After an accident, medical bills can pile up fast. Emergency room visits, surgeries, follow-up care, and physical therapy all add up. But what happens if your settlement isn’t enough to cover everything? This situation is more common than you might think, and there are steps you can take to manage it.
How Are Medical Bills Paid After a Settlement?
When you receive a personal injury settlement, the money is meant to cover medical bills, lost wages, pain and suffering, and other damages. Before you get your portion, outstanding medical expenses usually need to be paid first. Here’s how that process typically works:
- Medical Liens Get Paid First
- If a healthcare provider treated you without upfront payment, they may have placed a medical lien on your settlement. A lien ensures they get paid directly before you receive any remaining money.
- Health insurance companies can also file a lien, known as subrogation, to recover what they spent on your care.
- Medical Bills Can Be Negotiated
- Your attorney may be able to negotiate your medical bills down before payment is made. Hospitals, doctors, and insurance companies sometimes accept reduced payments rather than risk not getting paid at all.
- Medicare and Medicaid Must Be Reimbursed
- If a government program paid for your medical care, they will require reimbursement from your settlement. However, these balances can also be negotiated in some cases.
What If Your Medical Bills Exceed Your Settlement?
If your medical bills are higher than your settlement, don’t panic. You still have options to reduce what you owe.
1. Negotiating Medical Bills
Hospitals and healthcare providers often agree to lower bills if your settlement isn’t enough to pay the full amount. They understand that getting some payment is better than none. Your attorney can work to get your bills reduced as much as possible.
2. Setting Up a Payment Plan
If reducing the bill isn’t possible, medical providers may allow you to pay over time instead of requiring a lump sum. A payment plan can help you avoid financial strain.
3. Checking for Additional Compensation
If your settlement falls short, it’s possible that other sources of compensation exist. Additional insurance policies, uninsured/underinsured motorist coverage, or even legal action against other responsible parties could help cover the remaining costs.
4. Verifying All Covered Damages Were Included
A settlement should compensate you for all damages, not just medical bills. If your pain and suffering, lost wages, or future medical care weren’t properly accounted for, you may need to challenge the offer or seek further legal action.
Can You Reject a Low Settlement Offer?
Yes, and you probably should if the settlement won’t cover your expenses. Insurance companies often make low offers in hopes that you’ll accept without questioning it. Before agreeing to anything, compare the offer to your total medical expenses and other damages. If it’s too low, your attorney can negotiate for a better amount.
How Fault Can Affect Your Settlement
Arizona follows a comparative negligence system. This means if you are found partially at fault for the accident, your settlement could be reduced. For example, if you were deemed 20% responsible, your total compensation would be cut by 20%. Insurance companies may try to shift blame onto you to minimize what they owe, so strong evidence is crucial in proving the other party’s fault.
Do You Have to Use Your Settlement to Pay Medical Bills?
Not necessarily. If your health insurance covered your medical expenses, they might seek reimbursement from your settlement. However, your lawyer can work to reduce how much you owe. In some cases, providers may agree to waive the remaining balance.
How an Attorney Can Help
Handling medical bills after an accident can be stressful, but an attorney can help by:
- Negotiating lower medical bills so you keep more of your settlement.
- Reviewing your settlement offer to ensure all damages are accounted for.
- Identifying other sources of compensation that may be available.
- Fighting unfair blame that could lower your payout.
Call CLS Law for Help
If your medical bills are more than your settlement, don’t accept the first offer without understanding your options. At CLS Law, we work to make sure you get the full compensation you deserve. Call us at (855) 257-9467 for a free consultation and let’s discuss how we can help.