If you’re a victim of a crime, you may have many questions about what happens next. One big thing that many people wonder about is whether an insurance company will cover their medical bills. The good news is that insurance companies must provide some level of coverage for victims of crimes. However, there are some situations where they might not be required or even able to pay out claims, and this is where a letter of protection can come in handy.
Letter of Protection Explained
A letter of protection is a written guarantee from your health insurance company that it will pay for certain medical services, even if you have no coverage. Suppose you’re covered by a plan bought by your employer and lose your job, or if you leave employment and have to buy another plan because of pre-existing conditions. The letter of protection guarantees that any expenses related to those services will still be covered.
The letter is written by the insurance company’s staff and signed by your doctor. It lists specific treatments or procedures covered under the policy and should be valid for at least one year from its date of issue.
How Does a Letter of Protection Work?
A letter of protection isn’t a guarantee that your insurance company will pay for the procedure. It’s simply an assurance that they’ll pay the bill if it ends up being covered by your plan. They may offer to reimburse you for some or all of the cost if it’s not covered.
The letter usually expires after a limited period. It can help you negotiate fees with providers since you can show them that your insurance company has agreed to cover those costs if needed. While letters of protection don’t directly guarantee payment for procedures and services, they put pressure on providers to accept the terms negotiated because they know there might be consequences if they don’t comply with what was agreed upon in writing by both parties involved.
Are Letters of Protection Common?
Letters of protection are not common. They’re used when a patient has been injured in a car accident, and the other driver doesn’t have insurance or has minimal coverage. It can also be used when one sustains an injury in the workplace. The letter of protection is sent to the patient’s insurance company, which pays the medical bills out of pocket before settling with you directly.
A letter of protection can also be used if your insurance company is slow to pay out or has refused to cover specific procedures. In such cases, it protects you against paying the full bill until they have paid it in full.
When Will My Medical Bills Get Paid?
You should be able to get your medical bills paid if you have a letter of protection. If you don’t have one, there’s no guarantee that the person who caused your injury will pay your medical bills. However, if the person who caused your injury was at fault for what happened and has enough money, they may settle with you out of court and pay some or all of your medical bills as part of the settlement.
If you don’t have a letter of protection and settle out of court, it may be difficult to get your medical bills paid in the future. If your injury doesn’t get better or gets worse over time, this could be especially problematic if the person who caused your injury doesn’t want to pay more money.
Benefits of A Letter of Protection
The letter of protection comes with many benefits. We have highlighted some of them below. Note that the benefits you enjoy from your letter of protection depend on the kind of attorney you hire. Let’s take a look at some of those perks.
1. Can Preserve Your Credit Score
Having a letter of protection will help preserve your credit score by showing that you are making efforts to keep up with your payments. A letter of protection can also show that you have been working with a professional who understands the intricacies involved in the process and has been able to negotiate settlements for you when necessary. With these things being said, it is much easier for experts to work with individuals with an active letter of protection.
2. Your Lawyer Will Negotiate The Best Settlement
You should be aware that getting the best settlement amount is possible without going through the court process. Your lawyer can negotiate with the other party’s attorney or their insurance company to get you a reasonable settlement offer. The final decision is yours, and if you feel your claim is worth more than what was offered, it may be better for you to take them to trial instead of accepting their offer.
LOPs and Auto Accident Medical Bills
If you are injured in a car accident that is not your fault, the at-fault driver’s insurance company will pay your medical bills up to their policy limits. This must be clearly stated in the letter of protection. Otherwise, the entire process might become cumbersome.
When this happens, the at-fault driver’s coverage has been exhausted by paying for all medical expenses up to their policy limit. The rest of your medical bills are then paid by your own insurance company.
As you can see, letters of protection are a valuable tool for protecting yourself and your family in the event of an accident. If you’re injured on someone else’s property, do yourself a favor and ask for one immediately. It might be the difference between getting paid for your injuries and paying out of pocket.