In case you are one of many greater than 25 million Individuals caught with medical debt, trying to put in writing a medical invoice negotiation letter would be the reply[1].
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 begin your negotiation, what must be included, and what your settlement supply must be.
What Is a Medical Invoice Negotiation Letter?
The aim of this letter is to barter a decrease fee to your medical payments attributable to monetary hardship. This letter is distributed both on to the hospital or their billing firm.
For those who obtained medical payments totaling $20,000, you may attempt to negotiate all the way down to a $5,000 lump sum fee, with the hospital waiving the remaining $15,000 due.
Info Wanted to Write a Medical Invoice Negotiation Letter
Earlier than you begin writing your negotiation letter, there are a number of steps it’s essential to take.
The primary can be exploring your choices for paying the debt, resembling disputing the quantity billed, pleading together with your insurance coverage firm, or making use of for funds from non-profits. Try our article on easy methods to negotiate a medical invoice for extra steering.
Subsequent, you’ll want to collect all the knowledge essential for the letter. This consists of
- Copies of your medical payments
- Your billing account quantity
- Insurance coverage protection statements
- The suitable handle
- Monetary statements (to find out how a lot you possibly can pay)
It’s vital 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 perhaps.
⚕️ Study 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 companies I obtained from [HOSPITAL NAME] on [HOSPITAL BILL DATE]. The quantity due for companies 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 brought about me nice monetary hardship. [EXPLAIN HARDSHIP HERE]
I’m grateful for the companies I obtained, however as I can’t 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 look ahead to listening to from you quickly.
Sincerely,
[NAME]
[ADDRESS]
[PHONE NUMBER]
[EMAIL]
Customise the Medical Invoice Negotiation Letter
The letter above is only a pattern; it is best to edit it to your particular person state of affairs and desires. This letter is supposed as steering on easy methods 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 data, the monetary hardship assertion, and your settlement supply. Be skilled and well mannered when crafting your letter.
⚕️ Study extra: Seeking to navigate your payments with ease? Our newest article breaks down the highest invoice negotiation companies.
Account Info
Your letter could embrace the overall you’ve been billed for companies, the date(s) you obtained companies, the bill numbers, and any affected person account ID (or different quantity) that you’ve been assigned.
Mainly, it’s essential 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 may be repeated within the introduction.
You probably have a number of payments for a similar keep, embrace particulars on every one, resembling the quantity due, bill quantity, and so forth.
Monetary Hardship Assertion
It is 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’s essential to give them a purpose why.
You don’t have to inform them your entire life story, however you possibly can 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 revenue and is forcing me into monetary hardship.
Make sure that to incorporate all the pieces on this part that would assist your negotiation.
Settlement Provide
A great first supply 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 possibly can moderately afford.
Keep 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.
In case you are attempting to barter a fee plan, embrace data on how a lot you possibly can pay each month and for a way lengthy.
As part of your supply, you possibly can supply proof of your declare, resembling values pulled from Fairhealthconsumer.org, proof of your revenue/funds, or the rest supporting the quantity you provided as truthful.
Particular Requests
It is best to 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 pointers 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 sport; you may 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 obtained your letter and if they’ve a reply but.
Additionally, think about sending the letter by licensed mail so you have got 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 just accept their counteroffer. You may proceed negotiating till you attain a determine you’re comfy with.
If the hospital outright rejects your supply and appears unwilling to barter additional, you may have to discover different choices. They might be open to a low-dollar fee plan. Or you may attempt in search of non-profit applications that can assist you pay the medical debt.
Alternatively, you possibly can wait a number 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.
Normally, the hospital/billing firm could have an settlement kind ready so that you can signal. If not, you possibly can add a settlement assertion and signature line to your negotiation letter and resend it.
Simply guarantee that any assertion you signal says one thing alongside the strains of the hospital agreeing to just accept your lump sum supply and that they won’t pursue you additional for the remaining steadiness.
By no means settle for a deal with out proof of the settlement (i.e., recorded telephone name, signed doc, dated e-mail, and so forth.)
A Observe on Medical Debt Collections
When negotiating medical debt, there are a number 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 no less than one 12 months earlier than it may be reported to your credit score.
- Medical debt should exceed $500 to be able 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 stories.
Excellent medical payments not have to crater your credit score.
⚕️ Study extra: Ever been blindsided by an surprising medical invoice? Understanding the No Surprises Act is perhaps helpful.
Because the new legal guidelines have been enacted, the typical particular person with medical collections has seen no less than one invoice faraway from their stories, and credit score scores have gone up a mean of 25 factors as soon as all medical collections are eliminated.
These legislation adjustments offer you extra time and leverage to efficiently negotiate your medical payments.
Do not forget that should you use a mortgage or bank card to pay a medical debt, the debt shall be thought-about client debt, and you’ll lose all protections that go together with medical debt. That is usually not a good suggestion.