Personal Injury Cases & Health Insurance

Simply put, a health insurance company is an insurance company, meaning it assesses risk. Some people need their insurance provider to cover more than they put in, and some need less. The system can be confusing for injured victims, but this is known as the health insurance provider asserting a lien.

Essentially, a lien is an “IOU.” If someone is involved in a car crash and breaks their leg:

• The insurance company will pay
• The insurance company will have the at-fault party to cover the costs
• The insurance company will assert a lien

A personal injury claim is handled as an asset. Like other assets, a lien can be filed against it.

Insurance Coverage for Injuries

Personal Injury Protection, commonly called Med-Pay, operates similarly. This no-fault insurance is meant to cover medical costs, and sometimes lost income, caused by car crash-related injuries. If the injured party seeks medical treatment due to the accident, the PIP carrier will cover it. The PIP will then seek reimbursement from the at-fault party who caused the accident. The PIP carrier will do this directly or by using the help of the plaintiff’s lawyer.

Any medical provider can assert a lien for medical treatment. Many hospitals have lien documents included in their discharge paperwork. Like PIP or health insurance liens, these liens constitute a debt to be collected for provided medical services.

Personal Injury Case Damages

Lien negotiation is an important part of any personal injury claim. For instance, all major health insurance companies have discounts with major medical providers. When a patient receives treatment without insurance, they are charged for the full cost. If they have insurance coverage, the health insurance provider will be charged at a lower price, so a person with health insurance coverage will be billed less for the same treatment. Because the repayment is less, the injured victim can possibly pocket some of the money. Effectively, it’s better for the victim to have their medical costs covered by insurance -- PIP or health insurance -- than paying the costs out-of-pocket.

The injured party is in agreement with their lawyer to pay a fee for any compensation recovered because the personal injury lawyer is responsible for going after the liable party and car insurance for damages. Much of the compensation obtained by the lawyer will be used to pay back either the injured party’s health insurance coverage or the liens of the medical provider.

Lastly, there can be times where the amount of bills is far greater than the amount of insurance available. Most health insurance companies and health care providers agree to take cuts in the amount due to settle outstanding bills.

Albuquerque Car Accidents

No one expects to be involved in a serious car accident. Sadly, they are a reality for millions of victims each year across the United States. Injured parties may be able to recover compensation for their injuries. 

The legal team at Will Ferguson & Associates is here to help. Our Albuquerque car crash attorneys can help you maximize your compensation. If you’ve been unfairly injured in a crash, call us today at (505) 243-5566.