Health Insurance Coverage for Accidents and Medical Bills

Every state requires drivers to have some form of liability insurance, no-fault auto insurance, or proof that they have assets to cover any accidents they may cause.  As a result, there should be protection for every victim who is injured in an car accident.  However, there are cases in which people do not comply with insurance requirements and victims are faced with having to cover their own injuries and damages.

Uncovered Medical Expenses under Insurance

When an accident was caused by an uninsured motorist or underinsured motorist, the accident took place on private property and there is no police report, or the fault of the accident is not clear, a victim may have to call on their own auto insurance to pay their medical expenses.  In some instances that can be difficult.

Since laws governing insurance coverage vary by state, it is important to read your insurance policy and know what it does and does not provide.  Several options may be found:

• No fault insurance in which each party’s insurance covers their own injuries
• Medical payments coverage, in which they are covered up to a certain amount for medical expenses, although often with a deductible
• Only liability coverage, which pays for the injuries the claimant causes to others

Using Personal Health Insurance for Remaining Medical Expenses

If the victim does not have medical payments coverage, if it does not cover all their medical expenses, or they were injured due to the negligence of someone who has little or no coverage, they may be able to call on their own health insurance for uncovered car accident medical expenses.

Denials or Medical Lien Agreements to Pay Expenses

However, in some instances health insurance companies are reluctant to pay those expenses if there is a lawsuit pending.  There is another option.  The health insurance provider may file car accident medical liens on any claim the victim is filing against the person or entity at fault.  Health insurance will pay medical costs, but when the case is settled, they will be the first to be paid out of that settlement.

The drawback to these types of car accident medical liens is that there may be difficulties if the settlement is not large enough to cover those payments or if it is settled in the other party’s favor.  The health insurance provider may then sue the victim for the costs.  Again, there is another option.  The victim and their personal injury lawyer may negotiate directly with the health insurance provider, or call upon a mediator or arbitrator to seek a reduction in the medical bills.

Help from a Lawyer

While medical liens are not always the best option for paying uncovered car accident medical expenses, they can provide assistance while a victim and their auto accident attorney sort out the complex legal cases.  They key is to seek competent legal advice before agreeing to those liens to be sure you are protected throughout the recovery period.

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