7 Ways to Negotiate Medical Bills
Summary
Dealing with hospital or medical bills is stressful to say the least. Learn ways to negotiate your bills and how to deal with medical debt from OneMain.
In this article:
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. Even with health insurance, many Americans are faced with out-of-pocket health care costs that go far beyond their budget.
With the average worker paying $6,106 a year in out-of-pocket health care expenses, medical bills can pile up fast.1 But in some cases, you may be able to negotiate hospital bills down to an amount and payment schedule that are easier for you and your family to handle.
How to negotiate medical bills in 7 ways
From scheduled treatments to prescription drugs to medical emergencies, planned and unplanned health care costs can be overwhelming. Here are ways to negotiate hospital 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 well-being.
1. Examine your bills for errors.
Request an itemized bill from the medical provider and an Explanation of Benefits (EOB) from your insurance company. Make sure the services received, charges billed, amount covered by insurance and out-of-pocket amount you’re expected to pay are the same on both the bill and the EOB. If not, give the hospital or insurance company a call to clarify or correct charges. In some cases, you may need to file a formal dispute.
2. Do your homework beforehand.
Health insurance terminology can be confusing — billing codes, co-pay vs. co-insurance, in-network vs. out-of-network. Take time to understand the terms on your medical bills, and ask questions if you need further explanation. You’re likely to have more success negotiating a hospital bill with the billing department if you sound like you know what you’re talking about.
3. Make an offer.
Some hospital 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, ask the billing representative if they would be willing to accept a slightly lower amount than what’s 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 bill in installments.
If you cannot afford to pay in full by the due date, ask the hospital or medical provider if they offer payment plan options. When you negotiate a medical bill by offering to pay it off in installments, you can satisfy your debt while making payments more manageable.
5. Look into hospital payment-assistance programs.
Most 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 about your household assets, income, tax returns and budget. The National Consumer Law Center’s free step-by-step guide can help you navigate this process.2
6. Research government programs.
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 medical bills. Your state’s social services agency, local health department and area nonprofit organizations may also provide support and referrals to residents going through financial hardship.
7. Don’t ignore the bills.
If you can’t pay a medical bill by the due date, reach out to the billing department as soon as possible. Ignoring a bill could cause late fees and interest to add up or result in debt collection, lawsuits and wage garnishment. It could even impact your credit score.3
How to get a personal loan to deal with your medical bills
Health care costs shouldn’t discourage you from getting the care you need. A personal loan could allow you to pay your medical bills now and repay the loan over time. When researching personal loan options, look for a loan that offers a fixed interest rate and fixed monthly payments, to give you the peace of mind you need to focus on what matters most: your health.
1 https://www.kff.org/health-costs/report/2022-employer-health-benefits-survey/
2 National Consumer Law Center. https://library.nclc.org/article/guide-reducing-hospital-bills-lower-income-patients
3 Consumer Financial Protection Bureau. https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-cant-pay-a-medical-bill-en-2125/)
This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.
