If you are injured in a collision, one of the major concerns is how the medical bills are handled. Among other expenses, ambulance rides, diagnostic imaging, medical supplies, pharmacy costs and follow-up appointments add up quickly. We want to help break down how the system works, so that you understand how to protect yourself and your finances.
It would be reasonable to assume that the at-fault driver pays for medical bills as they come, but it’s not that simple. It’s important to understand how medical bills are handled after a collision so that you can avoid unexpected costs, make fair payments and informed decisions. Below, we break down the process in easy-to-understand language that helps you stay proactive.
Covering Medical Bills
If you are in a motor vehicle collision, under Texas law, you are initially responsible for your own medical bills, even if someone else caused the crash. Instead of the at-fault driver paying for these costs as they are accumulated, they are addressed later through a settlement process.
However, in the meantime, you still have options so that your medical bills are covered:
- Health insurance
- Medical Payments Coverage (MedPay), additional coverage via auto insurance.
- Personal Injury Protection (PIP), additional coverage via auto insurance.
- PIP is mandatory on policies in some states, but in Texas, it is only required to be offered on every liability policy unless the driver specifically chooses to opt out.
- Letters of protection (LOP), a legally binding agreement arranged by your attorney with medical providers to agree to wait for payment.
The option that works best for you depends on your needs and the situation that you’re in. However, understanding the differences and how they each work individually is important to ensure that you keep your money secure after a collision. If you’re confused about how you can cover your medical bills between collision and settlement, give us a call.
How Health Insurance Applies
Health insurance is usually the first line of defense after a car wreck, as it can significantly reduce your out-of-pocket costs. Keep the following in mind when considering how health insurance applies as opposed to other options:
- You are still responsible for copays, deductibles, and out-of-network charges that may apply.
- Your insurance company may assert its right to subrogation, which allows it the legal right to “step into your shoes” to recover money.
- Using health insurance is often the most cost-effective option because providers negotiate with insurance for lower rates.
After a collision, many people will hesitate to use their health insurance because they expect the at-fault driver’s insurance to step in for them. In reality, engaging your health insurance early on only protects your finances and strengthens your injury case. This helps to ensure that you get consistent, documented medical care.
MedPay and PIP
Texas drivers can add optional coverage to their auto policies that helps pay for medical bills. Medical Payments Coverage extends to the following:
- Pays for crash-related medical expenses included in your policy limit.
- Pays even if you caused the wreck.
- Does not cover lost wages or non-medical expenses.
- Your insurer may ask for reimbursement from the money from your settlement.
Conversely, Personal Injury Protection covers:
- Medical bills and up to 80% of lost wages.
- Household assistance costs if you’re unable to perform daily tasks due to a collision.
- With PIP, your insurer may not ask for reimbursement from your settlement.
Regardless of whether you have PIP or MedPay, file a claim as soon as possible. These benefits can ease the pressure of medical bills while you receive treatment.
Letter of Protection
If you were involved in a vehicle collision and don’t have insurance, you still have options. Many healthcare providers will still agree to treat you under an LOP. To specify, an LOP is a written agreement between your lawyers and medical provider(s) stating that:
- The provider will delay collection while still providing care.
- The provider will be paid from any settlement or verdict.
- You agree to remain responsible for the bill if no recovery is made.
LOPs allow patients without insurance or the ability to pay upfront the rights to the care they need. They also ensure your treatment is properly documented and recorded.
Practical Takeaways
The at-fault driver’s insurance does not pay medical bills as you receive them, but rather the insurer pays a lump sum at the end of your claim. This settlement may include compensation for any medical bills you’ve incurred, future medical bills, lost income and pain endured from the collision.
It’s important to avoid the following common mistakes in the process so that you don’t accidentally weaken your claim:
- Delaying medical treatment
- Ignoring medical bills
- Talking to other insurance providers without proper legal guidance
- Not keeping detailed records of all bills and receipts
- Notify your lawyer of all crash-related information
If you’re struggling with medical bills after a wreck or are confused about how to handle the situation, you don’t have to face it alone. The Johnson Law Firm is here to help, and we’ve gained years of experience fighting for clients in situations just like yours. Click for Mick today to get guidance as you move forward in your recovery.
