How Are Medical Bills Paid After Car Accident?

The most prevalent medical situation that may impact the overall quality of life and may lead to major organ damage or death is accidents. In accidents, especially in the US, car accidents are on the highest ratio due to several reasons that lead to major or minor injuries that require medical treatment and surgeries. 

The car accident victims suffered many challenges regarding billing and reimbursements of medical services that led to severe financial stains and pretending payments. A detailed guideline about car accident medical bills is covered in this blog post. Have a look at it for a detailed and in-depth understanding of the type of medical bills, how to manage payments after accidents, and legal laws for reimbursement of payment in case of the faulty driver.

Types of medical bills in case of car accident

Car accident medical bills include various types based on the type of medical service provided according to the patient’s condition and severity along with the medical necessity of the treatment. Major and common types are : 

• ER charges refer to ambulatory medical services, initial examination, and diagnostic procedures done in the emergency room
• Hospitalization admission charges involve inpatient care covering all medical services offered during hospitalization
• Physician consultation charges refer to PCP and medical specialists in case of major injuries
• Diagnostics and testing charges cover diagnostic procedures such as CT scans-rays or others
• Surgical expenses cover medical expenses in case of performance of surgical treatment 
• Physical therapy & rehabilitation costs include physical therapy, chiropractic, or occupational therapies
• Medication charges cover medications, mainly covering painkillers or other drugs
• Medical supplies & equipment charges refer to assisted devices such as wheelchairs, prosthetics, braces, or others
• Home nursing care helps the victim with activities of daily life ADL
• Psychological counseling for post-accidentally stress relieving by therapies, mental and psychological counseling
• Followup or specialist costs cover subsequent visits to PCP or specialist for regular monitoring and medical updates on recovery.
• Alternative treatment fees cover medical expenses of complementary therapies such as acupuncture, and massage therapy for the management of pain.

Medical bills can be classified based on expenses and financial responsibilities:

• Out-of-Pocket Medical Expenses refers to expenses paid by the patient that are not part of insurance plans
• Health Insurance Reimbursement is concerned with covering medical expenses that need to be paid after settlement
• A Medical Lien Agreement is a legal arrangement leading to delay of medical bills by providers till settlement 

Who’s responsible for these medical bills?

Car accident medical bills are managed by various authorities. This responsibility is mainly dependent on various components like insurance coverage plans, legal agreements, and fault determination. Some highlighting responsible parties include:

1. Auto Insurance Liability Coverage
2. Third-Party Insurance Claim
3. Workers’ Compensation Coverage
4. Patient health insurance provider
5. Out-of-pocket payments
6. Medical lien agreement
7. Court judgement

All parties are responsible for covering medical expenses in case of a car accident. The selection of parties is dependent on the type of accident, fault determination, and insurance plan. These factors are highly important for timely and accurate billing of medical services that may lead to piled medical bills. 

Sources for payment of accidental medical bills

Above mentioned parties are major sources for the converge of medical expenses. The most common and highly practiced ones are : 

• Personal Injury Protection (PIP) Coverage is liable to cover medical expenses lost wages along rehabilitation without fault determination 
• Workers’ Compensation Coverage is concerned with coverage of medical expenses covering all types of medical bills in case of a car accident of an employee during working hours.
• Health Insurance Reimbursement is responsible for handling medical expenses if auto insurance reaches the limit and has pending medical bills. 
• Auto Insurance Coverage covers medical expenses in case the car has validated auto insurance. It mainly covers medical expenses through three types of plans: Personal Injury Protection (PIP) Coverage, Medical Payments (MedPay) Insurance and Auto Insurance Liability Coverage are the most prominent types.

Third-party liability and its role

Are you someone who got into an accident with another driver due to his faulty driving, and got surgical treatment that costs more than your health insurance, how the remaining payment will be covered? In this scenario, third-party liability helps in reimbursements of medical services. It involves holding the responsible party or their insurer accountable for covering the costs incurred by the victim. Third-party liability covers medical expenses by:

• Third-Party Insurance Claim filed against faulty driver for coverage of property damage, medical expenses, and lawsuit fees.
• The Subrogation Process in Insurance is considered when health insurance is liable to get reimbursement from an at-fault person.
• Auto Insurance Liability Coverage is mainly concerned with the medical expenses of victims.

Legal notices on car accident

Legal notices are lawsuits including formal documents to assert claims compensation and reimbursement of medical bills in case of a faulty person. This involves sending legal notices to the third party, involving legal authority to take action regarding protecting the victim’s right and assurance of proper and accurate payment of damage and medical expenses by the faulty person. Many types of legal notices are being sent based on patient requirements in which the Medical Lien Agreement is a type of medical lien notice sent by the provider or insurer to repayment of medical expenses. The Subrogation Process in Insurance is sent by the insurance for seeking reimbursement from a faculty driver. While Insurance Settlement Negotiation is sent to a faulty party insurer for compensation of payments.

The procedure for accident medical bill payment

After a car accident, firstly take immediate medical treatment to avoid major complications, followed by billing and payment through PIP, med pay, or health insurance reimbursement if PIP or Medpay are not available. Along with initial coverage file third-party insurance claims in which out-of-pocket expenses can help manage copay and deductibles. In the case of the inability to go for Italian cover, some providers may consider a medical lien agreement for medical expenses when a fault is someone else, while worker compensation is helpful in case of an employee’s car accident medical bills. After completion of medical services, negotiation of a fair settlement is to be done with the insurer.

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