The Need for a Letter of Protection After an Accident
Most accident victims have two things in mind. They want to get well as soon as possible and recover their accident damages. A letter of protection (LOP) can help with both of these.
The Meaning of a LOP
A LOP guarantees payment for medical treatment after an accident. If you need treatment for accident injuries, your lawyer can write a LOP to your medical providers guaranteeing bill settlement later. The LOP is a legally binding contract that you must honor. Otherwise, you might face legal consequences.
The Necessity of a LOP
Paying medical bills after an accident can be complicated for different reasons. For example:
- You might not have the money to pay the bills
- You may not have adequate medical coverage
- You want someone else (the liable party) to pay the bills
Unfortunately, medical providers are not always sure you will settle your bills if you don't have medical insurance or money.
In fact, bill payment can be an issue even if you have insurance coverage. For one, medical and auto insurance carriers often disagree on who should pay auto accident treatment costs. Most medical insurers expect their automobile counterparts to pay the bills.
Secondly, even if the relevant auto insurer agrees to settle the bills, they might not do so on an ongoing basis. Most auto insurance companies expect you to pay the bills out of pocket, after which they reimburse you in a lump sum. In some cases, the reimbursement might not cover all the bills.
Medical providers don't like these complications and might not offer you the care you need. A LOP guarantees payments to the providers so that they can treat you without worrying about bill payments.
The Benefits of a LOP
A LOP has numerous benefits for accident victims. Below are some of them.
Allows Prompt Medical Care
A LOP allows you to get prompt medical care. Some accident injuries require treatment by different medical specialists. You might struggle to get the relevant care without a LOP.
Delays Medical Billing
The defendant should pay your medical bills even if you have the money for the same. Your treatment shouldn't affect your cash liquidity if you aren't responsible for your injuries. A LOP allows you to delay medical billing until the defendant's funds become available.
Stops Debt-collection Efforts
Without a LOP, expect your medical providers to do everything possible to get their money. Some medical providers even use debt collection agencies for these services. Debt collection agencies can be rather aggressive in their efforts. A LOP will stop such debt-collection efforts.
Delays Credit Reporting
Medical providers might report your unpaid medical bills to credit bureaus. The reports can ruin your credit rating. Fortunately, your medical providers won't report your debts to credit agencies if you have a LOP.
Allows Time for Settlement Negotiations
Without a LOP, you might be tempted to accept a low settlement offer from the insurance agent. A LOP gives you breathing space so that you can negotiate for a better offer.
May Afford You Lower Bills
Some doctors may lower your medical bills if you have a LOP. Your accident lawyer may even help you negotiate the bills.
Increases Chance of Medical Testimony
Lastly, a LOP may also help you get medical testimony during the trial. Medical providers are usually reluctant to testify in accident cases. However, providers who have accepted a LOP may testify since they also have a stake in your case's outcome. The testimony helps to strengthen your case.
Not every case requires a LOP. Wegner & Associates will evaluate your case and your circumstances to determine whether you need a LOP. We will also help you pursue the damages you deserve. Contact us for a free initial consultation to determine how to proceed with your case.