Do Medical Bills Come Out of Your Lawsuit Settlement?

If you’ve been injured in an accident that wasn’t your fault, you likely have many questions about paying medical bills and receiving compensation. Many injured people who come to see our Atlanta personal injury lawyers worry about how they can pay these expenses and what to do next. 

It is common for medical expenses to quickly balloon and they can have a serious impact on your financial future. Generally, medical damages are paid as a part of your settlement package to help you recover the money needed to pay your medical bills.

However, it’s important to know that an experienced personal injury lawyer from John Foy & Associates can help guide you through the process and help to ensure you get as much compensation as possible to meet these obligations. 

Medical Bills and Your Settlement

Let’s take a look at the variables that could affect how your medical bills get paid following an accident.

Medical bills are usually one of the biggest parts of a settlement claim

The goal in seeking compensation through a personal injury settlement is to recover all of the financial costs associated with treating injuries that were caused by the at-fault party. Medical expenses often make up the largest portion of what is owed to the injured plaintiff.

There are a few reasons why:

Past Medical Bills Add Up Quickly

Hospital stays, surgeries, follow up procedures, medications, physical therapy, and other medical treatments needed immediately after an accident can accumulate to huge totals very rapidly. Not having to repay these costs out of pocket is a major priority.

Future Treatment Expenses Must Also Be Anticipated

Some injuries may require prolonged, repeated, or lifetime management. An independent medical exam can estimate future costs like years of doctor’s visits, prescriptions, or ongoing therapies that must be covered.

Insurance Considers Medical Costs First

When calculating settlement offers, insurance companies look at necessary past and anticipated future medical bills as hard costs they are typically required to cover. This anchors the negotiations.

For all these reasons, properly accounting for any related medical bills is a vital piece of determining a fair settlement amount for injured plaintiffs to compensate for costs incurred due to another’s negligence or wrongdoing

What Is a Settlement?

The goal of a personal injury settlement is to make the injured party whole again financially, which includes recovering all medical costs and other expenses incurred as a result of the accident. Past medical bills for treatment received will be included in the settlement amount, as will future medical expenses if the injuries require ongoing care, in order to properly compensate the injured individual.

The settlement is designed to help make the injured party “whole” again. This means that the settlement package should include the money needed to cover all the medical expenses you incurred so you can pay the bills.

Even if you covered some copays and costs, you deserve settlement money to account for the bills you paid. The settlement should account for that.

What if My Health Insurance or Car Insurance Paid My Hospital Bills?

Health insurers often have subrogation clauses in their policies that allow them to recover costs from third-party settlements. Subrogation is a legal doctrine that allows an insurance provider to step into the shoes of their customer to recover medical costs paid out, from a responsible third party.

For example, if the health plan pays $10,000 towards an insured’s medical bills from a car accident, but the insured then receives a $100,000 settlement from the at-fault driver’s insurance, the health plan has a right to recover the $10,000 it paid.

In negotiating with hospitals and providers, an experienced attorney from John Foy & Associates can structure a settlement to either pay the bills or resolve any medical liens. In some cases, an attorney can negotiate to help lower your medical bills.

What Are Some Other Types of Damages Included in a Personal Injury Settlement?

Here are some additional types of costs that may be included in a personal injury settlement beyond just medical bills:

• Lost wages – If the injury prevented the person from working, compensation for salary/income lost during medical leave and recovery is common.
• Loss of future earning capacity – In some cases like permanent disability, projections are made for lifetime earning potential lost.
• Property damage – If the accident destroyed or damaged the person’s vehicle, property, etc. repair/replacement costs can be part of the claim.
• Pain and suffering – No amount of money can undo experiencing pain from injuries, so settlements aim to account for generalized distress and loss of enjoyment of life.
• Disfigurement or permanent impairment – Lingering effects on quality of life from scars, loss of function, etc. are acknowledged.
• Household expenses – Additional costs like hiring help for daily tasks the injured can no longer do are sometimes considered.

The goal is to make the injured whole again financially and compensate all categories impacted by the liability of another party.

This helps to ensure the injury victim does not have to pay outstanding debt out of pocket and allows full recovery without financial burden from accident-related costs. In most cases, a well-negotiated settlement covers medical bills and then some, achieving the ultimate goal of making the injured party whole.

Contact a Personal Injury Law Firm Today to Learn More

When suffering injuries due to another’s negligence, the last thing someone should worry about is unpaid medical bills on top of their recovery. Seeking fair compensation through a personal injury lawsuit allows recovering funds to pay all accident-related medical costs, whether for treatments already received or estimated future expenses.

Working with an experienced firm like John Foy & Associates ensures settlement amounts properly prioritize reimbursing pertinent healthcare bills and leaves you empowered to heal without financial strain.

Our personal injury attorneys understand the importance of structuring payouts to guarantee medical providers are satisfied without any out-of-pocket costs falling on you. Contact us today to learn more about how we can help in a free consultation.