Who Pays Medical Bills After an Accident? Understanding Medical Liens

After an accident, several sources may cover immediate medical expenses: your health insurance, PIP/MedPay coverage from auto insurance, Medicare/Medicaid, or medical providers who treat on a lien basis.

The at-fault driver's insurance does not pay bills directly. Their liability coverage pays as part of your final settlement. Using your own insurance for immediate treatment is standard.

A medical lien allows providers to treat you now and be paid from your settlement later. This helps victims who cannot afford treatment while waiting for their case to resolve.

Liens create legal obligations to pay providers from settlement proceeds. Your attorney negotiates these amounts. Often, providers accept less than billed amounts, increasing your net recovery.

If health insurance pays your accident-related bills, they may claim subrogation - the right to reimbursement from your settlement. This is common with Medicare, Medicaid, and many private plans.

Subrogation claims can significantly reduce your net settlement. Experienced attorneys negotiate these down, often reducing what you owe by 30-50% or more.

Keep all medical records and bills organized. Follow all treatment recommendations. Gaps in treatment hurt your case - insurers argue you were not really injured.

Your settlement should cover all medical expenses: past bills, future treatment, rehabilitation, medication, medical equipment, and home care. An attorney ensures nothing is overlooked.