If you’re struggling with mounting debt and medical bills, you may be wondering if you can negotiate your medical bills. You can successfully negotiate with medical providers to reduce your medical bills, but you have to be willing to ask for what you want. Insurance companies are not the only ones who can negotiate with hospitals and medical providers. Most insurance companies receive a 60 percent discount. If a large insurer receives a 60% discount, you can certainly negotiate a 30 percent reduction in your total costs. If you visit the hospital in person and explain your situation, you may get a substantial discount. When you visit the hospital, ask for the CFO or the manager of accounts payable.

How much of a reduction can you get? The reduction amount is completely determined by the opinion of the billing office, CFO, or whoever makes decisions at the medical office. When negotiating your medical bills, it’s important to understand which bills to negotiate. If you are still receiving medical care from a provider, it’s very important that you pay the full amount. If you don’t, you could risk being denied future medical care, or having to prepay.

The key to successfully negotiating your medical bills is knowing what would normally be discounted if you were paying through health insurance. If you know what the standard charge is for a procedure (through health insurance), then you can use that information to your advantage. Ask the medical billing office to make an adjustment, based on the standard charge if you were paying through health insurance. Medical providers are not obligated to lower the charge; however, they may compromise to avoid confrontation and argument. When you reach a compromise with the medical billing office, it’s important to have them reissue the bill showing the reduced fee. Once you receive the invoice for the reduced bill, pay the bill immediately.

Do not wait until your medical bills are sent to a debt collection agency before trying to negotiate. If you wait until your medical bills are passed on to an agency, then your credit rating will suffer. Use the steps above to begin negotiating your medical bills so that you can get a handle on your debt.

A debt collection service can demand payment, but can do little else. Unfortunately, many debt collectors do not comply with the law, and can become abusive and harassing.  Assuming the creditor has not taken the client’s house, car, or other property as collateral on a loan, then legally the creditor can do three things.  The creditor can:

1.  Stop doing business with you.
2.  Report your default to the credit bureau.

3.  Sue you in court.  Fortunately, many creditors do not follow-through on their threats to sue you.  And even if they do, you can defend yourself by paying the debt. Even if your creditor gets a judgment against you, this judgment does not force you to pay the debt.  It only gives the creditor the right to seize a part of your income or property.

Here are some tips for how to avoid debt collection harassment.  One of the best ways to manage debt collection harassment is to prevent harassment before it starts.  If you are behind on payments, call the creditor and explain your situation.  Don’t avoid the creditor simply because you are behind on making payments.  Consider whether you actually owe the money, or whether you have a defense that could eliminate all (or part) of the debt.  Consider negotiating with your creditor, or with the collection agency, to resolve outstanding balances.

One of the simplest solutions to stop debt collection harassment is to write a cease letter.  Federal law requires collection agencies to stop their collection efforts after they receive a written request to stop.  This law does not apply to creditors collecting their own debts – however, often creditors will stop contacting you after a cease letter is received.  Be sure to keep a copy of the written cease letter and mail it using certified mail (return receipt requested).  This provides you with proof that the collector or creditor received your letter.

If writing a cease letter is not effective to stop debt collection harassment, consider having your attorney draft a letter to the collection agency or creditor.  As long as your attorney responds to the collection agencies inquiries, federal law requires collection agencies to stop contacting you (if it is known you are being represented by an attorney).  Also, your lawyer may be able to raise legal claims for violating debt collection harassment laws.