Roses Are Red, Violets Are Blue, Know Your Insurance So It Can Cover You!

One of the most important questions our clients have when they are injured is “how am I going to pay for all my medical bills?” That is a great question and the following is a handy introductory guide to the different ways medical bills can be paid in a bodily injury claim arising from an auto accident.

Personal Injury Protection (PIP)

Personal Injury Protection, often referred to by its abbreviation PIP, is a source often looked to first. It is a first-party coverage available under your own policy or the policy covering the vehicle you are riding in as a passenger. If you are a pedestrian struck by a car, the at-fault vehicle’s PIP policy provides the primary layer of PIP coverage and your personal auto policy may provide additional coverage. PIP can be used to cover medical expenses and lost wages incurred as a result of an accident. The limits vary from policy to policy, but generally, PIP is purchased at levels of $2,500, $5,000, and $10,000. PIP can be waived on Maryland policies, so make sure to review your policy carefully before signing any such waiver since this is a great benefit and can help maximize your recovery!

Medical Payment Coverage (“Medpay”)

Medical Payment coverage, often referred to as “Medpay”, is another first-party coverage like PIP. The most important difference between PIP and Medpay is Medpay does NOT cover lost wages. You can purchase BOTH PIP and Medpay on the same policy if offered by your carrier. Medpay typically comes at lower levels of coverage than PIP but is still a good way to cover yourself and maximize your personal injury recovery.

Private Health Insurance

Health insurance is another great way to pay for medical bills incurred from an accident. The at-fault driver’s insurance may be the coverage that is primarily responsible for the bills, but third-party recoveries typically come months after the accident and in the meantime, many providers expect their bills to be paid promptly and will send bills to collection if not paid. Many health insurance policies require copays to be paid at the time of appointments. Then, if you receive a recovery from the at-fault driver’s insurance, health insurers usually require repayment of the benefits paid out on your behalf.

Assignment of Benefits (“Liens”)

Assignments of benefits, sometimes called liens, may be offered by providers to secure payment of medical bills out of auto insurance benefits (often including liability, PIP, and Medpay coverages). Clients who sign liens do not have to pay anything at the time of treatment. Instead, the provider of health care services waits until the outcome of the case to receive payment of their bills. This can be a great option for clients who do not have insurance or who do not want to pay out of pocket during a time when they may be out of work or facing financial uncertainty following an auto accident.

The attorneys and staff at Bulman Dunie are highly trained and experienced in dealing with these insurance matters. Please contact Dan Shaivitz at (301) 656-1177 or dshaivitz@bulmandunie.com if you ever need our help!