A letter of protection (LOP) serves as a critical legal agreement between an experienced personal injury attorney and a medical provider, allowing an injured victim to receive the vital medical treatment they desperately need after an accident without paying exorbitant out-of-pocket medical expenses prior to settlement. This legally binding contract offers crucial protection when someone is hurt due to another party’s negligence but lacks sufficient health insurance or faces denial of claim payments from insurance companies.
By detailing the law firm’s ironclad commitment to cover outstanding medical bills and treatment costs when the personal injury case concludes, an LOP enables injured clients to obtain essential care, avoid collections, restore their credit, and focus wholly on recovery. Attorneys utilize letters of protection to construct stronger injury claims, while medical professionals gain guaranteed payment even if treatment is lengthy or ongoing. When leveraged optimally, these powerful agreements can greatly enhance case outcomes and provide much-needed relief for uninsured or underinsured victims injured in crashes or work accidents.
How a Letter of Protection Works in Personal Injury Cases
In a personal injury case, the at-fault party is responsible for paying the medical bills of the injured person. However, insurance companies will often refuse to pay these medical expenses until liability has been determined.
This can leave an injured person unable to get the medical treatment they desperately need, especially if they don’t have health insurance. A letter of protection allows an accident victim to receive medical care while the personal injury case is being resolved.
Here’s how it works:
- The personal injury attorney sends a letter of protection to the medical provider on behalf of the client. This letter states that the attorney is responsible for paying the client’s medical bills when the case settles.
- The medical professional agrees to provide treatment to the injured person and refrain from attempting to collect payment until the case is resolved.
- The client receives the medical care they need without having to pay anything out of pocket. Their attorney will negotiate with the insurance company and pay the medical expenses from the eventual settlement or judgment amount.
- Once the personal injury case is finalized, the attorney pays the outstanding medical bills from the settlement. The letter of protection is fulfilled.
When Would an Injured Person Need a Letter of Protection?
There are several situations when an injured victim would benefit greatly from having their attorney provide a letter of protection to medical providers:
- The person does not have health insurance, or their insurance is limited. A letter of protection allows them to get medical treatment they otherwise couldn’t afford.
- The at-fault driver’s insurance company is refusing to pay the medical bills until liability is determined. A LOP prevents the injured person from having to pay thousands in medical costs out of pocket while waiting for a settlement.
- The person’s health insurance requires high deductibles or copays that they cannot afford after being injured. A letter of protection means zero out-of-pocket medical expenses.
- The injuries are extensive, and ongoing treatment from specialists is needed for many months or even years. A LOP allows the injured person to continue receiving medical care throughout the long legal process.
- The injured person does not want medical bills going to collections while the personal injury case is pending. The letter of protection prevents damage to their credit.
Why Law Firms Offer Letters of Protection in Personal Injury Cases
From the perspective of the law firm, letters of protection are a win-win arrangement. Here’s why personal injury lawyers utilize them for their clients:
- The letter of protection allows the firm to demonstrate to the client that they do not have to pay anything out of pocket for medical treatment. This builds trust and credibility.
- It shows the attorney is willing to back up their claim that the client will be compensated. The law firm puts their money where their mouth is.
- Injured clients are more likely to get recommended medical treatment if they know they aren’t paying for it. This leads to better injury documentation and case value.
- The detailed medical records and bills resulting from treatment strengthen the case and increase the potential settlement amount.
- If the client has to pay high deductibles and copays out of pocket, it eats into the eventual settlement amount. Letters of protection preserve more compensation for lost wages and pain and suffering.
- The law firm maintains control over the medical treatment and billing, preventing inflated costs. They can negotiate the best rates.
Why Medical Providers Accept Letters of Protection
For medical professionals, letters of protection provide guaranteed payment for services rendered. Here are some key benefits:
- The provider does not have to attempt collection from an uninsured or underinsured injured patient. They know payment will come directly from the law firm.
- They gain patients they otherwise wouldn’t, as uninsured or underinsured individuals can now afford treatment.
- Medical providers develop relationships with law firms who will send many clients to them needing care. This results in increased business.
- They can charge their full rates rather than the discounted insurance and Medicare rates.
- Payment is guaranteed even if treatment is lengthy or ongoing. The letter of protection locks in payment when the case settles.
- Providers know they will be paid within a reasonable time frame after the case concludes. This is better than waiting months or years for an uninsured patient to repay medical debts slowly.
However, there are some potential downsides for medical providers:
- If the law firm loses the personal injury case, the letter of protection may not be fulfilled. This risk is minimized by only working with reputable firms.
- Medical bills may not be paid for 6 months to 2+ years until case resolution. Providers must be willing to wait for payment.
- The law firm may negotiate rates lower than what the provider usually charges.
- Some complex cases settle in increments over several years instead of one lump payment.
Overall, though, reputable medical professionals often decide the guaranteed business and payment from letters of protection outweigh the potential risks.
Key Steps in the Letter of Protection Process
If you are an injury victim considering using a letter of protection to pay for your medical treatment, here are some key steps that will occur:
- Your personal injury attorney will select appropriate medical providers to send letters of protection to. These will be professionals known for working well with LOP arrangements.
- The letter will be sent to the provider detailing the attorney’s commitment to pay for your care from the impending settlement. Specific details like the scope of treatment covered and negotiated rates may be included.
- You’ll schedule appointments and receive treatment from the medical provider. You inform them you are covered under a letter of protection from your attorney.
- The provider will document details of treatment and submit itemized bills directly to the law firm. You do not have to do anything.
- When your injury claim settles, your attorney will pay the provider’s bills from the settlement amount as promised in the letter of protection.
- You will receive the remainder of the settlement after medical bills and legal fees are paid. Using the LOP prevents you from having to pay medical expenses out of your settlement.
Using a Letter of Protection to Your Advantage
If you have been injured in an accident caused by someone else’s negligence, a letter of protection can be an invaluable tool. Here are some key tips for using an LOP to your greatest advantage:
- Consult with a qualified personal injury attorney to determine if you need a letter of protection. They will know the best medical providers to work with.
- Make sure you fully understand the terms of the letter of protection before treatment begins. Know what medical costs are covered.
- Be proactive and get recommended treatment quickly before injuries worsen. The letter allows you to start care right away.
- Attend all appointments and follow provider recommendations carefully. Non-compliance could negate the LOP.
- Keep your attorney updated on your treatment status. Provide them with medical records and bills regularly.
- Do not settle your injury claim without your attorney’s guidance. Reimbursing the LOP will be part of the negotiations.
- Understand that the letter of protection does not guarantee you will win your case. The attorney still must prove liability.
Using a letter of protection involves an inherent level of trust between you, your attorney, and the medical provider. But when used properly, an LOP provides the protection you need to get quality medical care without financial burden. Focus on healing from your injuries while your lawyer handles negotiations with the insurance company. Trust Donaldson Law PLLC in Wilmington to help guide you through the process.
Final Thoughts
- A letter of protection allows injury victims to receive vital medical treatment from experienced providers without paying exorbitant out-of-pocket expenses prior to settlement.
- Personal injury lawyers utilize LOPs to demonstrate their commitment to covering outstanding medical bills when the case concludes.
- Medical professionals accept letters of protection because they guarantee payment even if the treatment lasts months or years.
- LOPs protect the credit of uninsured injury victims by preventing medical bills from going to collections while the case is pending.
- Insurers often refuse to pay accident-related bills until liability is proven, but LOPs allow access to immediate care.
- Those without health insurance can obtain the care they desperately need after an accident using a letter of protection.
- Legally binding LOPs benefit law firms by enabling them to build stronger personal injury claims with detailed medical records.
- Letters of protection help injury victims focus on recovery rather than worrying about paying high deductibles and copays.
- When leveraged properly, these agreements enhance outcomes for victims, attorneys, and medical providers in personal injury cases.
Frequently Asked Questions
What is a letter of protection in a personal injury case?
A letter of protection (LOP) is a legally binding agreement between a personal injury lawyer and a medical provider. It allows an injured client to receive medical treatment without paying out-of-pocket before their injury claim settles. The LOP states the law firm will pay outstanding medical bills from the settlement amount.
Would I need a letter of protection after a car accident?
You may want to get a letter of protection from your personal injury attorney if you were injured in a car accident but don’t have sufficient health insurance. An LOP allows you to get the medical care you need without paying upfront or going into debt.
Can a letter of protection help pay my medical bills after an accident?
Yes, a letter of protection enables your personal injury lawyer to guarantee payment of your accident-related medical bills directly from your eventual settlement. This prevents you from covering high out-of-pocket costs.
How does a personal injury lawyer use a letter of protection?
Injury lawyers use LOPs to show clients they don’t have to pay for treatment out-of-pocket. LOPs also help build stronger cases by enabling access to medical care that documents injuries.
Is a letter of protection legally binding in a personal injury case?
A letter of protection is a legally binding contract between the law firm and the medical provider. If the personal injury case is successful, the attorney is obligated to pay outstanding medical bills as promised in the LOP.
