Can You Negotiate a Payoff of Medical Bills?

Hefty medical bills can put a wrench in even the best of financial plans. Whether you have health insurance or not makes no difference if the amount due is more than your budget can handle. Although you may feel your only option is to pay the bill in full, an alternative solution may be to negotiate a payoff of your medical bills.

The Facts

Some health-care providers are more willing to negotiate the balance you owe on a medical bill than others are. According to MedicalBillAssistance.com, your chance of negotiating a payoff is greater when dealing with a hospital billing department than with a doctor. Regardless of which you deal with, however, the fact is, negotiating the cost of medical services is nothing new to your health-care provider. Insurance companies do this all the time, sometimes negotiating even below the point of usual and customary fees.

Analysis and Preparation

Before attempting to negotiate, thoroughly analyze your bill to ensure it is correct. If you find inaccuracies, bring them to the attention of your health-care provider and request a new, correct bill. To perform a thorough analysis, you need an itemized bill, rather than a summary of charges, so if necessary, call the billing department and make this request. When analyzing your bill, make sure the math adds up and check to ensure each charge is accurate. You then need to establish a starting point for negotiation by finding out what is a "usual and customary" charge for your area. If you have health insurance, you can get this information from your insurance provider. If not, or if you prefer not to go through your insurance provider, you can get this information at no cost from websites such as HealthcareBlueBook.com, NewChoiceHealth.com or Vimo.com (see Resources).

Process

Both your demeanor and the process you follow during negotiations will largely determine your success. No matter what your temperament, make your case in a calm manner, using information from your research along with a reasonable explanation as to why you cannot pay your bill. Remember, your ultimate goal is to negotiate a payoff, not a reduction of your bill. As MedicalDebtHelp.com notes, your health-care provider will often start by first offering a payment plan or reduction in the amount due. Only you can decide whether further negotiation will result in a better offer. If or when you do reach agreement, make sure to get it in writing.

A Last Resort

If all else fails and your medical bills are crippling your finances, there is one remaining option. You can file a Chapter 7 bankruptcy to wipe the medical bill completely, or Chapter 13 bankruptcy to pay a percentage of the amount due over a three- to five-year period. Consider this option carefully, however, and talk to a lawyer before making a decision, as both types will have a significant effect on your overall finances for the next 10 years.