How Are Medical Bills Paid in Car Accident Cases

After a car accident, one of the first questions people ask is, “Who is going to pay my medical bills?” Understanding how medical bills are handled after a car accident is essential to protecting your health and your financial future. New Jersey applies a no-fault insurance system, which means that when a New Jersey driver is injured in a car accident, their own insurance company pays for their medical expenses, regardless of who is at fault. This insurance coverage, known as Personal Injury Protection (PIP), is required coverage on all New Jersey auto insurance policies.

PIP insurance pays for the following medical expenses:

• Emergency room visits and hospital stays
• Doctor appointments and follow-up care
• Physical therapy and rehabilitation
• Prescription medications
• Diagnostic tests, such as X-rays, MRIs, and CT scans
• Ambulance transportation

Standard PIP coverage in New Jersey provides coverage for up to $250,000 in medical expenses, but drivers can select PIP coverage limits as low as $15,000 per accident.

Does Health Insurance Cover Car Accident Medical Bills?

Many drivers assume their health insurance will cover car accident medical bills. This is not the case in New Jersey. Many health insurance policies exclude car accident medical bills, or only provide secondary coverage in the event the cost of an injured individual’s medical care exceeds the PIP coverage limits.

New Jersey drivers can select their health insurance as primary coverage for car accident medical bills. While this option can reduce auto insurance premiums, it comes with potential drawbacks, including:

• A high deductible before health insurance coverage applies
• Co-pays for each medical visit
• Limited coverage for car accident medical bills

What Happens When Car Accident Medical Bills Exceed PIP Coverage Limits?

When car accident medical bills exceed PIP coverage limits, other sources of payment may apply. Other sources that might pay for medical bills after a car accident include:

• Health insurance. When the cost of medical bills exceeds the driver’s PIP coverage limit, the injured individual’s health insurance may pay for the additional expenses.
• Medicare or Medicaid. These programs provide insurance coverage for eligible individuals and may cover accident-related expenses once the individuals’ PIP coverage limits have been reached.
• The at-fault driver’s insurance. An injured person can file a claim with the at-fault driver’s insurance company to cover unpaid medical expenses.
• Personal funds. Without adequate insurance coverage, an injured person may need to use personal funds to pay remaining medical expenses.

Who Pays for Damages in a Car Accident When Passengers Are Injured?

When passengers are injured in a New Jersey car accident, their medical bills might be paid by:

• The injured passenger’s automobile insurance. If the injured passenger has a New Jersey automobile insurance policy that includes PIP coverage, it provides primary coverage.
• The driver’s PIP coverage. If the injured passenger does not have their own automobile insurance policy, the insurance policy that covers the vehicle in which they were riding will typically apply.
• A household member’s automobile insurance. If a household member of the injured passenger has PIP coverage, that policy might provide coverage for car accident medical bills.

What About Car Accident Injuries that Happen on the Job?

When New Jersey drivers are injured in car accidents while on the job, workers’ compensation covers the resulting medical bills.

Negotiating Car Accident Medical Bills

Even with insurance, individuals injured in a car accident may receive medical bills they cannot afford to pay. The injured individual may be able to negotiate a reduced payment amount to prevent car accident medical bills from spiraling out of control. Many people do not realize that healthcare providers expect to negotiate medical bills. Medical providers frequently accept reduced amounts, especially in situations where the patient will have difficulty paying.

To negotiate car accident medical bills:

• Request an itemized bill. Begin by requesting an itemized bill and reviewing it for overcharges, incorrect billing codes, or services that were never provided.
• Ask for a discount. Doctors and hospitals may provide a discount for an upfront payment. Even a partial up-front payment can reduce the total balance owed.
• Create a payment plan. Many healthcare providers allow reasonable monthly installment payments.
• Apply for financial assistance. New Jersey hospitals are required to provide economic assistance programs for qualifying individuals. Asking about available financial assistance can reduce medical bills.

Contact Iannelli Law Today

John C. Iannelli is an experienced and sought-after New Jersey personal injury lawyer who has earned a reputation for achieving exceptional results for his clients. He can evaluate your situation, advise you on your rights, and fight for the compensation you deserve. Contact Iannelli Law today to schedule an appointment to discuss your situation with an experienced New Jersey personal injury attorney.