Tips for Negotiating Medical Bills in Collections

Dealing with medical bills can feel overwhelming, especially when they spiral out of control and end up in collections. As of early 2024, U.S. residents owe at least $220 billion in medical debt, and many are left wondering how to manage this financial burden. 

If you’re facing a similar situation, you're not alone. The best part is that you can negotiate and reduce what you owe. 

In this blog, we’ll walk you through how to negotiate medical bills in collections so you can take control of your finances. First, we’ll explain what medical bills are & how they end up in the collection. Then, we’ll share the top 12 tips to help you lower your debt, set up manageable payment plans, and avoid further damage to your credit score. 

Whether you're dealing with hospital bills, doctor’s fees, or unexpected emergency expenses, these tips will help you find relief and regain financial stability.

Keep scrolling!

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What Are Medical Bills, and How Do They End Up in Collections?

Medical bills refer to the charges you receive for medical services, treatments, or hospital stays. These bills can include doctor visits, diagnostic tests, medications, surgeries, and emergency care costs. 

• When you receive medical care, the healthcare provider sends you an invoice for the services rendered, and your insurance (if you have one) may cover part of the cost. 
• However, if your insurance doesn’t fully cover the bill or you don’t have insurance, you are responsible for paying the remaining amount.
• If you don’t pay your medical bills on time, healthcare providers may start sending reminders or warnings. 

• The bill may be handed over to a collections agency after a certain period, typically around 90 to 180 days. 
• Once in collections, the agency takes over the responsibility of collecting the outstanding payment, which can negatively affect your credit score if left unpaid for too long.

With the basics of medical bills and collections in mind, here is what you can do next to negotiate and manage your debt more effectively.

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Top 12 Tips for Negotiating Medical Bills in Collections

Negotiating medical bills in collections can feel overwhelming, but with the right approach, you can effectively reduce your financial burden. Here is a detailed explanation of each tip to guide you through the process.

1. Review Your Bills Thoroughly

Begin by carefully reviewing each line of your medical bills. 

• Look for errors such as charges for services you didn’t receive, duplicate charges, or incorrect dates. 
• Identifying mistakes early on is crucial, as these errors can be contested and corrected, potentially lowering your overall bill.

2. Know Your Rights

It’s important to understand your legal rights as a patient under the Fair Debt Collection Practices Act (FDCPA). 

• This law protects you from abusive tactics used by debt collectors, ensuring that your rights are respected throughout the negotiation process. 
• Familiarizing yourself with these protections will help you feel more confident and secure in your dealings.

3. Contact the Provider 

Before you start dealing with collection agencies, reach out directly to the healthcare provider’s billing department. 

• Often, hospitals and doctors are more willing to negotiate with patients before an account is handed over to a collections agency. 
• You may be able to reduce the bill or work out more favorable terms without involving third-party collectors.

4. Ask About Financial Assistance Programs

Many hospitals and healthcare providers have financial assistance programs for patients who need help paying their bills. 

• These programs can reduce your medical debt based on your income, household size, and financial situation. 
• For example, Baylor Scott & White Health offers financial assistance, potentially providing a 100% discount based on household size and yearly income.

5. Prepare Your Case

Gather all relevant documents before entering negotiations. 

• This includes your itemized bill, insurance Explanations of Benefits (EOBs), and any evidence of billing errors. 
• Having this information ready can strengthen your position and help you make a more persuasive case when negotiating with the provider or collections agency.

6. Start Negotiating Early

The earlier you start addressing your medical bills, the more options you’ll have to negotiate. As soon as you receive a bill or notice of collections, take action. 

Pro Tip: If needed, draft a formal letter outlining your situation and send it to higher-ups in the billing department. A well-written letter may lead to more favorable outcomes.

7. Be Polite but Firm

Approach your negotiations with a respectful tone, but be firm in expressing your financial constraints. 

• Clearly communicate that you want to find a resolution that works for both parties, but that you need an arrangement that is feasible given your current financial situation. 
• A polite but assertive approach can increase your chances of reaching a fair agreement.

8. Propose a Lower Amount

When discussing the bill, don’t hesitate to propose a specific lower amount that you can afford to pay. 

• Be prepared to explain why this amount is reasonable based on your current financial situation. 
• Providers and collection agencies may be willing to settle for less, especially if it means they’ll receive a payment rather than nothing.

9. Explore Payment Plans

If you’re having trouble negotiating a reduced bill, don’t worry—many providers offer flexible options to help you pay over time; one such option is South East Client Services (SECS), which provides various solutions to help manage medical debt effectively. 

The above image shows the homepage of SECS, which provides many customizable payment plans to help you manage medical debt.

• SECS offers several options, such as making a one-time payment to settle your balance immediately or choosing flexible, customizable payment plans tailored to fit your budget.
• This approach combines proven collection methods with advanced analytics and a commitment to ethical standards, ensuring that your debt management is handled professionally and efficiently.

10. Document Everything

It’s vital to keep a record of all communication regarding your medical bill. 

• Document the names of individuals you spoke with, the dates of conversations, and the specifics of what was discussed. 
• These records will ensure that you have a clear account of all agreements and prevent confusion in the future.

11. Use a Medical Billing Advocate

If negotiating on your own feels too complicated or overwhelming, consider hiring a medical billing advocate. 

• These professionals specialize in negotiating medical bills and can often secure lower rates or better payment terms on your behalf. 
• Their expertise may save you time and stress while helping you reduce your medical debt.

12. Monitor Your Credit Report

After you’ve settled your medical debt, take the time to check your credit report to make sure the account is marked as “paid” or “settled.” 

• If the collections account is still inaccurately reported, dispute it with the credit bureaus.
• Ensuring the correct information is reflected on your credit report can prevent negative impacts on your credit score.

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Conclusion

Negotiating medical bills in collections doesn’t have to be a stressful or overwhelming experience. With the right tips in place, you can effectively reduce your debt and find a payment solution that works for you. 

As we’ve covered in this blog, it's essential to review your bills, understand your rights, and be proactive in negotiating with your healthcare provider. Knowing how to negotiate medical bills in collections can empower you to take control of the situation and make informed decisions that benefit your financial well-being.

If you feel uncertain about the process or need additional support, remember that help is available. SECS understands the challenges many face when dealing with collections and has designed a system focused on respect and fairness. 

They prioritize making the debt recovery process collaborative rather than adversarial, ensuring that your needs are met with understanding and professionalism.

For professional support, contact SECS today to discuss your options and find the best solution for your needs!

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