“Billing balance” stirs up controversy

Business Week recently collaborated with the CBS Evening News educate the nation on the nature of “billing balance.” When an insurance company covers less of the medical payments than doctors want them to, they turn to the customer for the rest of the payment. Since patients think that their unpaid bills will turn their credit bad, many automatically pay the bills. This has resulted in patients paying $1 billion more a year in medical bills than they’re supposed to. The California Association believes that 1.76 million policy holders paid $5.28 million more than they were suppose to, including 56% of those who were billed