How to Negotiate Medical Bills in 2025

Author: Neal Wagner
Last updated: June 2025

Why This Matters

Medical bills are one of the leading causes of consumer debt in the U.S. According to KFF, about 41% of adults have unpaid medical or dental bills. That amounts to more than 100 million people facing collection calls or long-term financial strain.

This guide will walk you through how to negotiate medical bills step-by-step, even after insurance or when they’ve gone to collections. We’ve also included real phone scripts, helpful links, and a downloadable checklist so you don’t miss a thing.

Can Medical Bills Be Negotiated?

Yes. In fact, most hospitals and providers expect some patients to ask for a discount or payment plan. Medical prices are often much higher than what insurance companies pay—so there’s room to work with.

You can also negotiate even if you’ve already been billed, or if your insurance didn’t cover as much as expected. Some hospitals even offer financial assistance programs if your income is under a certain limit.

Why Hospitals Offer Discounts

• They’d rather get something than nothing. Once a bill goes to collections, they only recover a small amount.

• Many are required by law to offer discounted care if your income is low enough.

• They avoid bad publicity and complaints by helping patients before things spiral.

Step-by-Step: How to Negotiate a Medical Bill

1. Check the Bill for Errors

Ask for a detailed, itemized bill showing every test, treatment, and charge. Look for:

• Duplicate charges

• Services you didn’t receive

• Mistakes in billing codes (the labels hospitals use for each item)

These errors are very common and can lead to hundreds—or thousands—of dollars in extra charges.

2. Review Your Insurance Summary

Your Explanation of Benefits (EOB) tells you what your insurance covered and what’s left for you to pay. Compare it with the itemized bill.

If something seems off, call your insurance company and ask about it. You can also file an appeal if they denied something you believe should have been covered.

3. Research Fair Prices

Before negotiating, check what others in your area pay for the same treatment. Use tools like:

• Healthcare Bluebook

• Fair Health Consumer

Write down what a fair price looks like—that’s your baseline for negotiation.

4. How Do I Ask for a Discount on My Medical Bill?

Start with a polite but clear phone call. Here’s a script:

“Hi, I want to resolve this bill, but I’ve checked average prices and this seems high. If I pay $____ today, can we settle the full amount?”

Tips for calling:

• Avoid Mondays; call mid-morning Tuesday–Thursday for shorter wait times

• Ask for someone who handles billing adjustments or financial assistance

• Take notes and ask them to confirm everything in writing

5. Ask for a Payment Plan or Quick-Pay Discount

If you can’t pay all at once, ask for a monthly plan. Many hospitals offer 0% interest payment options.

If you can pay a lump sum, ask if they offer a discount for paying quickly. You might save 30–50% just by offering a faster resolution.

How Can I Settle My Medical Debt for Less?

Once a bill goes to collections, you can often negotiate a lower total payoff—sometimes just 25–50% of the original amount.

Here’s how:

1. Ask who owns the debt

2. Offer a realistic lump sum you can afford

3. Request a written agreement showing that this settles the full debt

4. Keep the “paid in full” letter for your records

If you’re juggling multiple balances, a debt consolidation loan could simplify things—just be sure to compare the interest rate with what you’d negotiate on your own.

How Much Can Lawyers Negotiate Medical Bills?

If your bills are related to an injury, car accident, or lawsuit, a lawyer may be able to help cut the total amount owed.

They usually get 25–40% knocked off the balance, especially when hospitals are trying to collect from your settlement money. Most lawyers charge a percentage of what they save you, not an upfront fee.

DIY vs. Professional Help

Special Cases You Should Know

Before a Procedure

• Ask for the treatment codes (called CPT codes) in advance

• Use them to compare prices and ask for a lower self-pay rate

• Many providers offer discounts for cash payments before surgery

If It’s an Emergency or Out-of-Network

You may be protected by the No Surprises Act, which stops providers from billing you extra after emergency care. Ask about this if you're charged unexpectedly.

If It’s Already in Collections

You still have rights. Within 30 days, you can send a debt validation letter asking the collection agency to prove what you owe. If they can’t, they have to remove the debt from your record.

Preventing Future Bill Shock

Medical bills often hit hardest when you haven’t planned for them. But a few small steps can go a long way in keeping your finances prepared for the next surprise.

Here’s how to get ahead:

• Ask for treatment codes in advance (called CPT codes) before a scheduled procedure

• Confirm whether providers are in-network with your insurance

• Build a small emergency buffer into your monthly budget for healthcare needs

• Consider using an HSA or FSA if available through your job—these accounts use pre-tax dollars for medical costs

Budgeting is key here. One way to stay prepared is to give every dollar a job using zero-based budgeting—a method that helps you plan for future medical expenses before they happen. Or, if you want something simpler, the 50/30/20 budget rule can help you balance needs, wants, and savings. Prefer cash-based discipline? Try the envelope budgeting method to stay in control of out-of-pocket spending.

Each approach offers a different way to prepare—what matters is choosing a system that fits your lifestyle, and sticking to it.

FAQ Quick-Hits

Can medical bills be negotiated?
Yes—most hospitals expect patients to ask for a discount or plan.

How do I ask for a discount?
Be polite, offer to pay quickly, and refer to average pricing in your area.

How can I settle medical debt for less?
Once it’s in collections, offer a lump sum and get a written settlement letter.

How much can lawyers negotiate?
Often 25–40%, especially in personal injury or accident cases.

Key Takeaways

• Bottom line: Most medical bills are negotiable—even after insurance.

• Start smart: Always request an itemized bill and your Explanation of Benefits.

• Use tools: Look up real prices on Healthcare Bluebook or Fair Health Consumer.

• Be direct: A simple call and a fair offer can save you thousands.

• Need help? Patient advocates or lawyers can step in for more complex cases.

Helpful Resources

• CMS Price Transparency FAQ

• Consumer Financial Protection Bureau – Medical Debt Help