A letter of protection is a written promise from a lawyer to a medical provider that the provider may be paid from your settlement or court award, allowing treatment to begin now with payment coming later. Medical care does not wait for a claim to be resolved, so injured people often face bills they cannot cover while an insurance company decides what to pay. For some of them, a letter of protection may make it possible to start treatment instead of putting it off.
At Hollis Law Firm, we offer free consultations for injured people with questions about their injury claims, and we provide the information you need to make your own decisions. A letter of protection carries benefits and risks, so it helps to know how it works before you agree to treatment on those terms.
How Does a Letter of Protection Work?
Treatment under a letter of protection typically follows a few steps. A lawyer contacts a medical provider and agrees in writing that the provider is to be paid from any settlement or judgment in your case. The provider treats you, and payment is held until the case is resolved.
A letter of protection is not health insurance, and it does not reduce what is owed. It only changes when the provider is paid. Providers are not required to accept these arrangements, and not every provider does. The details of each arrangement, including who is responsible if the case does not succeed, depend on the agreement itself, so the specific wording matters.
When a Letter of Protection May Help
This arrangement can be useful for people who have no health insurance or cannot afford out-of-pocket costs while waiting for a claim to resolve. Delaying care may affect your recovery and your claim, because gaps in treatment may give an insurer reason to question the seriousness of your injuries.
Health insurance, when you have it, is another way to pay medical bills after an accident. Each route may affect how much you owe now and how much remains to be paid from your recovery later. Because every case and every provider is different, there is no single answer for whether a letter of protection makes sense.
What Happens to the Bills at Settlement?
When settlement money arrives, the provider’s bill is generally paid from it, and that amount is deducted from your take-home pay. A state professional conduct board has advised that a lawyer must pay a medical provider with a lawful interest in settlement proceeds and must hold any disputed funds in a trust account until the dispute is resolved. That is why a letter of protection deserves careful review before you sign anything.
It may also be worth asking a provider whether they are open to reducing the bill when the case ends. If the available insurance coverage is less than the total bills, there may be less money to divide, so it’s useful to know what happens when medical bills exceed the insurance limit.
Risks to Weigh Before You Agree
A letter of protection is not free care. Charges under these arrangements may be higher than they would be through health insurance, so the total is worth asking about before treatment begins. If your claim does not result in a recovery, you may still owe the balance, depending on the terms of the agreement.
Treatment charges, along with other out-of-pocket expenses, may be part of the compensation sought in a claim. A larger medical bill may also leave less to recover for other losses. No claim is certain, so weighing these risks before treatment begins helps you avoid surprises later.
Questions to Ask Before Treatment Begins
With each arrangement being different, it helps to ask the provider a few direct questions before you agree to anything. Useful topics include:
- Billing rates: how charges are set and how they compare with insurance rates
- Payment timing: when the provider expects payment and whether added fees apply
- Unsuccessful claims: who is responsible for the balance if there is no recovery
- Reductions: whether the provider may accept less when the case ends
Clear answers in writing make the arrangement easier to review and help head off disputes later.
Bring Your Medical Bill Questions to Hollis Law Firm
Treatment can begin sooner under a letter of protection, but the bill still comes out of what you recover, so the terms you accept today can shape what you keep later. Jason Chambers, the managing attorney of our firm, handles car accident, truck accident, and brain injury claims, and we provide the information you need and act on the decisions you make.
Consultations at our firm are free, so you can bring your questions and your paperwork and talk through your situation before deciding what comes next. If medical bills are weighing on you while your claim moves forward, contact our office today to speak with our lawyer.
