Killer Billing Errors

The errors exacerbate consumer frustration with an already troubled health care system. Those lucky enough to have insurance find themselves digging deeper into their pockets to pay premiums, deductibles and co-payments. Some dig so deep that they ruin their credit: Medical debt now ranks as the second-leading cause of personal bankruptcy in this country, after credit card debt. And it's not just because 43 million U.S. consumers are uninsured: About 80 percent of families in bankruptcy due in part or in whole to medical bills were insured, a recent New York Law Review study found.

The future looks even more bleak if health care costs keep climbing 10 to 14 percent each year while wages continue to grow by an annual 2 to 3 percent.

"Consumers will feel more squeezed than ever before," said Helen Darling, president of the National Business Group on Health, which represents the views of large employers. "They will need to pay much more attention to the details of cost-sharing because the money is even more precious and because there will be a larger variety of [insurance] plans, which means more confusion and errors."

Even if insurers pick up the tab for those errors, consumers could ultimately pay the price, said Tom Brennan, director of special investigations with Highmark Inc., a Blue Cross Blue Shield plan based in Pittsburgh.

Every mistake eats into the lifetime cap per patient set by many benefits plans, Brennan said. Yet patients often ignore expenses if insurers reimburse doctors, hospitals or labs without a hassle, he said.

"God forbid you get hit by a catastrophic illness or an extended hospital stay and then find out your benefits have been exhausted," Brennan said.

Not to mention your savings.

Consider the Goodale family in Long Beach, Calif. Last year, Darryl Goodale had a sore throat that went from bad to worse. The diagnosis: throat cancer. The treatment: daily radiation, weekly chemotherapy and a host of drugs to deal with the side effects.

His wife, Ann, initially did not fret about medical costs. "My main concern was his welfare," she said.

But the bills trickled in.