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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.

HMO’s usually negotiate lower prices in advance and that is why prices can be much higher for uninsured and the under insured.

In addition, the practice of price negotiation is not only available through major institutions. Individuals can — and do — negotiate the price for particular services on a regular basis and this can result in significant savings.

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.

Price reductions have been reported as high as ninety percent although the average is about thirty to sixty percent.

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.

Due to problems with delayed payment, many medical service providers offer “prompt pay” discounts that can reduce your medical bill by as much as ten to twenty percent. These discounts are usually reserved for those who are able to pay for planned medical services at the time of the visit.

If you can make large lump sum payment many health care provider will provide a significant discount.

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. More often than not, just asking the CFO for a discount will get results.

Keep in mind that health care providers are not giving away services so to be effective in your negotiation keep their perspective in mind. This brings you to the point of knowing enough to research the average prices for health care services in your area which will give you the power to negotiate for the appropriate price range.

Making sure you know the normal price for a medical procedure can be helpful and you can double check that on Healthcarebluebook.com and a large amount 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.

However, you may be able to negotiate an interest-free payment plan. Medical expenses accrue interest and over a long period of time can become frighteningly high.

Over time you would be surprised just how much money you would save by negotiating a payment plan with low or no interest rate.

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.

Interestingly enough, many health care providers have lower repayment levels built into their budget already. For the consumer, there really is nothing to lose by trying to negotiate discounts and reasonable repayment terms.

A health care service provider can say “no” and that is about the extent of the risk you would be taking. But negotiating is worth the effort. As Consumer Reports has proven, 93% of individuals who ask for a discount actually do get a discount.

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