What is the lowest amount you can pay for medical bills?

Medical bills have a way of surprising you, and typically not in a good way. Even routine medical procedures can come with pages of itemized charges, insurance adjustments and remaining balances that seem to shift, or, in the worst-case scenario, grow, from week to week. And, as the increases to healthcare costs continue to outpace wages and inflation, more Americans are looking for ways to cut their medical bills down to the lowest number possible.

But here's the part that many people don't realize: Medical bills are among the most negotiable bills you'll ever face. Hospitals, private practices and debt collectors all operate in a system where the sticker price for a procedure or hospital stay is rarely what most patients will ultimately pay. In fact, it's not uncommon for a bill to drop by half of the original balance or more after negotiations, depending on the circumstances.

Still, navigating this landscape isn't always straightforward. How much you end up paying on your medical debt depends heavily on what tools or negotiating tactics you use. So, if your goal is to pay the lowest amount possible, understanding how your options work plays an important role.

Find out how you can start tackling your outstanding medical debt now.

What is the lowest amount you can pay for medical bills?

There is no single "minimum" amount that applies to all medical bills, but in many cases, the lowest you can pay is far less than the original balance. Here's what that can look like in practice.

$0 through charity care and financial assistance programs

Most nonprofit hospitals and some private healthcare providers are legally required to offer financial assistance programs to help ease the costs of essential care for those who cannot otherwise afford it. If you qualify based on income, household size or financial hardship, your debt could be reduced significantly or forgiven entirely. This applies even if the care was provided months ago, as you can often apply for assistance retroactively.

For example, very low-income households could see significant reductions, sometimes between 50% to 75%, simply by enrolling in this type of assistance program, and in certain cases, it may even be possible to have the entire balance wiped out. Even middle-income households may be eligible for partial reductions, so if you think you may qualify, take the time to inquire about the help that could be available to you.

Learn more about your debt relief options online now.

10% to 70% (or more) off through direct negotiation

Many people don't realize that hospitals and outpatient providers often expect patients to negotiate. Because medical billing includes significant markup — sometimes several hundred percent above the insurer-negotiated rate — providers have room to reduce your balance. During negotiations, you can request:

• A self-pay discount (a common concession for uninsured patients)
• A cash-payment discount
• Removal of duplicate or unnecessary charges
• A reduction to the Medicare rate (the lowest rate hospitals typically accept)

These reductions are most successful before the bill is sent to collections, but they can still work after multiple statements.

30% to 80% (or more) through a settlement after default

If your bill is already in collections, your negotiating power could actually increase. Collection agencies purchase medical debt for a fraction of its face value, which means they can accept a much lower settlement and still generate a profit. Settlements tend to range from about 30% to 80% of the original balance, though it depends, in large part, on:

• How old the debt is
• Whether the collector has taken legal action
• Your financial hardship
• Whether you can offer a lump-sum payment

$0 through statute of limitations (in limited cases)

Medical debt doesn't disappear, but its enforceability changes after a certain period. Each state has a statute of limitations, which can vary but typically ranges from three to six years, after which debt collectors can no longer sue you for payment. Debt collectors may still request payment, but you can't be taken to court if the debt is time-barred. As a result, some people choose not to pay very old medical bills, especially if the debt is no longer reported on their credit report.

How to lower your medical bills with debt relief 

If your bills are already overwhelming, medical debt is piling up or collections agencies are calling, pursuing certain types of debt relief can help reduce what you owe to the lowest number possible. Here are the main options to consider.

Debt settlement

You have the option to try and negotiate with your creditors or the collection agency that owns the debt to reduce your balance, and if you're successful, it could reduce your balance by a substantial amount. This route tends to be most effective if:

• Your debts are already in collections
• You've missed multiple payments
• You can offer a lump-sum payment
• You've experienced a financial hardship

Professional debt relief companies can handle the negotiations for you. Although they charge fees for their services, they may be able to secure deeper reductions than you could on your own.

Debt management

By enrolling in a debt management plan through a credit counseling agency, you'll be able to restructure your unsecured debts, including any unpaid medical bills. Throughout the debt management process, a credit counselor works on your behalf to:

• Consolidate payments into one monthly obligation
• Negotiate lower interest rates (primarily for credit card debts)
• Secure more manageable terms

This doesn't usually reduce the principal balance on medical debt, but it can make repayment significantly easier and stop collection activity.

Debt consolidation

If you're juggling multiple medical debts or have paid medical bills with credit cards, a low-rate debt consolidation loan can help you pay them off and replace them with one predictable monthly payment. This strategy doesn't reduce the balance via a settlement, but it can reduce the financial strain and help you avoid late fees and collection actions.

The bottom line

Medical bills can feel rigid and intimidating, but in reality, they are among the most flexible debts you can negotiate. Depending on your financial situation, you may be able to pay far less than the original amount, and in some cases, nothing at all. If your bills are unmanageable, exploring the strategies outlined above can help you bring your balance down to the lowest number possible and finally move forward from your overwhelming debt.