Letter of Protection Form
An LOP can be sent to a medical provider by an injured party’s attorney that says the injured person agrees to pay all medical expenses owed out of any future money recovered by a settlement or trial judgment. If there is no money recovered from the case, the injured person still owes the medical provider for the full bill of treatment. A letter of protection can also be given to a patient by a medical provider to make sure all services rendered are paid for either by case settlement, judgment or out-of-pocket.
A letter of protection (LOP) is a document developed to help injured people pay for medical care they cannot afford. Auto insurance companies won’t pay for your medical care as you go through treatment; they only pay after all your bills have been submitted, and then they make an offer to to settle your case. With that being said, most insurance carriers expect the injured party to front any medical costs for themselves, but many doctors refuse to treat people through their regular health insurance if their injury was caused by a car crash.
In addition to the above, Letters of Protection are sometimes used to delay collection on a previously incurred medical bill. For example: Assume you are in a wreck. You go to a medical facility for care. They submit the bill to your health insurance carrier who later refuses to pay the claim because it is for care rendered as the result of an automobile collision. You cannot afford the expensive bill. Your personal injury lawyer may be able to provide the medical facility with a Letter of Protection in exchange for the medical provider not filing the bill against your credit or otherwise pursuing collection efforts. In the same manner as above, the Letter of Protection allows the injured person to wait until the case is resolved in exchange for an agreement to pay the bill out of any proceeds from the claim. If there are no proceeds at the conclusion of the claim, the medical provider then still has the right to pursue collection efforts against the injured person.