Struggling with medical bills? A Chicago startup wants to make disputing them a little easier.
, a recently-minted company that provides online consumer advocacy and negotiation services for medical billing, this week announced the raise of a $400,000 seed round of funding from angel investors, including co-founder Stephen Lee. According to a company statement, the round will be used to launch a new platform to help consumers understand the healthcare billing process and — hopefully — lighten the burden of medical debt.
“According to the Medical Billing Advocates of America, more than 80 percent of U.S. medical bills contain errors and overcharges. Medical bills are the biggest cause of bankruptcy in the United States,” said Matt Moulakelis, co-founder and CEO of DisputeBills in the statement. “Healthcare bills can be incredibly complicated. We aim to demystify the entire process, to save people time and money and to eliminate the burden and stress that medical debt creates for over 56 million Americans.”
Medical bills, either due to fraud or human error, can be riddled with miscalculations. DisputeBills helps consumers already overwhelmed with medical debt review claims in order to locate inaccuracies and savings opportunities, with the end goal of negotiating a lower rate.
It works like this: users can submit medical bills and insurance information directly onto the company’s platform (which they say is both secure and HIPAA-compliant). Users can then connect with a billing advocate, tracking case progress as they go. The goal is to pair consumers with experts to provide relief and support for those facing inordinate medical debts.
Users can expect to pay about 30 percent of any savings incurred, and only if the company is able to reduce the bills. They also allow for free, first-time consultations.
DisputeBills was founded in March of 2015. According to the release, they’ve reached a 90 percent case success rate with an average bill reduction of 75 percent.
In total, DisputeBills says they’ve saved consumers more than $500,000.
Photo via DisputeBills/Facebook.
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