Suffering an injury in a car accident is a traumatic event on its own. For many accident victims, the difficult aftermath of an accident is complicated by worries about unpaid medical bills going to collections, which can harm your credit. Collections agencies hounding you for debt only adds more stress to your situation.
If you’re struggling with medical bills after a car accident, the experienced Cincinnati and Northern Kentucky car accident lawyers at Lawrence & Associates Accident and Injury Lawyers, LLC, can help. We’ll ensure you understand the medical collections process and your legal rights after a car accident. Reach out today for a free consultation.
Who Is Responsible for Paying Medical Bills After a Car Accident?
Legal responsibility for paying medical bills in an accident differs depending on your state. Ohio is an at-fault state, meaning the driver at fault for the accident is responsible for these costs. Meanwhile, Kentucky is a no-fault state, meaning those involved must first turn to their own insurance coverage for their losses, regardless of who is at fault for the collision.
At-Fault Insurance in Ohio
Ohio’s at-fault system means the at-fault party’s insurance must cover an accident victim’s medical costs up to the policy limits. However, many drivers purchase optional medical payments insurance, or MedPay, which covers immediate medical expenses after the accident regardless of who’s at fault. Thus, these policies typically pay emergency room bills and similar expenses that arise long before a settlement is reached. However, you must reimburse your insurer for any payments made under your MedPay coverage if you recover a settlement.
No-Fault Insurance in Kentucky
Under Kentucky’s no-fault system, drivers must file claims under their own insurance coverage. Kentucky requires drivers to purchase personal injury protection coverage, or PIP, which pays for medical bills, lost wages, and similar costs up to a policy limit.
However, PIP coverage often isn’t enough to cover a victim’s full medical expenses and other damages. When a victim has incurred more than $1,000 in medical expenses, suffered a broken bone or permanent injury, or died, the victim or their family can bring a lawsuit against the other driver to cover these costs.
How Unpaid Medical Bills Can End Up in Collections
The health care provider who treated you after your car accident will send you a bill for their services. The provider will follow up with you several times if you don’t pay immediately, usually through the mail, phone, and email.
After some time has passed, the provider will typically send your debt to collections. No specific laws in Ohio or Kentucky regulate how long before a debt is sent to collections. Many providers have individual policies with periods ranging from 30 to 180 days.
While rare, a creditor might sue you to collect a debt you owe. However, statutes of limitations restrict when creditors can sue. In Ohio, a debt collector must file suit over a debt within six years of becoming overdue or your most recent payment. Meanwhile, Kentucky’s statute of limitations for debt collection claims is 10 years.
How Medical Debt Can Affect Your Credit Score
The question of how medical debt affects your credit score is currently unresolved. Due to recent reforms issued by the federal Consumer Financial Protection Bureau and major credit agencies, medical debt that goes to collections may not appear on your credit report or affect your score. Before those reforms became effective, medical debt with a starting balance of under $500 would not be reported to credit agencies. However, certain reforms are being rolled back. Whether either of these reforms will remain in force long-term is yet to be seen.
In general, debt that goes to collections can negatively affect your credit score. The higher your debt and the more payments you’ve missed, the worse the impact may be. It’s important to monitor your credit report to determine whether you have a debt in collections that is hurting your score. An attorney can help you validate debts appearing on your credit report to ensure only debts you legitimately owe are listed.
Steps To Prevent Medical Bills From Going to Collections
It’s possible to avoid having your medical bills sent to collections after you’re in a car accident. Steps you can take to prevent bills from going to collections include:
- Work with your insurers to ensure claims are submitted on time. Processing and paying insurance claims in a timely fashion helps cover bills before providers send them to collections.
- Use MedPay or PIP coverage whenever applicable. MedPay and PIP coverage handle medical costs more quickly than waiting for the settlement process to resolve and risking bills going to collections.
- Negotiate payment plans with providers. Many medical providers will help you set up a payment plan for the total amount you owe to pay it off incrementally rather than letting the balance sit unpaid while you wait for settlement proceeds.
- Hire a personal injury lawyer to negotiate bills out of collections and help you recover compensation. A knowledgeable car accident attorney in your area can help you work with providers to avoid bills being sent to collections. Working with an attorney also improves your chances of securing any additional compensation from the other driver’s insurance.
Can a Personal Injury Lawyer Stop Medical Bill Collections?
Accruing medical debt after a car accident doesn’t always mean that debt will end up in collections, especially if you’re still waiting on an accident settlement. A personal injury lawyer can help you stop medical providers from sending bills you still owe to collections. Providers are often willing to work with patients who can’t pay medical bills without the proceeds from a settlement. An attorney also can negotiate with collection agencies to prevent them from suing you to recover debt.
Medical bills from catastrophic accidents are often impossible for a person to pay through their regular income. Filing a personal injury suit against the at-fault driver can help you cover your accident-related medical bills. Once settlement negotiations are complete, the bills will be paid from the proceeds of your final settlement.
Justin Lee Lawrence
Founding Partner
“Almost every case has medical bills, lost wages, and pain and suffering as damages. Some cases have special damages such as loss of consortium, punitive, or malice damages. Knowing which ones apply to your case and how to prove the damages is a big part of a lawyer’s job. One of the first things an insurance company does in a car accident case is seek to minimize how much it will pay. ”
How Long Do I Have to File a Claim for Medical Expenses After a Car Accident?
The amount of time you have to file a claim for medical expenses against the other driver in your accident is limited by the statutes of limitations, which vary by state. In Ohio, personal injury suits for car accidents must be brought within two years from the accident date. Kentucky’s personal injury statute of limitations is also two years.
Once the statute of limitations has passed, you permanently lose the right to file a lawsuit over your car accident. Contact a personal injury attorney as soon as possible to avoid missing important deadlines.
Why Choose Lawrence & Associates to Assist With Your Car Accident Claim?
- The Right to Full Analysis: At the beginning of your case, you will meet with a specialist who can evaluate every aspect of your claim and ensure you’re filing correctly.
- The Right to Specialization: At Lawrence & Associates, our attorneys limit themselves to a maximum of two practice areas to avoid becoming jacks of all trades, masters of none.
- The Right to Authority: Your legal team understands that you call the shots when it comes to settling or filing your case. The case belongs to you, and every decision is yours.
Get Legal Assistance With Medical Expenses After a Car Accident
Are you worried about unpaid medical bills after your car accident? You’re not alone. Medical debt shouldn’t add to your stress while you’re recovering from car accident injuries. Our experienced Cincinnati and Northern Kentucky personal injury lawyers can help you understand your options, handle collections, and fight for the compensation you deserve.
Let us protect your rights and financial future—because your focus should be on healing, not debt. For a free, no-obligation consultation, complete our online contact form or call us at (513) 951-6723 in Ohio or (859) 251-3045 in Kentucky.
