How to read an itemized hospital bill

An itemized hospital bill can look like a wall of numbers, but it follows a predictable structure once you know what to look for.

Each line has a billing code. CPT codes (five digits) describe procedures and services. HCPCS codes (a letter followed by four digits) often cover drugs and supplies. Revenue codes (three or four digits) describe the department or type of service, like the emergency room.

For every code, note the quantity and the charge. Then compare the charge to the Medicare allowed amount for that code — a public benchmark for what the service is generally worth. Charges many times the benchmark are worth questioning.

Finally, look for repeats: the same code and charge appearing twice on the same date is a classic duplicate. And watch for separate facility fees, which are common and often negotiable.

If reading all of that sounds like a lot, it is — which is why BillGuard reads it for you and highlights the lines that deserve a second look.