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  • Writer's pictureTom Fowler

Do You Have to Pay Your Medical Bills from a Personal Injury Settlement in Iowa?

Accidents caused by the negligence or wrongdoings of others can lead to serious injuries. In the aftermath of a personal injury claim, many wonder whether they have to use the compensation they were awarded to pay medical bills.


The short answer is yes. Medical expenses are added to the settlement amount to ensure that the victim is able to receive the correct healthcare.


If the relevant insurance company or government agency has paid their bills already, then victims must provide a refund from the settlement they receive. The amount that must be paid will depend on the details of the case, so in many cases, it may be best for claimants to obtain advice from a reliable personal injury attorney.


This article will provide more information about what must be done to cover medical expenses after a personal injury case has been settled.


Why Do You Have to Pay Your Medical Bills from a Personal Injury Settlement in Iowa?

Why Do You Have to Pay Your Medical Bills from a Personal Injury Settlement in Iowa?


The truth is that personal injury claims are filed primarily to cover the cost of past and future medical bills, so the settlement amount must be used to pay any outstanding medical bills. Physical therapy, assistive medical devices, doctor's visits, hospitalizations, medical tests, surgeries, medication, and occupational therapy all form part of a personal injury claim.


Who Pays Medical Bills Before a Claimant Receives Their Payout?


Before they are awarded a settlement, victims will have to pay medical bills. There are a number of options that they have, depending on the nature of the accident and the insurance coverage they have.


Car Insurance


When involved in an Iowa car accident, most victims' car insurance policies will cover a portion of the medical bills. However, they will be liable for the balance. Once a settlement is reached, however, the claimant must reimburse the auto insurance company for the amount that was paid.


If Bob was in a car accident, for example, and he was billed $5,000 for medical treatment, he can file a claim with his insurance company to cover part of the expense. Should his insurance cover 80 percent of his medical bills, he will need to pay the insurer $4,000 when he receives his settlement payout.


It's also important to note here that this rule will apply even if the other driver's insurance company covered the costs associated with the victim's medical treatment.


Personal injury protection (PIP) coverage and Med Pay are two options that offer coverage for car accidents.


Health Insurance Company


Similarly, a victim's health insurance may cover part or all of the expenditure, depending on the details of the policy and the level of coverage. If the insurer pays the medical provider before a settlement is reached, then the claimant will have to repay the amount once they receive a settlement.


Medicaid or Medicare


Suppose Medicare or Medicaid took care of the medical bills. In that case, they will probably claim reimbursement for any healthcare expenses that were paid. A demand letter is normally issued to the person who obtained the settlement, according to the Centers for Medicare and Medicaid Services (CMS).


Workers' Compensation


Victims that are injured on duty will likely receive coverage from workers' compensation. However, when they receive a payout for their medical expenses, they will need to repay the expenses covered. Paying back healthcare expenses may become a difficult matter.


It gets even harder when future medical bills are included. If a victim receives a settlement, they may be forced to repay an excessive amount of money or perhaps lose part of their benefits. A Des Moines injury law firm who specializes in personal injuries will protect victims and look out for their best interests.


Medical Liens


After a claimant receives a settlement for their personal injury, the company or organization that covered their medical expenditures before a settlement was reached may file a medical lien against them in an attempt to recoup these costs.


A lien is a claim that helps to enforce debt payments. Medical liens are issued by a medical provider, such as a hospital or doctor's office. Moreover, a lien may be granted by an insurer, such as health or auto insurance, or by government agencies in the form of workers' compensation, Medicaid, or Medicare.


Other Deductions


In addition to medical bills, there are also other deductions that are made from a personal injury settlement. First, certain damages, such as lost wages and punitive damages, may be subject to taxation.


Legal fees are also deducted from the settlement amount in personal injury cases, as lawyers work on a contingency fee basis, which means that they do not charge any upfront fees. However, when the claimant receives their payout, they will be liable for legal fees.


The Importance of Hiring a Lawyer

The Importance of Hiring a Lawyer


The truth is that accidents can leave a trail of sorrow in their wake. Victims are often left with exorbitant medical bills, and lost income further worsens the blow. In many cases, pursuing a personal injury claim is the only option they have.


This is why it's crucial that claimants choose the right legal representative. A personal injury attorney will ensure that no stone is left unturned in the pursuit of justice. He or she will enlist the help of expert witnesses and investigators to ensure that victims get the best possible chance at compensation.


Moreover, personal injury lawyers ensure that government agencies and insurance companies do not take advantage of victims by claiming higher amounts than they are due. An experienced attorney knows the tricks that are used and will ensure that the claimant's rights are protected at all times. They can help with questions like Do you have to pay taxes on a personal injury settlement in Iowa?


Navigating Personal Injury Claims with the Help of Tom Fowler Law


When the unthinkable happens, and victims are left with serious injuries, Tom Fowler Law can help them obtain restitution. By pursuing every possible avenue to ensure that they receive the compensation they are rightly due, the legal team will ensure that victims receive a fair settlement.


They will also fight for their rights against third parties that claim unfair amounts. Whether a victim has not filed a claim yet, is awaiting a settlement, or has been treated unfairly after receiving compensation, Tom Fowler Law can help. Victims are encouraged to pursue expert guidance and aggressive legal representation by contacting the firm.

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