How to Negotiate Medical Bills in Collections
When the collections calls are rolling in, the first thing you need to learn is how to negotiate medical bills in collections. Just because they ask you to pay a certain amount doesn’t mean you must hand over the full payment to stop the collections calls. Most medical bills are negotiable, and below we will dive deeper into how to negotiate your medical bills for the most favorable result.
Medical Bill Negotiation
The truth is that while debt negotiation is preferred before an account is sent to collections, you still have options if a debt collector takes over the bills. In fact, certain debt options are only available after collections, such as debt settlement.
So, if you want to learn how to negotiate medical bills in collections, then it might be the perfect timing to find a win-win solution and get you back on track with your finances.
Before Settling Medical Debt
Preparation is key before talking to the collections company about debt settlement. If you are going to negotiate the terms of your payment, then you need to have full information about the amount owed and your rights as a consumer. Here are a few tips to help:
- Review the Bills
Make sure that you know how much is owed. Also, double-check the statements for accuracy. Sometimes, bills come through for procedures that weren’t completed. We know this may be a drag, even more so if you get a lot of bills each month. However, it is estimated that approximately 80%(!) of medical bills contain errors. That’s why it’s extremely important to scrutinize every bill that comes your way. Don’t pay without checking your bill first.
- Negotiations
When possible, work with the healthcare provider to negotiate the bill before it is sent to collections. For example, you might be able to negotiate a lower amount and then pay it off all at once. Why? A healthcare provider is a business that needs to make money. Therefore, your healthcare provider doesn’t want to use a costly collection agency nor do they want you to go bankrupt. Because if you go bankrupt, you’ll pay zero. And a somewhat lower amount than initially owed is infinitely more than zero, hence healthcare providers are often willing to negotiate.
- Payment Plans
You don’t always have to pay the balance in full. Many debt collectors are willing to work out a payment plan. Or, you might find more favorable terms through a medical credit card or personal loan. Carefully check the different options at your disposal before paying off your medical debt.
- Make A Plan
Before talking with the collection company, draft up a plan. How much can you pay each month, and what amount are you willing to pay? Which payment terms would work for you? And what are the reasons that you cannot pay in full right now? These are questions that will get asked during a call with the collection company, and having ready the terms that work for you, as well as the answers to the most-asked questions, help you to talk with the collection company confidently.
Medical Debt Options
Knowing how to negotiate medical bills in collections can be one of the most powerful ways to eliminate your debt stress as soon as possible. Not only do you need to negotiate the amount owed, but also negotiate payment terms–such as the monthly payments and the interest rates. Preparing before such an important negotiation is the key to success, which is why you want to go through the four steps we’ve listed above.
You might be surprised to see how much room there is for negotiation with a collections company. They are usually interested in working with consumers to avoid bankruptcy. First, they do not want to send their bills to collections, as this is a costly service. And secondly, a bankrupt client cannot pay for the healthcare provider’s services, hence they want to avoid this at all costs.
Remember, as you work through these negotiations, your credit score might be negatively impacted. But rest assured knowing that you can overcome these credit score problems when the medical bills are paid in full. It may seem hard or overwhelming at first, but remember that there is light at the end of the tunnel if you work towards becoming debt-free in a diligent way.
You need to know your rights as a consumer, as well as the laws that protect your family. If you can’t pay the bills that are owed after an accident or illness, then it is time to learn how to negotiate medical bills in collections. If you need further assistance or guidance, our experts are here to help during a free no-obligation consultation call.
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