If you’re one of many greater than 25 million People caught with medical debt, trying to put in writing a medical invoice negotiation letter would be the reply.
Hospitals negotiate with insurance coverage firms on a regular basis to decrease the invoice quantity. Why not negotiate with them your self in a lot the identical manner?
On this article, we’ll discover how one can write a medical invoice negotiation letter to start out your negotiation, what ought to be included, and what your settlement provide ought to be.
What Is a Medical Invoice Negotiation Letter?
The aim of this letter is to barter a decrease cost on your medical payments as a result of monetary hardship. This letter is distributed both on to the hospital or their billing firm.
If you happen to acquired medical payments totaling $20,000, you would possibly attempt to negotiate all the way down to a $5,000 lump sum cost, with the hospital waiving the remaining $15,000 due.
Data Wanted to Write a Medical Invoice Negotiation Letter
Earlier than you begin writing your negotiation letter, there are just a few steps you might want to take.
The primary can be exploring your choices for paying the debt, similar to disputing the quantity billed, pleading along with your insurance coverage firm, or making use of for funds from non-profits. Take a look at our article on easy methods to negotiate a medical invoice for extra steerage.
Subsequent, you’ll want to collect all the knowledge mandatory for the letter. This contains
- Copies of your medical payments
- Your billing account quantity
- Insurance coverage protection statements
- The suitable tackle
- Monetary statements (to find out how a lot you’ll be able to pay)
It’s necessary to contact your hospital or their billing firm earlier than writing the letter in order that you already know who to ship the letter to and what their necessities for the letter is likely to be.
⚕️ Be taught extra: If medical payments have been a priority, you would possibly discover our article on PayZen’s strategy insightful.
Pattern Medical Invoice Negotiation Letter
[HOSPITAL/BILLING COMPANY ADDRESS]
[DATE OF SERVICE]
[BILLING ACCOUNT NUMBER]
To Whom It Could Concern,
I’m writing concerning the providers I acquired from [HOSPITAL NAME] on [HOSPITAL BILL DATE]. The quantity due for providers is [AMOUNT DUE] on the invoice [BILL/INVOICE #].
I’m writing to barter the above medical payments as a result of I’m unable to pay the quantity requested. This debt has precipitated me nice monetary hardship. [EXPLAIN HARDSHIP HERE]
I’m grateful for the providers I acquired, however as I can not pay the complete quantity due, I hope you’ll take into account my provide of settlement within the quantity of [SETTLEMENT OFFER $] to shut out this account. To substantiate my declare…[SUPPORT STATEMENT HERE]
Thanks for contemplating my proposal, and I sit up for listening to from you quickly.
The best way to Customise the Medical Invoice Negotiation Letter
The letter above is only a pattern; you must edit it to your particular person scenario and wishes. This letter is supposed as steerage on easy methods to craft a customized, genuine-sounding medical invoice negotiation letter.
On the very least, the letter should have these three components: your medical invoice account data, the monetary hardship assertion, and your settlement provide. Be skilled and well mannered when crafting your letter.
⚕️ Be taught extra: Seeking to navigate your payments with ease? Our newest article breaks down the highest invoice negotiation providers.
Your letter could embrace the whole you’ve been billed for providers, the date(s) you acquired providers, the bill numbers, and any affected person account ID (or different quantity) that you’ve got been assigned.
Principally, you might want to embrace any data that identifies you because the affected person and/or references the invoice(s).
This data ought to seem in an easy-to-reference part on the high of the letter and could be repeated within the introduction.
If in case you have a number of payments for a similar keep, embrace particulars on every one, similar to the quantity due, bill quantity, and many others.
Monetary Hardship Assertion
This can be a important a part of the letter, and it must be real. You possibly can’t simply say, “I’m sorry, I can’t pay”; you might want to give them a purpose why.
You don’t have to inform them your complete life story, however you’ll be able to add as many particulars as wanted to clarify your scenario.
This medical debt resulted from a extreme automotive crash that left me out of labor for six months. I’ve since discovered a brand new job, however this example left me with many debt obligations, and I’m unable to pay this invoice in full.
🚑 Or, You Can Stick With Numbers
This medical invoice is greater than 40% of my annual earnings and is forcing me into monetary hardship.
Be certain that to incorporate the whole lot on this part that might assist your negotiation.
A very good first provide worth can be roughly ¼ to ⅓ of the unique invoice quantity. However you must also check out your financials to find out what you’ll be able to moderately afford.
Keep in mind, this can be a negotiation; you can begin with a low provide and lift it. If you happen to can afford $1000, attempt providing $500. Suppose the hospital settles for $500, nice. And in the event that they counter $800, you’re nonetheless good.
If you’re attempting to barter a cost plan, embrace data on how a lot you’ll be able to pay each month and for a way lengthy.
As part of your provide, you’ll be able to provide proof of your declare, similar to values pulled from Fairhealthconsumer.org, proof of your earnings/funds, or anything supporting the quantity you supplied as truthful.
You must attempt talking with the hospital/billing firm earlier than you draft the letter. They might have particular requests for formatting or data required to be within the letter.
Failing to stick to their tips might have your letter rejected with out them even contemplating your provide.
What to Do As soon as You Have Despatched the Letter
Now comes the ready recreation; you would possibly get a reply rapidly, or you could have to attend some time. Don’t be afraid to contact the hospital and ask them in the event that they acquired your letter and if they’ve a reply but.
Additionally, take into account sending the letter by licensed mail so you will have a signed date of once they acquired your letter.
If Your Medical Invoice Negotiation Letter Is Rejected
Hopefully, in case your letter is rejected, the hospital will ship you a counteroffer. If so, bear in mind, since this can be a negotiation, you don’t have to simply accept their counteroffer. You possibly can proceed negotiating till you attain a determine you might be snug with.
If the hospital outright rejects your provide and appears unwilling to barter additional, you would possibly must discover different choices. They might be open to a low-dollar cost plan. Or you may attempt searching for non-profit packages that can assist you pay the medical debt.
Alternatively, you’ll be able to wait just a few months after which attempt once more.
If Your Medical Invoice Negotiation Letter Is Accepted
Congrats, you’ve efficiently negotiated down your medical debt. Now get that settlement signed and dated. Do that earlier than you pay them a dime.
Often, the hospital/billing firm can have an settlement kind ready so that you can signal. If not, you’ll be able to add a settlement assertion and signature line to your negotiation letter and resend it.
Simply make it possible for any assertion you signal says one thing alongside the traces of the hospital agreeing to simply accept your lump sum provide and that they won’t pursue you additional for the remaining stability.
By no means settle for a deal with out proof of the settlement (i.e., recorded cellphone name, signed doc, dated e-mail, and many others.)
A Observe on Medical Debt Collections
When negotiating medical debt, there are just a few guidelines to bear in mind on how this debt can have an effect on your credit score.
The three most necessary guidelines are:
- Medical debt must be excellent for no less than one yr earlier than it may be reported to your credit score.
- Medical debt should exceed $500 as a way to be reported in your credit score.
- If a medical assortment seems in your credit score, and also you later pay it off, it have to be eliminated out of your credit score reviews.
Excellent medical payments now not must crater your credit score.
⚕️ Be taught extra: Ever been blindsided by an surprising medical invoice? Understanding the No Surprises Act is likely to be useful.
For the reason that new legal guidelines have been enacted, the common particular person with medical collections has seen no less than one invoice faraway from their reviews, and credit score scores have gone up a mean of 25 factors as soon as all medical collections are eliminated.
These regulation adjustments offer you extra time and leverage to efficiently negotiate your medical payments.
Keep in mind that should you use a mortgage or bank card to pay a medical debt, the debt will likely be thought of client debt, and you’ll lose all protections that go together with medical debt. That is typically not a good suggestion.