How to Negotiate and Reduce Your Medical Bills

Getting a big medical bill in the mail can be super stressful. I’ve totally been there before – it’s like your heart drops into your stomach when you see the amount owed. But there’s good news: you don’t have to just accept the bill as-is. There are actually a bunch of ways to negotiate and lower your medical bills, which can save you a ton of money.

In this article, I’ll walk through all the strategies I’ve used to successfully reduce my own medical bills. These include:

• Reviewing your bill for errors
• Asking for an itemized bill
• Negotiating the overall amount
• Setting up a payment plan
• Getting financial assistance
• Using medical bill forgiveness programs
• Filing appeals and complaints

I know first-hand that medical bills are confusing and frustrating to deal with. But with some persistence and know-how, you can totally negotiate them down and ease the financial burden. Let’s get started!

Review Your Medical Bill for Errors

The first thing to do when you get a medical bill is give it a thorough review for any potential errors. Medical billing mistakes are super common – one study found that up to 80% of medical bills contain errors.

Here are some common billing errors to look out for:

• Being charged for services you didn’t receive
• Being billed twice for the same service
• Incorrect date, time, or location of services
• Upcoding – when a more expensive code is used for billing
• Charges for a canceled appointment

If you spot any discrepancies in your bill, contact the billing department right away to dispute the errors. Provide documentation like dates of service, bills from other providers, or records showing a canceled appointment. This can potentially knock a chunk off your bill!

Ask for an Itemized Bill

If your bill looks accurate but the amount seems too high, ask for an itemized bill. This will break down each individual charge line-by-line. Scrutinize the itemized bill closely – doctors often bill separately from hospitals, so there could be duplicate charges.

You can also compare the itemized charges to average costs on sites like Fair Health. If any costs seem exorbitant, contact the billing department to contest them. Pointing out pricing discrepancies can be an effective way to negotiate medical bills down.

Negotiate the Overall Amount

Once you’ve verified your bill is accurate, try negotiating the overall amount owed. Many people don’t realize that medical bills are often negotiable – but they totally are! Here are some tips for negotiating your balance down:

• Be polite and patient. A kind, understanding tone can go a long way!
• Explain your financial situation and hardship paying the bill.
• Ask if they can offer a discount for paying the bill quickly, such as within 30 days.
• Request a reduction to the Medicare or Medicaid rate, which is usually lower.
• Offer to pay a lump sum that’s lower than the full balance. Many providers would rather get a smaller payment upfront than send the account to collections.

It can take some back-and-forth, but calmly negotiating in good faith can help lower your overall bill. Don’t take the first offer – be persistent!

Set Up a Payment Plan

If you can’t pay your full balance right away, ask about setting up a payment plan. Most medical providers will work with you to make monthly payments over time. Be sure to get any payment plan agreements in writing!

When negotiating a payment plan:

• Ask for a no-interest or low-interest plan if possible.
• Request an extended repayment term, like 12-24 months.
• Explain the monthly payment amount you can reasonably afford.
• Make sure payments are applied to your balance each month.

Having a payment plan can help avoid further collection actions as long as you make the monthly payments. Just be sure to get the full terms in writing before agreeing.

Apply for Financial Assistance

Many hospitals and providers offer financial assistance programs that provide discounted or free care based on your income. These programs have different names like charity care, hardship assistance, or indigent care.

Here’s how to find out if you qualify for medical bill assistance:

• Contact the hospital billing department and ask about financial assistance programs.
• Check the provider’s website – many list program details online.
• Complete a financial assistance application with details on your income, expenses, assets, debts, and family size.
• Be prepared to provide documentation like pay stubs, tax returns, and bank statements.

If approved, the provider will reduce or eliminate your medical bills based on your financial need. This can literally save you thousands!

Use Medical Bill Forgiveness Programs

Some hospitals and nonprofits offer medical bill forgiveness programs that cover all or part of your medical debt. These are different than the financial assistance programs based on financial need.

Here are some ways to take advantage of medical bill forgiveness:

• Search for hospital bill forgiveness programs in your state. Many have funds to help state residents with medical debt.
• Contact religious charities and nonprofits in your community that provide medical assistance.
• Look into crowd-funding organizations that help people raise money to pay medical bills.

Medical bill forgiveness programs provide relief for those dealing with unaffordable medical debt. Do some digging to find programs that can help cover all or part of your balance.

File Appeals and Complaints

If the billing department won’t work with you, take your case to a higher level by filing appeals and complaints. Here are some options:

• Appeal claim denials with your insurance company – they may reprocess and cover more of the costs.
• File complaints with state insurance departments if your claim was improperly denied.
• Report unfair billing practices to state consumer protection agencies.
• Submit a complaint to the hospital’s patient relations department.
• Leave online reviews describing your experience – hospitals want to avoid bad publicity.

Don’t give up if the billing staff is unhelpful. Escalating your case and reporting unfair practices can put pressure on providers to reduce your costs. The squeaky wheel gets the grease!

The Bottom Line

Getting slammed with high medical bills can be overwhelming. But there are so many ways to negotiate them down: double-check for errors, ask for itemized bills, negotiate the overall amount, set up a payment plan, apply for financial assistance, utilize medical bill forgiveness programs, and file appeals or complaints.

With some persistence and know-how, you can successfully lower your out-of-pocket medical costs. Don’t immediately pay the full billed amount – take the time to thoroughly dispute and negotiate your medical bills. Your wallet will thank you!