Who Pays the Medical Bills After a Car Accident?

Getting hurt in a car accident is stressful enough. You are worried about getting a new car, a rental while looking for a new car, getting better if you were injured. The last thing you want to deal with is the medical bills that result from someone's poor driving. This leaves a lot of our clients with the same question: "Who is supposed to pay for all of this?"

This is broken down into two parts. 1) Who is responsible for medical payment? 2) Who is going to pay while your case proceeds?

The short answer to the first question is the defendant's insurance company, however the law has a lot of moving parts, there are circumstances in which your insurance company is responsible if the defendant was uninsured and you have uninsured motorist protection.

The short answer to the second question is either you if you do not have health insurance, or your health insurance if you do.

Could We Be More Specific?

The defendant's insurance does not pay your medical bills right away. Instead they pay them as part of your settlement. Part of the valuation of your case is the amount of medical cost you incurred. Your medical bills will be paid out of your settlement amount at the end of the case.

Here's How It Works: If You Have Health Insurance

If you have health insurance, use it. Your health insurance will often pay your medical expenses as they normally would. However, when they are in relation to an auto accident case, your health insurance has a right to get paid back for what they covered. This is called subrogation.

That means that when your case settles:

1. You pay your attorney

2. Your medical bills and insurance reimbursements are paid

3. You receive the rest of the settlement

If You Do NOT Have Health Insurance

If you don't have health insurance, you will incur the full cost of your initial medical treatment. Then you will need to find a treating provider that treats on a lien.

A lien means:

• The doctor agrees to treat you now

• You do not pay upfront

• The doctor gets paid from your settlement

This can help you treat while your case is still pending.

What If My Bills Go to Collections?

Many of our clients are worried about their medical bills going to collections, while their case is pending. This is a real concern. To avoid collections we advise that our clients:

1. Set up a small payment plan.

2. Make minimum payments while their case is pending.

Then once the case settles, we will negotiate the final balances and pay the rest of the balances from the settlement.

Important: You Are Not Paying Twice. Some clients are concerned that if they pay towards the balance while the case is pending that they will be paying the medical bills twice. This is not how it works. Any money that you pay toward your medical cost during the life of your case will just reduce the final balance to be paid out of settlement.

Final Thoughts: Every car accident is different. Who pays is highly dependent on your circumstances. If there is one takeaway: even though the other driver was at fault for the accident, their insurance will often not pay for the medical care before the case ends and a release is signed or verdict is entered. If you have any questions about this, reach out to us. Book a free consultation with one of our lawyers today.