Fortunately, there are some steps you can take to help ease the financial burden of mounting medical costs. Understanding all the available options can help you proactively answer the question, “What if my medical bills are more than my settlement?”
Insurance companies can be intimidating. The job of an insurance adjuster is, after all, to spend as little of the insurance company’s money as possible. To do this, they offer a lowball settlement quickly, hoping you’ll accept it. They know that most of the time, the person they’re negotiating with is busy, confused, afraid, and just wants to put the accident behind them. They use this against you and try to get you to accept way less than you’re owed.
Your job is to stand up for your rights. Finding a lawyer to stand up for you is a viable alternative if you’re intimidated by the process. Read on to discover the answer to the question: What if my medical bills are more than my settlement?
Examining Your Settlement and Medical Bills
The first step is getting a clear picture of the current total cost of your medical bills and how it compares to the settlement agreement. Once you know the difference, you can take knowledgeable action. According to the security expert and American author Gavin de Becker, “The best antidote to worry is action.“
Go through your medical bills with a fine-tooth comb. Medical billing errors are commonplace, with some estimates as high as 80% of bills containing mistakes. An audit by Equifax found that hospital bills totaling at least $10,000 had an average error of $1,300. It’s no wonder that medical bills are the number one reason for bankruptcies in the U.S.
One common billing error is upcoding, or using a higher-level code that is more expensive than the correct code. Unbundling refers to using multiple codes instead of one code for the different parts of a procedure, which adds to the billing amount. General coding errors and duplicate charges are also common.
FAIR Health Consumer created a free online tool showing price estimates for medical procedures for out-of-network and in-network providers. These prices are based on your zip code, providing reasonably accurate estimates for your area.
Insurance subrogation can also affect your payout. Should your auto insurance company pay for property damage and medical bills, they have a right to try and recover their costs from the responsible party. In other words, your insurance company can legally seek reimbursement from the person responsible for your injuries or their insurance company. If successful, you may receive your deductible back.
However, if you’ve already received a settlement from the at-fault person or their insurance company, your insurance company can place a lien on your funds until they receive their share. Should this occur, you can take the following action:
- Check if your insurance policy has a waiver of the subrogation clause. This prevents the insurance company from seeking reimbursement.
- Check your state’s laws. Each state has specific rules and regulations regarding subrogation.
- Meet with your insurer. Your insurance company may negotiate and, in many cases, settle for much less than owed.
Negotiating Medical Bills and Settlement Terms
When faced with medical costs greater than your settlement, keeping the communication lines open with your medical providers is essential. Negotiating medical bills after settlement can result in providers taking a discount if you pay in full. They may also offer income-based discounts or set up an affordable payment plan. Sometimes, you can negotiate a payment plan spread over 24 months with no applied interest.
If a settlement has been reached and accepted, reopening a judgment once signed is challenging at best. In some states, it is not legally enforceable if it has not been converted into a court order. However, if established in good faith, most courts are reluctant to let you withdraw unless you signed it under deception or duress.
Canceling a settlement agreement is complicated. In these instances, it’s best to turn to a qualified car accident attorney who can help you navigate this uncertainty.
Financial Strategies to Manage Excess Medical Bills
In addition to arranging payment plans, financial assistance may be available to help you with your medical bills. Financial assistance programs, also called charity care, are specifically designed to help people with outstanding medical bills.
Also, it might help to know that you’re not alone. A recent analysis by KFF, a health policy organization, found that people in the U.S. owe, at minimum, about $220 billion in medical debt.
The medical provider or your state may provide free or discounted services. Advocacy groups and nonprofit organizations may also lend a hand and help cover your medical costs. If the medical bills come from a hospital, ask for a copy of their financial assistance policy and fill out the application form.
Many hospitals have departments explicitly designed to walk people through the process of finding the financial support they need. Don’t hesitate to ask for help. Several states have charity care laws that mandate hospitals provide discounted or free care to patients who meet certain requirements.
Some people also turn to medical bill consolidation and debt negotiation services. Debt negotiation involves working with a company or credit counselor who negotiates a payment plan or settlement that fits your budget. This usually entails consolidating your medical bills, obtaining a single loan, and repaying your debt in one monthly installment.
These products tend to come with interest rates, making paying off your debt more expensive in the long run. Working directly with the provider and devising an interest-free solution may be a better option.
Seeking Professional Advice
Navigating the ins and outs of settlements, negotiations, financial assistance, and legal processes like subrogation can be confusing and time-consuming. Professional advice can be a game-changer, helping you discover options.
Keep in mind that many personal injury lawyers offer free consultations and contingency arrangements. While most have a wealth of experience, it’s important to work with an attorney you feel comfortable with and one who has developed relationships with healthcare providers and insurance companies in your area. While it’s impossible to say how much lawyers can reduce medical bills, they can optimize a resolution. When you meet with any prospective lawyers for your case, ask them about their experience in reopening settlements after they’ve been accepted. This can help your odds of getting a settlement that will cover all your medical bills.
Empowerment Through Proactive Management
By taking action and empowering yourself through proactive financial management, you can discover the answer to the question: What if my medical bills are more than my settlement? Whether negotiating medical bills after settlement or exploring alternative payment options, remember, you don’t have to do it alone. Help is all around you through assistance programs, nonprofit organizations, and attorneys who act as your advocate.
