Negotiating Lowering Medical Bills: What You Need To Know

We have likely all faced an injury or illness that necessitated medical assistance. As with any medical injury or illness, it comes with dreaded medical bills that can often pile up.

In fact, data released by the KFF in 2023 indicates that around 41% of Americans have reported being in some form of medical debt. A CNBC Make It report also discovered that more than half of those already in medical debt had also admittedly defaulted on their billing statements.

While it may seem wise to place all your medical debt onto a credit card and hope for the best, there are some ways to tackle owing thousands of dollars in medical bills. There are several handy ways to find financial assistance programs, lower medical bills, and negotiate more reasonable payment options with their healthcare providers.

So, to help you, this article will explore the steps to reduce medical expenses, how patients can negotiate lower medical bills, and how insurance plans can help reduce out-of-pocket medical expenses.

Lowering Medical Bills: What Steps Can Be Taken to Reduce Medical Expenses?

With the cost of healthcare continually increasing, it can be beneficial to learn how to reduce your out-of-pocket medical expenses to save money while still receiving the necessary care you deserve.

Below are some tips to help you get the most out of your benefits while simultaneously saving money on your care.

Choosing Pricing and Providers

Most Americans (91.7%) have health insurance policies to cover most of their healthcare services based on stats from the U.S. Census Bureau. However, regardless of whether you are covered by healthcare insurance, you can still shop around to compare the best options, just as you would with any other purchase.

Below are a few pointers on picking a price and providers before you are shocked by larger-than-expected or unexpected medical expenses:

Research service costs online.
Ask about options.
Use in-network care providers.
Ask about the cost.
Ask about discounts for reducing healthcare costs.
Seek out the services of a local advocate.
Pay cash.

Cut Prescription Drug Costs

Cutting medical expenses can be as straightforward as cutting prescription drug costs, which can help you save money. This can be done in several ways, including:

Enquire about generic prescriptions.
Receive medications in the mail or from Big-Box retailers.
Enquire about over-the-counter (OTC) alternatives.

Keep a Close Eye Out for Billing Errors

When did you last receive a medical bill and check it for inaccuracies? On average, around 80% of medical bills are incorrect, according to medical bill transparency advocates.

You can limit the chance of overpaying for your medical treatment by doing the following:

Request a detailed and itemized bill.
Always review the bill for any errors.
Request an audit of your medical bills.
Build a strong relationship with the billing office.
Use a professional bill reviewer.

Manage Your Medical Bills

Restructuring your payment plan or reducing your medical bills to manage them better can often be straightforward as long as you’re willing to take a proactive approach. This proactive approach can look like the following:

Sit down and negotiate with your doctor’s office.
Create a structured payment plan.
Speak with your insurance coverage provider.
Create a health savings account.

How Can Patients Negotiate Lower Medical Bills?

Receiving medical bills is often daunting, especially when they are more expensive than anticipated or are unexpected.

However, most individuals are unaware they can often negotiate their medical bills. In fact, by negotiating to lower your medical bills, you can often reduce your annual healthcare bills by thousands of dollars.

Below is a step-by-step guide on how patients can negotiate lower medical bills.

Request an Itemized and Detailed Bill

Before you begin the process of attempting to reduce your medical bills, you must first take the necessary measures to equip yourself with accurate information. If you don’t yet have a detailed breakdown of your medical expenses, you must request one.

Clearly Stipulate That the Current Amount Represents a Hardship

If you can easily afford the bill in its entirety, then there isn’t an incentive for anyone to assist you in lowering the cost. As such, you should be prepared to make your case about why the amount you’re being asked to cover represents a hardship for you.

Ask About Available Discounts

Standard hardship programs could be available. All it takes is filling out the application form. Even if there are no standard hardship programs, the people you owe money to could still assist you by creating an affordable medical care solutions payment schedule or reducing specific charges.

Express an Eagerness to Pay to Your Best Ability

As long as you’re not attempting to avoid payment responsibility entirely, you can find a mutually beneficial solution to satisfy both parties. As such, you must indicate your eagerness to hold up your end of the payment bargain to the best of your capabilities.

Be Polite and Persistent

Negotiating a better deal for any out-of-network medical bills may take more than one email or phone call. Generally speaking, it could take multiple, sent over several months.

However, regardless of the time it takes, you must persevere. Don’t sit back and wait for them to call back, as the call may never come, but don’t harass anyone, for that matter. Instead, take the initiative and follow up regularly.

Appeal Insurance Denials

One of the top reasons you may be stuck with an exorbitant out-of-pocket medical expense is that the insurance company denies the claim. If this occurs, do not hesitate to appeal the claim, especially if you think it is incorrect.

This appeal is essential as some denials are based on a simple technicality that could be overcome. As such, you must be familiar with what exactly your insurance covers and fight to appeal this when necessary. Hiring an attorney might be helpful since this can be hard.

How Can Insurance Plans Help in Reducing Out-of-pocket Medical Expenses?

Health insurance provides financial protection if you are seriously injured or sick. Individuals without health coverage are typically exposed to exorbitant costs, often leading them into bankruptcy or deep debt.

A health insurance plan is essential as it can help reduce out-of-pocket medical expenses. This is vital as most individuals underestimate how much medical care can cost.

Below is a basic breakdown of what medical care costs can look like:

The average 3-day hospital stay cost is roughly $30,000.
Fixing a broken leg can cost approximately $7,500.
Comprehensive cancer care can range from a few thousand to hundreds of thousands of dollars.

The importance of healthcare coverage cannot be overstated. It can protect you from unexpected and high medical costs like the ones listed above.

The Wrap-Up On Lowering Medical Bills: What You Need To Know

We all know that receiving a high medical bill is often a daunting and stressful experience, but it is essential to note that these charges are never set in stone. With the tips outlined in this article, you’ll be more capable of negotiating a unique, affordable payment plan for you and your family and a lower medical bill.