Yes, you really can negotiate the cost of medical care
Although many people are not aware of it, the medical industry is one of the few American industries where negotiating the price is not only acceptable, but common.
The reason many uninsured or under insured people are quoted higher prices than insured individuals is because the price for many services has already been negotiated down by the insurance companies and HMOs.
This practice is not limited to large institutions. Although it may seem intimidating, many people have and will continue to negotiate lower health care costs for themselves.
Negotiating can save you up to 60 percent
According to Consumer Reports, only about thirty percent of Americans even try to negotiate with medical care providers; however, of those who try, 93 percent are successful at least once.
The average savings are between thirty and sixty percent of the original amount owed, though there are many stories of people saving as much as ninety percent through effective negotiation.
Like anything in life there are no guarantees but you can’t go wrong with trying to negotiate lower costs.
Step One: Negotiate in advance
The first step to negotiating medical expenses is to negotiate terms in advance for planned medical visits and examinations.
In some cases health care providers don’t want to wait for payment and offer a ten to twenty percent discount for those who pay promptly. If you have a medical expense budget and planned ahead to pay at the time of the visit you can get discounts available for just people like you.
Many health providers also offer a payment discount for those who are able to make large partial payments.
Step Two: Talk to the CFO
The next step is to speak with the provider’s Chief Financial Officer (CFO) after you have received your bills. In many cases, just asking for a discount can get results.
To be effective however, you need to know what will be acceptable from the health provider’s point of view. Find the average price range in your area for comparable services and try to negotiate for those if it would benefit you.
You can find out what the normal charge for various services is by looking at websites like Healthcarebluebook.com and other types of insurance websites.
Step Three: Discuss payment options with the billing department
If you get a discount from the provider’s CFO, you probably will not be able to negotiate further discounts from the billing department.
In some cases it may be possible to get zero interest on your payment plan. Medical expenses accrue interest and over a long period of time can become frighteningly high.
Getting a payment plan for your health care bills that does not accrue a high interest rate can provide significant savings over the long hall.
You have nothing to lose and much to gain
Contrary to the impressions of many people, most medical service providers are willing to negotiate and rarely expect everyone to pay every cent originally charged.
In fact, health care providers build discounts and lower repayment levels into their budgets ahead of time. For those who pay their own medical bills there is nothing to lose by attempting to negotiate lower medical costs and repayment terms.
The worst case scenario is that the provider will refuse to grant a discount. On the other hand negotiating lower expenses is definitely worth it. As Consumer Reports has documented, 93 percent of those who try do in fact get a discount.