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Paying Medical Bills After a Car Accident
Car accidents often result in injuries that require medical treatment, which can lead to substantial bills. These expenses generally fall into two categories: those that must be paid and those that should be paid.
Medical providers who treat your accident-related injuries may file a lien against your settlement. When this happens, the insurance company is notified and will include the lienholder on any settlement checks. This ensures that the provider is compensated for their services with settlement funds.
In some cases, your health insurance may cover a portion of your accident-related medical expenses. However, if you receive a settlement or favorable verdict, your health insurer has the right to seek reimbursement for the amounts they paid on your behalf. This is known as the “right of subrogation.”
Just because a medical provider chooses not to file a lien does not mean the bill can be ignored. The patient still received medical services and is legally obligated to pay for them. If left unpaid, these bills can be sent to collections, damaging the patient’s credit.
Oklahoma’s At-Fault Car Insurance System
Oklahoma follows an at-fault car insurance system, meaning the driver responsible for causing the accident is liable for the resulting damages, including medical expenses. Oklahoma drivers must carry a minimum amount of liability insurance:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability for two or more people
- $25,000 in property damage per accident
Filing a Third-Party Insurance Claim
After a car accident, your first step should be to file a claim with the at-fault driver’s insurance company. Provide evidence of the other driver’s fault and the extent of your injuries. The insurance company will then decide to either accept responsibility and negotiate a settlement or deny the claim.
If the insurance company accepts liability, they will pay out up to the policy limits for medical expenses, lost wages, pain and suffering, and emotional distress.
Insufficient Insurance Coverage
If the at-fault driver’s liability insurance is insufficient to cover your medical expenses, you may be able to turn to your own Uninsured/Underinsured Motorist (UM/UIM) coverage. UM/UIM coverage can help pay for your medical bills when the at-fault driver lacks adequate insurance.
Personal Injury Protection (PIP) and MedPay
Oklahoma does not require drivers to carry Personal Injury Protection (PIP) insurance. However, drivers can choose to add Medical Payments (MedPay) coverage to their policies. MedPay will cover your medical expenses up to your coverage limit, regardless of who caused the accident.
Health Insurance and Car Accidents
Your health insurance may cover some or all of your medical expenses related to the car accident. However, you will still be responsible for paying deductibles and co-pays. If you receive compensation from the at-fault party, you may need to reimburse your health insurance company through subrogation.
Reimbursing Health Insurance from Settlement or Judgment
If your health insurance company paid for your accident-related medical treatment, they may have a right to reimbursement from your settlement or judgment through subrogation. Your personal injury attorney can help you navigate this process and negotiate with your health insurance provider to minimize the amount you must pay back.
Out-of-Pocket Medical Expenses
In some cases, you may need to pay for medical bills out-of-pocket if your insurance does not fully cover the costs. This can be a significant financial burden, but some medical providers may offer payment plans or reduced rates for uninsured or underinsured patients. Your personal injury attorney may also be able to negotiate with healthcare providers to reduce your medical bills or arrange for treatment on a lien basis, meaning they will wait for payment until your case settles or reaches a judgment.
Treatment on a Lien Basis
If you can’t afford to pay your medical bills while waiting for your lawsuit to settle, your personal injury attorney may be able to arrange for your medical providers to treat you on a lien basis. This means that your healthcare providers agree to wait for payment until your case settles or reaches a judgment. Your attorney can then pay your medical bills directly from your settlement or judgment proceeds.
Personal Injury Lawsuits and Medical Bills
If you are unable to reach a fair settlement with the at-fault driver’s insurance company, you may need to file a personal injury lawsuit. In court, you must prove that the other driver was at fault for the accident. If successful, the judge or jury will determine the amount of compensation you are entitled to receive.
Oklahoma follows a modified comparative negligence rule, as outlined in 23 O.S. § 13. If you are found to be 50% or less at fault for the accident, your compensation will be reduced by your percentage of fault. If you are 51% or more at fault, you will be barred from recovering any compensation.
Partial Fault and Compensation
Under Oklahoma’s modified comparative negligence rule, you can still recover compensation for your medical bills if you were less than 50% at fault for the accident. However, your settlement or judgment will be reduced by your percentage of fault.
When you receive a settlement or court award in a personal injury lawsuit, the funds will typically be used to pay for your medical bills related to the accident. Your attorney will work with you to ensure that all relevant medical expenses are accounted for in your claim, including future medical expenses if your injuries require ongoing or future treatment.
Future Medical Expenses
If your injuries require ongoing or future medical treatment, you can include these anticipated expenses in your lawsuit. Your personal injury attorney will work with medical experts to determine the expected cost of your future medical needs and incorporate this into your claim for damages.
Recoverable Medical Expenses
You can typically recover a wide range of medical expenses in a car accident lawsuit, including:
- Hospital bills
- Doctor visits
- Physical therapy
- Prescription medications
- Medical equipment
- Transportation costs related to your medical treatment
Proving Medical Expenses
To prove your medical expenses, your personal injury attorney will gather documentation such as medical bills, receipts, and treatment records. They may also work with medical experts to establish the necessity and reasonableness of your medical treatment and costs.
The Importance of Consulting with an Experienced Personal Injury Attorney
Navigating the process of paying medical bills after a car accident can be complex and overwhelming. An experienced Oklahoma personal injury attorney can help you understand your options, negotiate with insurance companies, and fight for the compensation you deserve.
Your attorney will gather evidence, document your medical expenses, and build a strong case on your behalf. They can also help you understand how your medical bills will be paid from any settlement or court award you receive.
Statute of Limitations
In Oklahoma, the statute of limitations for filing a personal injury lawsuit, including one to recover medical expenses, is generally two years from the accident date, as per 12 O.S. § 95. However, there are some exceptions, so it’s essential to consult with a personal injury attorney as soon as possible to ensure your rights are protected.
Tax Implications
Generally, the portion of your settlement or judgment that reimburses you for medical expenses is not considered taxable income by the IRS. However, there are some exceptions, and it’s always best to consult with a tax professional to understand the specific tax implications of your case.
Insurance Company Offers
Be cautious if the at-fault driver’s insurance company offers to pay your medical bills directly. Accepting such an offer may limit your ability to pursue further compensation for your injuries. It’s best to consult with a personal injury attorney before accepting any offers from the insurance company to ensure that your rights are protected and that you receive fair compensation for your damages.