Navigating the aftermath of an accident that wasn’t your fault can be daunting, especially when medical bills start piling up. If an insurance adjuster investigating your accident for the person or party responsible makes you an offer to settle your claim, you might be tempted to take it so you can cover your expenses.
But what if you need additional treatment later? What if your injuries worsen and you need surgery?
Accepting a settlement might seem the best decision at the time. However, months or years down the line, you can suddenly find yourself struggling to pay for treatment and rehabilitation, not to mention feeling stressed about providing for your family when you cannot work.
But is there an alternative?
A letter of protection can be the solution that gives you the best of both worlds: you don’t have hospitals and treatment providers chasing you for payment or refusing to administer treatment because you cannot afford it, and you can pursue the maximum compensation you are entitled to.
In this blog post, we explain what a letter of protection is, how it works, and why it is an effective solution for paying medical bills.
What Is a Letter of Protection?
A Letter of Protection (LOP) is a document sent by a personal injury attorney to a medical provider. It guarantees payment for medical treatment from a future settlement or judgment (verdict) in a personal injury trial, allowing an injured person to receive the medical care they need without scrambling to find money to pay upfront or worrying about being denied treatment because they cannot afford it.
A Letter of Protection is a binding contract in Texas, reassuring medical providers that they will receive payment later. When your personal injury claim is resolved, your Texas personal injury attorney will pay the provider directly and write you a check for your remaining compensation. This is an agreeable solution for accident victims because they do not need to worry about paying debts or deduct any further costs from their settlement once they receive it.
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How a Letter of Protection Works and How to Get One
An LOP enables you to obtain medical care without immediate out-of-pocket expenses. However, you will likely need prompt medical treatment for your accident injuries — especially if they are severe. At the very least, we always recommend you visit a doctor after your accident — even if you feel fine — to document your injuries and prove when they occurred.
This scenario highlights why it is crucial to consult a personal injury lawyer as soon as possible after your accident.
The process of getting a Letter of Protection is fairly straightforward:
Consult a Personal Injury Attorney
An LOP is a legal document, meaning only a qualified personal injury lawyer can draft one for you. Your attorney will assess your circumstances to determine whether you have a claim before discussing your treatment needs and if a Letter of Protection might be appropriate.
Contacting Your Medical Provider(s)
Upon agreeing to take your case, your attorney will contact your medical providers to discuss the possibility of a Letter of Protection. Your treatment providers must agree to defer payment until your claim is successfully resolved. Most providers are open to this arrangement as LOPs are legally binding, so payment is guaranteed later.
Drafting Your Letter of Protection
Your personal injury lawyer will then draft your LOP, outlining the terms of the agreement between you, the medical provider, and your attorney. It will specify that the medical provider will receive the cost of your treatment owed out of an agreed settlement or court judgment before the remaining funds are distributed to you.
Signing the LOP
Finally, you must sign the LOP, making it legally binding. You can then receive treatment without having to pay upfront.
What Happens If I Lose My Personal Injury Claim?
A Letter of Protection does not eliminate medical costs — you must pay for treatment, whether upon receipt of such treatment (without an LOP) or once you receive compensation.
But what if your personal injury claim is unsuccessful? A Letter of Protection is a binding agreement, so you might worry that you’ll be on the hook for paying medical bills and unable to afford them because you do not have compensation.
Patino Law Firm works on a no-fee-until-you-win basis, meaning that if your case is unsuccessful, we don’t get paid. As a result, we will only take on your claim if we are confident you have a strong case and that we can get you the compensation you deserve.
Still, a win is never guaranteed, especially if you take your case to trial, where juries can be unpredictable. In the unlikely event you lose your case and a Letter of Protection is in place, we will never leave you in the lurch to figure it out on your own.
Our first port of call is to contact your medical providers to negotiate a resolution. The outcome will vary depending on the medical provider and the amount owed. We may be able to work out a viable payment plan that allows you to repay your medical bills in affordable installments over an agreed period. In some cases, we may be able to negotiate a fee reduction so you will not have to pay the full amount.
A Letter of Protection may be a binding agreement, but many providers understand the unpredictable nature of personal injury claims and are willing to accept a payment plan or lower payment.
Is It Better to Use a Letter of Protection or Health Insurance?
Using your health insurance can be a better option for covering your medical bills if you can afford the copays and deductibles. The additional benefit of using your health insurance is that in the rare scenario your claim is unsuccessful, you will not be left wondering how you will pay your bills.
However, a Letter of Protection still might be the most viable solution if you cannot afford your out-of-pocket medical expenses.
Some medical providers reject health insurance for accident-related injuries, although if you were hurt in an auto accident, it’s worth checking if you have Personal Injury Protection (PIP) included in your car insurance policy. Personal Injury Protection can cover a significant percentage of your medical bills if you’re concerned about your chances of recovering compensation and the potential long-term financial implications of securing a Letter of Protection.
A Letter of Protection allows you to receive prompt treatment without draining your bank account or accruing credit card debt. An LOP gives you peace of mind that your full treatment costs will be covered by your eventual settlement. While you might consider accepting a settlement early on to cover your expenses instead, insurance companies will attempt to low-ball you, and you risk not having enough to cover your fees for additional or ongoing treatment. It’s also highly likely that you may not know about your long-term treatment needs immediately after your accident and the weeks and months that follow.
When you’re hurt, you must get treatment — your health has to come first. You shouldn’t have to face the decision of getting into debt or toughing it out through significant pain because you can’t pay your medical bills upfront. Fortunately, with a Letter of Protection, you don’t have to.
If you’ve been injured in an accident and cannot afford your medical bills, seeking legal help is crucial. Our experienced personal injury lawyer in McAllen and San Antonio can explore whether you have a claim, write a Letter of Protection, and fight to secure the maximum compensation you deserve.
Contact Dr. Louis Patino and his team today for a free, no-obligation case review. You don’t pay any fees until we win your case. Call 855-LAW-NINJA or submit a contact form to see where you stand.
