When you’re injured in an accident, significant medical bills can accumulate quickly. From emergency room visits and diagnostic tests to surgeries and physical therapy, these expenses can be overwhelming, especially when paired with lost income due to your injuries. If you’ve secured a personal injury settlement, you may be wondering, “Do I have to pay medical bills out of my settlement?” This is a common question we hear at Gieg & Jancula, a trusted personal injury law firm serving Altoona, PA.
The short answer is yes—your medical bills often need to be paid from your settlement. However, understanding how this process works, your obligations and your rights can empower you to make informed decisions about your settlement and financial future.
What Is a Personal Injury Settlement?
Before we dig into the specifics of medical bills, it’s important to understand what a personal injury settlement is. A settlement is a financial agreement between you and the at-fault party (or their insurance company) to compensate you for your losses. Settlements often cover:
- Medical expenses (past and future)
- Lost wages
- Pain and suffering
- Property damage
- Other out-of-pocket costs related to the injury
At Gieg & Jancula, we fight to maximize these settlements for our clients, ensuring all immediate and future costs related to their injuries are accounted for.
Why Are Medical Bills Paid Out of Your Settlement?
Medical providers, insurance companies, and others who cover or delay billing for your care expect to be repaid once you receive a settlement. This repayment is often required due to medical liens. Simply put, a medical lien is a legal claim that allows healthcare providers or insurers to recover the costs of care provided to an injured person out of any compensation they receive.
Common Scenarios with Medical Bills and Settlements:
- Health Insurance Coverage: If your health insurer covers your medical expenses, they may have the right to reimbursement through a process called subrogation.
- Unpaid Provider Bills: If your healthcare provider delays billing or agrees to accept payment once you receive your settlement, they may place a lien on your compensation.
- Medicaid/Medicare Liens: When government programs cover your bills, they often seek reimbursement out of your settlement as well.
- Out-of-Pocket Costs: Any medical expenses you pay upfront may be reimbursed to you directly from your settlement.
What’s important to know is this: settling your case should not leave you financially worse off. That’s why it’s critical to fully understand the distribution process of your settlement.
Who Gets Paid First From a Settlement?
Once you’ve secured your settlement, the funds typically don’t go straight to your bank account. Instead, the distribution process generally follows this order:
- Attorney Fees and Costs – If your case was handled on a contingency fee basis (as most personal injury cases are), your attorney’s fees are taken first. At Gieg & Jancula, we clearly explain our contingency fees upfront, so there are no surprises for our clients.
- Medical Liens and Expenses – After attorney fees are deducted, the remaining settlement amount is used to satisfy medical liens and expenses. This ensures that healthcare providers and insurers are fairly reimbursed.
- Client Compensation – Once liens and fees are handled, the remaining funds—the majority of your settlement—go directly to you. These funds compensate for your pain and suffering, lost wages, and other damages.
Can an Attorney Help Reduce Medical Liens?
This is where having an experienced personal injury attorney can truly make a difference. After your case settles, your attorney can often negotiate with healthcare providers and lienholders to reduce the amount owed. For example:
- If a hospital placed a lien for $10,000, your attorney may be able to negotiate it down to $7,000.
- Similarly, your health insurance company may agree to accept a lower amount as reimbursement.
At Gieg & Jancula, lien negotiation is an integral part of the settlement process. We work tirelessly to ensure that you keep as much of your settlement as possible.
What If My Settlement Won’t Cover All My Medical Bills?
Unfortunately, there are instances where a settlement is insufficient to cover all medical expenses, especially if liability is contested or the at-fault party has limited insurance. If this happens, you have a few options:
- Negotiating With Providers – Many medical providers are willing to work with patients on payment plans or reduced bills, particularly when they know you’ve been through a personal injury case.
- Filing a Personal Bankruptcy – While a last resort option, filing bankruptcy may be necessary in extreme cases. Consult with both your personal injury attorney and a bankruptcy attorney to fully understand the implications.
- Additional Sources of Compensation – Our team at Gieg & Jancula will explore every possible avenue for compensation, from uninsured/underinsured motorist coverage to identifying other liable parties.
Frequently Asked Questions
Can Hospitals Refuse Treatment If I Don’t Pay My Bills Right Away?
No. Healthcare providers cannot refuse to treat you for outstanding medical bills related to your injury.
What Happens If There’s A Dispute Over The Amount Of A Lien?
With an experienced attorney advocating for you, disputes can often be resolved through negotiation or, if necessary, legal action.
Can I Choose To Pay My Medical Bills Out Of Pocket Instead Of Paying My Settlement?
This may be possible, but it’s not recommended. Failing to address liens properly can lead to legal consequences. Consult with your attorney about the best approach.
How Does Pennsylvania Law Affect Medical Liens?
Pennsylvania has specific requirements for medical liens, particularly those related to Medicaid and Medicare. An attorney familiar with these laws will ensure all lien resolutions comply with state and federal regulations.
How Can I Ensure My Settlement Is Enough To Cover My Bills?
By working with experienced personal injury attorneys like Gieg & Jancula, you can ensure your settlement takes into account both your current and future medical expenses.
How Gieg & Jancula Can Help You
Navigating the complexities of personal injury settlements and medical liens can be overwhelming. However, you don’t have to face it alone. At Gieg & Jancula, we specialize in managing every aspect of the settlement process, from building a strong case to negotiating liens and securing maximum compensation for our clients.
We pride ourselves on our empathetic, client-first approach. When you work with us, you’ll not only gain an advocate but also a partner ready to guide you through every step of your case.
Don’t Leave Your Settlement Up to Chance
If you’re asking, “Do I have to pay medical bills out of my settlement?”—you deserve calm, clear answers. Contact Gieg & Jancula today for a free consultation. We’ll work tirelessly to protect your rights, resolve your medical bills efficiently, and secure the settlement you deserve.
Call now at 814-946-1606 or schedule your consultation online to start your path to recovery.