After a car crash, slip-and-fall, or other injury claim, many people assume the at-fault party’s insurance company will simply “take care of the medical bills.” Unfortunately, that is almost never how it works in Colorado personal injury cases. Because of this, it is very important that, while treating your injuries, you make sure your medical providers are billing your health insurance.
How To Utilize Your Health Insurance After An Accident
Liability insurance carriers generally do not pay medical bills as treatment is happening. Instead, they typically wait until the case settles — and settlement usually requires the injured person to sign a full release of all claims. That means if you rely solely on the other party’s insurance, you may spend months (or years) with unpaid medical bills, collection notices, or treatment delays.
Using your own health insurance is often the smarter financial move. Health insurers negotiate discounted reimbursement rates with hospitals and providers. As a result, a $25,000 hospital bill may ultimately be satisfied for far less. In Colorado, however, the injured person may still pursue the reasonable value of the medical treatment caused by the defendant’s negligence under the collateral source rule (C.R.S. § 13-21-111.6). In other words, the defendant does not get a discount simply because you were responsible enough to carry health insurance (see also: Volunteers of America Colorado Branch v. Gardenswartz, 242 P.3d 1080 (Colo. 2010)).
Maximizing Your Personal Injury Recovery
By contrast, when treatment is billed directly under a medical lien or letter of protection tied to the personal injury case, providers frequently bill at full rates with little or no contractual reduction. That often means a larger portion of the eventual settlement must go toward paying medical providers, leaving less money in the injured client’s pocket at the end of the case.
There is also a strategic advantage to using health insurance. Colorado law generally prohibits defendants from introducing evidence that your medical bills were paid by insurance in order to reduce the value of your claim (related: Crossgrove v. Wal-Mart Stores, Inc., 276 P.3d 562 (Colo. 2012)). Put simply, the at-fault party should not benefit from the fact that you had the foresight to obtain health coverage.
Do Not Face The Insurance Companies Alone
Every injury case is different, and there are situations where lien-based treatment may become necessary — particularly when someone has no health insurance available. But whenever possible, using health insurance during treatment is often one of the best ways to protect both your medical care and your eventual financial recovery. An experienced Colorado accident injury attorney can help guide you on how to strategically use your personal health insurance coverage to your own benefit. Contact 719-694-0578 to learn what your options are.