How one can Write a Medical Invoice Negotiation Letter


If you’re one of many greater than 25 million Individuals caught with medical debt, making an attempt to jot down a medical invoice negotiation letter stands out as the reply[1].

Hospitals negotiate with insurance coverage corporations on a regular basis to decrease the invoice quantity. Why not negotiate with them your self in a lot the identical method?

On this article, we’ll discover how one can write a medical invoice negotiation letter to start out your negotiation, what ought to be included, and what your settlement supply ought to be.

What Is a Medical Invoice Negotiation Letter?

The aim of this letter is to barter a decrease fee to your medical payments resulting from monetary hardship. This letter is distributed both on to the hospital or their billing firm.

For those who acquired medical payments totaling $20,000, you would possibly attempt to negotiate right down to a $5,000 lump sum fee, with the hospital waiving the remaining $15,000 due.

Data Wanted to Write a Medical Invoice Negotiation Letter

Earlier than you begin writing your negotiation letter, there are a number of steps you have to take.

The primary could be exploring your choices for paying the debt, reminiscent of disputing the quantity billed, pleading along with your insurance coverage firm, or making use of for funds from non-profits. Take a look at our article on negotiate a medical invoice for extra steerage.

Subsequent, you’ll want to collect all the knowledge obligatory for the letter. This consists of

  • Copies of your medical payments
  • Your billing account quantity
  • Insurance coverage protection statements
  • The suitable tackle
  • Monetary statements (to find out how a lot you possibly can pay)

It’s vital to contact your hospital or their billing firm earlier than writing the letter in order that you already know who to ship the letter to and what their necessities for the letter could be.

⚕️ Be taught extra: If medical payments have been a priority, you would possibly discover our article on PayZen’s method insightful.

Pattern Medical Invoice Negotiation Letter


To Whom It Could Concern,

I’m writing relating to the companies I acquired from [HOSPITAL NAME] on [HOSPITAL BILL DATE]. The quantity due for companies is [AMOUNT DUE] on the invoice [BILL/INVOICE #].

I’m writing to barter the above medical payments as a result of I’m unable to pay the quantity requested. This debt has brought on me nice monetary hardship. [EXPLAIN HARDSHIP HERE]

I’m grateful for the companies I acquired, however as I can not pay the total quantity due, I hope you’ll think about my supply of settlement within the quantity of [SETTLEMENT OFFER $] to shut out this account. To substantiate my declare…[SUPPORT STATEMENT HERE]

Thanks for contemplating my proposal, and I stay up for listening to from you quickly.



How one can Customise the Medical Invoice Negotiation Letter

The letter above is only a pattern; you need to edit it to your particular person state of affairs and desires. This letter is supposed as steerage on craft a customized, genuine-sounding medical invoice negotiation letter.

On the very least, the letter should have these three elements: your medical invoice account data, the monetary hardship assertion, and your settlement supply. Be skilled and well mannered when crafting your letter.

⚕️ Be taught extra: Trying to navigate your payments with ease? Our newest article breaks down the highest invoice negotiation companies.

Account Data

Your letter might embrace the entire you’ve been billed for companies, the date(s) you acquired companies, the bill numbers, and any affected person account ID (or different quantity) that you’ve been assigned.

Mainly, you have to embrace any data that identifies you because the affected person and/or references the invoice(s).

This data ought to seem in an easy-to-reference part on the high of the letter and will be repeated within the introduction.

If in case you have a number of payments for a similar keep, embrace particulars on every one, reminiscent of the quantity due, bill quantity, and so forth.

Monetary Hardship Assertion

This can be a very important a part of the letter, and it must be real. You possibly can’t simply say, “I’m sorry, I can’t pay”; you have to give them a purpose why.

You don’t have to inform them your complete life story, however you possibly can add as many particulars as wanted to elucidate your state of affairs.

This medical debt resulted from a extreme automobile crash that left me out of labor for six months. I’ve since discovered a brand new job, however this case left me with many debt obligations, and I’m unable to pay this invoice in full.

???? Or, You Can Stick With Numbers

This medical invoice is greater than 40% of my annual revenue and is forcing me into monetary hardship.

Be sure to incorporate the whole lot on this part that might assist your negotiation.

Settlement Supply

A superb first supply worth could be roughly ¼ to ⅓ of the unique invoice quantity. However you also needs to check out your financials to find out what you possibly can fairly afford.

Bear in mind, it is a negotiation; you can begin with a low supply and lift it. For those who can afford $1000, strive providing $500. Suppose the hospital settles for $500, nice. And in the event that they counter $800, you’re nonetheless good.

If you’re attempting to barter a fee plan, embrace data on how a lot you possibly can pay each month and for a way lengthy.

As part of your supply, you possibly can supply proof of your declare, reminiscent of values pulled from, proof of your revenue/funds, or anything supporting the quantity you provided as honest.

Particular Requests

You must strive talking with the hospital/billing firm earlier than you draft the letter. They might have particular requests for formatting or data required to be within the letter.

Failing to stick to their tips might have your letter rejected with out them even contemplating your supply.

What to Do As soon as You Have Despatched the Letter

Now comes the ready sport; you would possibly get a reply shortly, or you might have to attend some time. Don’t be afraid to contact the hospital and ask them in the event that they acquired your letter and if they’ve a reply but.

Additionally, think about sending the letter by licensed mail so you could have a signed date of once they acquired your letter.

If Your Medical Invoice Negotiation Letter Is Rejected

Hopefully, in case your letter is rejected, the hospital will ship you a counteroffer. If so, keep in mind, since it is a negotiation, you don’t have to simply accept their counteroffer. You possibly can proceed negotiating till you attain a determine you might be comfy with.

If the hospital outright rejects your supply and appears unwilling to barter additional, you would possibly must discover different choices. They might be open to a low-dollar fee plan. Or you may strive on the lookout for non-profit applications that will help you pay the medical debt.

Alternatively, you possibly can wait a number of months after which strive once more.

If Your Medical Invoice Negotiation Letter Is Accepted

Congrats, you’ve efficiently negotiated down your medical debt. Now get that settlement signed and dated. Do that earlier than you pay them a dime.

Normally, the hospital/billing firm may have an settlement kind ready so that you can signal. If not, you possibly can add a settlement assertion and signature line to your negotiation letter and resend it.

Simply guarantee that any assertion you signal says one thing alongside the strains of the hospital agreeing to simply accept your lump sum supply and that they won’t pursue you additional for the remaining steadiness.

By no means settle for a deal with out proof of the settlement (i.e., recorded cellphone name, signed doc, dated e mail, and so forth.)

A Notice on Medical Debt Collections

When negotiating medical debt, there are a number of guidelines to remember on how this debt can have an effect on your credit score.

The three most vital guidelines are:

  1. Medical debt must be excellent for no less than one yr earlier than it may be reported to your credit score.
  2. Medical debt should exceed $500 so as to be reported in your credit score.
  3. If a medical assortment seems in your credit score, and also you later pay it off, it have to be eliminated out of your credit score experiences.

Excellent medical payments now not must crater your credit score.

⚕️ Be taught extra: Ever been blindsided by an sudden medical invoice? Understanding the No Surprises Act could be helpful.

For the reason that new legal guidelines have been enacted, the typical particular person with medical collections has seen no less than one invoice faraway from their experiences, and credit score scores have gone up a median of 25 factors as soon as all medical collections are eliminated.

These regulation modifications provide you with extra time and leverage to efficiently negotiate your medical payments.

Keep in mind that if you happen to use a mortgage or bank card to pay a medical debt, the debt will likely be thought of client debt, and you’ll lose all protections that go together with medical debt. That is typically not a good suggestion.


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