Sample Letter to Patients Dropping Insurance: How to Communicate Changes in Coverage

Dear patients,

We hope this letter finds you well and in good health. We are writing to inform you of an important decision that we have made regarding our practice. As some of you may know, we have previously been accepting various insurance plans. However, after careful consideration and analysis of the impact on our administrative costs, we have made the difficult decision to discontinue our contracts with several insurance providers.

We realize that this news may come as a surprise to you, and we want to assure you that we have not taken this decision lightly. In order to continue providing the highest quality care to you, we have decided to focus on direct patient care and reduce our dependence on insurance reimbursements. By doing so, we can provide more personalized and comprehensive care while minimizing the impact of administrative complexities.

We understand that the cost of healthcare is a concern for many patients, and we want to make sure that you are not left out. We greatly value our relationship with you and would like to continue to provide you with the best possible medical care. That is why we have developed a special program for our patients who have been impacted by this change. We are offering a discounted fee-for-service option for those who choose to continue receiving care at our facility.

We have included a sample letter for your reference on how to notify your insurance provider of our decision. Please feel free to use this sample letter and to edit it as needed. We also recommend that you review your insurance policy to understand your options and any potential out-of-pocket expenses.

We hope that you will continue to allow us to provide you with medical care and appreciate your understanding and support during this transition.

Sincerely,

[Your Healthcare Provider]

The Best Structure for a Sample Letter to Patients Dropping Insurance

As a healthcare provider, deciding to drop an insurance plan can be a tough decision to make. However, there are times when it becomes necessary to do so. The big question, then, is how to inform your patients of such a decision without coming across as insensitive or uncaring.

One way to do this is by sending out a letter to your patients, letting them know about the decision and providing them with alternative payment options. Here is the best structure to use when writing such a letter:

1. Start with a Personal Greeting

The opening paragraph of your letter should start with a personal greeting. This is a good way to make your patients feel valued and appreciated. Address them by their name if possible or use a more general greeting.

2. Explain the Reason for Your Decision

Your patients would want to know why you decided to drop the insurance plan, so it’s best to explain the reasons in clear terms. Be honest and transparent in your communication, so your patients can understand why the decision was made and how it affects their healthcare.

3. Offer Alternative Payment Options

After explaining why you’re dropping the insurance plan, it’s important to let your patients know about alternative payment options. These could include setting up payment plans, offering discounts for paying in cash, or accepting credit/debit card payments.

4. Provide Contact Information

Make sure to include your contact information in the letter, so patients who have any questions or concerns can reach out to you. This could include a phone number, email address, or physical address.

5. End with a Positive Note

Finally, end the letter with a positive note. Let your patients know that you value their trust in your healthcare services, and you’re committed to providing them with excellent care. You could also thank them for being part of your healthcare community and encourage them to continue seeking care with you.

By using this structure, you can write a professional and empathetic letter to your patients conveying your decision to drop an insurance plan. Remember to proofread your letter for any errors and make sure it’s concise, clear, and easy to read.

Sample Letter to Patients: Insurance Provider has Been Dropped

Reason 1: Too Many Billing Errors

Dear Patient,

It is with regret that we inform you that our clinic will no longer be accepting [insurance provider] as a covered insurance company for our services. This decision was not made lightly, but due to the numerous billing errors that we have experienced with this insurance provider, it has become necessary for us to take this step in order to maintain the quality of our services.

We understand that this change may cause inconvenience to you, as it may affect your ability to continue seeing our doctors. However, we would like to assure you that our commitment to you and your healthcare remains steadfast, and we will work with you to provide assistance in finding alternative options for your healthcare needs.

Thank you for your understanding and cooperation as we make this necessary change to ensure the best possible patient care. We appreciate your continued patronage and look forward to serving you in the future.

Sincerely,

[Your Name]

Reason 2: Insurance Provider No Longer Covers Certain Services

Dear Patient,

As part of our commitment to providing you with the highest quality healthcare, we are continuously evaluating our insurance coverage and working to ensure that we are able to offer the services that meet your needs. Unfortunately, we have recently been informed that [insurance provider] will no longer be covering certain services that we offer at our clinic.

As a result, we have had to make the difficult decision to no longer accept [insurance provider] as a covered insurance company for our services. We understand that this change may cause inconvenience to you, as it may affect your ability to continue seeing our doctors for certain services.

However, we would like to assure you that our commitment to you and your healthcare remains steadfast, and we will work with you to provide assistance in finding alternative options for your healthcare needs. We strongly encourage you to contact your insurance provider to understand the details of your benefits and options moving forward.

Thank you for your understanding and cooperation as we make this necessary change to ensure the best possible patient care. We appreciate your continued patronage and look forward to serving you in the future.

Sincerely,

[Your Name]

Reason 3: Insurance Provider Is Not Compatible with Our System

Dear Patient,

It is with regret that we inform you that our clinic will no longer be accepting [insurance provider] as a covered insurance company for our services. This decision was not made lightly, but due to compatibility issues with our system and the insurer’s system, it has become necessary for us to take this step in order to maintain the quality of our services.

We understand that this change may cause inconvenience to you, as it may affect your ability to continue seeing our doctors. However, we would like to assure you that our commitment to you and your healthcare remains steadfast, and we will work with you to provide assistance in finding alternative options for your healthcare needs.

We strongly encourage you to contact your insurance provider to understand the details of your benefits and options moving forward. Thank you for your understanding and cooperation as we make this necessary change to ensure the best possible patient care. We appreciate your continued patronage and look forward to serving you in the future.

Sincerely,

[Your Name]

Reason 4: Insurance Provider Has Been Discontinued

Dear Patient,

It is with regret that we inform you that our clinic will no longer be accepting [insurance provider] as a covered insurance company for our services. This insurance provider has recently been discontinued, and as a result, we have had to make the difficult decision to no longer accept them as an insurer for our services.

While we understand that this change may cause inconvenience to you, we would like to assure you that our commitment to you and your healthcare remains steadfast. We will work with you to provide assistance in finding alternative options for your healthcare needs, and we encourage you to contact your insurance provider to understand the details of your benefits and options moving forward.

Thank you for your understanding and cooperation as we make this necessary change to ensure the best possible patient care. We appreciate your continued patronage and look forward to serving you in the future.

Sincerely,

[Your Name]

Reason 5: Insurance Provider No Longer Available in Our Area

Dear Patient,

It is with regret that we inform you that our clinic will no longer be accepting [insurance provider] as a covered insurance company for our services. This decision was not made lightly, but due to the fact that this insurance provider is no longer available in our area, it has become necessary for us to take this step in order to maintain the quality of our services.

We understand that this change may cause inconvenience to you, as it may affect your ability to continue seeing our doctors. However, we would like to assure you that our commitment to you and your healthcare remains steadfast, and we will work with you to provide assistance in finding alternative options for your healthcare needs.

We strongly encourage you to contact your insurance provider to understand the details of your benefits and options moving forward. Thank you for your understanding and cooperation as we make this necessary change to ensure the best possible patient care. We appreciate your continued patronage and look forward to serving you in the future.

Sincerely,

[Your Name]

Reason 6: Insurance Provider Does Not Meet Our Standards

Dear Patient,

It is with regret that we inform you that our clinic will no longer be accepting [insurance provider] as a covered insurance company for our services. This decision was not made lightly, but due to the fact that this insurance provider does not meet our high standards for patient care, it has become necessary for us to take this step in order to maintain the quality of our services.

We understand that this change may cause inconvenience to you, as it may affect your ability to continue seeing our doctors. However, we would like to assure you that our commitment to you and your healthcare remains steadfast, and we will work with you to provide assistance in finding alternative options for your healthcare needs.

We strongly encourage you to contact your insurance provider to understand the details of your benefits and options moving forward. Thank you for your understanding and cooperation as we make this necessary change to ensure the best possible patient care. We appreciate your continued patronage and look forward to serving you in the future.

Sincerely,

[Your Name]

Reason 7: Insurance Provider Has Raised Rates Significantly

Dear Patient,

It is with regret that we inform you that our clinic will no longer be accepting [insurance provider] as a covered insurance company for our services. This decision was not made lightly, but due to the significant rate increases that have been imposed by this insurance provider, it has become necessary for us to take this step in order to maintain the quality of our services.

We understand that this change may cause inconvenience to you, as it may affect your ability to continue seeing our doctors. However, we would like to assure you that our commitment to you and your healthcare remains steadfast, and we will work with you to provide assistance in finding alternative options for your healthcare needs.

We strongly encourage you to contact your insurance provider to understand the details of your benefits and options moving forward. Thank you for your understanding and cooperation as we make this necessary change to ensure the best possible patient care. We appreciate your continued patronage and look forward to serving you in the future.

Sincerely,

[Your Name]

Tips for Writing a Sample Letter to Patients Dropping Insurance

As a healthcare provider, there may come a time when you have to make the difficult decision to drop a particular insurance provider. In such cases, it is important to inform your patients of this decision using a sample letter. Here are some tips to help you write a compelling letter that will help your patients understand the situation:

  • Be concise and clear: Your patients are likely to receive a lot of communication from different sources, so make sure your letter is brief and to the point. Use simple language that is easy to understand. Start with a simple explanation of why you are dropping the insurance provider and what the implications are for patients.
  • Explain the alternatives: Patients will be concerned about losing access to healthcare services. Make sure you provide information on other insurance providers they can switch to or alternative healthcare options they can explore. This will help mitigate any anxiety or confusion they may experience.
  • Be empathetic: Understand that your patients may be impacted by your decision. Acknowledge their concerns and show compassion in your communication. Reassure them that you value their health and well-being and want to continue providing them with the highest quality care.
  • Provide resources: Give your patients practical resources they can use to navigate the changes. This may include phone numbers for other insurance providers, links to government resources, or information on healthcare clinics in their area. This will help them make informed decisions about their healthcare options.
  • Communicate in advance: Give your patients ample notice before you drop their insurance provider. This gives them time to explore other options and make a more informed decision. Let them know when the changes will come into effect and how it will impact their next visit.

By following these tips, you can create a sample letter that effectively communicates your decision to drop an insurance provider without causing undue stress or confusion for your patients. Remember to be clear, empathetic, and provide practical resources to help them navigate the changes.

Frequently Asked Questions About Dropping Insurance


Why is my doctor dropping my insurance?

Your doctor may be dropping your insurance due to changes in pricing or to better accommodate their patients. Other factors may be affecting their decision, such as administrative responsibilities or the need to focus more on patient care.

What should I do if my doctor has dropped my insurance?

If your doctor has dropped your insurance, you have several options available. You can either pay full price for their services, visit a different doctor that accepts your insurance, or switch to a different insurance plan.

How will dropping my insurance affect my medical care?

Dropping your insurance may have an impact on the quality of medical care you receive from your doctor. You may have to pay for additional services that would otherwise be covered by insurance. However, if your doctor has other patients that they are treating without insurance, they may be able to provide you the same level of care.

Will dropping insurance impact my medical bills?

Dropping insurance may impact the amount you pay for medical bills. You may be required to pay a higher rate for services without the insurance provider to cover any costs. It is recommended that you speak directly with your doctor to get a complete understanding of what their rates are and how much you can expect to pay for medical services.

What happens if I want to return to my doctor after they have dropped my insurance?

Returning to your doctor after they have already dropped your insurance plan will depend on the current circumstances of your doctor and if they are open to accepting you back as a patient. You can reach out directly to your doctor to discuss your options and see if they will be available to treat you.

Is it common for doctors to drop insurance plans?

While not entirely common, doctors may drop insurance plans in order to better serve their patient needs. There are a variety of factors that can contribute to a doctor’s decision, so each situation will be different.

How can I find a new doctor that accepts my insurance?

If your current doctor has dropped your insurance and you are in need of a new doctor that accepts your insurance, you can begin by contacting your insurance provider to get a list of doctors in your network. You can also reach out to friends and family members to see if they have any recommendations for a doctor that accepts your insurance.

Goodbye for Now!

That’s it for our sample letter on dropping insurance. We hope you found this helpful, and we wish you all the best in navigating the sometimes confusing world of healthcare. Don’t hesitate to visit us again for more helpful tips and advice to enhance your overall health and wellbeing. Until then, take care!