Medical debt is the #1 cause of bankruptcy in America, but many people don't realize that medical bills are often negotiable. Here's a step-by-step guide to reducing what you owe.
Step 1: Review Your Bills Carefully
Medical billing errors are surprisingly common — some studies suggest up to 80% of medical bills contain errors. Request an itemized bill and check for duplicate charges, services you didn't receive, incorrect codes, and charges for items that should be covered by insurance.
Step 2: Understand Your Insurance Coverage
Before negotiating, make sure your insurance has processed the claim correctly. Contact your insurance company to verify what was covered and what wasn't. If a claim was denied, ask about the appeals process.
Step 3: Ask About Financial Assistance
Most hospitals have charity care or financial assistance programs. Non-profit hospitals are actually required by law to offer these programs. Ask the billing department about income-based discounts, charity care programs, and payment plan options.
Step 4: Negotiate the Bill
Call the billing department and explain your situation. Be honest about what you can afford. You can ask for a discount for paying in full (often 20–40% off), request a payment plan with no interest, ask them to match the Medicare rate for the procedure, or offer a lump sum that's less than the total.
Step 5: Get Everything in Writing
Once you reach an agreement, get it in writing before making any payments. This protects you from future collection attempts on the remaining balance.
When to Get Professional Help
If your medical debt is overwhelming or you're dealing with collections, a professional debt relief company can negotiate on your behalf. CuraDebt, for example, handles medical debt along with other types of consumer debt.
Overwhelmed by medical bills?