How Do I Pay – and Who Pays – for Medical Bills After Injury Settlements?
You’ve filed a claim, successfully worked with a personal injury attorney in San Diego, and received a settlement award from your insurance company or the party responsible for your injuries. Your settlement should cover all injury-related costs, such as ambulatory fees, hospital bills, and future medical treatment. Until you actually receive the money, however, your medical bills will pile up. You may get calls from bill collectors and insurance companies. Furthermore, your health insurance provider may have placed a lien on part or all of your settlement. Here’s how to navigate the payment process after a settlement.
Collecting Your Personal Injury Settlement
If you negotiated a settlement with another party’s insurance carrier, the carrier will typically write you a check for the correct amount. It can take weeks or months to receive this check. Upon accepting the check, you will sign a document stating the award will absolve the insurer and defendant of any future liability in connection with the accident.
In rare cases that do not involve insurance companies or coverage, receiving your money can be more complex. If the defendant cannot afford to pay the court-ordered amount, you may never see the money. This is why it’s important to investigate the defendant prior to filing a claim without insurance involvement. An attorney can advise you whether it’s in your best interest to sue a defendant who does not have insurance.
Dealing with Medical Liens
Medical liens are somewhat common in personal injury cases. A medical lien occurs when an accident victim’s healthcare provider covers the medical bills and then demands repayment through a lien on the settlement. Your insurer may issue a lien that requires you to repay these medical expenses, called subrogation. The strength of the subrogation will depend on your individual policy. Some states do not let insurers place subrogation clauses in their policies, while others allow insurance companies and hospitals to file liens against settlement awards.
For a hospital to place a lien on your settlement, it has to fulfill a very specific filing process. If the hospital makes any mistakes, such as using the wrong address or recording the wrong dates of medical services, the law will not allow a lien. You must still repay your bill, but the hospital then cannot place a lien on your settlement. If the hospital can bill your insurance, it must do so instead of filing a lien. In the event of a lien on your settlement, the party in charge of the lien will take what you owe directly out of your settlement. You don’t have to take any further steps to pay off your medical bills at this point.
You may also encounter workers’ compensation liens and government liens against your settlement. A workers’ comp lien can occur if the California Division of Workers’ Compensation pays your medical bills. If a government agency paid for any part of your medical care, you will have to pay them back once you receive a settlement. The government may have the right to automatically recover a fraction of your settlement from a personal injury lawsuit depending on the agency.
How to Release a Settlement Lien
The holder of the lien may accept less than the amount he/she paid for your medical bills. It is worthwhile to speak to an attorney who can help you negotiate lien amounts with holders. If this is the case, you may be able to keep most or all of your settlement amount and pay your medical bills a different way. If the lien amount surpasses what you will likely get from a lawsuit, you may choose not to file. An accident attorney can negotiate with your insurance carrier and lien holder(s) to help you repay your medical expenses after a personal injury.