You have more than one way of paying for your medical care after a car accident. Your choices may be health insurance, car insurance, or cash. Or, if the accident was not your fault, your doctor may offer you a medical lien. Of these choices, health insurance is usually the cheapest, while a medical lien is often the most expensive.
If you are expecting a settlement from an at-fault driver, you may choose to sign a medical lien to postpone payment until the money arrives. By understanding and negotiating the provisions in a lien, you could save yourself thousands of dollars. This post alerts you to 3 things you should know before you sign.
1: Does the lien specify treatments and charges?
If the lien does not place limits of some kind on treatments and charges, you may end up paying more than you expected.
2: Is balance billing prohibited by the lien or state law?
When a provider bills you for the difference between his charges and the amount allowed by your insurance company, he is balance billing. For example, a doctor bills your health insurance company $100 for a treatment and your insurance allows $60. If the provider bills you for the remaining $40 (the balance), he is balance billing.
3: Is the medical lien mandated by state law?
State law may specify that certain treatments can be put on a medical lien, such as emergency care.
This e-book will help you understand the pitfalls of medical liens: The pitfalls of medical liens: How to Save Money on Medical Care after a Car Accident
This e-book will help you understand MedPay and get more treatments before you reach the limits of your MedPay coverage. 4 Things You Should Know About MedPay: How to Save Money on Medical Care after a Car Accident
Don’t Make this Big MedPay Mistake
If you have signed a medical lien, help others by sharing your experience in the comments below.
Anita K. Morgan says
After an auto accident in 2017, Tim’s attorney sent him to a chiropractor for treatment. He signed a medical lien, and received 8 weeks of treatment: 16 adjustments and 8 massages. According to his attorney, he would have a better case against the other driver if he received two adjustments for every massage. Although he got more benefit from massage therapy, he followed his attorney’s advice.
In the end, Tim’s attorney dropped his case, and the chiropractor wrote off the lien as a business expense. However, Tim still had untreated injuries.