Medical bills can start arriving almost immediately after a car accident. You may have charges for an ambulance, emergency room care, X-rays or other imaging, follow-up appointments, physical therapy, prescriptions, and more.
If someone else caused the crash, it is natural to assume their insurance company should pay those bills. In Minnesota, however, medical bills after a car accident may pass through several different sources of coverage before a personal injury claim is resolved.
So, who actually pays? The answer may involve no-fault insurance, health insurance, the at-fault driver’s liability coverage, and potentially the proceeds of a personal injury settlement.
Understanding how those pieces fit together can help you avoid surprises while your car accident injury claim is pending.
PIP Is Generally the First Source of Medical Coverage
Because Minnesota is a no-fault state, qualifying accident-related medical expenses are generally submitted first to the applicable Personal Injury Protection (PIP) coverage.
Minnesota requires at least $20,000 per person in medical expense benefits as part of its basic no-fault coverage. These benefits can pay reasonable and necessary medical expenses resulting from the accident, regardless of who caused the crash.
We explain PIP coverage in more detail in our guide to how Minnesota no-fault insurance works after a car accident.
For purposes of your medical bills, the important point is that PIP is generally the starting point. The at-fault driver’s insurer usually does not simply pay your doctors as bills arrive.
What Happens When Your PIP Medical Benefits Run Out?
Twenty thousand dollars may sound like substantial coverage until you experience a serious injury.
An ambulance ride, emergency treatment, diagnostic testing, specialist appointments, surgery, and rehabilitation can exhaust PIP medical benefits quickly. If that happens while you still need treatment, another source of payment may need to take over.
For many people, that means turning to their health insurance.
Your providers may need documentation showing that PIP benefits have been exhausted before health insurance begins processing accident-related bills. The details can vary based on the insurance policies involved, so pay attention to notices from both your auto insurer and health insurer.
Exhausting PIP does not necessarily mean you have reached the end of your ability to recover accident-related medical expenses. Those expenses may also become part of a claim against the person responsible for the crash.
What If a Hospital or Doctor Sends the Bill Directly to You?
Receiving a medical bill does not necessarily mean you are ultimately responsible for paying the entire amount out of pocket.
Billing problems can occur because a provider does not have the correct auto insurance information, PIP has not processed the claim yet, coverage has been exhausted, or the provider needs additional information.
Do not simply ignore a bill because you believe an insurance company should be paying it. Contact the provider to determine why you received it and make sure the appropriate insurance information has been submitted.
Keep copies of bills, insurance explanations of benefits, payment notices, and correspondence. These records can help identify unpaid balances and document your medical expenses as your personal injury claim develops.
What If You Don’t Have Health Insurance?
The situation can become more complicated if your PIP benefits are exhausted and you do not have health insurance.
Depending on the circumstances, a medical provider may have options for handling an outstanding balance while a personal injury claim is pending. But you should not assume a provider will simply wait until your case settles.
If significant medical bills are accumulating, talk with your Minnesota car accident attorney about the available options. Part of handling a serious personal injury claim is understanding not only the compensation you may eventually pursue but also how medical expenses will be managed while the claim is ongoing.
Can Medical Bills Go to Collections While Your Claim Is Pending?
A pending personal injury claim does not automatically put medical bills on hold.
Your doctor, hospital, or another medical provider is generally separate from the insurance company handling the liability claim. The fact that you expect to receive compensation later does not necessarily prevent an unpaid account from moving through the provider’s normal collection process.
This is one reason you should not ignore bills or assume your attorney and the insurance companies are automatically receiving everything you receive.
If you receive collection notices or bills you believe should have been submitted to insurance, address them promptly and provide copies to your attorney when appropriate.
Does the At-Fault Driver Ever Pay Your Medical Expenses?
If another driver caused your car accident, their liability insurance may ultimately be responsible for damages that include qualifying medical expenses.
But there is an important difference between paying medical bills as they arrive and recovering compensation through a personal injury claim.
The liability insurer generally evaluates the claim as a whole rather than paying each medical provider throughout your treatment. A personal injury claim may account for medical expenses along with other damages, such as lost income, future medical needs, and pain and suffering when recoverable.
That process may take months or longer, which is why PIP and health insurance can be so important while treatment is ongoing.
Can Your Health Insurance Company Be Repaid From Your Settlement?
Potentially. This is where subrogation and reimbursement claims can enter the picture.
If health insurance or another benefit plan pays expenses for injuries caused by someone else, the plan may have rights to seek repayment from money later recovered through the personal injury case.
The rules vary depending on the type of insurance plan and the circumstances.
Similarly, there may be outstanding medical bills or other claims that need to be resolved when a case settles. Your attorney can identify potential reimbursement obligations and address them as part of the settlement process.
What Happens to Medical Bills When a Personal Injury Case Settles?
When a settlement is reached, the entire settlement check does not necessarily go directly to the injured person.
Before settlement proceeds are distributed, outstanding issues may need to be resolved. These can include unpaid medical bills, valid liens or reimbursement claims, attorney fees, and costs associated with pursuing the case.
Resolving these obligations is an important part of completing a personal injury claim and determining the amount the client ultimately receives.
Don’t Forget About Future Medical Expenses
Medical bills already sitting on your kitchen table tell only part of the story.
A serious injury may require future surgery, rehabilitation, medication, injections, medical equipment, or ongoing care. Those potential costs should be considered before resolving a personal injury claim.
Once you settle a claim and sign a release, you generally cannot seek additional compensation from the settling party simply because your medical needs later become more extensive than expected.
That is one reason serious injury claims should not be evaluated based solely on the medical expenses accumulated to date.
Get Help Managing Medical Bills After a Minnesota Car Accident
The medical-bill process after a car accident can become complicated, particularly when PIP benefits run out or multiple insurance companies are involved.
The personal injury attorneys at Sieben Edmunds Miller can help determine what insurance coverage applies, document accident-related medical expenses, address issues that arise during the claim, and pursue compensation from those responsible for your injuries.
If you are facing medical bills after a Minnesota car accident, contact Sieben Edmunds Miller to discuss your claim.
Frequently Asked Questions About Car Accident Medical Bills
Does the at-fault driver’s insurance pay my medical bills right away?
Generally, no. Minnesota’s no-fault system typically provides the first source of coverage for qualifying accident-related medical expenses, while a liability claim against the at-fault driver is handled separately.
What happens after my $20,000 in PIP medical coverage runs out?
Health insurance may become an important source of coverage for additional qualifying treatment. The expenses may also be relevant to your personal injury claim against the at-fault party.
Can I ignore a medical bill while my car accident claim is pending?
No. A pending personal injury claim does not automatically stop a provider’s billing or collection process. If you receive a bill you believe insurance should cover, determine why it was sent to you and address the issue promptly.
Will I have to repay health insurance after a car accident settlement?
Possibly. Some health insurers and benefit plans may have reimbursement or subrogation rights when they paid medical expenses related to injuries for which you later receive compensation. The applicable rules depend on the coverage involved.
