Will Medical Payments Help After My Car Accident?

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Medical Payments (Med Pay) coverage on your auto policy will help you pay for medical expenses related to treatment you receive as a result of a motor vehicle accident regardless of fault.

When you are injured in an accident, keep in mind that you will not receive compensation from the insurance company that represents the person who injured you until your case is settled. Therefore, you or your health insurance will have to pay for any medical treatment you receive as a result of your injuries until your injury claim is settled.

We recommend purchasing at least $5,000 in Med Pay coverage for various reasons, even if you are covered by health insurance. For example, many health insurance plans require reimbursement for medical expenses they pay related to auto accidents; sometimes patients injured in auto accidents may require procedures that are not covered by their health plans; and most insurance plans limit the number of visits to providers such as physical therapists. In addition, some plans have deductibles, and co-pays may be high and tend to add up, especially if there are frequent medical visits as a result of serious injuries.

If you do not have medical insurance, you may want to consider $10,000 to $25,000 in Med Pay coverage.

Even if you have reimbursement requirements to your health plan or to your auto insurance company when your case is settled, having Med Pay coverage will help you receive timely medical treatment for your injuries.

Paying for Medical Treatment After an Accident

Most people who are injured in traffic accidents do not realize they will not receive any form of compensation for their bodily injuries from the at-fault driver until their case is settled. If you have health insurance coverage and you are injured in a car accident, use your health plan to pay for your medical treatment. Any reimbursement requirements related to your health plan can be taken care of when your case is settled.

Declarations Page

We urge you to review the Declarations Page of your auto insurance policy for UM, UIM and Medical Payments coverage. Make an appointment with your insurance agent to add coverage in these three areas if they are not included in your auto policy.

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This information is provided by the Hollingsworth Kelly to help you select the right coverage for your auto insurance needs. All too often, we see people who are injured by someone who does not have adequate insurance coverage. All insurance decisions should be discussed with your auto insurance agent so that you can make an informed decision to best suit your needs. This information is not intended to serve as legal advice.

Liens on Injury Settlements

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Is This Lien Valid?

Over the past few years, personal injury attorneys around the country have witnessed an alarming trend–various liens being recorded against their clients’ personal injury settlements.

A person who has been injured in an auto accident or other negligence will have a claim against the person who caused his or her injury. That is called a third-party claim. Increasingly, medical-related liens are being filed against third-party settlements.

The following are examples of potential liens on injury settlements:

Balance Billing. These are liens filed by a hospital for the difference between the discounted amount paid by the patient’s medical insurance plan and the total amount of the bill. Traditionally, hospitals would write off the balance after the patient’s medical insurance paid the hospital bill. Arizona state law now allows hospitals to assert a lien against an injured person’s third-party settlement for the balance of his/her hospital bill.

Health Insurance Subrogation. This type of lien comes in many forms. Depending on the employer from which the medical insurance plan is provided, the plan might have rights to assert a lien against an injured person’s third-party settlement or even against their uninsured, underinsured or medical payments coverage for the medical expenses paid on his/her behalf. Examples of valid liens are ERISA plans, which are “employer-funded” or “self-funded” health insurance plans; government employees’ medical insurance plans; Worker’s Comp; and other health insurance plans.

Entitlement Health Plans. Medical insurance plans provided under AHCCCS, Medicare, Medicaid, etc., have a statutory lien against third-party claims. However, Medicare is now enacting changes that will allow them, under certain conditions, to attach to settlement monies permanently.

Client’s Auto Insurance. Auto insurance plans that provide Medical Payments coverage on a personal injury claim may be entitled to reimbursement from a third-party settlement for any amount paid over $5,000.

Consensual. If the injured person does not have health insurance a medical provider may accept a lien for services provided. This is known as a consensual lien. This lien will be satisfied when the third-party claim is settled.

This information is provided by Hollingsworth Kelly to help you select the right coverage for your auto insurance needs. All too often, we see people who are injured by someone who does not have adequate insurance coverage. All insurance decisions should be discussed with your auto insurance agent so that you can make an informed decision to best suit your needs. This information is not intended to serve as legal advice.

Safety Items You Should Always Carry in Your Car

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There are certain safety items you should always carry in your car – you never know when there may be an emergency or you’re involved in a car accident.

  • Flashlight
  • Pen and notepad
  • Auto insurance card
  • Vehicle registration
  • Emergency contact numbers
  • Road flares
  • Tire gauge

For those who want to be additionally prepared, auto supply stores and websites offer emergency vehicle kits at affordable prices.

Auto Insurance Terms

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Auto insurance terms can be confusing. Here are some of the most common items you’ll come across.

Liability Coverage – If you are at fault for an accident, your insurance company will pay for the other party’s injuries and damages, up to the limits of your policy. Arizona law requires that vehicles carry a minimum $15,000/$30,000 policy. This means that for each occurrence, the maximum payment made on an individual claim will be $15,000, but no more than $30,000 will be paid for all claims combined, whether there are two, three or even more claimants.

Uninsured (UM) motorist coverage – If you are injured by a motorist who does not have liability coverage, your insurance company will pay for your injuries and damages.

Underinsured (UIM) motorist coverage – If you are injured by a motorist who has auto insurance but your injury damage exceed the value of his/her policy, you can make a claim against your own auto insurance policy.

Medical payments (Med Pay) coverage – This coverage will pay for medical expenses resulting from an auto accident for you or anyone in your household, and any passengers in your vehicle, no matter who is at fault.

Property Damage – Will pay for damage you cause to another vehicle. In Arizona the minimum amount required is $10,000.

Comprehensive – Will pay for damage to your vehicle for anything other than a collision, or for the theft of your vehicle. If you are still making payments on your vehicle you are required by your lender to carry Collision and Comprehensive coverage.

Collision – Will cover your vehicle if it is damaged in an auto accident.

Towing and Car Rental – Towing will cover the towing of your vehicle if it breaks down or is involved in an auto accident. Car rental will cover a predetermined amount to be paid toward a rental car of a specific number of days if your vehicle is damaged and undriveable after an auto accident. The minimum amount recommended is $25 per day for approximately 30 days.

This information is provided by the Hollingsworth Kelly to help you select the right coverage for your auto insurance needs. All too often, we see people who are injured by someone who does not have adequate insurance coverage. All insurance decisions should be discussed with your auto insurance agent so that you can make an informed decision to best suit your needs. This information is not intended to serve as legal advice.

Auto Insurance: Are You Covered?

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When we ask potential new clients about their own auto insurance, they usually assure us they are “fully covered.”

Unfortunately, most motorists have never taken a hard look at their policy to determine just how much auto insurance coverage they really have. The Declarations Page included in your auto policy renewal outlines your policy limits for both bodily injury and property damage. To help you understand the insurance terms listed on your Declarations Page, see Auto Insurance Terms.

In Arizona, the minimum insurance liability requirement for vehicles is $15,000 per person, $30,000 per occurrence. Unfortunately, we see many accidents where the at-fault driver has either no insurance or the minimum $15,000/30,000 required by law.

This means that if you are seriously injured in an accident, the at-fault driver may not have any or enough coverage to adequately compensate you for your injuries and damages.

For the purposes of protecting yourself in the event of an auto accident, we recommend that you carry as much coverage as you can reasonably afford. If at all possible, you should carry at least $100,000/$300,000 policy limits for Liability, Uninsured (UM) and Underinsured (UIM) motorist coverage. Depending on your individual situation, Medical Payments (Med Pay) should be at minimum $5,000.

If, however, you can afford higher policy limits, by all means you should increase these amounts. For example, if you have assets to protect, or if you are self-employed, you may want to increase your Liability coverage, and possibly add an umbrella policy. UM and UIM coverage should match your Liability policy.

Please keep in mind that your insurance company may not sell you higher UM/UIM coverage than your Liability limits. Some people think it is a good idea to save money by obtaining less UM/UIM coverage, however, than their Liability limits. That would be like insuring everyone else for less than you insure yourself. UM/UIM is specifically for you and others in your vehicle, not for the person who hits you.

For Property Damage, we recommend at least $50,000 in Liability coverage. Comprehensive and Collision coverage will depend on your deductible. The higher your deductible, the lower your premium.

Comprehensive and Collision is required by a lender if you’re making payments on your vehicle. Also consider adding Gap Insurance to your policy if you have an outstanding balance on your vehicle. If your car is totaled in an auto accident and you’re not at fault, the insurance company is only obligated to pay you fair market value for your vehicle, which more often than not will be less than what you owe the lender. Gap insurance will bridge the amount between what the insurance company paid you for your car and what you still owe on the loan.

This information is provided by the Hollingsworth Kelly to help you select the right coverage for your auto insurance needs. All too often, we see people who are injured by someone who does not have adequate insurance coverage. All insurance decisions should be discussed with your auto insurance agent so that you can make an informed decision to best suit your needs. This information is not intended to serve as legal advice.

What to Do if You’re in an Accident

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What to do if you’re in a car accident:

Dial 911. Call for emergency assistance as soon as you are able.

Stay Put or Move Carefully. If you are injured, stay in your car if at all possible and wait for medical assistance.

Even if you do not feel injured, move slowly and carefully. Remember, your body may have suffered trauma from the impact.

Limit Contact with the Other Driver. Other than to determine if anyone is injured, avoid speaking to the other driver. The responding traffic officer will take insurance information. Both drivers must stay with their vehicles until police arrive. Do not agree if the other driver asks permission to leave the scene.

If police do not respond, you will have to speak to the other driver to obtain insurance information. Again, limit your contact and do not make admissions or excuses about your driving.

Witness Information. If any witnesses approach you, take their names, addresses and telephone numbers.

Photos. If you are physically able, or if a friend or family member is available, use your cell phone to take photos of the location of the vehicles after impact, and the damage to the vehicles involved. Also include a side view and a distance shot of the two (or more) vehicles.

Medical Care. If you are injured, go immediately to the hospital by ambulance. Otherwise, go to urgent care for evaluation and treatment. Remember to follow-up with your primary care physician within the time period ordered by the urgent care or hospital physician—usually within a week after the accident.

Photograph your injuries, especially any bruising on your body. These may provide clues to problems that could develop over time.

Contact an Attorney. Contact a personal injury attorney early in the process to help you resolve your accident claim. The staff at Hollingsworth Kelly is experienced in all aspects of personal injury litigation, and we will be with you every step of the way, including helping you determine treatment options, facilitate insurance company communication, and lien resolution, all with the goal of optimizing your recovery and settlement.

 

This information is provided as a public service by Hollingsworth Kelly and is not intended to serve as legal advice.