Using a Letter of Protection in Personal Injury Claim

INJURED IN AN AUTO ACCIDENT WITH NO MEDICAL INSURANCE

If you are injured in an automobile accident and you do not have medical insurance, it can be difficult to get all the medical care you need.  The law in Florida requires all drivers to purchase insurance called personal injury protection or PIP.  It pays for the first $10,000.00 of medical care.  That is enough money to cover most minor injuries after a car accident.  However, the high cost of medical care today can cause a car accident victim to burn through their PIP very quickly.  Many people without medical insurance to pick up where PIP left off simply have no way to pay for their medical care. 

Good personal injury attorneys know there is an option called a LETTER OF PROTECTION (LOP for short).  An LOP can be issued by a personal injury lawyer, with your approval, to a medical provider willing to take one.  This is a legal document that guarantees the provider will receive payment out of any personal injury recovery obtained on the injured party's behalf.   In exchange for a guarantee of payment out of any personal injury recovery, the provider agrees to wait for payment until the personal injury claim is over.  The medical provider also agrees not to turn your account over to a collection agency for the unpaid balance while your case is still ongoing. 

If the personal injury claim resolves without a recovery, the injured person still owes the money at the end of the case.  This can be a big financial hardship.  However, at least the person got the care they needed.  In addition, although the medical provider has the right to get paid, the injured person in this circumstance probably cannot afford to pay.  As a result, the medical provider often writes off the bill.

Of course, not every medical provider is willing to take an LOP because they risk not getting paid if a recovery is not obtained in the personal injury case.  However, the medical providers willing to take them do so because they can charge more than they can charge private health insurance.  The higher charges on the cases they get paid on makes up for the ones that they do not get paid on. 

An LOP can often be the difference is getting needed medical care after an auto accident.  For that reason, a good personal injury attorney has relationships with medical providers willing to take them.