Medical bills can cause a financial crisis. Here's how to negotiate them

For a lot of people in the U.S., a medical crisis is also a financial crisis. A 2022 Kaiser Family Foundation analysis of Census Bureau Data found that about 6% of adults in the U.S. owe over $1,000 in medical debt.

"A lot of people think that they're alone in this, and that is absolutely not the case," says Jared Walker, the founder of Dollar For, a national nonprofit that helps people eliminate their medical bills by holding hospitals accountable to their charity care policies. "There's no shame in this. This is not because of some failing on your part. You didn't choose to have a medical crisis. This has everything to do with a broken system."

Walker says the biggest misconception about medical debt is that "people see that bill and the number on that and they think, 'I have to pay this quickly and I have to pay this exact amount,' and that's just not the case. You have time. They're fake numbers." he says.

If you get a medical bill you can't afford, here's a brief rundown of Walker's suggestion for how to eliminate, reduce or negotiate the bill. For more in-depth advice, watch the video at the top of the page or on YouTube:

1. See if you're eligible for the hospital's charity care program. To get started, you can search for your hospital's name plus "financial assistance." Walker says in most cases, this search should lead you to the hospital's policy. Dollar For also has a form on their website that can help you figure out if you qualify for financial assistance.

Walker says non-profit hospitals are required to provide free or reduced care to patients within a certain income range, which varies from hospital to hospital. It's not always advertised, so reach out and ask about it. He says this can work at for-profit hospitals, too, but may be more challenging since it's not required.

2. If you don't qualify for financial assistance, ask the billing office for an itemized bill. This will show all the procedures you received and the associated code, called a Current Procedural Terminology code (CPT). Look over your bill (you may have to look up the CPT code) and ensure the charges accurately reflect your treatment. "Medical bill errors are surprisingly common," says Walker, "so it definitely pays to look yours over carefully." Were you charged for something that didn't happen? Are there any costs that seem way out of line? Call the billing office and let them know.

3. If your bill is technically correct, you can try to negotiate the amount owed. "I always tell people the numbers are fake. They don't matter. It can always be lowered," says Walker.

If you have some savings and you can afford to pay something up front, call the billing office and ask for a settlement amount, or what they'll accept if you pay the bill that day. "Typically, we can get 30 to 50% off," says Walker.

4. If paying something up front isn't an option, you can ask the hospital to put you on a payment plan, which typically has lower interest rates than a credit card.

5. Remember this is a long game. You may not get anywhere with the first couple of calls. But keep plugging away. Walker recommends writing down the name of the person you're speaking to so you can refer to the call in the future if needed. And don't be afraid to ask friends and family for help making these phone calls. It's one way they can support you through a medical crisis.

For more in-depth information on negotiating medical bills, watch the video on YouTube or listen to the podcast episode on Apple Podcasts and Spotify.

This video was directed by Iman Young; produced by Iman Young, Sylvie Douglis and Beck Harlan; edited by Iman Young and Christina Shaman; filmed by Iman Young, Tsering Bista and Nickolai Hammar and animated by Kaz Fantone. Audio engineering support comes from Katherine Silva. Supervising editors are Meghan Keane and Nick Michael.

The audio portion of this episode was produced by Sylvie Douglis. The story was adapted for digital by Beck Harlan.

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