Do Health Care Providers Allow Price Negotiation
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.
Many reduced their expenses by thirty percent or more with the rare instance being as high as ninety percent of the costs reduced through negotiation.
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 discounts are usually reserved for those who are able to pay for planned medical services at the time of the visit.
However, many providers will also offer a prompt pay discount to those who are able to make large, although partial, payments on the spot.
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.
You can find out what the normal charge for various services is by looking at websites like Healthcarebluebook.com and several other health care 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.
It could be possible to negotiate a no interest payment plan. The amount of accruing interest on medical expenses can be very 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.
Interestingly enough, many health care providers have lower repayment levels built into their budget already. Lowering medical bills and obtaining more favorable repayment plans is in the best interest of any consumer who pays their own bills.
The worst case scenario is that the provider will refuse to grant a discount. But negotiating is worth the effort. As Consumer Reports has documented, 93 percent of those who try do in fact get a discount.
