How To Negotiate Medical Bills and Reduce Healthcare Costs

Anna-Louise Jackson, Editor at LendingTree

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Key takeaways

Negotiating medical bills can lead to significant savings.
Don’t assume your medical bill is final. Request an itemized bill and review it for errors — you may find at least one.
Persistence pays off: Nearly 9 in 10 Americans who negotiate their medical bills succeed in lowering their costs.

Medical debt can be some of the most stressful debt. Not only have you faced health challenges, but the bills can be exorbitant.

The good news: Prices for medical care are often flexible. If you know how to negotiate medical bills — yes, it is possible to cut a deal — you might not have to pay the full amount. In fact, a recent LendingTree survey found that 59% of Americans with medical debt tried negotiating a related bill, with 93% of them reporting at least partial success.

Can you negotiate medical bills?

Yes, you absolutely can negotiate medical bills.

Many people don’t realize it, but those prices aren’t written in ink (figuratively speaking, anyway) and you may be able to negotiate a deal that works for you. Hospitals and providers are often more flexible and compassionate than you might think.

People have way more power over their money than they realize, and that is certainly true when it comes to negotiating medical bills. It can be scary, but if you’re not willing to at least try, you’re doing yourself a disservice.

Matt Schulz

LendingTree chief consumer finance analyst

It can feel intimidating, but you may be able to save money and stress if you’re willing to ask. You can request a payment plan, dispute specific charges that seem inaccurate or simply make the case for a reduced balance. You can also inquire about financial assistance programs, which many hospitals offer but don’t always advertise.

You may not always successfully negotiate medical bills, but chances are good you’ll receive some concessions. You have nothing to lose by trying to negotiate — except a chunk of debt.

Struggling with medical debt? You’re not alone

More than half (55%) of Americans have incurred medical debt, with 27% still paying it off, according to a LendingTree survey. Another recent LendingTree study found that 1 in 3 credit cardholders are in credit card debt due to medical bills. Of those who paid a medical bill with their credit card, nearly 10% owe at least $10,000.

When and why you should negotiate

Not every medical bill is worth negotiating, but there are a number of common situations in which doing so can work in your favor. Understanding your rights under the No Surprises Act, which went into effect in 2022, can help.

This law protects people with private health insurance coverage from unexpected medical bills and provides new resolution opportunities for disputes between health plans and providers and for uninsured or self-pay individuals.

If you’re uninsured or underinsured. If you don’t have insurance or you’re underinsured, the provider must give you a good faith estimate of the cost of services before you receive them. If your final bill is more than $400 higher than that estimate, you can dispute it under the No Surprises Act within 120 calendar days.
If you get out-of-network charges. Before the No Surprises Act, out-of-network charges could inflate medical bills significantly, even in emergency cases. The law now bans those charges for most emergency services (even for out-of-network care that’s not authorized beforehand), as well as for some nonemergency services.
If you receive an unexpected medical bill. If you receive a medical bill you weren’t expecting, double check it for accuracy. Errors on medical bills happen frequently — in fact, statistics show the majority of medical bills contain errors. Check your bills thoroughly to make sure your provider didn’t bill you for services you didn’t receive or services that are coded incorrectly.
If you’re experiencing financial hardship. Many health care providers and hospitals provide financial assistance programs for those patients unable to pay their medical bills. If you’re experiencing financial hardship, ask about available programs that may reduce or even eliminate your bills.

Steps to take before negotiating

1. Request an itemized bill

While the total bill may be overwhelming, you’ll want to make sure you have a clear view of exactly what you’re being charged for. Most providers won’t automatically send an itemized bill, so you’ll likely need to request one.

When you request an itemized bill, also ask for the CPT codes for each service. These standard billing codes clarify exactly what you were charged for. Your provider should easily understand the request — and if they resist, it may be a red flag.

An itemized bill will allow you to search for unexpected costs that may be covered under the No Surprises Act and spot any duplicate charges or other potential mistakes.

2. Compare costs

There can be a huge disparity in the costs for the same exact procedures depending on the provider. Before attempting to negotiate a bill, take time to research and compare costs. Resources like Fair Health Consumer and Healthcare Bluebook can help you determine if the provider overcharged you for services and provide a benchmark for how much you believe your bill should be reduced, or why it should be eliminated altogether.

3. Check your Explanation of Benefits (EOB)

Ask your insurance company for an explanation of benefits (EOB). This overview, which is different from a bill, includes details about the services provided, when they were provided and who provided them. It also lists the cost of your care and breaks down how much of that amount the insurer will cover and how much you’ll be responsible for beyond what they’ll pay.

4. Look for billing errors

Medical billing errors are quite common. In fact, statistics show most medical bills contain errors. Look over your itemized bill carefully for items like duplicate charges and charges for services you never received. Medical coding can be complicated, so make sure that the provider used the right billing codes and isn’t charging you for more expensive treatments than you received.

5. Review your insurance policy

Take a close look at your insurance policy and understand any deductibles or out-of-pocket maximums. If you’ve already met these, you may not be responsible for the full amount you’ve been charged. Reviewing your policy can also help you understand why some costs are covered and some aren’t, and be able to spot possible billing or coverage mistakes.

6. Budget what you can afford to pay

If you can’t pay your medical bill in full, take a close look at your budget and determine how much you can realistically pay. Calculate this number before you begin negotiating, so you have a target you’re working toward. If the provider can’t lower your bill to that amount, it may at least offer you a payment plan with little or no interest that allows you to pay smaller amounts over time.

How to negotiate medical bills: Script-based tips

Who to call

Once you’ve done your research, start by reaching out to your provider’s billing department. Be polite, patient and clear about what you’re asking for when negotiating your bill.

You may also want to seek out a patient advocate to help you negotiate the process. Many hospitals have patient advocates on staff, or you can reach out to an organization like the Patient Advocate Foundation for help finding one.

Negotiation strategies

Before you begin negotiating, be clear about what type of outcome you want and what you’re realistically able to pay.

Request financial aid or charity care. Many health care providers are required to offer financial assistance programs for patients who can’t afford to pay for their care. Ask your provider which programs it offers and how to apply. If your application is initially denied, you are usually allowed to appeal.
Offer a lump sum in exchange for a discount. Determine how much you can realistically pay and offer to pay a lump sum in exchange for a discount. Some providers may be willing to take a partial payment rather than pursue long-term billing.
Set up a no-interest payment plan. If paying a large sum isn’t possible, ask about a no-interest payment plan. This will allow you to pay off the debt in more affordable increments without accruing additional debt.

What to say

Patience and politeness go a long way when it comes to negotiating a medical bill. When you call your provider’s billing department, be well-prepared and direct. For example, if you see errors on your bill, you may start by saying:

“Hi, I received a medical bill that seems inaccurate. I reviewed the itemized bill and saw that I was charged for X procedure, which was never performed. Also, I see duplicate charges for Y procedure. Can you please adjust my bill to reflect the correct amount?”

Or if you believe the charges are excessively high, you may want say something like:

“Hi, I received a bill from you, and the charges seem inflated. I looked up the state average for X procedure and see it’s $1,000, while your office charged me $2,000. Can you please make an adjustment?”

What to do if you’re denied help

You’re not always going to get the outcome you’re hoping for when negotiating medical debt. The good news is your bill won’t go up because you dispute it, and just because a provider says no initially, you don’t have to give up.

Ask to escalate your request. If your provider’s billing department denies your request, you can file an internal appeal. You may consider contacting the organization’s leadership, like the hospital’s CEO or board of directors. If your dispute is with your insurance company, you can contact the National Association of Insurance Commissioners for assistance.
Reach out to a medical billing advocate. If you’re feeling overwhelmed navigating the negotiation process on your own, a medical billing advocate can help. Some hospitals have them on staff, and you can also find one through organizations like the Patient Advocate Foundation.
File a complaint with your state or insurer. If your complaint is covered under the No Surprises Act, you can submit a complaint online.
Contact a nonprofit to help. There are a number of nonprofit organizations that can help with medical bills, including HealthWell Foundation and Good Days. In addition, many disease-specific organizations, such as CancerCare, provide assistance as well.

How negotiating medical debt impacts your credit

Negotiating your medical bills can impact both how much you pay and your credit score.

Late payments can affect your credit

In general, late payments for credit cards and other debts only affect your credit score if they’re more than 30 days late. After that time, your bill could be sent to collections. If that happens, the impact on your credit score increases over time until the debt is paid.

How much of a hit your score will take depends, as there are different models used to calculate credit scores. For example, payment history makes up 35% of most FICO credit scores but 40% or more of a VantageScore credit score.

How medical debt shows up on your credit reports

Medical debts only show up on your credit report if they go to collections and have gone unpaid for more than a year and involve an amount of $500 or more. Once you pay a medical debt that’s in collection, it no longer appears on your report or affects your credit score.

To see your credit score, you can access a free report at AnnualCreditReport.com. You can also request a report from the credit bureaus, though they may charge a fee.

Supercharge your score

Get free, personalized recommendations on how to improve each of the factors that affect your credit score with LendingTree Spring. We’ll show you how your credit stacks up and what to do to boost your score.

When to consider a medical loan or payment plan

If you need help paying medical bills, you may want to consider a medical loan, which provides a lump sum to pay off your debt. But there’s a downside: You’ll have to pay interest on the loan, which can increase the overall amount you pay. The better your credit, the better the interest rate you’re likely to secure. Still, there are medical loans for bad credit available.

Another option is to request an in-house payment plan, which lets you make smaller payments over time to the provider. In some cases, these payment plans may be interest-free.

	Medical loan	In-house payment plan
Pros	✅ Interest rates typically lower than credit cards ✅ Pay off your debt all at once	✅ Low or zero-interest rates ✅ Often available with no eligibility requirements
Cons	❌ Interest ❌ Some lenders charge origination fees ❌ No credit card rewards or promotions	❌ Lingering debt ❌ You may be eligible for financial assistance and not need a payment plan
What to know	Medical loans are distributed as a lump sum, which you can use to pay your medical bills or expenses — you then make payments to the lender.	Providers and hospitals often offer in-house payment plans in which patients pay off debt directly to them over time.

To evaluate a loan and understand how the terms will affect your bottom line over time, use our personal loan calculator.

Frequently asked questions

Yes, you can. Start by requesting an itemized bill from your care provider and an EOB from your insurance provider. Compare them for errors and research average costs for services to determine if you’ve been overcharged.

Yes, your debt can go to collection. If it does, you don’t have to stop negotiating. You can still work on finding options with the provider, and you can attempt to negotiate with the debt collector, as well.

You don’t have to have insurance to negotiate hospital bills. The process is largely the same as if you do have insurance, with the exception of requesting an EOB. Start by asking the provider for an itemized list of charges, check it for errors and do your research on average prices for services in your area.

Patient advocates can help you understand how to negotiate medical bills. They’re experts and can easily spot errors and offer proven negotiating techniques. Many advocates employed by hospitals offer their services free of charge, while others who work for patient advocate services may charge a fee.

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