Should I Use My Health Insurance For Medical Treatment After a Motor Vehicle Accident?

If you are injured in a motor vehicle accident, you will likely have a number of questions when it comes to medical treatment. Your first question may be, “who is going to pay for all of this?” If the accident wasn’t your fault, the insurance company for the driver that caused the accident may eventually pay for your medical expenses – but only at the conclusion of your treatment. In the setting of a motor vehicle accident, the insurance company for the person who caused the accident, will generally only make one (1) payment at the end of the case; it is not a pay-as-you-go situation. Many accident cases may take months or years to resolve (depending on the seriousness of the injuries). In the meantime, it’s important to have your medical bills paid, or at least “on-hold” until your case resolves. 

There are many benefits to using your health insurance to pay any medical bills you may incur following a motor vehicle accident.  The most important benefit is that your medical bills get paid quickly.   The last thing you want to worry about after being injured in an accident is unpaid medical bills that may damage your credit.

When seeking treatment after being injured in a motor vehicle accident, you should always give the medical provider your health insurance information.   Some medical providers will not accept health insurance if your injury is accident-related, and some medical providers often refuse to treat patients that have been injured in motor vehicle accidents.   If this situation arises, you have a few options.  First, you can seek treatment from a medical provider that is within your health insurance network of accepted medical providers.  Second, you can use the PIP or Med Pay coverage under your auto insurance policy to pay the medical provider(s).  Third, you can ask the medical provider to hold their bill and not demand payment until your case has settled.  It has been our experience that many medical providers will not agree to hold-payment unless you have a lawyer representing you.    

The medical providers that do bill your health insurance will be paid at the pre-negotiated rates they have with your health insurance company.  However, the health insurance company may then assert a lien against your case for the amount they paid on your behalf.  Whether or not the lien is enforceable will depend on various state and federal laws unique to your specific case. However, there are a number of ways to coordinate your health insurance and other medical benefits to both, pay your medical providers and maximize your recovery when your case settles. 

At Bob Katz Law, we routinely deal with the complicated interplay between PIP benefits, Med Pay coverage, health insurance, and health insurance liens on behalf our clients.  We are happy to assist you with this, and a variety of other issues you will encounter if you have been injured in an automobile accident.

By Kristen Turner, December 8, 2023