Letter of Protection
So what happens if you get in an automobile collision and need treatment, but health insurance is not an option? What if you don’t have the money to pay for the treatment either? You obviously still need to see a doctor.
This is why you need a Letter of Protection (what is also known as a medical lien). When someone is injured, their lawyer will send a letter of protection to a doctor or medical provider that promises to pay for the medical bills their client owes out of any settlement acquired by the personal injury case. It is basically a contract that ensures the doctor that though he won’t be paid up front, he will be paid when the case receives recovery whether by settlement or by trial. If and when the lawyer wins money for the case, he or she is obligated to make sure the physician who treated the case receives his medical expenses out of the funds acquired. If the case is not settled, and no recovery is acquired from the case, the client who was injured is still obligated to pay the bill. The medical provider still has the right to pursue the patient for the full costs of the bill just like any other time they are owed money.
Also, LOP’s (letter of protection) are occasionally rendered when a personal injury lawyer is trying to push back collection of a medical fee that was incurred in the past. Imagine you are in a car accident and have to go to the doctor for care. They send the statement to your insurance but they don’t want to reimburse the claim as the injury was due to a car wreck. It’s a pricey bill and you cannot afford to pay for it. In this case, you can get your attorney to send the provider a letter of protection so that they don’t file the bill hurting your credit or sending it to collections. So just like the initial explanation, here the letter of protection gives the injured party leeway in when he has to pay for medical care received as a result of an accident. They will likely just pay for it out of the settlement of the case. Just as before, if the case is lost and no money is recovered from the conclusion of the case, the medical provider can still pursue collection efforts from their patient.