Medical bills have become a huge issue in almost all personal injury cases. The reason for this is twofold. First in many instances the injured party must repay the entity that paid the bills. Some entities are very strict and demand large paybacks even when the settlement is small. Other companies have liens and amounts set by law. Examples of the latter are Medicare, MediCal and hospital liens. In some instances the entity may argue they are entitled to the entire amount of the settlement. These are usually ERISA liens. The job of the attorney in these cases is to minimize the amount paid to the entity so the client can receive a fair settlement. Knowledge of lien law and negotiation tactics can usually provide relief.
The second area of concern is the amount that is now admissible in court. Many clients go to the hospital and the bill is often quite high. But an entity such as Blue Cross or Sutter pays a small amount. For years the billed amount was the number used for the medical bills. In the last few years due to a California Supreme Court ruling the amount allowed is what was actually paid. This has lowered the value of many injury cases and sadly it does not look like it will change soon.
