{"id":7260,"date":"2024-11-04T03:05:23","date_gmt":"2024-11-04T03:05:23","guid":{"rendered":"https:\/\/finderica.com\/how-to-negotiate-medical-bills-collections\/"},"modified":"2024-11-04T03:05:23","modified_gmt":"2024-11-04T03:05:23","slug":"how-to-negotiate-medical-bills-collections","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=7260","title":{"rendered":"How To Negotiate Medical Bills Collections"},"content":{"rendered":"
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Medical bills are among the costliest forms of debt. Americans hold a staggering $140 billion in outstanding medical debt, according to data from the Institute for Economic Policy Research at Stanford University. In fact, a 2014 study by the Consumer Financial Protection Bureau<\/a> found that 52% of collections activity was related to medical debt.<\/p>\n

The average amount of such debt was $2,424 in 2020. As medical bills grow<\/a>, they can quickly become unmanageable.\u00a0<\/p>\n

\u201cIt can be tempting to not open the mail and let medical bills pile up,\u201d says Katy Cook<\/a>, who teaches financial planning courses at Southern New Hampshire University in Manchester. \u201cThey can be overwhelming and confusing.\u201d<\/p>\n

However, if you stop making payments, there\u2019s a good chance your bills may end up in the hands of a debt collector.\u00a0\u00a0<\/p>\n

Finding yourself saddled with a large amount of debt that you can\u2019t pay is scary. But it often makes sense to face your fears and see if you can negotiate the debt down to something more reasonable.\u00a0<\/p>\n

What Should A Person Do When A Medical Bill Is About To Go Into Collections?<\/strong><\/h2>\n

Across the nation, 17.8% of people with a credit report had medical debt in collections as of 2020, according to Stanford research. Another 13% of such folks had accrued medical debt in the prior year that was not yet in collections.\u00a0\u00a0<\/p>\n

Your debt is most likely to go into collections if you fall deeply and consistently behind in your payments. Once that happens, you likely will receive many phone calls from the collector as he or she tries to get you to pay.\u00a0<\/p>\n

To try to avoid this fate, take a proactive approach. \u201cThere may be more options if you act before a bill goes to collections,\u201d Cook says.<\/p>\n

For example, if you know a large bill is looming, try talking to the hospital or provider right away.\u00a0<\/p>\n

\u201cTell them that you want to work this out and ask to pause the account, so it does not go to collections,\u201d Cook says.\u00a0<\/p>\n

One strategy Cook recommends is asking a hospital or provider to reduce the amount you owe to the negotiated insurance rate or Medicare rate.\u00a0<\/p>\n

\u201cMany hospitals offer \u2018charity care\u2019 and will reduce bills for people meeting certain criteria, typically low-income,\u201d Cook says. \u201cYou can call your hospital\u2019s billing department and ask about financial assistance or charity care. Hospitals may also be open to setting up a payment plan with you.\u201d\u00a0<\/p>\n

What To Do If You Are Unable To Reach An Agreement With Collectors<\/strong><\/h2>\n

If you\u2019re unable to reach an agreement with the hospital or provider, your unpaid medical debt may end up with a collection agency. An account that goes into collections can deeply damage your credit score.\u00a0<\/p>\n

In fact, Equifax says having an account in collections is among the most damaging events when it comes to your credit score. In addition, the toll on your score can remain for a long time. So, it makes sense to do everything you can to negotiate, before you get to that point \u2014 or as soon as possible after.<\/p>\n

What Is The Best Way To Negotiate Medical Bills In Collections?<\/strong><\/h2>\n

The ongoing harassment from a debt collector and the damage to your credit score may motivate you to try to end the situation as soon as possible by negotiating your bill lower.\u00a0<\/p>\n

However, before you pay a medical bill that is in collections, make sure you definitely owe the money being sought from you.\u00a0<\/p>\n

\u201cAsk for documentation of the debt and review names, dates, locations, and procedures to make sure the bill is for you or your family,\u201d Cook says.\u00a0<\/p>\n

Also, check your health insurance explanation of benefits and any bills you received from the hospital or provider.\u00a0<\/p>\n

If you\u2019re sure that you don\u2019t owe the medical bill, call the hospital and your insurance company to explain the situation.\u00a0<\/p>\n

If you find that you do owe the money, you typically have three options, Cook says:<\/strong><\/p>\n