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You must identify any medical liens against you and include them while calculating the value of your case to seek adequate compensation. If you don’t, you might not recover enough money to pay your liens, medical bills, and other case-related costs. That could leave you with out-of-pocket expenses.
What Is a Medical Lien?
A medical lien is a legal contract between a patient and a doctor. Typically, an accident victim signs a lien agreement when they can’t afford to pay upfront for their treatment after an accident, like a car crash or a slip and fall.
The signed contract stipulates that the medical provider agrees to provide the patient with necessary medical services in exchange for payment once the injured person gets compensation for their accident injuries. The patient agrees to satisfy their outstanding bill with proceeds from a settlement with the insurance company or a favorable jury verdict in a lawsuit. In other words, the lien means the doctor treats someone’s injuries on credit.
When the case ends, the healthcare professional can recover the money owed to them under the lien for the services rendered. The agreement guarantees the medical provider or facility payment from the settlement or verdict first. They take priority over other expenses involved in the case, even before the patient can recover their proceeds.
Liens are risky, so not all doctors, hospitals, and other healthcare professionals accept them. They know if they provide medical care with a lien, their patient could lose their case and never pay. That would prevent the healthcare provider from recovering any money for the services they provided. That might mean months or even years of unpaid office visits, diagnostic tests, and other treatments.
A medical lien is also risky for the patient. If there isn’t a financial recovery or the compensation doesn’t cover all expenses, they must pay their bills out of pocket. However, most accident victims can’t afford those costs, which is why they agreed to a lien in the first place. Typically, the unpaid bills go to collections and hurt their credit score.
Why Has the Medical Lien Been Filed?
Family doctors, ambulance transportation services, laboratories, urgent care centers, hospitals, and other healthcare service providers file medical liens to protect against nonpayment. Sometimes, accident victims don’t pay for medical treatment, whether it’s because they can’t afford it or intentionally ignore their outstanding bills. With a lien, healthcare professionals can take the necessary steps to ensure they receive money for their services. If a patient doesn’t pay, they can take legal action.
What Is a Letter of Protection?
Similar to a medical lien, a letter of protection (LOP) is an agreement between a doctor and patient guaranteeing payment from a future verdict or insurance settlement for all medical treatment provided during the ongoing case. You might avoid your bill getting sent to collections with a LOP. However, that isn’t always possible.
Does a Letter of Protection Relieve Me from Having to Pay My Medical Bills?
A signed letter of protection doesn’t mean you’re not responsible for paying your medical bills when your case ends. You are still obligated to your caregivers to pay for their services after the accident, even if you receive less compensation than expected.
You don’t have to reach into your pocket to pay your bills. Your LOP allows you or your attorney to use proceeds from your settlement or jury verdict to satisfy your unpaid balances. If your compensation doesn’t cover your expenses, you will likely have to pay what’s left over yourself.
However, attorneys often negotiate medical bills with healthcare providers to make the balances more favorable for their clients. That way, you don’t spend all your settlement money on medical care, liens, and other case-related costs. Some doctors are willing to negotiate because they know receiving a fraction of the money owed to them is better than getting nothing.
If My Injury Settlement Does Not Cover All of My Medical Expenses, What Do I Do?
You’re still liable for your medical care under the lien even if you lose your case or the injury settlement doesn’t compensate for your total medical expenses. If that happens, you might be able to work with your doctors to establish a payment plan. Instead of paying your bill in full, you can negotiate small monthly payments you can afford until you pay off the owed balance.
If your doctors agree to a payment plan, getting everything in writing and signed by all parties is critical. That protects you and allows you to dispute future collections efforts or other legal action if someone comes after you for payment.
Your medical providers might be unwilling to set up a payment plan. If that happens, you can explore other ways to pay your medical bills.
Request itemized statements of your treatment and confirm the balances are correct. Hospitals, doctor’s offices, and other establishments use computer systems to enter codes and costs. However, human error and glitches in the system can lead to inaccurate bills.
If your bills are correct, check if payments from your health insurer, the liability insurance company, and other insurance sources went through. If the insurance carriers haven’t applied the coverage under your policy, you can follow up with them for the status of those payments. You might not owe anything after they pay your balances.
Contact an Oklahoma Personal Injury Lawyer
Medical liens aren’t as complicated as you might think. They’re helpful for accident victims, especially with the financial burden of an injury, missed work, and expensive bills. You should consult an experienced lawyer from Edwards & Patterson Law to discuss your options.
Call or contact us online today for a free consultation if you sustained injuries in an accident due to someone else’s negligence and received a medical lien. Let us protect your rights and fight for your future.
