A letter of protection is a letter that your New Mexico personal injury lawyer can issue to a medical provider, such as a hospital, physician, or clinic, informing their administrators your healthcare costs are currently in negotiation or litigation, and the balance will be paid upon a favorable resolution. The medical provider may then agree to end collection efforts until you finalize your case.
In most cases, the injured party files a claim against the liable party’s insurer but may face claim denials in the process, which causes medical bills to collect. As such, a letter of protection is a form of reassurance to your medical provider that legal proceedings are in motion to obtain payment. However, it is also essential to recognize that it is not a guarantee of payment to your doctor, which means you are responsible for any expenses above awarded compensation.
In This Post
In this post, I help you understand when you may need a letter of protection and the legal implications of using them to affect the outcome of your case. Every personal injury case has unique facts and circumstances, which means that you should speak with an attorney in New Mexico to help you address your specific legal questions.
When a Letter of Protection Is Beneficial
After a personal injury accident, like a car accident or slip & fall in a store, you file a claim against the negligent party’s insurance company. However, the insurer may deny your benefits, in whole or in part. This situation results in unpaid medical bills, debt collection efforts against the injury victim, and a potential impact on one’s credit history.
A letter of protection will ensure that you get the treatment you need while fighting against the insurance company refusing to pay you the benefits you deserve. It will also give you peace of mind and every fighting chance of recovering from your injuries, which is a top priority in any personal injury matter.
Protection Letters Do Not Guarantee Payment
There is no guarantee to your doctor that the insurance company will pay your medical bills. It is more of a guarantee that your doctor will receive payment when your case is settled, or a verdict is rendered. Keeping that in mind, your personal injury lawyer is not responsible for paying your medical costs.
Medical Bills Are Still Your Responsibility
Regardless of your case’s outcome, you or your loved one’s estate is responsible for paying them. You cannot withhold the money from your settlement or court award, either. Your lawyer guaranteed that the money would be paid when the case resolved and will hold it in trust until paid.
This is the most fair and necessary way to approach the situation. Your doctor acted in good faith to provide medical treatment while you fought with the insurance company. Simply put, you deserved treatment, and your medical provider deserves payment.
Without a letter of protection, an injury victim may not have received quality medical care. Without medical care, there is no case.
How a Letter of Protection Can Affect Your Case
The most significant issue with a letter of protection lies within the perception that insurance companies try to create around them. For example, your doctor is not guaranteed payment when he or she accepts a letter of protection. The insurer and its lawyers may argue that your doctor’s opinion is biased because he or she would take and assume the risk for them in advance.
You Should Not Have to Pay for Injuries Someone Else Caused
In the end, a letter of protection is a tool that allows you to receive necessary medical care that you would not otherwise receive when the insurance company denies your claim. Insurance companies may fight your letter of protection because that it what they do to protect their profitability.
For more information regarding sneaky insurance company tactics, check out my article, “5 Misleading Things An Insurance Adjuster Might Say After An Accident.”
Contact a New Mexico Personal Injury Lawyer for Help
If you or your family member were negligently injured in an accident and need legal advice, contact me at Grano Law Offices, P.C. for a Free Consultation. I can help you understand your options and how we can move forward with no upfront legal fees.
Request your free consultation by messaging me confidentially here or calling (505) 426-8711 now. If you are too injured to travel to my office, I can visit you or discuss your case by secure video chat, email, text, and telephone.
