Offer to settle a medical bill
Offer a single payment to settle a medical bill in full, and ask for the agreement in writing before you pay.
- Private: nothing leaves this tab
- A template, not legal advice
When to use this, and what it is not
When to use this. When you owe a medical bill after your insurance appeal has ended, or after you have applied for financial assistance, and you can pay a lump sum that is less than the balance. Try financial assistance first, because it may reduce the bill by more. Do not pay anything until you have the agreement in writing.
This is a template, not legal advice. Read it, change anything that is not true for you, and send it only when you are satisfied. Your notice and your plan document control.
Fill in the letter
Your letter
[Your name] [Your address]
13 November 2026
[Name and address of the provider's billing office]
Re: Offer to settle a medical bill Plan: [Name of the health plan] Member ID: [Member ID] Claim or reference number: [Claim or reference number]
To whom it may concern:
I am writing about account [Account number on the bill] with [Doctor, hospital or pharmacy], for services on [Date of the care]. The balance shown is [Balance shown on the bill].
I want to settle this account. I can make a single payment of [The single payment you can make] by [Date by which you will pay], if you accept it as payment in full. This is the most I can afford because: [Why this is the most you can pay]
Before I pay, please confirm in writing that: 1. You accept [The single payment you can make] as payment in full, and the account will show a zero balance. 2. You will not sell the account or send it to collections, and you will correct any report you have made about it. 3. You will not bill me for any remaining part of this balance.
I will pay by a method that leaves a record. This offer is made to settle the account and does not mean I agree that the balance shown is correct. I am also glad to talk about your financial assistance policy if that would help. Please reply by [Date by which you ask for a reply].
Enclosures: 1. Copy of the most recent bill 2. Copy of your Explanation of Benefits or denial letter, if relevant
Sincerely, [Your name]
Before you send it
Send it to the billing office, or to the collection company if the account has been sent to one. If a collector holds the account, ask who owns the debt. Send it by mail with tracking and keep a copy. If you speak by phone, write down the name of the person, the date, the time and anything they promise.
What to enclose
- Copy of the most recent bill
- Copy of your Explanation of Benefits or denial letter, if relevant
What happens next
- Dollar For's guide expects a counter-offer. Decide the highest amount you can pay before you send this letter.
- Do not pay until you have the agreement in writing. Pay by a method that leaves a record, such as a check or a payment you can print, and keep the proof.
- If the account is with a collector, ask in writing whether interest is being added, who owns the debt and whether it has been reported.
- Check hospital financial assistance before you settle. It may reduce the bill by more than a settlement does.
- Whether a settlement affects your credit report or your taxes is outside what this site has verified. Confirm it with the Consumer Financial Protection Bureau, a tax professional or a consumer-law legal aid office.