One of the most stressful realities after a serious accident is that medical bills start arriving long before any settlement. The at-fault party's insurer generally does not pay your bills as you go, they pay once, in a lump sum, when the claim resolves. In the meantime, you need a plan for keeping treatment going and creditors at bay.
The Bills Come Before the Settlement
Understanding the sources available to bridge that gap can relieve enormous pressure during recovery.
Medical Payments Coverage (MedPay)
Many Arizona auto policies include Medical Payments coverage, or 'MedPay.' This optional coverage pays medical expenses for you and your passengers after a crash, regardless of who was at fault, up to the policy limit. It can cover deductibles, co-pays, and bills while your claim is pending.
MedPay is no-fault and usually pays quickly, making it a valuable first resource. Check your policy, you may have it without realizing it.
Health Insurance and Liens
Your health insurance can and generally should be used to pay accident-related medical bills while your claim proceeds. However, your health insurer often has a right of 'subrogation', meaning it can claim reimbursement from your eventual settlement for what it paid.
Medical providers may also assert liens against your settlement, agreeing to treat you now in exchange for payment when the case resolves. Managing these liens, and negotiating them down, is an important part of maximizing what you actually keep.
Protecting Your Net Recovery
Because liens and subrogation can eat into a settlement, handling them correctly matters as much as the gross recovery. Experienced attorneys routinely negotiate liens down, sometimes significantly, increasing the money that ends up in the client's pocket.
If you are worried about mounting bills during a claim, a free review can explain which resources apply to your situation and how the bills will ultimately be handled.
Have questions about your own situation? Get a free, confidential case review. You pay no fee unless you win. Call 973-566-5599.
This article is for general informational purposes only and is not legal advice. For guidance on your specific situation, consult a licensed Arizona attorney.