In the event of an accident, whether it is a car accident, a work accident, or a simple slip and fall, the need for immediate and necessary medical attention is the norm. However, with the need for medical attention comes the burden of the associated costs. A common and relevant question is: Can personal injury medical bills go into collections? The answer is yes. To understand how and why it is possible and what one can do to prevent it from happening, one must take a deeper look at the process.
How the personal injury medical billing works:
When it comes to personal injury cases, billing practices are obviously different from those in regular healthcare situations. Regardless of who is at fault for your personal injury, you as a patient are expected to pay the bills for treatment received.So, as far as the provider is concerned, it’s you who is financially responsible for treatment received, and they do not participate in any way in your case or any negotiations towards a settlement. They simply do their usual business practices, which includes sending out bills to be paid, regardless of any lawsuit in progress.
What happens when medical bills become overdue?
The medical bills also have a specific period, known as the due date, within which the payment must be made. If the payment is not made by then, it is considered an overdue account. This period can range from weeks to months.
If the account is not paid, it is considered a delinquent account, which is usually after 60-180 days. At this point, the healthcare provider may decide to send the account for collection.
Can your medical bills go to collections while your personal injury case is still in progress?
Yes, your medical bills can go to collections while your case is still in progress.
Why this is happening?
- There is no legal requirement for medical providers to wait until your case is settled before sending your bills to collections.
- Your personal injury case could take months or even years to settle.
- Medical providers have bills to pay too, just like you do.
- There is no special arrangement that would stop your bills from going to collections.
Letter of Protection (LOP):
A Letter of Protection (LOP) is intended to protect your medical bills from collection.
A Letter of Protection is an agreement between your lawyer and the medical service provider. The agreement is that the service provider will wait until your case is resolved before collecting the bills. In return for this service, the service providers agree to accept the money from your case.
However, it is important to note that not all service providers may agree to this. They may demand partial payments or may not agree to the LOP.
Health Insurance to Cover Costs:
Another good way to avoid collections is by taking advantage of your health insurance.
Your health insurance may cover your medical bills. You may still have to worry about your deductibles and co-pays, but at least the account will not go past due.
Eventually, when your case is settled and you receive your award, your health insurer may try to get reimbursed for your medical bills. This means that you may have to pay back your health insurer at a later time, but it is another way for you to avoid collections.
Role of Auto Insurance Coverage:
If you are injured in a car accident, auto insurance can help protect you financially. Some types of auto insurance, such as Personal Injury Protection (PIP) and Medical Payments Coverage (MedPay), can help pay for medical bills regardless of fault. This can help reduce or eliminate out-of-pocket expenses, as well as help prevent medical bills from being sent to collection agencies.
Consequence of Medical Bills in Collections:
In addition, collection accounts may appear on your credit reports, and this may negatively impact your credit score and even limit your ability to obtain new loans or credit cards. You may also start receiving numerous phone calls, letters, and emails from collection agencies asking you to settle the debt. In other cases, the creditors may take legal action and sue the debtor in an attempt to recover the debt.
Prevention of medical bills going to collections:
Communicate with Providers
Always inform your healthcare provider that your injury is part of a legal claim. Some may offer flexibility if they understand your situation.
Set Up Payment Plans
Even small monthly payments can keep your account in good standing and prevent it from being sent to collections.
Work with an Attorney
A personal injury attorney can negotiate with providers, arrange LOPs, and manage billing issues as part of your case.
Keep Track of Bills
Maintain records of all medical expenses, due dates, and communications to avoid missing payments.
Don’t panic if your medical bills are already in collections:
If your medical bill is already in collections, then don’t panic, but rather don’t sweep it under the rug.
What to do:
Contact the collection agency to verify your debt, and:
- Inform them of your legal status
- Try to set up a payment plan or a settlement
- Get advice from your attorney
Sometimes, these agencies will hold off if they know a settlement is pending.
Importance of timing:
Personal injury billing can take a while, and during that period, the medical expenses just accumulate. Without proper planning, a good claim can easily become a financial burden if it is left unaddressed.
It is, therefore, important to take early action, especially when it comes to accessing insurance benefits.
Conclusion:
If you don’t pay your medical bills on time from your personal injury case, they can still go into collections, even while your case is still progressing. For medical providers, the bottom line is getting paid, and they don’t have to wait for your case to settle.
However, you have options available to you, such as using your health insurance, auto insurance, setting up a Letter of Protection, consulting with your providers such as www.doctormgt.com and consulting with a qualified attorney, which can reduce the risk of collections for you.
At the end of the day, the best thing you can do for yourself is be informed and take action, which can protect you from unnecessary stress while you are dealing with your personal injury case.
