reach the billing office to help me, and they were often unable to reach anyone.

This went on for more than six months. Every time I went in for an appointment, I didn't know if an unexplained bill would follow. Finally, I owed more than $1,000 and that was more than I was willing to pony up while I waited for information. They were able to keep sending bills and a warning about collections, but they weren't able to return my calls?

Because I had read “Never Pay the First Bill,” I felt like I could go to small claims court if I had to (though I would prefer not to). With the confidence that I could follow through on that threat, I went to the office in August 2021 with a formal letter notifying them that I intended to sue if they did not correct the erroneous bills totaling $1,442.30. I printed two spaces for signatures on the back, one for me, and the second for someone in the office to sign to confirm receipt.

I did that because I knew that would be worrying for them. No one at the front desk wants to sign something that's going to turn up in court later, and I figured that the billing desk that ignored me wouldn't ignore a message from the front desk saying, “I'm supposed to countersign this notice of intent to sue?" I made sure to tell the person working the front desk how much I'd appreciated their help in the past, and that I knew the problem would already be resolved if it were in her power to fix it. I just emphasized that I had exhausted all my options to work with the office, and now I simply needed proof they had received adequate notice before I filed suit.

Within the week, I had a call from the billing office. 

Over several three-way calls with me, the billing office, and my insurer, it turned out that it was my insurance company that had hit a snag. Something, I still don't know what, had caused the claims to be put on hold and they had never gotten off hold.

The key tip for me was knowing that small claims court was doable. Knowing I could escalate there made it easier to stand my ground.

(Leah is also a writer and invites readers to check out her newsletter.)

Prema Walker – Saved $969

I got some lab work done and insurance denied my claim, saying labs and checkups for immigration purposes are not covered under the policy. I asked them to point me to the exemption statement in the policy description and there is no such thing. Meanwhile, the lab kept sending me past due notices and it was possible I would be sent to collections. I called the lab to ask for a hold on the bill as the insurance was reviewing it. I had to fill out some information and the insurance assured the lab that this bill is under review. Every 30 days I called the lab and extended the hold. Finally, after 171 days my bill got resolved and I paid only $20.

Thank you for the book. I hope you come out with a book explaining how health care works for new immigrants coming into the country. When I came here six years ago from India no one explained to me how the health care system works.

Pamela Goetz – Saved $6,000 for her dad

I appealed with Humana and obtained reimbursement of $6,000 for in-facility care for my father following a fall and partial hip replacement surgery. Your interview with Chris Hutchins followed by reading your book made all the difference. Thank you.

Jody Burman – Saved $65,500

My air ambulance bill just got reduced from $76,000 to $10,500 after they received my strongly written letter. I offered two-times the Medicare rate and they went lower! I had called every month for seven months and sent the letter in the eighth month. That finally got the action. Thanks Marshall 😊

[Note from Marshall: Jody and I have known each other since pre-school! Shout out to Kyffin Elementary School in Golden, Colorado!]

Devin (not pictured) – Saved $1,000

I received a $1,000 ambulance bill when I injured my back. I called the EMS department and told them I don't think I should have to pay this because I'm certain they did not provide the services that they are claiming as the crew never once checked my vital signs. They countered that the EMTs did, and I probably wasn't aware of it. I re-countered that I am a paramedic myself and I would know if they checked my vitals, and if I asked for the EMS chart and say vital signs filled in I would sue for fraud. They waived all charges. Loved you on ZDoggMD's show and had to buy the book. Total life changer and an eye opener about billing practices.

Dale Sagan – Saved $1,573 (originally posted on LinkedIn)

I want to give a public shout out to Marshall Allen for providing the tool that helped me fight an egregious provider bill for a member of my family.

The healthcare system is full of financial traps. One of them is the short period of time in which you have to enroll a newborn onto your health plan. Unfortunately, this wasn't top of mind and this family member had to go without insurance for their newborn because they missed a 30 day window to enroll.

Fortunately, the only catastrophic event was receiving the provider bill in early 2022. I was asked to see if I could help so I read Marshall's book, "Never Pay The First Bill" after seeing him present at E Powered Benefits' YOU Powered Symposium.

After some research and writing a simple letter [Note from Marshall: Dale’s letter is great and available by following the link to his LinkedIn post.], the doctor agreed to the 49% reduction in billed charges.

I highly suggest purchasing this book, signing up for his newsletter, and to feel encouraged to push back on hospital bills. Thank you, Marshall.

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Update on “The Never Pay Pathway” Health Literacy Videos: Folks, we are so, so close to the launch of my health literacy videos. The first 15 of the 16 videos are essentially complete, just one more to go. We are loading them into the online education platform and building out the assets to bring them to you.

The videos are each around 3 to 6 minutes in length. They cover the topics I cover in “Never Pay the First Bill” in an engaging and easy-to-understand way. I have videos on getting your medical records, getting an itemized bill, pricing out bills to make sure they are fair, contesting unfair bills, winning insurance company appeals, avoiding unnecessary treatment, paying cash prices, taking advantage of price variation and much, much more. These videos will equip viewers to engage the health care system in a savvy way, saving money for themselves and their health plans.

Many of the readers to my newsletter supported my Indiegogo crowdfunding campaign, which paid for the production. They will be the first to get access, depending on their level of support. Anyone who pre-ordered the videos will also have the first access to the videos. For pricing, check out the pre-order page to get an overview of what I’ll be offering. The prices might change a bit once I launch, but they will give you a general idea.

My goal is to roll out my videos, smartphone app and online coaching to every consumer – directly and via their employer sponsored health plan. Does that sound grandiose? I hope it does! Employers and working Americans have been taking huge losses at the hands of the health care system for decades. It’s time we get a fair deal.

Thank you for reading my newsletter - and please share it with others. As always, reach out to me if you have any ideas or questions!