After you have been injured in an accident, you can expect to receive medical bills much sooner than an insurance payout. You’ll need to consider how to pay your medical bills while awaiting a settlement, particularly if you have a disputed personal injury claim.
If Craig Kelley & Faultless, LLC is handling your claim, our attorneys and staff can help you deal with healthcare providers and other creditors. We can assess your insurance status and suggest the most advantageous way to pay bills. We can advise medical providers of your pending accident claim and our anticipation of recovering compensation for you.
Will Your Health Insurance Cover You?
Most people in Indiana have health insurance, with more than 60% of residents younger than 65 being a part of group health plans. Individuals who are 65 or older should have Medicare, the government’s healthcare plan for older citizens.
In most cases, you should submit your medical bills to the health insurance provider that is your primary payer, typically a private insurer.
Realizing Medicare’s Role in Paying Your Bills
Once you have exhausted that coverage, you would submit bills to a secondary payer, like Medicare and/or Medicare supplement plans, if you have Medicare coverage.
Clients often ask, “Do I have to pay medical bills out of my settlement?” Once your claim is settled, insurers will expect to be repaid from the settlement or court award you receive. This is known as “subrogation.” Medical providers who have provided services may have a subrogated right to a portion of your settlement.
Debunking Misconceptions
You may assume your health insurance will cover your medical bills in you are injured in a car accident. But in some cases, health insurance may deny coverage of injuries caused by motor vehicle accidents, depending on the policy limits and exclusions. You may file a claim against your Medical Payments coverage if you have that type of auto insurance. Medpay typically covers injuries to you and your passengers in a car crash.
Managing Medical Bills Without Health Insurance
If you do not have adequate insurance, you may be able to negotiate a payment plan with your healthcare provider.
Some providers will continue to treat accident victims after obtaining a letter of promise, your agreement to pay medical bills from claim proceeds. Others may require a medical lien, a legally binding agreement that gives them rights to a portion of your claim proceeds.
If we handle your injury claim, we will inform medical providers and other creditors of an anticipated settlement or lawsuit to help arrange a letter of promise or medical lien. Healthcare providers will often delay turning an unpaid account over to collections if informed of pending legal action.
What To Do When Medical Bills Hit Collections
When a collections agency contacts you about your medical bills, this means the collection agency has purchased the debt from the care provider. You should try to negotiate a plan to pay the debt in full.
Understanding the Consequences of Non-Payment
If you are unable to pay the debt in full, the agency may offer you a reduced settlement amount to pay. Because you are not paying the full debt, this will negatively affect your credit score.
Take Immediate Action When Bills Hit Collections
Before any debt goes to collections, if you know you will be unable to make scheduled payments, you should contact the hospital or other creditor to discuss your options. Most medical providers and other creditors will work with you.
Contact Our Experienced Indianapolis Personal Injury Attorneys
The attorneys at Craig, Kelley & Faultless LLC, based in Indianapolis, concentrate on helping people who have been harmed through no fault of their own pursue full and fair compensation in personal injury cases such as car accidents and semi-truck accidents. To reach us in the aftermath of a serious mishap in Indiana, fill out our online form or call (317) 545-1760.
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