INJURED IN AN AUTO WRECK? 🚗💥 BILL YOUR HEALTH INSURANCE!
Would you rather pay a hospital bill for $2,000 or $200? The obvious answer is $200. With over $6 million auto accidents every year, there is a high chance that you will be involved in a wreck at some point in your life. If you are injured you will want to know how to protect yourself.
Auto Insurance Medical Coverage
When I explain to my clients that they should have the medical providers bill their health insurance NOT their auto insurance most of my clients are surprised. In Tennessee you can elect to add medical payment coverage to your auto insurance policy. Medical payment coverage can be beneficial if you do not have health insurance because it could take a while to settle your case. The medical coverage will pay your medical bills up to a certain dollar amount. This will ensure your bills are not sent to collections. However, your auto insurance company will not try to reduce the bill nor do they typically have contractual adjustments with the hospital. Once you settle your case with the at-fault party your auto insurance will be seeking 100 percent reimbursement for the amount that they paid towards your medical bill. Your auto insurance will typically not negotiate or accept a reduction in the amount that is reimbursed for medical payments.
Other states, such as Kentucky have what is called Personal Injury Protection (“PIP”). PIP is similar to medical payment coverage in Tennessee; however, PIP generally does not need to be repaid following a settlement. I still suggest that clients first bill their health insurance then use PIP as secondary coverage.
Health Insurance
Your health insurance company has contractual allowable amounts that can be charged for medical services, whereas the auto insurance company typically does not have contracts with medical providers. By billing your health insurance you could save a lot of money and ultimately put more money from the settlement into your pocket. Your health insurance company will have what is called a subrogation lien for any amount they paid for medical services relating to your accident. We will need to pay this after a settlement, but most health insurance companies will accept a reduction. I typically can negotiate a 1/3 reduction of the subrogation lien after a settlement - this will ensure you receive more money out of your settlement.
Health Insurance v. Auto Insurance Hypothetical
For example: You are billed $10,000 for an emergency room visit relating to a motor vehicle accident.
Medical Payment Coverage: you have $5,000 in your auto insurance policy for medical payments. When you go to the emergency room and you provide your auto insurance information, the hospital bills your auto insurance for the full balance for your treatment. Your auto insurance will pay up to $5,000.00 of that balance. Your auto insurance will not negotiate a reduction on your behalf. You will need to repay that $5,000.00 out of your settlement to your auto insurance company.
PIP Coverage you have $10,000.00 in your auto policy for PIP coverage. Like the previous hypothetical your auto insurance company will not negotiate a reduction they will pay the medical bills up to $10,000.00. After you hit $10,000.00 your auto insurance will not pay any additional bills. This is why I suggest first billing your health insurance for treatment, and then using PIP coverage for the outstanding balance.
Health Insurance: The entire bill is sent to your health insurance company. The bill was for $10,000.00. Your health insurance may only allow $500 and the rest must be adjusted or written off leaving you with a $0.00 balance and a $500 lien with the health insurance company. Once a settlement has been reached an attorney can typically negotiate a 1/3 reduction of that $500.00 lien.
As you can see you will save the most and ensure the most money from your settlement goes in your pocket.
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Hiring an attorney can ensure you receive the full and fair compensation you deserve. At Cotter Law it is our priority to take on the fight with the insurance company while you focus on recovering from your auto accident. Fill out the form below or call Cotter Law today to schedule your FREE consultation at (865) 888-7155 to speak with an experienced attorney.
