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How to Pay Your Medical Expenses While Waiting for a Personal Injury Settlement

Posted by James Hunt | Feb 02, 2022

How to Pay Your Medical Expenses While Waiting for a Personal Injury Settlement

A personal injury claim aims to obtain compensation for past and future medical expenses, as well as pain and suffering and economic losses. While you wait for a settlement, you may need money to pay your medical bills and living expenses. One of the most effective ways is to work with your medical providers, hospitals, and other agencies that send you these bills to figure out the right solution.

In This Article

A personal injury lawyer discusses how to get immediate relief from your medical bills, paying for expenses without insurance, and other details about the settlement process.

Immediate Relief Options From Medical Bills

After an injury, you might find that the medical expenses are piling up. You may be getting nervous about how to pay for medical bills.  If you have been injured as a result of someone else's negligence, there are many options out there to assist in dealing with medical expenses.  For example, payment arrangements, letters of protection, and medical liens, and certain types of loans are available to get the money you need while your provider gets the reassurance of payment.

Below we have outlined three available options for relief from medical bills after you have been injured in an accident:

Option 1. Payment Arrangements

It is possible to work out a payment arrangement with your medical provider to cover your expenses until receiving your settlement. Thereafter, you can reimburse them for your treatment and recovery expenses. Depending upon the facts and circumstances of your case, you may be entitled to immediate compensation for certain out-of-pocket expenses, such as prescription co-pays, over-the-counter medical supplies, and emergency transportation costs. For example, in slip and fall cases, many times the owner of the property has a liability insurance policy that provides for “med pay,” which is reimbursement for your medical expenses up to a certain limit.  (If you were in a car wreck, there is usually no-fault insurance or PIP insurance to pay for your medical treatment).  If you are unable to pay all at once, most providers, like hospitals, will consider a payment plan.

Option 2. Letter of Protection

If insurance does not cover your costs, you may be eligible for a letter of protection (LOP) to defer your medical expenses. LOPs are legal documents attorneys issue to physicians. A letter of protection confirms that any settlement proceeds will cover all medical expenses incurred due to the personal injury accident and guarantees payment at a later date. So if you receive a settlement payment at a later date, your attorney will then use those funds to pay off the medical expenses.

Option 3. Medical Liens

Alternatively, it is very common for health providers to agree to a lien on any settlement or civil award you receive.  A lien is an agreement that establishes the medical provider's legal right to recover payment for medical expenses after you obtain a settlement payment for your injuries. Liens can be triggered by LOPs, contractual agreements between parties, or state statutes like New Jersey's NJ Rev Stat § 2A:44-36.  Similarly, in New York, hospitals or doctors can obtain a lien to recover expenses related to the accident victim's medical treatment per NY Lien Law § 189.

Agreeing to a lien is more common if you do not have any health insurance that would cover medical costs.  In such a case, a lien may be the best option to use for medical expenses. When a doctor agrees to a lien, the doctor agrees to wait for payment until your case is ultimately settled and you receive a settlement payment. Typically, once you receive a settlement payment, the lawyer will pay the doctor's lien for medical costs out of any settlement funds received.

You can read the exact text for New Jersey's medical lien statute here.  You can read about New York's medical lien statute here.

How Do You Pay for Medical Expenses Without Insurance?

If your insurance policy does not include medical coverage or you do not have health insurance, speak with an attorney. We can work with your healthcare providers directly to ensure that your treatment is not interrupted or compromised while you wait for a settlement.

Everybody deserves care, and when you sustain severe injuries as a result of an accident that was not your fault, you should not be forced to bear the financial burden alone. An experienced injury attorney can help you figure out ways to deal with medical costs as a result of your injuries.  For example, when a person does not have health insurance, a doctor's lien (discussed above) may be a legitimate option to deal with, pay for,

 and obtain medical treatment.



Can Injury Victims Get Living Expenses Covered?

Daily living expenses can be more challenging to cover. Certain businesses specialize in lending money to people who may have a personal injury lawsuit or claims as a result of an accident. It is possible to reach a creditor agreement to allow time for your case to settle.

Below, we've outlined a few options for also getting living expenses covered:

Option 1. Personal Injury Lawsuit Financing

Lawsuit funding companies provide financial assistance to victims of personal injury accidents in the form of a loan while their case is pending.  Once a settlement payment is received, you are required to pay back the loan, with interest and fees, if any. This resource is beneficial for individuals who believe they are financially strapped and or are facing financial difficulties.  Most of these financing companies do charge interest, just like a loan.  It is important that you research these companies thoroughly to make sure they have good ratings and reviews.  There are unfortunately some companies out there with bad business ethics that might take advantage.  You should talk to an attorney, who might have some experience dealing with such financing companies.

If you choose this route, typically the financing company will want to learn more about your personal injury claim, your injuries, the potential for recovery, liability insurance, etc., so that they can feel sure that your case will result in a recovery and they can be paid back.

Option 2. Personal Bank Loans

A bank may approve a small loan to assist with living expenses after an accident injury. However, to increase your chances of approval, you may want to obtain a letter from your attorney outlining your proposed settlement figures.

Many injury victims cannot stay afloat financially after an accident and file for bankruptcy. Bankruptcy should not be taken lightly to reduce debt during the settlement recovery process. Work with a personal injury lawyer to help you avoid this situation entirely.

Are You Struggling to Pay Medical Bills After an Accident?

Consult with a New York and New Jersey personal injury lawyer immediately.

If you have been severely injured due to the negligence of another, do not delay in filing a personal injury lawsuit until you are faced with insurmountable medical bills. When another party's negligence causes you financial losses, you have the right to seek compensation from them under New York and New Jersey state law.

We can also work with you to determine the best strategy for dealing with medical bills while your case is pending.

We will assist you in filing a civil lawsuit against the negligent party to obtain an award for your medical costs, lost wages, future lost wages, pain and suffering, and even mental anguish. Our team will help you explore your legal options toward getting relief from your medical bills.

Schedule a Free Case Evaluation with Hunt & Associates, LLC Now

Contact Hunt & Associates, LLC to schedule a Free, No Obligation Case Evaluation now at (866) 456-HUNT (4868). You are also welcome to send us a confidential message directly here. If you hire our injury law firm, we don't get paid unless we recovery money for you. You pay no legal fees whatsoever.

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About the Author

James Hunt

Jim Hunt, the founder of Hunt & Associates, is a former Big Law attorney who trained at one of the biggest and most prestigious law firms in the world. He now uses that unique experience and training to help his injured clients fight for justice against “the big guys,” i...


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