I’m Louisiana personal injury lawyer Loyd Bourgeois. Here to answer a frequently asked question that we get here in our office.
“Who pays the medical bills after you’ve been injured in an auto accident?”
Often times, this is the most pressing question we get from clients. They’re facing medical treatment and bills. They don’t know exactly how to get them paid for. They don’t want to have collections calling them. They don’t really know what to do.
Who Pays My Medical Bills After a Car Accident? My Health Insurance or the Other Driver’s Insurance?
After a Louisiana car accident, your health insurance (including Medicare or Medicaid) should pay your medical bills first. The other driver’s insurance won’t cover costs until the case is settled. You may also use MedPay coverage if available, but insurers may seek reimbursement from any settlement you receive.
Why Can’t the At-Fault Driver’s Insurance Pay My Bills Right Away?
This is one of the most common misunderstandings after a car accident.
Even when another driver is clearly at fault, their insurance company does not simply start paying your medical bills as they come in. Before paying anything, the insurance company will investigate the accident, evaluate liability, review your medical records, and determine the value of your claim.
That process can take months or even years. During that time, you still need medical treatment. That’s why injured people often rely on health insurance, Medicaid, Medicare, MedPay coverage, medical liens, or other arrangements to pay for care while the case is pending.
Once the case is resolved through a settlement or judgment, the at-fault driver’s insurance company may then compensate you for medical expenses, lost wages, pain and suffering, and other damages. Until then, the focus should be on getting the treatment you need rather than waiting for the insurance company to voluntarily pay your bills.
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FREE Confidential Case Review (985) 240-9773Why Does My Health Insurance Have to Get Involved if the Accident Was Someone Else’s Fault?
The at-fault driver’s insurance does not pay your bills as they come in, so you need another way to obtain treatment while your claim is pending.
The other party’s insurance company will basically wait until the case is fully resolved, whether that be through a settlement or a judgment, to pay all the medical bills at one time in one lump sum, along with paying you for any other damages such as pain and suffering.
So, you may have to go years without any recovery from the other responsible party. During that time, you’re going to need treatment. So you should use your own insurance company to pay for your medical treatment and bills. That will include Medicare or Medicaid if you have that as well.
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FREE Confidential Case Review (985) 240-9773Should I Use My Health Insurance for My Louisiana Car Accident Case?
If you’ve been in a car accident in Louisiana, you’ve probably been asked by your healthcare providers whether you want to use your health insurance for your bills. (Or perhaps a healthcare provider has refused to take your health insurance because your treatment was due to an accident.) If you are lucky enough to have health insurance through your employer or through your spouse, you should absolutely use your health insurance to pay for your medical treatment and medical bills.
Now at the end of the day, they may have a subrogation claim against any recovery you get.
But in the short term, it is best to get the treatment that you need for your injuries through your medical insurance provider. Now you may ask, “Why? I thought the other party was responsible for paying for my medical bills.” And, you would be right.
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FREE Confidential Case Review (985) 240-9773What Are the Options for Paying Medical Bills?
While the other driver may eventually be responsible, your medical bills usually need to be handled up front.
Here are a few ways people cover those costs while their case is ongoing:
- Your medical insurance: This is often the first option. If you have private health insurance, Medicare, or Medicaid, it can be used to pay for treatment. Your insurer may later seek repayment from your settlement, but using it can help you avoid collection issues while you heal.
- Your MedPay auto insurance: Some auto policies include MedPay, which helps cover medical costs from an accident regardless of fault. If you have this, you can submit bills for reimbursement. MedPay may also be reimbursed from your settlement later.
- A medical lien: In some cases, doctors or hospitals agree to treat you with the understanding they’ll be paid from your future settlement. This is called a medical lien. It allows you to get care now, even if you can’t afford to pay up front.
- Your attorney may cover specific tests or treatments: In serious cases, LJBLegal may advance funds for key diagnostics or treatment if it’s needed to support your case and no other options are available. This is decided on a case-by-case basis and would also be repaid out of your settlement.
It’s important to understand: no matter how the bills are paid at first, they often need to be reimbursed from your settlement. If you paid out of pocket, you will be reimbursed. Some people are surprised or upset when they see treatment costs coming out of their settlement, but this is exactly what that money is meant to cover, your recovery, both physically and financially.
Does It Matter Whether Medicaid, Health Insurance, or a Medical Lien Pays My Bills?
Many people believe that using Medicaid, private health insurance, or another payment source will result in a larger settlement or allow them to keep more of the settlement. In most cases, that is not how it works.
The value of your injury claim is generally based on the nature of your injuries, the treatment you need, and how those injuries affect your daily life, ability to work, and overall quality of life. Whether treatment is initially paid through Medicaid, Medicare, private health insurance, a medical lien, or another source generally does not determine the value of your claim.
Likewise, the source of payment does not automatically determine how much money you ultimately receive from your settlement. In most cases, whoever pays for your accident-related medical treatment will have to be reimbursed from your settlement if you recover compensation. That may include Medicaid, Medicare, private health insurance, a medical provider treating you under a lien, or costs advanced by your attorney for diagnostic testing or treatment.
Because these expenses typically must be addressed from the settlement regardless of who initially pays them, the focus should be on getting the medical care you need rather than trying to maximize the amount billed through a particular source.
The most important thing is obtaining appropriate medical treatment, following your doctors’ recommendations, and properly documenting your injuries. Delaying care or necessary testing in an effort to change who pays the bill rarely improves the outcome of the case and can sometimes make both your recovery and your claim more difficult.
Why Would My Lawyer Pay for an MRI Instead of Using Medicaid or Health Insurance?
In some cases, important diagnostic testing such as an MRI may be difficult to obtain quickly through Medicaid or other health insurance programs. Prior authorization requirements, provider availability, and scheduling delays can sometimes postpone testing for weeks or even months.
When medically necessary and appropriate, a law firm may choose to advance the cost of certain diagnostic tests so the injured person can get answers sooner. This can help doctors identify injuries more quickly, develop the right treatment plan, and provide a clearer picture of the damages caused by the accident.
Getting an MRI sooner may also help move a case forward more efficiently. If diagnostic testing is delayed, treatment recommendations may be delayed as well, which can extend the time it takes to understand the full extent of an injury and evaluate the claim.
Clients sometimes worry that using Medicaid or health insurance will reduce the value of their case or that paying for an MRI another way will reduce the amount they receive. In most situations, the primary consideration should be getting the testing and treatment needed to accurately diagnose and treat the injury. Regardless of whether the MRI is paid for by Medicaid, private health insurance, a medical lien, or funds advanced by an attorney, those costs are generally addressed as part of the settlement process.
The goal is not to choose the payment source that appears most favorable. The goal is to get the right medical care at the right time so you can focus on healing and building the strongest possible claim.
When Does the Auto Insurance Come Into Play?
Some people do purchase medical payments or MedPay coverage through their own auto insurance, and if you do have that you can submit your bills through them to be reimbursed. Again, it probably won’t be on an as-you-incur-them basis right away, but you’ll be able to get it reimbursed sooner. But they too may have a subrogation claim against any future recovery you may get as a result of your injury.
Once you’ve fully recovered (or if you’re approaching the statute of limitations on your case), you will pursue your personal injury action. However, this can be far down the road (Louisiana has a 2-year statute of limitations/prescriptive period for most auto claims and 2 years for your UM coverage).
Therefore, early in your case, you should focus on physically recovering and making sure that your bills are being submitted to your health insurance. Once you’ve got a sufficiently solid idea of what your injuries are, you can then pursue money from the defendant’s insurance company.
What If the Defendant Doesn’t Have Enough Insurance to Cover My Claim?
If you’re lucky enough to have been following Loyd J. Bourgeois Injury & Accident Lawyer prior to your accident, you know we stress the importance of Underinsured Motorist Coverage (UM/UIM). If a defendant doesn’t have enough insurance, you can make a claim against your own policy. If you’ve bought enough coverage to protect yourself, you have more options to recover the compensation you need.
My Health Insurer Sent Me a Letter About My Louisiana Accident Case. Why Do They Care?
As we said above, you should have your health insurer pay your medical bills. However, in many instances, they have a right to be reimbursed for what they paid on your behalf if you recover money from your accident case.
- The health insurer generally only seeks reimbursement for what it actually paid, which is often less than the amount originally billed.
- The health insurer helped you receive treatment and maintain financial stability while your case was pending.
- In some situations, reimbursement claims can be negotiated or reduced. Not every health insurer seeks reimbursement in every case.
You may be wondering, do I have to pay medical bills out of my injury settlement? It’s a common concern, and one we can help you understand fully.
Medical bills after a car accident can pile up fast. It’s normal to feel overwhelmed, especially when you’re hurt and trying to figure out how to pay for care. At LJBLegal, we’ve helped many people in your shoes. We’ll take the time to understand your situation, explain your options, and work to protect your financial future while you focus on healing.
If you were seriously injured and have medical bills piling up, New Orleans personal injury lawyer Loyd Bourgeois is ready to help you.
If you have been injured and have questions about getting your bills paid, give us a call at 985-240-9773.
