The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Bourbon on January 29, 2017, 07:37:32 AM
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Does anyone have experience with negotiating medical debt?
Brother has ~$20k in debt from several years ago. Developed a seizure super power while uninsured. Thought he was covered but had instead purchased an aflac-type policy.
Awhile back the debt was sent to a collections agency, and he has been making $100/mo payments. He was recently offered a 30% discount to pay the outstanding balance. I told him I thought he could get a better deal than that, but really not sure.
Are there reputable agencies that can help him with this? I've found a few articles that mention offering 25%, but I think he might have better success with some assistance.
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Sorry to hear about his troubles. Bumping this, as I know there are several people on this board who post regarding negotiating medical payments.
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I just asked.
Had 5,000$ bill, slowly was paying it down, did about 500$ then quit for 3 years. They never really bother me for it, but i did get a few collection letters from a 3rd party company. I had explained to them WHY i wasn't paying, that i do not believe i owe them a penny since i was lied to.
Anyways, started making some more money, so i gave them a call. They offered to wipe the debt for 2500$ (meaning 2k off total bill). I stated i had 1000$ i could pay now, in full, if that would 100% wipe out the debt. I got put on with a supervisor. He worked out the terms, So 5k down to 1.5k. I requested I get emailed a copy of our agreement before i provided my CC number. That way i wouldn't get called back asking for the rest later. About 6 years later, still not been called back so i guess they held up.
I personally believe anyone who buys a product should pay for it. But in my case the DR office and ins company told me i was covered prior to going in!!! They failed to tell me the 30 blood test wasn't covered. Only the visit. So i had no fuss by not paying up after i KNOW i covered the cost of their lab work.
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First let me play captain hindsight: of all debt, you want to catch medical debt before it goes to an outside collection agency. Medical providers don't want to be collectors and they are actually altruistic organizations. Most hospitals actually have a "good-will" cost center where they budget in write downs/offs for bills of customers like your brother. If you have a bill you won't be able to pay, go into the hospital and talk to a human and they can work out a plan you can afford.
Professional collection agencies are in the making money business--Buy debt low and collect high. The strategy for dealing with them is different--you have to make them think your debt is worthless. I recommend stop paying the $100 a month and let this go deliquent for a while--6 months or until you actually get served (threats don't count). Then, go to them and offer them 30% and negotiate from there.