Insurance How to Negotiate Your Medical Bills Down Discounts and help are available if you know how to go about it By Erin Huffstetler Erin Huffstetler Website Erin Huffstetler is an expert on budgeting whose advice has been featured in The New York Times, Chicago Tribune, Forbes, and many other publications. She founded the My Frugal Home blog, and has also been published by The Spruce, TripSavvy, and Byrdie, among others. Huffstetler has a bachelor's degree from Maryville College. learn about our editorial policies Updated on April 21, 2022 Reviewed by Eric Estevez Reviewed by Eric Estevez Eric is a duly licensed Independent Insurance Broker licensed in Life, Health, Property, and Casualty insurance. He has worked more than 13 years in both public and private accounting jobs and more than four years licensed as an insurance producer. His background in tax accounting has served as a solid base supporting his current book of business. learn about our financial review board Share Tweet Pin Email In This Article View All In This Article Check the Bill for Errors Negotiate for Insurance Rates Negotiate Payment Terms Get Outside Help More Considerations When Possible, Act in Advance Make Good on Your Promise Frequently Asked Questions (FAQs) Photo: The Balance / Sabrina Jiang If you get slammed with a monster-size medical bill, and you don't have the funds readily available to pay it, don't panic. There are steps you can take to negotiate your bill down to a lower amount or make smaller, more manageable, payments. Check the Bill for Errors This can be tricky because medical bills have their own unique language, but you can determine whether your bill is accurate if you know where to focus your attention. Virtually all procedures are coded to facilitate collections from insurance companies. You can do an online search to find the meaning of the medical codes that appear on your bills. You can compare the meanings with your procedures to find out whether you're being billed for the treatment you actually received. Some errors are surprisingly commonplace: Codes might be mismatched, which means they don't line up with your diagnosis. If the codes don't match, your insurer, if you have one, will most likely decline to pay any portion of this claim. Upcoding involves a bill for treatment that might be similar to what you received, but it's not the treatment you underwent, and it usually costs more. Other errors can include numerous billings for the same procedure, known as duplicate billing. And unbundling is when services that should have been billed under one umbrella diagnosis or code are broken out, often adding up to additional costs. Call your doctor, the hospital, or your insurance provider if you find discrepancies. Question the charges, and ask for a new, accurate bill. Negotiate for Insurance Rates If you're uninsured, then you may be charged a higher rate. Look up the fair market price for the care you received. This is the amount that providers regularly accept from insurance companies as payment in full, and it's the amount you should aim for in your negotiations. You can find this information in the Healthcare Bluebook. Contact the billing department to negotiate a lower payment after you have this information. Politely ask to speak to a supervisor if the individual you're speaking with summarily turns down your request. Keep moving up the organizational chart until you reach someone who's willing to help you, or until you reach the highest authority. Cash Is King Ask your doctor or the billing manager if they'd be willing to give you a discount for paying in cash if your initial request for a discount based on hardship is turned down. Point out that your cash payment will save the office credit card fees and staff time in processing paperwork. Instant cash flow is hard for any business to decline, especially if you offer to pay at the time of service.Of course, you have to have the cash available to pull this off. Find out if a family member or friend can help you out if you don't. Negotiate Payment Terms Occasionally you will come across a service provider that just won't budge on price, but don't give up and whip out your credit card just yet. Work to establish a payment plan that meets your needs instead. Be crystal clear about your ability to make payments. Tell the billing representative how much you can pay and when you can pay it. If they ask for larger payments—and they probably will—explain that you simply can't afford to do more. In all likelihood, they'll accept what they can get rather than not get paid at all. Even if you pay small bits over an extended period of months because that's all you can afford, the provider is not going to turn you over to collections. It will accept your money each month and send you a new bill the next month...and on and on, unless and until you miss a payment. Don't offer or agree to pay more than you can afford under any circumstances. Falling behind in your payments will destroy any future negotiating power you might have. Get Outside Help If all else fails, consider reaching out for help. Numerous health care and medical billing advocates are out there, such as the Patient Advocate Foundation. The downside is that many of them cost money, too. Still, they'll go to bat for you if you're not getting anywhere on your own, and some offer sliding-scale fees based on your income. More Considerations Keep these items in mind when you're facing what looks like a medical bill you can't handle: Insurance companies negotiate with health care providers all the time. You can, too. No one will think you're stingy for doing so.Call the billing department right away when you get a bill that you can't afford to pay. It's harder to negotiate a bill after it becomes delinquent.Stay polite and maintain your composure. No one wants to help someone who's rude.Doctor fees and hospital bills aren't the only bills you can negotiate. You can also negotiate your dental work and lab fees. When Possible, Act in Advance Many physicians and facilities have programs in place to help those who are financially strapped, but they won't necessarily tell you about them unless you ask. The important thing is to let them know candidly and as early on as possible that you'll need help. Ask for a discount ahead of the procedure or service if it's not an emergency. Speak candidly with your doctor or service provider about your circumstances. If you don't have insurance or your provider doesn't cover the procedure, then say so. Your doctor needs to know if you're living on a fixed or low income, or if other factors will make it difficult for you to pay. Note Some hospitals might require that you apply for Medicaid first before offering you a discount on services. Get it in writing if you're successful in negotiating a discount. You might need this confirmation later. In fact, you might want to make your pitch in writing as well, so that you have a record of it, or back up your conversation with a written communication summarizing what you spoke about, whom you spoke with, and any terms you reached. Make sure you understand what's included in the price you've been quoted. Does it cover anesthesia, or is that extra? A discount on the surgery might not do you much good if anesthesia isn't covered, and that cost alone could empty your bank account. Make Good on Your Promise If you agreed to pay at the time of service, do it. If you agreed to send in regular monthly payments, get those payments in on time each and every month. Failing to do what you promised could cause the provider to rescind any discount extended to you, which could indeed land you in the collections department. Key Considerations for Negotiating Medical Bills Keep these items in mind when you're facing what looks like a medical bill you can't handle:Insurance companies negotiate with health care providers all the time. You can, too. No one will think you're stingy for doing so.Call the billing department right away when you get a bill that you can't afford to pay. It's harder to negotiate a bill after it becomes delinquent.Stay polite and maintain your composure. No one wants to help someone who's rude.Doctor fees and hospital bills aren't the only bills you can negotiate. You can also negotiate your dental work and lab fees. Frequently Asked Questions (FAQs) What happens if I can't pay my medical bills? If you don't pay your medical bills or negotiate with the hospital where you received care, the amount owed will be sent to a collection agency, which will impact your credit score. Your credit score will drop, and the entry will remain on your credit report for up to seven years or more. Do medical bills or debt ever go away? Medical bills don't go away no matter how many calls you ignore. Once it is passed along to a collection agency, it takes seven years for medical debt to be removed from your credit report. The bill itself, though, is never actually gone, and you will still owe that much to the hospital or clinic you went to. It's always better to speak with the billing department where you received care and to be upfront with them to figure out a payment plan that will work for both parties. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Phillips & Cohen, LLP. "Upcoding and Unbundling." AARP. "Health Care Billing Errors and Fraud." Healthcare Bluebook. "Find Your Fair Price." Consumer Reports. "How to Get Help With Your Medical Bills." Experian. "Can Medical Bills Hurt Your Credit Report?"