When you are injured in a car accident in Colorado, you will want to know who will pay your medical bills. That is often an injured victim’s first question. So, who pays your medical bills in these horrible situations?
MEDICAL PAMYENTS COVERAGE
When you buy auto insurance in Colorado, your insurance agent should ask you if you want to pay extra for medical payments coverage. What are Medical Payments or Med Pay as it is often called? Well Med Pay coverage will pay 100% of your medical bills when injured in a car crash, no matter who is at fault. One has to choose a dollar limit for your med pay. For example, the normal minimum coverage for med pay is $5,000. Most people purchase med pay coverage in the amount of $5,000, but there you can also choose $10,000, $25,000 etc. In other words, if you have $5,000 in med pay, then this is called primary coverage and will cover your hospital bill, ambulance bill, radiology like CT scans and x-rays and if you have any money left over, will cover your physical therapy, massage, chiropractic, doctor visits, etc.
OTHER DRIVER’S INSURANCE
Most people erroneously believe that the at-fault driver’s insurance company will pay their medical bills. This is not true. When you settle your case at the end of your medical treatment, and there is a money settlement, then your medical bills are included and taken into consideration upon settlement. They do not pay your medical bills as you go along. Thus, you need resources to pay your medical bills as you receive treatment and get adequate medical care. In conclusion, the at-fault driver or his or her insurance company does not pay your medical bills.
HEALTH INSURANCE
Many people can use their health insurance to pay their medical bills as long as your particular health insurance is taken by the medical provider or facility you go to. Let’s say you have Aetna as an example. Aetna will pay your hospital bill. If you have med pay, then med pay will pay first and then Aetna would either pick up any balance that you owe or ancillary charges. Med pay is primary and health insurance secondary. If you have no med pay, then your health insurance is primary. Hopefully, you are able to see medical providers/clinics that take your particular health insurance.
WORKERS COMPENSATION
If you are injured at work or withing the scope of your employment while driving a motor vehicle, then workers compensation insurance comes into play. Workers compensation is required to pay your medical bills if you are injured on the job. One first has to determine if you were actually on the job or on the clock when your car crash occurred. If so, then workers compensation and their rules come into play. You will normally have to see workers compensation approved doctors or medical providers. You cannot just choose any doctor or health care facility you want, but must abide by their rules and their particular facilities if you want to receive free medical care under workers compensation rules and guidelines.
ATTORNEY LIENS
If you have no med pay, health insurance or resources to pay your medical bills, then attorney liens are a viable option in most cases. For example, let’s say you need physical therapy but have no cash or insurance to pay for it. Then, I step in and call the PT facility and ask if they would accept a guarantee from me that I will pay their entire bill at the time of settlement. It is a promise from the lawyer to pay the facility. Thus, when your settlement comes in and say you owe the PT facility $4,000, then I send them a check for that $4,000 out of the settlement money. I am thus protecting their bill so you can get instant medical treatment. Not all doctors or providers will take attorney liens but a lot will. Most times, if you have no insurance, then you will have to go to the doctors or facilities that will accept liens. If not, you would have no way to actually see a medical provider and would not get help with your injuries.
FINANCE OR LIEN COMPANIES
Finally, there are specific companies in Colorado, like Well States, Prove Partners, and other companies that specifically finance injury and car crash cases. In other words, they will pay your doctor or medical provider or PT facility, chiropractor the money up front so that you can get the proper medical care you need. For example, if you need an MRI, then the finance company in Colorado will pay for your MRI up front. They will pay for your MRI at a discounted rate and then when I recover a settlement, then I will pay the finance company back out of the settlement proceeds at the normal cost of the MRI. So, the finance companies make a profit from the discounted rate they paid up front to the normal rate they receive out of your settlement. That is how they make their money. Finance companies are a good option if you do not have the cash or any insurance to pay your medical bills.
All of these options have a “lien” on your settlement so they are protected, except for Med Pay which does not get any money back. Health insurance for example pays $3,000 of your medical bills. The particular health insurance company will have a lien department. This lien department will send a log to me at the end of your medical treatment. What they have paid out for medical bills, they will be seeking some of that money back from your settlement money. Under federal law, I as a lawyer am required to honor their liens, health insurance liens, Medicaid, Medicare, and contractually the finance company liens. So, one can never “skip out” without paying these liens from your settlement money. If you do that, you will be either breaking federal law or contractual law.