How to Negotiate Medical Bills

When you or a loved one is sick, injured or in need of medical care, the last thing you want to worry about is how you’re going to pay for it. But even with health insurance, many Americans are faced with out-of-pocket health care costs that go far beyond their budgets.

Fortunately, you don’t have to face your medical bills alone. Options are available to help ease your financial burden and get back on track to meet your money goals.

6 Ways to negotiate your medical bills

From scheduled treatments to prescription drugs to medical emergencies, planned and unplanned health care costs can be overwhelming.

Check out these options to negotiate medical bills down to a lower amount — or work out other more manageable payment arrangements — so you can focus less on mounting bills and more on your financial goals.

1. Check for medical billing errors

Requesting an itemized bill from the medical provider and an Explanation of Benefits (EOB) from your insurance company could help you identify potential billing errors. Carefully review each document for:

• Services received
• Charges billed
• Amount covered by insurance
• Out-of-pocket costs

If any of these details are different from what you understood or expected, or if a service is listed twice, give your health care provider or insurance company a call to clarify or correct the charges. If there's an error on your bill, you may be able to file a formal dispute and have the bill reduced.

2. Review medical and insurance terms beforehand

Health insurance terminology can be confusing — billing codes, co-pay vs. co-insurance, in-network versus out-of-network.

Before you attempt to negotiate, take time to understand the terms of your medical bills. Ask questions if you need further explanation.

You’ll likely have more success negotiating a hospital bill with the billing department if you've done your research and sound knowledgeable.

3. Make an offer to the hospital or your provider

Some medical bill negotiations can be handled with a simple offer right from the start. If there is a lump sum that you can afford to pay immediately, you could try asking the billing representative whether the hospital or medical provider would be willing to accept a lower amount than what is due.

After all, it can’t hurt to ask, and you may be surprised at how much a medical provider would be willing to accept to avoid the time and cost of pursuing collections.

4. Ask to pay off your hospital bill in installments

If you can't afford to pay your bill in full by the due date, ask your provider if they offer payment plan options. Many hospitals and healthcare providers will allow you to pay off your medical debt in monthly installments. Depending on the situation, the amount you pay each month may be negotiable. However, fees or interest charges may apply. Ask for a written copy of the agreement so that you understand the full details.

5. Look into hospital payment-assistance programs

Many hospitals offer financial relief programs for patients who meet certain criteria regarding income, family size, and type of medical procedure. If you qualify and decide to apply, be prepared to provide detailed financial information (such as tax returns) about your:

• Household assets
• Medical insurance
• Income
• Budget

Even if your provider has already sent the bill to a debt collector, you may still benefit from applying for assistance. ¹

6. Research government programs and charities

USA.gov provides useful information about available government programs that assist those who can’t afford to pay their medical bills or need help negotiating hospital bills.

Your state’s social services agency, local health department and area nonprofits may also provide support. Many charitable organizations offer financial assistance for medical expenses, especially for specific conditions like cancer, diabetes or mental health treatment. These organizations may help with medical bills, prescription costs or even travel expenses for treatment. Check with local charities and community health programs to see if you qualify.

Alternative ways to handle medical bills

Negotiating your medical bills is a great first step, but it may not always be enough. If you’re struggling to cover out-of-pocket costs, here are a few other ways to manage your medical expenses:

Consider a personal loan for medical bills

If your medical bills are too high to pay all of them upfront, a medical loan can help. A medical loan is a type of personal loan that lets you borrow a set amount of money and repay it over time in fixed payments. A loan can be used to pay a bill in full or pay for remaining medical expenses that insurance might not cover. Personal loans may also offer lower interest rates than credit cards, which can save you money.

Temporarily use a 0% APR credit card offer

If you qualify, a credit card with a 0% introductory or promotional annual percentage rate (APR) can help you pay medical bills without interest for a set period, such as 12 or 18 months. Just be sure you can pay off the balance on the card before the offer period expires, or any balance left on the card will be subject to the card's regular interest rate.

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Get a clean bill of financial health

Mounting medical bills can feel overwhelming, especially when you’re also dealing with health problems. But you can’t put them off forever. Fortunately, you have options. Many medical providers are willing to negotiate, and if that’s not enough, there are other ways to manage your expenses. Whether you set up a payment plan, explore a personal loan or look for help from other resources, taking action can help you reduce your stress and regain control of your finances.

This article was updated since its original posting in 2023. Kim Gallagher and Kia Jackson contributed to this post.

Sources:

1 https://www.consumerfinance.gov/ask-cfpb/is-there-financial-help-for-my-medical-bills-en-2124/