If you have private health insurance or are part of an employee-based plan, your provider should cover all health care costs up to your policy limits. Co-pays and deductibles will be paid out-of-pocket.
Personal Injury Protection (PIP) in Virginia isn’t mandatory, but many drivers purchase this extra protection on their auto insurance policy. PIP covers medical bills up to policy limits after a collision, irrespective of liability.
Those enrolled in Medicare or Medicaid can have a portion of their accident-related hospital and medical expenses paid once PIP coverage (if any) is exhausted. Remember that you may have to pay back these funds from a settlement or court award.
Your car accident lawyer signs a legal document granting your healthcare provider first access to the damage award once the case settles or resolves in court. This way, you can still get medical treatment, and your bills are paid out of your settlement.
It is common for clinics, hospitals, and other healthcare settings to negotiate a flexible payment plan. In some cases, they may even lower the final bill. It’s worth discussing this option directly with your medical providers.
When other options aren’t feasible, you might consider a lawsuit advance, also called pre-settlement funding. With this method, you get a quick cash advance (based on your predicted recovery amount) while your case is still pending. In exchange, the lending company has the right to a designated portion of your settlement award. However, the interest rates can be very high– upwards of 40 percent yearly.
