You would think a doctor, sworn under oath to do no harm, would do everything in their power to ease your suffering after an accident.

Yet when bills for five minute visits and routine check-ups start to pile up, this couldn’t feel further from the truth. Why does the person with your life in their hands seem to be taking every opportunity to extract another penny from you?

The reason for this unfortunate dynamic is not the doctors themselves, but the system that they work within. Navigating this system alone can lead to feelings of resentment and bitterness toward the very medical professionals trying to help you. That’s not fair to them, and is definitely not conducive to a speedy recovery.

The good news? You don’t have to face the medical system alone. In this blog, we’ll break down who actually pays your medical bills after an accident and help clear up some of the gray areas that make this process so confusing.

Auto Insurance (No-Fault Benefits)

Michigan is a no-fault state for auto insurance. This means that regardless of who caused your auto accident, medical expenses, lost wages, and replacement services (like household help and childcare) all get covered by your auto insurer.

To take advantage of this feature of your auto insurance policy (known as personal injury protection coverage), you’ll need to file a claim with your auto insurance company. Once you file a claim with the help of a personal injury attorney, you should:

• Explain to your medical providers that your injuries happened as the result of a car crash
• Share your insurance claim number with all your medical providers
• Tell all your medical providers to bill your auto insurance directly

Following these steps should alleviate much of the stress experienced right after an accident. No-fault insurance is designed specifically to ensure that care is provided to accident victims immediately, regardless of financial standing or health insurance coverage.

The extent of what’s covered by personal injury protection (PIP) benefits depends entirely on the details of your specific auto insurance policy. Once your PIP limit is exhausted, any remaining bills should be directed to your secondary coverage (usually your health insurance).

Health Insurance

After your PIP limit is reached, your health insurance becomes the next layer of protection. At this point, you should share your health insurance information and policy number with your medical providers.

Some providers may automatically switch to billing your health insurance once your PIP limit is reached. Others may require you to explicitly authorize this shift. Once your billing method has been switched, you’ll be required to cover any copays or deductibles that would normally apply under your policy.

Many health insurance plans include what’s called a subrogation or reimbursement clause. This means if you receive a settlement for your injuries down the line, your insurer may claim the right to be paid back for any accident-related expenses that they covered. This is not to be confused with a medical provider lien, which will be explained in the next section.

It’s crucially important to keep a record of which bills were paid by which insurer during this stage of your recovery. This plays a key role when your attorney is negotiating any outstanding liens from your treatment.

Out-of-Pocket Payments and Provider Liens

Even with auto and health insurance coverage, medical treatment can get very expensive after an accident. If you meet your coverage limits or you don’t have health insurance, you may be left trying to cover exorbitant bills all by yourself.

Lucky for you – there’s options for dealing with medical bills besides draining your bank accounts. Many medical providers are accustomed to dealing with accident victims and are familiar with the personal injury compensation process. If you’ve run out of insurance protection and need help with payment prior to your case settling, some providers may be willing to work with you.

A medical provider lien is a formal agreement where a doctor, hospital, or physical therapist treats you free of charge on the condition that you pay them once your case settles. To initiate such an arrangement, you may need to sign a lien agreement with your provider. This should only be done with the approval of your attorney.

After an agreement is established, your medical providers will need to send a notice of lien to your attorney, outlining the services they provided and the total balance you owe. Once your case is settled, your attorney will negotiate any outstanding medical provider liens (and subrogation claims held by insurance) on your behalf.

Get David Get Paid

 If you were in an accident and are worried about covering your medical expenses, give us a call at 855-65-CRASH, today!

We’ve seen all kinds of accidents with varying levels of insurance coverage. If you’re unsure of how you’re going to pay for your recovery – we can help!

We’ll make sure all the legal and financial formalities related to your case are taken care of so you can focus on what really matters – getting your life back on track.

Call or visit our website today and experience the Femminineo Law difference for yourself.

Get David. Get Paid.