Understanding medical billing, liens, and insurance coverage after an auto injury
After an accident, your health should be your top priority — but how your medical care is managed can directly affect your settlement.
Many clients are surprised to learn that in Arizona, the at-fault driver’s insurance does not pay your medical bills as they occur. Instead, they issue one lump-sum settlement once your case is resolved. Your medical expenses are then paid from those funds.
The steps below explain how to protect yourself financially while getting the care you need.
Managing Your Medical Care
1. Use your health insurance whenever possible.
Your health insurance should be billed for all treatment related to your crash. This prevents unpaid balances from appearing on your credit and usually results in significant discounts negotiated by your insurer.
If you don’t have health insurance, contact our office right away. We can help you locate medical providers who accept liens, meaning they agree to delay payment until your case settles.
2. Keep all providers and treatments organized.
Document every visit, provider, and medical expense. This information allows us to prove the full scope of your injuries and ensures no bill is overlooked when negotiating your settlement.
What Is a Medical Lien?
A medical lien is an agreement you sign allowing a healthcare provider to wait for payment until your claim resolves.
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The provider’s bill is “held” until settlement.
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You remain ultimately responsible for the balance, regardless of case outcome.
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Providers are not required to accept a lien; approval is voluntary.
Our office coordinates with lien providers and ensures payments are issued properly once your case concludes.
Health Insurance & Reimbursement Explained
Some health insurance plans — especially through large employers or federal programs — have the right to seek reimbursement from your settlement for the amount they paid on your behalf.
Example:
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Hospital bill: $1,000
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Insurance payment: $450
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Patient copay/deductible: $100
When your case settles, we may need to reimburse the insurer for only the $450 actually paid, plus any small remaining balance.
Even though $1,000 was used for claim valuation, your out-of-pocket cost is far less — typically a 40–50 % savings thanks to your health insurance discount.
👉 Bottom line: Always use your health insurance first. It protects your credit and reduces what must be repaid later.
Key Automobile Insurance Coverage
Understanding your policy helps you know which coverage applies to medical bills, repairs, or other damages.
Liability Coverage
Covers injuries or property damage to others when you are at fault for a crash.
Uninsured Motorist (UM)
Protects you if the at-fault driver has no insurance. You file a claim under your own policy.
Underinsured Motorist (UIM)
Applies when the at-fault driver’s insurance limits are too low to cover your losses.
Medical Payments (MedPay)
Optional coverage that pays immediate medical expenses for people inside your vehicle, regardless of fault.
Property Damage
Covers repairs to your vehicle when the other driver is at fault.
Comprehensive
Pays for non-collision damage such as theft, vandalism, hail, or falling objects (e.g., a tree limb).
Collision
Covers your own vehicle’s damage in a crash, even if you’re at fault or the other driver lacks insurance.
Other add-ons may include rental reimbursement, gap coverage, or windshield replacement. Review your policy regularly to ensure you’re protected.
Why Proper Medical Management Matters
Handling your medical care correctly ensures:
✅ Your treatment continues without interruption.
✅ Your credit stays protected.
✅ Your final settlement fully reflects the cost of your injuries.
The Loefgren Law team monitors your providers, negotiates lien reductions, and confirms all bills are paid correctly at the end of your case.
If you’re unsure whether a provider should be billed through insurance or held on lien, call us before signing any paperwork.
🚑 Need Help Understanding Your Medical Coverage
Contact Loefgren Law for a free consultation. We’ll review your auto and health insurance coverage, help coordinate your medical care, and ensure your settlement accounts for every expense.