The dramatic increase in health care expenses has caused many hospitals to squeeze every penny.
In order to recoup payment for services rendered, some hospitals are laying claim to portions of consumers' auto insurance liability settlements.
If you were injured in an accident because of the fault of the other driver, and was sent to the hospital, your HMO would cover the expenses. Then the hospital would file a lien against any auto insurance liability settlement that you collected.
U.S. District Judge Samuel Kent ruled a hospital's attempt to recover payment from former patient in a Texas case. The patient, Linda Satsky, was prohibited only because the hospital and the company had agreed on the charges for her care.
As a result of an auto accident, Statsky had received a liability settlement. A lien was filed against any liability settlement she received by the hospital.
If your health insurance company and the hospital or doctor have an agreement on how services will be paid, you don't have to give your health care providers health care providers any money when receiving a liability settlement after an auto accident.
Jose Montemayor, the insurance commissioner of Texas warns, "It is important for HMO members to know both their rights and their responsibilities with respect to balance billing.
Not knowing could cost you hundreds, even thousands, of dollars or endanger your credit rating.'
If you receive a settlement, your health insurance contract might say your health insurer has the right to subrogate.
Contact your auto insurer and find out exactly how you can protect your auto insurance settlement and not give it immediately to the hospital.
Hospitals do want to take your auto insurance settlement, but that doesn't necessarily mean that you have to give it away.
I am sure that your insurer will help you with this issue further on. However, make sure that if you do want to call and find out information regarding this topic, call beforehand.
Call and find out if there is any way you can keep your settlement. Auto insurance is a serious topic, so make sure that you don't take it lightly.
