Who Pays Medical Bills While a Personal Injury Case Is Pending in Oklahoma?

Medical bills can quickly pile up after an accident that leaves you with serious injuries. For many people who have been hurt, paying for medical expenses is often one of their biggest concerns. You may have bills from emergency room visits, surgeries, physical therapy, medication, and more. A personal injury settlement can help you recover compensation for these costs, but it takes time. Before long, you could owe thousands of dollars for medical care.

So, who will pay your medical bills while your personal injury case is pending? One of our Oklahoma personal injury lawyers explains the options available after an accident.

Health insurance

If you have coverage, health insurance should be your first option. Your health insurance will likely provide the immediate access you need to medical care. Your insurance company will also likely negotiate a lower rate for the medical care, which can save you money once you receive your settlement. Options other than utilizing health insurance may subject you to higher prices for the same medical care.

It is important to remember that when using health insurance, you will have to pay deductibles and co-pays. These are still likely to cost less than paying the full price of care, and a personal injury lawyer can include these costs when valuing your claim for damages. Your health insurance company will have a contractual or statutory right to pursue reimbursement from your personal injury settlement for the costs it paid to medical providers. Making sure those required payments back to health insurance, paid through their right of subrogation, are properly accounted for is critical in ensuring any potential settlement is adequate to fully and fairly compensate the injured victim.

MedPay

Many auto insurance policies in Oklahoma provide Medical Payments Coverage (MedPay). You are not legally required to purchase this coverage, but this voluntary coverage will pay for the medical expenses for you and your passengers following an accident. MedPay is no-fault coverage, meaning it is available even if you cause or contribute to an accident as long as the bills and treatment are found to be reasonable and related to the underlying wreck.

MedPay often has much lower limits than liability insurance. After you have exhausted the coverage, you will likely have to use another option to recover all of your losses.

Medical liens

If you have health insurance or MedPay coverage, you should exhaust these options before using a medical lien. If you do not have health insurance or other coverage, some medical providers may agree to provide treatment without immediate payment. Instead, they will assert a lien against any future personal injury recovery by notifying the patient, insurance companies and any attorneys of their interest in the case.

Medical providers who use liens sometimes charge much higher rates than they would charge health insurance companies. After your case is finalized, a dispute may also arise over a medical lien, so it is important to work with an attorney who can help you resolve the dispute.

Letters of protection

In Oklahoma, a letter of protection is an agreement involving you, your attorney, and a medical provider. The agreement generally directs that medical bills will be paid from any available proceeds of a personal injury settlement. A letter of protection can ensure that you receive the treatment you need without incurring immediate out-of-pocket expenses while you wait for financial compensation.

If you are not successful with your personal injury case, you will be responsible for paying the medical bills. Letters of protection are similar to a lien but are more informal as they are merely an agreement between the parties as opposed to a formal filing of an interest in a given case.

What happens if medical bills are not paid during a lawsuit?

The above options can either allow you to immediately pay for your medical needs using insurance or allow you to reach an agreement with a medical provider for future payment. If you are not successful with your personal injury case, you may not be able to afford to pay your medical bills. If you do not receive a settlement or there is another reason medical providers are not paid, it can have serious consequences. Medical providers can also send unpaid medical bills to collection agencies, which can negatively impact your credit score.

Any lawsuit filed by a medical provider or collection agency will be separate from your personal injury lawsuit. Managing two lawsuits at the same time can be very stressful, which can have serious consequences for your health while you are trying to recover. It is important to work with a personal injury lawyer and manage payment plans to avoid long-term financial impacts.

If a medical provider or collection company files a lawsuit against you and is successful, they may be able to garnish your wages. Oklahoma law generally exempts 75 percent of a debtor’s earnings from garnishment. Under federal law, medical providers are generally limited to garnishing 25 percent of your disposable earnings per week or the amount by which your disposable earnings for one week exceed 30 times the federal minimum hourly wage, whichever is less.

Wage garnishment may not be an option for medical providers if you are not able to return to work in any capacity. However, if you can still work, even in a reduced capacity, your wages may be garnished if they exceed the applicable exemption limits. This can make it even more difficult to cover your other expenses.

Our personal injury lawyers in Oklahoma can advise you of your options

It is critical to seek medical treatment after any accident, but it is also important to ensure your medical bills are paid. At Biby Law Firm Injury and Accident Lawyers, our Oklahoma personal injury lawyers can advise you of your options and help you determine which is the best one for your case so you do not face any unnecessary consequences. Our attorneys deal with medical providers on a regular basis and can oftentimes persuade billing departments to delay taking any legal action until the case is concluded. Call us now or contact us online to schedule a consultation and to learn more about how we can help.