Writing a Medical Hardship Letter [Free Sample]

Learn More

Many people don’t realize that medical debt is similar to credit card debt in that it is unsecured debt, and the amount owed can be negotiated. Sending a medical hardship letter is the way to start the process of reducing medical bills.

Verify The Details Of The Debt

The first thing the consumer should do is verify the details of the debt. Hospitals and other medical service providers make errors in their billing. Studies have shown that more than 80 percent of hospital bills have errors.

The consumer should take the time to scrutinize the bill or ask a friend or family member to do it. There are websites that show how to read a medical bill. This could dramatically reduce the amount owed on the bill. 

Negotiate With The Hospital

The next step to take is to negotiate with the clinic, doctor or hospital for an affordable repayment plan. The consumer should not take large cash advances on their credit card to pay the bill. 

This may disqualify them for Medicaid in the future. The consumer should notify the medical creditor as soon as possible that they can’t repay the debt. 

Unpaid Debt

In the past, medical facilities waited 150 days before referring an unpaid debt to a collection agency, but this is changing. 

They could refer the debt in as little as 60 to 90 days, so it is important for the consumer to make a request before the debt is shifted to a collection agency. Collection agencies have been known to sue debtors for as little as $100 debt.

Keep Meticulous Records

The consumer should keep meticulous records of all the dealings with the medial creditors including the names, phone numbers, dates and time of everyone with whom the consumer spoke during the process. 

They should also make a payment each month on the bill, even if it is just a small amount. This will tell the creditor that the consumer is serious about paying their debt. 

Learn More

Some tips for writing a medical hardship letter:

  1. The letter should be as short as possible. One page should be enough, but never more than two pages. If it is too long, it may get tossed in the trash.
  2. The letter should include a few financial details such as the consumer’s source of income and the monthly amount they pay on any large debt such as a home mortgage.
  3. The letter should be courteous and polite because the consumer is asking for help and shouldn’t use a demanding tone.
  4. The letter should give some detail about financial hardship. For example, if the medical condition has made it impossible to work for some time, which has caused the income to be greatly reduced, the details should be clearly stated.
  5. The letter should clearly state a settlement offer. This includes the exact amount, when it will be paid and the payment method.
  6. The consumer should take the time to find out the name of the person who will receive the letter. If there is no response within 48 hours, there should be a follow-up letter or phone call.

If the medical institution or caregiver agrees to the settlement, the consumer needs to get a written document that states the agreed dollar amount of the reduced debt. 

It is better that the creditor writes the agreement letter on their letterhead, and not simply signs a letter written by the consumer.

A sample medical hardship letter is provided below. It should be sent certified mail so that the consumer can keep track of when and where it was received. 

If medical or insurance documentation are required, they should be copies rather than originals.

Sample Medical Hardship Letter

Your Name
Your Address
City, State, Zip Code


Recipient’s Name
Recipient’s Address
City, State, Zip Code

Dear Name of Recipient,

This letter is to request in writing a settlement for the medical fees I owe your institution. 

I regret that I am unable to pay the payment in full at this time due to a significant reduction in my monthly income as a result of the automobile accident in which I fractured both of my legs.

I’d want to set up a payment plan of $100 each month until I’m able to return to work and receive my regular wage. It could take anything from six to nine months for you to get back on your feet. 

My current income is $, and I have a $ home mortgage to pay. Beginning [DATE], I will pay by check on the 15th of each month.

If this is agreeable to you, kindly send me a letter stating the repayment details as I have described. I can be reached at [(555) 123-4567] or [name@email.com], and I would be happy to talk to you and give you more details at any time.


Your Name
List of Enclosures

Interesting finds