Wrecked Car, Mounting Medical Bills: How Do I Pay My Bills While My Accident Settlement is Pending?

Who pays for medical bills after a car accident in Ohio?

Answer: Ohio is an at-fault state. This means the driver who caused the crash is ultimately liable for your damages, which include your medical bills. However, the insurance company of the at-fault party does not pay your bills as they are incurred. They pay one lump sum settlement only when your case is completely finished.

Until your case settles, you are technically responsible for ensuring your medical bills are paid. The hospital or doctor will bill you directly. They do not have to wait for your lawsuit to settle before they seek payment.

This creates a serious problem: how do you avoid going into debt for medical treatment caused by the negligence of someone else? The answer lies in using the coverages you already have in place.

Should I use my own health insurance after a car wreck?

Answer: Yes. You should always use your own private health insurance, Medicare, or Medicaid to cover your medical treatment after a car accident. Your health insurance will pay the bills according to your policy, significantly reducing the immediate financial pressure on you while your liability case against the at-fault driver proceeds.

Many people hesitate to use their health insurance because they worry their premiums will go up, or they believe it is unfair since they weren’t at fault. This is a mistake. Using your health insurance ensures that your medical bills get paid on time, avoiding collections and protecting your credit score.

It also works in your favor strategically. Health insurance companies negotiate lower contractual rates with hospitals. For example, a 5,000 dollar ER bill might only cost your health insurer 1,500 dollars due to their negotiated rates. We then seek the full 5,000 dollar value of that bill from the insurance of the at-fault driver, which can often lead to more money in your pocket at the end of the case.

What is a medical lien and subrogation?

Answer: If your health insurance or a government program pays for treatment related to your car accident, they have a legal right to be paid back if you receive a settlement from the at-fault party. This right is called subrogation or a medical lien.

A medical lien is essentially a legal claim against your final settlement. For example, if your health insurance paid 10,000 dollars for your care, they will assert a lien to ensure they get that 10,000 dollars back when your case settles.

Managing these liens is a critical part of a personal injury case. An experienced attorney doesn’t just settle the case for a large number: they must also negotiate the liens down. If we can negotiate that 10,000 dollar lien down to 6,000 dollars, that is an extra 4,000 dollars that stays with you. We spend significant time after a settlement is reached fighting these insurance companies to let our clients keep more of their money.

How does Medical Payments coverage work?

Answer: Medical Payments, or MedPay, is an optional type of coverage you can add to your own auto insurance policy. Unlike your liability claim, MedPay pays your medical bills regardless of who was at fault for the crash. It is usually available in amounts from 1,000 dollars to 10,000 dollars.

MedPay is invaluable because it is paid immediately, often directly to you or the medical provider, without waiting for a lengthy investigation of fault or a final settlement.

MedPay helps smooth over the initial financial shocks of the accident, allowing you to focus on your recovery rather than the stack of bills on your kitchen counter.