After an accident, most people have substantial medical bills. That is one reason you might have taken legal action in the first place. Hospitals, doctors, and other healthcare providers want reimbursement for their services. Once you get a settlement, you are expected to pay off these debts.
However, with careful negotiation, you may reduce these amounts and retain more of your settlement.
So, how do you negotiate your medical bills after a settlement? Here is what you need to know.
Could You Be Subjected to a Medical Lien?
If you needed medical treatment after an accident and did not have enough funds to pay the bills, then the healthcare provider might put a medical lien against your settlement. What does that mean? With that, the lien makes sure that the provider or insurer receives payment for services before you access the remaining settlement funds. These liens may come from:
- Hospitals or doctors
- Health insurance companies
- Government programs, such as Medicare or Medicaid
When you negotiate with these entities, you can avoid heavy deductions from your settlement but also ensure you make all of your financial obligations.
Steps To Negotiate Medical Bills
Fortunately, there are steps that you can take to reduce your medical bills.
Review the Settlement Terms
Before starting the process, you will need to thoroughly understand the terms of your settlement agreement. Many times, there will be an exact amount allocated for medical expenses.
Often, there are limitations on how much must be paid to healthcare providers or insurers.
Provide Medical Bills and Documentation
You will also want to have detailed records of all medical services you received, including itemized bills, receipts, and insurance claims. Make sure to verify the accuracy of each charge and check for errors, such as duplicate charges, services you didn’t receive, or inflated fees.
Confirm the Lien
If you have a lien against your settlement, make sure to request a written copy. With that, you can confirm that the lien is valid and complies with state laws. Anyone who files a lien must follow specific legal procedures. And if they made an error, it can invalidate their claims.
Initiate Negotiations
If you have outstanding bills, you will want to contact each medical provider or lienholder to discuss your case. You will want to be polite but assertive. Take the time to explain your financial situation and the limitations of your settlement. You can offer to make a lump sum payment. Many providers will accept a reduced payment if you can pay immediately.
However, you might want to compromise if you have been struggling financially while waiting for a payment. You could leverage for a lower settlement amount. If your settlement was less than anticipated, explain this to lienholders and request a reduction in their claims.
Sometimes, these parties may not want to work with you. In these cases, you might want to hire an attorney to assist on your behalf. These professionals have experience dealing with lienholders and can often get a more favorable result than if you try to negotiate on your own.
Know Your Legal Options
You will also want to stay informed of the state laws. Many times, there are limits on the amount providers can claim. For example, some states cap liens at a percentage of your settlement or require lienholders to share in legal fees.
In Texas, medical liens are outlined in the Texas Property Code Section 55.002 (a). These liens can only be attached if you received medical treatment within 72 hours after an accident.
If an attorney represented you during your settlement, they might already have experience negotiating medical bills. Many attorneys include lien resolution as part of their services.
Also, watch out for balance billing. This occurs when a provider charges you the difference between their billed amount and what insurance paid. In some states, laws protect patients from balance billing in certain situations. You will want to verify whether you’re entitled to these protections.
Are There Any Alternatives?
Some providers offer debt forgiveness programs for low-income patients. If you fall into these situations, you may want to apply to one of these programs to get a waiver for your outstanding bills.
If a provider refuses to reduce your bill, they may still agree to a manageable payment plan. While this doesn’t reduce your overall amount owed, it can ease financial strain by spreading payments over time. Negotiating your medical bills after a settlement can protect your financial health. Many times, you can reduce the amounts owed to your healthcare providers.
When you can successfully manage your medical bills, that can preserve more of your settlement. Plus, it can bring peace of mind as you move forward after an accident.
If you have been involved in a personal injury accident in Houston, the team at Barrera Law Group LLC can help you take the next steps for your case.