How Do I Receive Payment for Hospital Medical Bills?
by Markita (Owings Mills, MD)
I have a $53,708 bill from the hospital after I sustained injuries in a car accident. Medicad paid the bill but the hospital sent me a bill saying that it needed to be paid.
I sent the bill along with my application to the insurance company, isn't it their responsibility to send me the check and then I'd pay the bill out of the PIP / settlement?
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ANSWER for "How Do I Receive Payment for Hospital Medical Bills?":
Most of the time when insurance companies become aware of medical bills they send the insurance proceeds, including PIP, directly to the medical creditor. They also usually make the checks payable to the insured AND the medical creditor.
Insurance companies adopted this practice years ago. Back then they would send the check for the full amount to the insured and payable only to the insured. Some “bad apples” then kept all the money and refused to pay their rightful obligations to the medical creditors.
When this happened the medical provider often sued the insured and the insurance company alleging the insurance company should have known there were medical bills and had a fiduciary duty to make sure the medical creditor was paid first.
The above is general information. Laws change frequently, and across jurisdictions. You should get a personalized case evaluation from an attorney licensed in your state. Find a local attorney to give you a free case review here, or call (888) 647-2490.
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