After a car accident, you are faced with unexpected medical bills and very few answers. A common concern among clients is how to manage these bills if the insurance company for the at-fault driver says it won’t pay until the entire case is settled. Understandably, the fear of unpaid bills affecting one’s credit score can be overwhelming. Here’s a breakdown of how medical bills are typically managed in these situations and what options may be available to keep your credit intact while you heal and work on the claim..

Most health insurance policies cover medical expenses even if the injuries stem from another person's negligence. Health insurance can be a vital resource during this time, helping ensure that bills are paid promptly, and credit ratings stay unaffected. However, if you later receive a settlement or jury award, your health insurance provider will likely have a right to reimbursement. This is known as subrogation, where they recover the money they initially paid for your care—often with deductions for attorney fees and other recovery costs.

If you have auto insurance, or if the vehicle you were in carries that type of insurance, there’s likely a type of optional coverage called medical payments coverage, or MedPay. MedPay is designed specifically to cover accident-related medical bills regardless of who was at fault, up to the policy's limit. This means MedPay can help cover expenses right away, which may help prevent bills from going unpaid.

Like health insurance, MedPay carriers also generally have a right to seek reimbursement from any settlement or award, after accounting for injury attorney fees and other costs involved in securing that settlement.

 Managing medical bills after a crash can be complex but understanding the role of both health insurance and MedPay coverage can make the process easier. By ensuring prompt payment of bills through these channels, you can focus on recovery without the added stress of unpaid bills or credit issues. Working closely with LLDDC Law, your auto injury attorneys in Des Moines, IA can help streamline this process, and help keep your finances in order while you get the care you need. The call is 100% free and there is no cost to you until we take your case and win.