You are already physically hurting because of your personal injury. When the medical bills start piling up you could be feeling even more pain. It is common for doctors to demand pay before an insurance settlement is paid. The stress of dealing with that can be painful indeed, especially if you are looking at months or years before the insurance pays out. It's not likely that you are able to pay all of those bills out of pocket. What do you do? Take a deep breath and check out these 3 options for covering your medical bills.
Health Insurance
There is a good chance that your health insurance, Medicare, or Medicaid will cover the medical expenses related to your personal injury. This coverage will likely be available much more quickly than your insurance settlement. This option can help you avoid late fees and possible collections proceedings. Here is what you need to do:
- Make contact with your health insurance company as soon as possible after your injury happens.
- Talk to the benefits department and find out what your coverage is. Make sure that you confirm if they will cover the charges 100%, or if you will be expected to pay a percentage.
- Most insurance companies expect reimbursement for their payout when you receive your settlement. Clarify if this is the case with your company.
Liens against Your Settlement
Liens can be created with your medical providers. A lien is an agreement that the medical provider has a claim on your settlement for the amount that you owe them. Many medical providers allow their patients to create a consensual lien or Letter of Protection before their treatment begins. This is a beneficial agreement for you. It means that the medical providers will not contact any collection agencies while you are waiting for your settlement. It does not, however, mean that they will not charge late fees. Make sure you clarify the agreement with each of your providers.
It is a good idea to have your personal injury lawyer look over each lien to make sure that all terms are clear. If there are issues, discuss the option of having your attorney draft the liens.
It is imperative to consider your lien amounts when settling your case with the responsible party's insurance. If your settlement is not large enough to cover the liens, you end up where you started--with medical bills you can't afford to pay.
An Accident Settlement Loan
If you are unable to get help from the previous two options, consider getting an accident settlement loan. This is an option that should be entered into with careful consideration and help from your attorney. Here are some things to think about when looking at a settlement loan:
- Loans are only granted if it is highly likely that your case will settle favorably. This will be determined with the help of your attorney.
- Loans come with fees and interest, and they are often high. Shop around to compare fees and interest rates.
- You can only borrow against the portion of your projected settlement that will be left after attorney's fees and medical liens are paid.
- Some companies have a time limit for their loans. You want to be confident that your case will settle before that time expires.
Do not enter into a settlement loan agreement without the help of your attorney.
You are in a stressful situation dealing with all of the issues related to your injury. You don't need more stress because of mounting medical bills. A personal injury attorney can help you pursue the best option for dealing with your medical debt.
