Who Pays My Medical Bills While My Personal Injury Case Is Pending?

Who Pays My Medical Bills While My Personal Injury Case Is Pending?

Medical bills! After a serious accident, medical costs can quickly mount. Mounting medical bills are one of the biggest concerns for people injured in a car crash. Many victims find themselves juggling emergency room visits, physical therapy, possible surgeries, and other medical care. This leads to many questions. One of the biggest – Who pays my medical bills?

I’ll discuss some of your options. Before I do, I need to warn you – Don’t fall for the insurance adjuster’s friendly request that you send your bills. Adjusters often mislead people into thinking the insurance company will pay bills upon receipt. Not true! What the adjuster really wants is to start investigating your injury claim, including your physical condition. So, how do you handle (pay) medical bills following a car crash?

1. Health Insurance

If you have health insurance, and unless you were hurt on the job, this should be your first option. Let me repeat that. If you were not injured while working – We recommend clients use their health insurance to get necessary medical care. If you have health insurance, it can provide you the ability to immediately pay for necessary care.

What are the PROS of using health insurance to pay your medical bills?

  • Immediate Access To Needed Medical Care. Health insurance provides immediate access to medical care. Use it.
  • Negotiated Rates. Take a look at a medical bill. You will notice a big difference between the “sticker” price and what the insurance company actually paid to settle the charges. A huge difference in some cases! At our office, we see these huge differences every day in the bills from Huntsville Hospital and Madison Hospital that we receive. Health insurance companies negotiate lower rates for medical care. In your personal injury case, this can make a big difference to you – You will likely pay full, sticker price if you choose options other than health insurance for medical care.
  • No Collections. Nobody wants to receive a threatening collections letter!

What are some CONS of using health insurance – And why you should still opt for health insurance if you have it?

  • Deductibles And Co-Pays. Yes, you must pay deductibles and co-pays when you use your health insurance. But, those deductibles are still likely to be much less than paying full “sticker” price at the end of your case out of your settlement money! We add your co-pays into the damages we seek to recover for you so you can obtain the maximum compensation possible.
  • Subrogation Rights. Health insurance companies can seek reimbursement (subrogation) from your settlement for the amounts paid in medical care. I know – It doesn’t seem fair to reimburse the health insurer when you paid premiums for years or decades. But, in truth, you are going to end up paying for medical care in some manner. You will pay now or later at the end of your case. At the end of your case, using your health insurance is typically the best option that puts the most settlement money in your pocket. Because your health insurer negotiates payments, any reimbursement is likely MUCH LESS than paying for care with costly medical liens (which many settlement mills use to your detriment).

Some law firms fail to advise their clients to use health insurance. Even worse, some settlement mill law firms encourage clients (with health insurance) to obtain treatment through costly chiropractors with liens. This allows medical bills to pile up unnecessarily. It harms people hurt in accidents.

2. Workers’ Compensation (If work-related)

What if driving is a part of your job? Every day, our north Alabama roads are filled with drivers on-the-job. If your car accident occurred while working, you may be covered by workers’ compensation. Workers’ compensation pays for medical treatment regardless of fault.

What are the PROS of using workers compensation to pay your medical bills?

  • Full Coverage. Work comp covers ALL medical bills for the injury. No Co-Pays. No Deductibles.

What are some CONS of using work comp – And why you should still opt for this system if available?

  • Limited Provider Choice. In Alabama work comp situations, your employer (through its insurer) picks the initial authorized treating doctor.

I’m no fan of allowing the employer to pick your initial doctor. This is the reason why it’s essential in work-related car accident cases, that you choose a lawyer skilled at BOTH car accidents and work comp. At the Blackwell Law Firm, we are experienced with most of the physicians handling claims across northern Alabama. We also understand your rights under Alabama work comp laws and how to obtain needed care through the system.

I’ve hear many horror stories of bad results where the accident victim hires a lawyer who neglects the work comp issues. Some lawyers just want to handle the car accident damage claim. But, neglecting the comp portion of the claim can leave a client without needed medical care and can lower the overall settlement. A lawyer skilled at both issues can help you navigate the system to obtain the maximum compensation possible. By that, I mean the maximum compensation from the at-fault party in your car wreck as well as the maximum work comp benefits available to you. It’s essential to hire an attorney who understands and works both claims if you want to put yourself in the best possible position. Consult an attorney skilled in maximizing your total recovery while working all claims available to you!

3. Medical Payments Coverage (MedPay)

Look at your auto policy. Your auto policy may have medical payments coverage, often called MedPay. If so, you can use this money to pay medical bills regardless of who was at-fault.

What are the PROS of using MedPay to pay your medical bills?

  • No-Fault Requirements. MedPay is available regardless of fault.
  • Quick Payments. MedPay is designed to handle immediate medical costs.

What are some CONS of using MedPay?

  • Low Limits. MedPay limits are often very low and may not cover care. Limits are often only $1,000 to $5,000. Once the small coverage is exhausted, you are back to using other options.
  • Subrogation / Reimbursement. MedPay rules allow the insurer to be reimbursed from your later car accident settlement. If you choose MedPay instead of health insurance or available work comp coverage, you may be paying medical costs at the higher “sticker” price and you may be creating a larger reimbursement claim. A skilled attorney can help you recover MedPay when it is advantageous to you.

4. Medical Liens

We understand many people do not have health insurance. If you have health insurance or if your accident was work-related, you are almost always better off using those options for medical care. You should normally never use medical liens unless other payment options are unavailable.

While we do NOT recommend liens where other coverage is available, what are some PROS of using liens?

  • Access To Care. You can receive medical treatment from your provider when you lack health insurance or other payment options.
  • No Immediate Payments. With liens, the medical provider defers payment. This may give you the option to obtain care and pay later from your settlement.

What are some CONS of using medical liens?

  • Higher Costs. Remember my mention of the much higher “sticker” price. Even worse than normal sticker shock, medical providers who accept liens often charge MUCH higher rates than they would under health insurance. I’m constantly shocked by the exorbitant prices some settlement mill chiropractors charge on lien.
  • Improper Use. In recent years, some medical providers have wrongly asked patients to sign a lien even when health insurance is available. It’s wrong. It’s a bad deal for you. The medical provider may be taking advantage of you to obtain a higher payment. It’s not just medical providers. Some billboard settlement mill law firms operate largely on liens. If you have health insurance or other coverage, they are taking advantage of you. It can make a difference in what you pocket after your settlement. A big difference!
  • Unnecessary Treatment. Some unethical medical providers who operate on liens take advantage of patients by performing unneeded treatments to artificially increase the bills. You suffer by paying more in the end!
  • Risk Of Disputes. What happens at the end of the case if the medical lien is too high or covers unnecessary care? What happens at the end of the case if a dispute arises over a lien amount but your settlement mill lawyer has some financial relationship with the chiropractor or other medical provider? Your attorney should always work for you. But, attorneys who operate solely on liens may not. You suffer as a result!

As you can tell from my thoughts on the PROS and CONS of liens, I think many lawyers and medical providers abuse the practice. I think this practice is often NOT in your best interest.

Some law firms rely too heavily on liens without exploring other options because they don’t want to take the time to really help you. Some law firms rely too heavily on liens simply because they have financial relationships with a chosen provider or chiropractor, that are NOT in your best interest. Too often, these firms run up charges and leave you with little or no money from your settlement.

I’m not saying liens are always bad. Sometimes, you have no other good options. When you must use liens for medical care, do so with an attorney who puts your interest above all others. Act with caution to get the real care you need while not harming your potential claim. Make sure your lawyer advocates for you!

COMMON MISTAKES SOME LAW FIRMS MAKE

  1. Failing To Use Health Insurance
  2. Neglecting Work Comp When Accidents Are Work-Related
  3. Overusing Medical Liens
  4. Delaying Communications With Providers
  5. Ignoring Long-Term Impacts To You

A STRATEGIC APPROACH TO MANAGING MEDICAL BILLS

At the Blackwell Law Firm, we believe lawyers must be proactive during medical care. Unfortunately, not all law firms take the time to navigate these issues effectively.

We believe providing advice during a client’s medical treatment is an essential part of our work. In every case, we discuss these issues at the start. Then, we continue to discuss care with our clients throughout the treatment process. We understand that being thrust into a world of injuries and medical care brings many worries to people. We want to help navigate the process with you to achieve the best result possible for you.