What exactly are letters of protection (LOP)?

A Letter of Protection is a legal document issued by a personal injury attorney to healthcare providers on behalf of an injured individual. It serves as an assurance that the medical expenses incurred by the individual will be paid from any future settlement or judgment obtained in a personal injury lawsuit.

Essentially, it allows the injured party to receive necessary medical treatment without upfront payment, with the understanding that the healthcare provider will be compensated once the legal case is resolved.

Why You Might Need a Letter of Protection

You might need a Letter of Protection (LOP) in various situations where you’ve been injured due to the negligence of another party and require medical treatment. Here are some scenarios where an LOP could be beneficial:

Lack of Health Insurance

If you don’t have health insurance coverage, obtaining medical treatment for injuries resulting from an accident can be financially daunting. An LOP allows you to receive necessary medical care without upfront payment, ensuring you can access treatment even if you lack insurance.

Disputed Liability

In cases where the party responsible for your injury disputes liability or delays compensation, obtaining medical treatment can become challenging. An LOP empowers you to receive treatment while your legal case is ongoing, ensuring your medical needs are met regardless of disputes over liability.

Delayed Settlement

Legal proceedings following an accident can be lengthy, and settlements may take time to reach. During this period, you may require ongoing medical care or rehabilitation. An LOP ensures you can continue to receive treatment without interruption while awaiting a settlement or judgment.

Preservation of Legal Rights

By utilizing a LOP, you protect your right to seek compensation for your injuries through legal means. It allows you to prioritize your health and well-being without compromising your ability to pursue a fair resolution to your case.

Access to Specialized Treatment

In some cases, you may require specialized medical treatment or procedures that are not covered by your health insurance. An LOP provides a means to access such treatment without immediate out-of-pocket expenses, ensuring you receive the care you need for your recovery.

Financial Relief

Dealing with the aftermath of an accident, including medical bills and other expenses, can place a significant financial burden on you and your family. An LOP offers financial relief by postponing payment for medical services until after your case is resolved, allowing you to focus on your recovery without added financial stress.

Positive Benefits of Letters of Protection

1. Access to Immediate Medical Care

A Letter of Protection ensures individuals can receive essential medical treatment without worrying about upfront payments, particularly beneficial for those lacking health insurance or financial means.

2. Financial Relief

By postponing payment until after the resolution of the legal case, individuals can focus on their recovery without the added stress of mounting debt from medical bills.

3. Preservation of Legal Rights

Individuals protect their right to seek compensation for injuries through legal means, prioritizing health without compromising legal recourse.

4. Lower Medical Cost

Doctors may lower there fees under an letter of protection. Your personal injury case may not have had the desired outcome for which everyone will have to take reducations.

Drawbacks from letters of protection

1. Perception and Bias from using a letter of protection

Insurance companies and defense attorneys may attempt to discredit medical opinions or treatment provided under an LOP, alleging bias or overutilization of services.

2. Uncertainty of Outcome

Utilizing a Letter of Protection entails a degree of risk, as the resolution of the legal case ultimately determines the availability of funds to pay medical expenses.

3. Financial Obligation

In the event of an unsuccessful legal case, individuals remain obligated to pay outstanding medical bills incurred under an LOP, potentially leading to collections efforts or legal repercussions.

4. Letters of protection may cause higher medical costs

If your doctor is unfamiliar with your attorney, he may bill at a much higher rate in fear of reduced or non-payment

5. Doctor may refuse letter of protection from your attorney

Attorneys an accident doctors get along for the most apart. However, there are times when the attorney just doesn’t pay the doctor or reduces the rate so much, that the doctor has no interest in working with that particular attorney.

6.Specialized medical treatments may not be covered

Specialized services such as MRI’s, CT-Scans as well as specialist physicians may not be covered under a letter of protection.

Personal injury protection (PIP) and Med-Pay

As with health insurance, you may have a primary and a secondary. Pip or medpay would be the primary insurance used for medical treatment. When the Pip or medpay is exhausted, your medical treatment will have to fall under a letter of protection.

Where can you find a doctor that will accept the letter of protection

It can be hard and frustrating to find a doctor that will accept the letter of protection. To be clear, a LOP isn’t something that every doctor wants to accept. This can make it difficult to find a doctor who will provide quality medical treatment under a letter of protection.

The worst choice you can make is treating with a doctor who does not accept an attorneys letter of protection. Consequently, you will be liable for all medical bills not covered by the letter of protection

Conclusion:

Letters of Protection play a crucial role in facilitating access to medical care for individuals injured due to the negligence of others. While they offer significant benefits such as immediate access to treatment and financial relief, it’s essential to weigh the potential drawbacks and considerations associated with their use.

Ultimately, consulting with an experienced personal injury attorney can help individuals make informed decisions regarding the utilization of Letters of Protection, ensuring their rights are protected while pursuing fair compensation for their injuries.