How to Negotiate a Settlement for Medical Debt

Medical bills can easily run into the thousands of dollars. If you don't have insurance or your coverage is limited, you may find yourself buried in debt if you have an accident or suffer a serious illness. Many people don't realize that doctors or hospitals may be able to negotiate the amount of your medical debt or the payment plan to make it more manageable for your budget. The negotiation process is not difficult if you speak to the right person and make a reasonable settlement offer.

Instructions

1

Determine whether you need to negotiate a reduction in the overall debt amount, a payment schedule, or both. Sometimes you can pay the full amount of the medical debt, but you just need some time to do it. Sometimes the amount is so large that it would be virtually impossible to pay it in full. Know exactly what you need to make the situation manageable before you start negotiations.

2

Contact the doctor's office or hospital before your medical debt is turned over to a collection agency. Once the debt is turned over to an outside collector, the doctor or hospital can only expect to receive a fraction of the amount billed. Rather than taking that step, the billing party might be willing to compromise and collect a smaller amount from you that will still be higher than what could be expected from a professional collector.

3

Make sure you are speaking with someone who has the power to do negotiations and give approval to a settlement. When you're talking to a hospital, you may need to speak with a supervisor rather than a billing clerk. When you're dealing with a doctor's office, you might need to talk to the office manager or the doctor herself. Don't waste your time talking to someone who cannot say "yes" to a settlement.

4

Lay out your offer and express your willingness to put it into writing. Be specific about the lump-sum settlement or payment plan you are offering. If you are willing to sign a contract, it will show your good faith. Make sure the billing party agrees to sign it, too; in this way the doctor or the hospital is also bound to the agreement.