You have more than one way of paying for your medical care after a car accident. Your choices may be health insurance, car insurance, or cash. Or, if the accident was not your fault, your doctor may offer you a medical lien. Of these choices, health insurance is usually the cheapest, while a medical lien is often the most expensive.
If you are expecting a settlement from an at-fault driver, you may choose to sign a medical lien to postpone payment until the money arrives. By understanding and negotiating the provisions in a lien, you could save yourself thousands of dollars. This post alerts you to 3 things you should know before you sign.
1: Does the lien specify treatments and charges?
If the lien does not place limits of some kind on treatments and charges, you may end up paying more than you expected.
2: Is balance billing prohibited by the lien or state law?
When a provider bills you for the difference between his charges and the amount allowed by your insurance company, he is balance billing. For example, a doctor bills your health insurance company $100 for a treatment and your insurance allows $60. If the provider bills you for the remaining $40 (the balance), he is balance billing.
3: Is the medical lien mandated by state law?
State law may specify that certain treatments can be put on a medical lien, such as emergency care.
This e-book will help you understand the pitfalls of medical liens: The pitfalls of medical liens: How to Save Money on Medical Care after a Car Accident
This e-book will help you understand MedPay and get more treatments before you reach the limits of your MedPay coverage. 4 Things You Should Know About MedPay: How to Save Money on Medical Care after a Car Accident
If you have signed a medical lien, help others by sharing your experience in the comments below.