A severe car accident can lead to thousands of dollars in medical bills, which typically makes medical expenses a significant component of a car accident settlement. Unfortunately, not all car accident settlements include enough compensation to cover hefty medical bills.
What can you do if your medical bills exceed the amount of a proposed car accident settlement? The best step to take is to talk to an experienced Raleigh car accident lawyer from Younce, Vtipil, Baznik & Banks, P.A. Our experienced North Carolina car accident attorneys can review your options and help you find the best way forward, which may include further settlement negotiations to recover additional compensation.
Contact us now to set up a free consultation with a car accident attorney at our law firm.
How Could a Personal Injury Victim Receive a Low Settlement?
The most common reason victims end up with low settlements is that the limits of the liability insurance are lower than the medical bills. No matter how badly hurt the victim is, the insurance company cannot be forced to pay more than limits of the policy. In those situations, a good personal injury attorney will look for other sources of liability insurance as well as underinsured motorist coverage. Sometimes, however, even after looking under every rock, there is not enough insurance to adequately compensate the victim. The attorney can then investigate the assets of the at-fault driver, but often drivers who drive without enough liability insurance do not have sufficient assets to make a lawsuit feasible. Your attorney may also investigate whether the negligence of a party other than the at-fault driver may have contributed to your injuries. If so, that party may become another source of compensation.
Another major factor is that insurance companies always try to save money to protect their profits. Insurers often make initial offers that are much lower than the actual costs of someone’s medical bills and other losses. Insurance companies want to protect their bottom line, and keeping claim payouts low means greater profits.
Another common issue in car accident settlements is that many people don’t know their claim’s actual value. After an accident, people may think about only immediate expenses like car repairs and past medical bills while overlooking long-term costs, such as ongoing medical treatment, rehabilitation, physical therapy, and lost wages. When crash victims don’t factor in these future costs, they may settle for less than they need.
Not having a lawyer usually results in a lower settlement. Insurance companies know that most accident victims don’t have the legal experience to challenge their low offers. Without a lawyer to represent them, victims may accept settlements that don’t fully cover their expenses.
Even if you have an excellent personal injury attorney, liability disputes can affect the settlement amount. If there’s disagreement over who caused the accident, the insurance company may offer a low settlement to account for the odds that the victim may win or lose in court.
What Sources Other Than the At-fault Driver’s Liability Coverage Can You Use?
In North Carolina the law assumes that every person who has health insurance will use it first to pay the medical bills caused by a car accident. This is true whether your health insurance coverage is through your employer, Medicare, Medicaid, or a private insurance company you accessed through the Affordable Health Care Act. Even if your health insurance company covers only some of your bills, that could lead to significant savings and more money in your pocket from the settlement.
Because of a federal law with the acronym ERISA, if your health insurance company demand repayment from the liability insurance settlement, dealing with that reimbursement demand can be extremely complex. An experienced personal injury attorney is best equipped to handle such negotiations.
You might have optional medical payments coverage (MedPay) on your own auto insurance policy that could provide benefits to pay your medical bills. Give the declarations page of the vehicle you were in when the accident happened to your attorney, and they can tell you if it’s on the policy. Your attorney can also look for medpay on other policies you may have available.
What if, after everything my attorney can do, there still is not enough money to pay my medical bills?
If all else fails, North Carolina law has a crude safety net. North Carolina General Statute 44-49 and 44-50 provide that health care providers, such as hospitals, doctors, and therapists, cannot force your attorney to pay them more than half of what is left of the settlement or verdict after attorney fees are taken out. Since most attorneys charge a contingency fee of 1/3 (33.33%), all of the medical providers with liens cannot force the attorney to pay all of them together more than 1/3 of the gross settlement. In that case, each provider who has placed a lien on the claim will get their proportionate (pro rata) share of the 1/3 according to the amount of their outstanding bills. That law ensures that the injured victim will net from the settlement or verdict no less than 1/3 of the total.
WARNING: While most medical providers will have mercy on the poor accident victim, NCGS 44-49 and 44-50 do not prevent ruthless medical providers from turning the victim over to collections for the remainder of their bill that wasn’t able to be paid from the settlement. Sometimes your lawyer can negotiate with your healthcare providers to reduce the outstanding balance of your medical bills, although the victim’s attorney in those situations is often not negotiating from a position of strength.
Another option is to explore a payment plan to pay your medical debt over time, as some medical providers will negotiate to reduce your immediate financial burden.
Contact Our Raleigh, NC, Car Accident Attorneys for Help
The Raleigh car accident lawyers at Younce, Vtipil, Baznik & Banks, P.A., understand the stress of overwhelming medical bills after a car accident. We stand ready to negotiate for a better personal injury settlement for you and help you find the best way to pay your outstanding bills. You can trust us to provide the hands-on attention and personalized service you deserve.
Check out the testimonials from our previous clients to discover more about their experiences with our law firm. For example, Russell wrote, “Very professional. They articulate things in a way you’ll understand, and show empathy and compassion for your situation.”
Call us today at 919-661-9000 or complete our contact form to schedule a free case evaluation from an experienced personal injury attorney.
About the Author
David E. Vtipil
David Vtipil is an attorney at Younce, Vtipil, Baznik & Banks, P.A. and concentrates his law practice on personal injury and workers' compensation. David E. Vtipil was selected by his peers for inclusion in the 21st Edition of The Best Lawyers in America in the field of Workers’ Compensation Law.
