An unexpected trip to the hospital can cost you thousands of dollars or more if you are required to have surgery or are forced to be admitted for care. There are several strategies for negotiating down your resulting medical debts from simply talking to the physician in charge of your care to retaining a licensed debt settlement company. A substantial discount in fees may be available depending on how proactive you are with the hospital.
Talk to Your Doctor
Your best opportunity to secure a discount on medical services is to begin negotiations when you're receiving medical care. Explain to your doctor that you do not have health insurance or are experiencing financial difficulties, which may impact your ability to pay a large medical bill. Your doctor isn't going to give you care for free but he may choose to discount your bill if he believes it increases your chances of paying the bill in full. According to the "New York Times," a parent was able to get a 25 percent discount on his daughter's medical bill by simply calling the hospital and asking for it.
Creditor Debt Settlement
A debt settlement is an agreement between you and your creditor or collection agency to pay off a debt for less than the total amount owed. Your creditor or collection agency may approach you with an offer for a debt settlement if your medical debts have been delinquent for a significant period of time. Basically, the hospital or other medical facility that performed your care is simply looking to receive some money on the debt rather than nothing at all. Accepting a debt settlement can net you a substantial savings on your total medical debt, but accepting the offer comes with a price. If the amount of debt forgiven by your creditor is greater than $600, you are required to claim it as income on your federal taxes.
Consumer Debt Settlement
Retaining the services of a consumer debt settlement company can help you negotiate with a medical debt collection company or hospital regarding your unpaid debts. According to debt settlement company Paying Paul, a consumer debt settlement company can potentially net you a savings between 40 and 60 percent. Finding a non-profit debt settlement company is important to avoid your savings being eaten up in fees charged by a for-profit debt settlement company. A list of non-profit consumer debt settlement companies may be obtained through the Federal Trade Commission's website.
Chapter 7 Bankruptcy
Medical bills are unsecured debt. This means the medical institution where you received care or a collection agency representing them has no collateral to take from you to force you to pay. If your medical debts are part of a larger financial crisis, bankruptcy may be an effective alternative to expunge your unsecured debts and give you a fresh start. The downside to Chapter 7 bankruptcy is you may lose assets including your home or car as they are liquidated to pay your creditors before your debts are formally erased by the court.
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