What Do I Do if I Get an Unexpected Medical Bill?

“In my experience, about 60 percent of hospitals will reduce bills by 25 to 40 percent if you simply ask and show even a modest financial need,” says Andrew Lokenauth, a financial adviser and the founder of TheFinanceNewsletter.com, based in Tampa, Florida.

Be sure that you owe as much as they say you do, and review an itemized bill. “I found a $3,000 charge for medication that my client didn’t receive,” says Lokenauth. “The billing department fixed the error. I’ve seen countless cases where hospitals accidentally charge the uninsured rate instead of the negotiated insurance rate.”

Another strategy that helps lower costs is offering to pay a lump sum immediately in exchange for a discount. “Most billing departments have the authority to reduce bills by 20 to 30 percent if you pay right away. I’ve even seen some agree to 40 percent. They’d rather get paid something than nothing,” says Lokenauth.

In his experience, the key to negotiating is to act fast. “The longer you wait, the fewer options you’ll have,” he says. “Whatever you do, don’t let medical bills go to collections without trying to negotiate first. That can wreck your credit score for years. Remember, everything’s a negotiation: lab fees, facility charges, medication costs.” Unpaid medical bills under $500 are not reported by the three credit bureaus, however.

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Lokenauth advises to get everything in writing. “Verbal agreements mean nothing in medical billing,” he says. “Make them email you any promised discounts or payment arrangements.”