Medical bills are one of the single most significant stressors after a car accident and can put the injured party in an extremely precarious financial situation. One of the most common questions we receive as personal injury attorneys in Greenville, South Carolina, is about how medical bills are paid after a car accident.
Many think that the at-fault driver’s insurance policy will cover medical bills while the case is open, but this is not true. Insurance companies will not provide a settlement until after you submit medical documentation, so there will be a substantial period between when you get your medical bills and when you get a settlement or verdict. In the meantime, you will have to find a method to pay for medical expenses before your settlement can reimburse you.
Who Pays Medical Bills After a Car Accident?
Generally, you should use your health insurance to pay for immediate medical bills after a car accident. Health insurance, including Medicaid and Medicare, should cover your car accident injuries, although you might have to make copays or a deductible, depending on your specific plan.
You should use your health insurance to cover medical expenses to avoid having any medical bills sent to collections. You may have to pay an expensive deductible or copay, but that is better than being on the hook for the entire amount if you instead pay out of pocket. Paying your bills with health insurance is also a better option than the hospital sending the bills to a collection agency due to non-payment.
How Does a Settlement Reimburse My Medical Expenses?
In order to get the insurance company to reimburse your medical bills, you must prove the extent of your medical expenses. During the claims process, you will send the at-fault driver’s insurance company copies of medical bills from the hospital, specialist visits, rehabilitative services, and any other relevant medical care. You should also send copies of any deductibles and copays you made.
After investigating your claim, the insurance company should offer a settlement. Your attorney should negotiate with the company if they try to underpay or dispute your claimed expenses. Insurance companies are notorious for nitpicking costs during the claims process, which underlies the importance of collecting exhaustive documentation of your medical expenses.
Once you receive your settlement, your attorney will deduct their fees and the cost of any expenses you still owe. The rest of the money goes directly to you in the form of either a lump sum or a structured settlement. Ideally, this amount should be enough to fully cover all your medical expenses and other losses, such as missing work income and pain and suffering.
Do You Have to Pay Back Insurance After a Settlement?
It depends on the specific terms of your health insurance policy and the nature of your injuries. Your policy might grant the insurance company the right to recover any expenses they incur from your settlement — a right known as subrogation. When you receive a settlement, your insurance company will take a portion to offset what they spent on your medical treatment.
However, the recovery amounts in subrogation are not 1:1, and the insurance company usually receives a discounted amount rather than the full cost of the bills. Additionally, subrogation may not apply in all cases, so you may not have to pay them back at all. A knowledgeable personal injury attorney can help you determine how much you owe insurance companies and may be able to find a way to avoid paying them entirely.
What If I Don’t Have Health Insurance to Pay My Medical Bills?
If you do not have health insurance, you can try to obtain a letter of protection (LOP) from a physician. A letter of protection is a document that promises the physician reimbursement from any settlement you receive. With a letter of protection, you can still receive the medical care you need, even if you don’t have health insurance to pay for the immediate costs. Once you get a settlement, your attorney can deduct the physician’s payment from the final amount.
What If My Medical Bills Are More Than My Settlement?
Insurance companies are in the business of making money, and one way they do that is by parting with as little as they can when paying out claims. If your settlement is not enough to cover your medical bills, there are a few options you can pursue to cover the rest of the expenses. However, you should be aware that, under most circumstances, there’s no going back for more once you’ve signed the contract.
Negotiate the Settlement
You have the right to refuse a settlement, and it’s usually good practice not to accept the first settlement offer you receive. The odds are that your personal injury attorney can negotiate a higher settlement that covers a greater portion of your outstanding bills.
File a Bad-Faith Insurance Lawsuit
If the insurance company deliberately mishandled your claim, you might have grounds to pursue a lawsuit against it. During a trial, a judge and jury will listen to both sides present arguments and then decide how much compensation you may receive, if any.
Talk to the Medical Provider
If neither option above is sufficient and you still have outstanding medical bills, you can talk to your medical provider to lower the cost or establish a payment plan. You should not leave medical bills unpaid, as medical debt can ruin your credit score if the hospital sends your bills to a collection agency. So long as you are making good-faith payments, a hospital cannot send an outstanding bill to a debt collector.
Car Accident Attorneys in Greenville
Auto accident claims are complex, especially when dealing with your health insurance company and the at-fault driver’s liability insurance. An attorney from Maxey McFarland Law can help you organize your medical expenses and fight to recover the full amount of your medical bills in a personal injury settlement. Check out our law firm and our recent case results to know why you should trust us. Contact us online or call (864) 900-4231 today for a free consultation with a car accident lawyer serving Greenville.