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 stands out as the reply[1].
Hospitals negotiate with insurance coverage corporations on a regular basis to decrease the invoice quantity. Why not negotiate with them your self in a lot the identical means?
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 supply ought to be.
What Is a Medical Invoice Negotiation Letter?
The aim of this letter is to barter a decrease cost to your medical payments as a result of monetary hardship. This letter is shipped both on to the hospital or their billing firm.
For those who obtained medical payments totaling $20,000, you may attempt to negotiate right 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 a couple of steps it is advisable to take.
The primary can be exploring your choices for paying the debt, equivalent to disputing the quantity billed, pleading together with your insurance coverage firm, or making use of for funds from non-profits. Try our article on the best way to negotiate a medical invoice for extra steerage.
Subsequent, you’ll want to collect all the data obligatory for the letter. This contains
- Copies of your medical payments
- Your billing account quantity
- Insurance coverage protection statements
- The suitable deal with
- Monetary statements (to find out how a lot you’ll be able to pay)
It’s vital to contact your hospital or their billing firm earlier than writing the letter in order that who to ship the letter to and what their necessities for the letter may be.
⚕️ Be taught extra: If medical payments have been a priority, you may discover our article on PayZen’s method insightful.
Pattern Medical Invoice Negotiation Letter
[HOSPITAL/BILLING COMPANY ADDRESS]
[PATIENT NAME]
[DATE OF SERVICE]
[AMOUNT DUE]
[BILLING ACCOUNT NUMBER]
To Whom It Might Concern,
I’m writing concerning the providers I obtained 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 obtained, however as I can not pay the total quantity due, I hope you’ll think about my supply 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 stay up for listening to from you quickly.
Sincerely,
[NAME]
[ADDRESS]
[PHONE NUMBER]
[EMAIL]
The right way to Customise the Medical Invoice Negotiation Letter
The letter above is only a pattern; you need to edit it to your particular person state of affairs and desires. This letter is supposed as steerage on the best way to craft a customized, genuine-sounding medical invoice negotiation letter.
On the very least, the letter will need to have these three components: your medical invoice account info, the monetary hardship assertion, and your settlement supply. Be skilled and well mannered when crafting your letter.
⚕️ Be taught extra: Trying to navigate your payments with ease? Our newest article breaks down the highest invoice negotiation providers.
Account Data
Your letter might embody the entire you’ve been billed for providers, the date(s) you obtained providers, the bill numbers, and any affected person account ID (or different quantity) that you’ve got been assigned.
Principally, it is advisable to embody any info that identifies you because the affected person and/or references the invoice(s).
This info ought to seem in an easy-to-reference part on the prime of the letter and will be repeated within the introduction.
When you’ve got a number of payments for a similar keep, embody particulars on each, equivalent to the quantity due, bill quantity, and many others.
Monetary Hardship Assertion
This can be a very important a part of the letter, and it must be real. You may’t simply say, “I’m sorry, I can’t pay”; it is advisable to give them a cause 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 state of affairs.
This medical debt resulted from a extreme automobile crash that left me out of labor for six months. I’ve since discovered a brand new job, however this case 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.
Ensure to incorporate all the pieces on this part that would assist your negotiation.
Settlement Supply
A superb first supply worth can be roughly ¼ to ⅓ of the unique invoice quantity. However you also needs to check out your financials to find out what you’ll be able to fairly afford.
Bear in mind, this can be a negotiation; you can begin with a low supply and lift it. For those who 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, embody info on how a lot you’ll be able to pay each month and for the way lengthy.
As part of your supply, you’ll be able to supply proof of your declare, equivalent to values pulled from Fairhealthconsumer.org, proof of your earnings/funds, or anything supporting the quantity you supplied as truthful.
Particular Requests
It’s best to attempt talking with the hospital/billing firm earlier than you draft the letter. They could have particular requests for formatting or info required to be within the letter.
Failing to stick to their tips might have your letter rejected with out them even contemplating your supply.
What to Do As soon as You Have Despatched the Letter
Now comes the ready recreation; you may get a reply shortly, or you might have to attend some time. Don’t be afraid to contact the hospital and ask them in the event that they obtained your letter and if they’ve a reply but.
Additionally, think about sending the letter by licensed mail so you could have a signed date of after they obtained 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, keep in mind, since this can be a negotiation, you don’t have to simply accept their counteroffer. You may proceed negotiating till you attain a determine you might be comfy with.
If the hospital outright rejects your supply and appears unwilling to barter additional, you may have to discover different choices. They could be open to a low-dollar cost plan. Or you might attempt searching for non-profit applications that can assist you pay the medical debt.
Alternatively, you’ll be able to wait a couple of 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 may have an settlement type 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 be sure that any assertion you signal says one thing alongside the strains of the hospital agreeing to simply accept your lump sum supply 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 telephone name, signed doc, dated e-mail, and many others.)
A Be aware on Medical Debt Collections
When negotiating medical debt, there are a couple of guidelines to remember on how this debt can have an effect on your credit score.
The three most vital guidelines are:
- Medical debt needs to be excellent for at the very least one 12 months earlier than it may be reported to your credit score.
- Medical debt should exceed $500 with a purpose to be reported in your credit score.
- If a medical assortment seems in your credit score, and also you later pay it off, it should be eliminated out of your credit score reviews.
Excellent medical payments now not have to crater your credit score.
⚕️ Be taught extra: Ever been blindsided by an surprising medical invoice? Understanding the No Surprises Act may be useful.
Because the new legal guidelines have been enacted, the common particular person with medical collections has seen at the very least one invoice faraway from their reviews, and credit score scores have gone up a median 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 if you happen to use a mortgage or bank card to pay a medical debt, the debt will likely be thought-about client debt, and you’ll lose all protections that go together with medical debt. That is typically not a good suggestion.