Car Accidents and Medical Bills: Insurance Coverage and Claims

Getting medical care after a car accident can be confusing. So many insurance providers are involved that it can be unclear who is responsible for the medical bills. Your health insurance may cover the costs, but you will likely want reimbursement from the car insurance company. If you get a settlement payment, the health insurance company may want some of the money you received. 

This is an overview of how insurance coverage and claims work in a car injury accident. However, the insurance and liability laws vary by state. For information about your legal rights after an injury accident, talk to a local car accident lawyer about your case. 

Who Pays for Medical Bills After a Car Accident?

Medical care after an auto accident can be expensive. Even a temporary injury can cost tens of thousands of dollars. More severe injury accidents may require surgery, hospitalization, and follow-up care. This can leave you with medical bills totaling more than $100,000. Paying for medical care is not simple, even if you do have insurance.

Paying for medical bills after a motor vehicle accident is complicated because there are many insurance companies involved, including: 

• Your healthcare insurance provider
• Your motor vehicle insurance provider
• The other driver’s motor vehicle insurance provider
• Insurance companies for any other parties involved in the accident

What Is Personal Injury Protection (PIP) Insurance?

Personal injury protection (PIP) is a type of no-fault insurance. Some states require PIP coverage for all motorists, and others offer it as an option for drivers. No-fault liability means that your insurance covers your property damage and injuries, no matter who is at fault. In states with PIP insurance, people injured in a car accident generally don’t file a personal injury lawsuit unless the cost of serious injuries exceeds the insurance policy limits. 

Your insurance pays for your medical treatment if you are in a no-fault car accident state with PIP coverage. It should also cover lost income if you are unable to work. About a dozen states require PIP coverage. 

What Is MedPay Coverage?

Medical payments coverage (MedPay) is an optional auto insurance add-on covering medical expenses for the driver and passengers in a car accident. MedPay usually provides supplemental coverage, which means it covers any medical costs not initially covered by your health insurance company or other primary insurer. 

How Does Medical Health Insurance Coverage Work After a Car Accident?

If you have health insurance, your insurance provider pays your medical bills after a car accident. However, they may put a claim on any third party liable for your injuries. The hospital billing department may ask whether the injury is part of a car accident or a personal injury case. 

If you have healthcare through your state Medicaid program, they may also cover your bills. However, they may also try to collect from a third party who is liable for the accident. Medicaid can also put a claim or a medical lien on any settlement or jury award. 

What Is Medical Lien in a Car Accident Claim?

A lien is a legal claim against property or assets that act as collateral to cover a debt. For example, a mortgage is a type of lien. When you borrow money from a bank or mortgage company to buy a house, they have a lien on your house to ensure you pay back the borrowed money. 

A medical lien is a legal claim on any settlement or personal injury award to pay for medical treatment. Your healthcare provider may place a medical lien on your car accident claim to recover the costs of medical services when another party is liable for your injuries. 

Your attorney can try to negotiate the lien to reduce the amount the hospital or healthcare provider is asking. After accepting a settlement offer, you may have to pass along some of the settlement to the hospital. You will receive the remaining settlement or judgment. Talk to your personal injury attorney to understand how a medical lien works in your car accident case. 

What Is Subrogation in Medical Insurance?

Subrogation is the right of the insurance company to recover costs paid out for an insurance claim. Like a medical lien, this means one insurance company paid out for an insurance claim. However, someone else may be liable for the loss. The insurance company can then seek subrogation against the at-fault party to recover what they paid on the claim. 

How Can a Car Accident Attorney Help With Medical Bills?

Your personal injury lawyer can explain your legal options after an injury accident. Your attorney can also negotiate with the insurance companies to ensure you get the maximum compensation available, and they can take your case to court if the insurance company doesn’t offer a fair settlement.  For legal advice about your options after an injury accident, contact an experienced car accident attorney.