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.

If you wondered by health care prices are very high for individuals it is because people who are insured usually benefit from prior price negotiations that were done by HMO’s.

In addition, the practice of price negotiation is not only available through major institutions. All over the US people are obtaining large health care savings just by consistently requesting lower costs.

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.

Savings average between thirty and sixty percent of the original principle, though people saving as much as ninety percent have been reported.

There are no guarantees that negotiation will get you a discount, but experience shows that most people who make the effort are successful to some extent.

Step One: Negotiate in advance

The first step to negotiating medical expenses is to negotiate terms in advance for planned medical visits and examinations.

Time is money and health providers often don’t want to wait for their payments so they offer “prompt pay” discounts which can be upwards of twenty percent. These price discounts are typically reserved for those who have preplanned medical expense budgets at the time of the visit.

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.

There are ways to verify the value of the services you are going to pay for and one great tool for looking that up is Healthcarebluebook.com and many insurance company sites.

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.

If you can negotiate for lower interest on your health care bills, you can greatly reduce the overall amount you pay during the course of your payment plan.

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, many providers specifically budget for a lower repayment than they initially bill. 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. Although, negotiating lower costs is going to pay off in the end. As Consumer Reports has documented, 93 percent of those who try do in fact get a discount.