When trying to negotiate down medical bills sometimes it can feel like you hit a brick wall.
If you weren’t insured, or an insurer didn’t have to pay any part of it, or that insurer doesn’t have what’s called illegal discounting verbiage in their agreement, then you might be able to negotiate a lower payoff.
But if you’re meeting with obstinance or somebody that’s just not going to bend on how much you have to pay, sometimes you have to pay overtime and what’s affordable.
Why is it so difficult?
Say the situation is you’re negotiating unpaid medical bills, but you were covered by an insurance policy. And the insurer has made some form of payments to the hospital providing the medical service.
They tend to have contracts with the service providers that don’t give them any type of discount.
So, therefore, they can’t give you a discount on the portion of your co-pay. Or if you needed to meet a deductible, and so you have to pay a portion of a $1,000 medical bill, and your insurer paid $800, and you have to pay $200.
But you can’t afford it. And at some point, you might try and negotiate a discount on that.
But this may not work for the hospital billing department. Why?
So if they extend the discount to you on that $200, let’s say half off.
And they say okay, just pay us a hundred, and we’re good.
They didn’t give half off to the insurer who paid them $800, and they’re certainly probably not going to take your offer of a hundred and then go retroactively apply that as a benefit to the insurer and give them $400 of the $800 back, right? 50% discount for you, 50% discount for the insurer.
So you can usually forget that happening.
You may feel this won’t happen to you because you live a safe and careful life.
But at some point, medical tragedies and the bills that are associated with it are the number one reason why people find themselves in not only Chapter 7 bankruptcy, but Chapter 13 too.
You need to know your options to deal with this kind of situation.
One factor that you may not know about when dealing with medical debt is, you might qualify for some type of reduction of services, you want to try and apply for those as soon as possible.
And it’s best when you’re still dealing with the medical service providers internal office for billing or their billing company.
Because if you qualify under some indigence types of guidelines, especially at nonprofit hospitals, a lot of times they, write off and/or fully discount or largely discount some of the services that you received.
So look into those things, find out if that’s an option. Payment plans or reductions are really the best outcome for fast relief. With medical bills, you will need patience and persistence to achieve any positive outcome.