How to Avoid Being Tricked by the Hospital After Your Injury

Navigating the aftermath of a car accident can be overwhelming, especially when dealing with medical treatments and insurance claims. One critical decision that can significantly impact your financial recovery is determining which insurance to use for your medical bills. While it might seem logical to bill the at-fault party’s auto insurance, doing so could inadvertently reduce your compensation. Understanding the nuances of insurance billing during your personal injury case is essential to protecting your interests.  

Why Hospitals Prefer Auto Insurance Billing 

Hospitals and healthcare providers often encourage patients to bill the at-fault driver’s auto insurance rather than their own health insurance. This preference is financially motivated. Health insurance companies typically have negotiated rates with hospitals, resulting in lower payments for services rendered. In contrast, billing auto insurance allows hospitals to charge the full amount for services, maximizing their reimbursement. While this benefits the hospital, it can be detrimental to you, the patient.  

For example, if your medical bills total $10,000, your health insurance might cover this amount at a discounted rate, say $6,000. You can still claim the full $10,000 in your personal injury case, potentially increasing your net compensation. However, if the hospital bills the auto insurance directly, they may claim the entire $10,000, reducing the amount available to you from the settlement. 

The Double Recovery Principle 

Virginia law supports the principle that a defendant should not benefit from a plaintiff’s foresight in securing health insurance. This means you’re entitled to claim the full amount of your medical bills in your personal injury case, regardless of what your health insurance paid. This legal stance allows for a form of “double recovery,” where you can receive compensation for the total medical expenses while your health insurance covers the actual costs. This approach ensures that the financial burden doesn’t fall on the victim and that the at-fault party is held fully accountable. 

Steps to Protect Your Financial Interests 

To safeguard your compensation rights after an injury: 

1. Provide Your Health Insurance Information: Always give your health insurance details to medical providers. Politely insist that they bill your health insurance, not the at-fault party’s auto insurance.  
2. Avoid Sharing Auto Insurance Details: Refrain from providing the at-fault driver’s auto insurance information to healthcare providers. This prevents them from billing the auto insurer directly, which could reduce your settlement. 
3. Consult a Personal Injury Attorney: Engage a knowledgeable personal injury lawyer to guide you through the claims process. They can help ensure that your medical bills are handled appropriately and that you receive the maximum compensation possible.