When you get injured, the first thing that comes to your mind is how you’re going to pay for your injuries. You may have heard of medical liens and letters of protection as options if you can’t pay for medical treatment right away. But determining the difference between these two options and figuring out if a letter of protection is a lien can be difficult.
They both apply to personal injury cases where someone else caused your injuries. But is a letter of protection the same as a lien? Read on to learn more and figure out how our Silver Dollar Financial team can help determine the best option for your situation.
Letters of Protection vs Liens
Both letters of protection and liens tell your medical provider that you’ll pay your costs after you get your settlement. A hospital or lawyer might use either term, but there is a slight difference in methods. Let’s look at each more closely.
Letters of Protection
If you cannot pay for your medical costs right away, your personal injury lawyer can prepare a letter of protection (or LOP). The LOP acts as a credit that guarantees you will pay back the costs when you receive a settlement from your injury case. The LOP lets your doctor know that:
- You cannot pay your medical bills at the moment
- You currently have a pending personal injury case
- You will pay your full treatment costs when you get compensation
The LOP assures your medical provider that you will pay them in the future. It can also help relieve your worries about late bill payments. The letter can protect you from aggressive reminders or bill collectors.
Your lawyer must sign the LOP before sending it to your medical provider. The medical provider agrees to treat you and wait for reimbursement. Your attorney will keep track of the letter and your costs.
LOPs do come with risks. If your case does not resolve for whatever reason, you still have to pay. The situation might leave you personally liable for medical costs if you don’t win a settlement.
Some medical providers will file a medical lien if you cannot pay your medical costs. A lien is something that guarantees a provider will receive payment for their services.
A medical lien ensures you’ll pay your doctor for your personal injury settlement or award. Your pending settlement provides a guarantee of repayment. Unlike a LOP, the medical provider must file a lien with the county.
Your personal injury attorney will check for any liens after you win a settlement. If you don’t end up winning your case, the lien can be risky. Your attorney might try to arrange a payment plan with the provider or reduce your total debt.
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Why Most Doctors Hate Liens
Many healthcare providers discourage liens or won’t use them at all. That’s because substantial medical expenses can take years to repay. You might not win your case, or your settlement might be too small to cover all costs.
If you cannot repay the liens, your personal injury attorney will look for ways to reduce your payments. Medical providers know this, so they are wary of liens. They know that there’s a risk they might not receive full repayment for a while.
To get paid faster, hospitals might sell their liens or letters of protection to a third-party company. These companies guarantee fast payment, which means they can hound you for the full balance.
What About Health Insurance?
Sometimes, your health insurance will help cover your costs after an accident. However, if someone else was at fault, your insurer might refuse. They will expect the at-fault party’s insurance company to pay.
You might have medical payments or personal injury protection (PIP) coverage through your car insurance. These coverages can help pay for medical costs, but they might not be enough.
As you can see, letters of protection and liens are very similar. Their methods are slightly different, but they both guarantee future payment. If your case doesn’t go as planned, you’re still responsible for paying your bills.
Medical Funding: Get Money Now without the Risks
Although LOPs and liens provide medical treatment, you need to know they have risks. The medical provider will still seek payment from you, no matter how your case goes. Pre-settlement medical funding is an excellent risk-free alternative.
Medical legal funding can help you pay the cost of healthcare for your injuries. Here’s how it works:
- A medical funding company pays your doctor for your medical costs directly.
- Then, you pay back the funds when you win your case.
- But here’s the difference: if you don’t win your case, you don’t have to pay the funds back.
The above process is how we operate at Silver Dollar Financial. We know how stressful a personal injury case can be for you. You have medical needs now, and you can’t wait for your settlement.
You also don’t have a crystal ball that guarantees your case outcome. That fact alone can cause a lot of stress. But our funding process is as stress-free and straightforward as possible.
Is Medical Funding Just a Bank Loan?
When you need help covering the costs of your medical expenses, you may be looking into all of your options for financial relief. But you may find yourself confused as to how medical legal funding works. After all, isn’t it just a traditional bank loan?
In all actuality, medical legal funding is starkly different from traditional bank loans. With a traditional bank loan, you will be required to pay interest on the principal amount loaned to you. In contrast, our medical legal funding is non-recourse. You only pay it back if your attorney wins your case.
Additionally, the requirements for medical legal funding approval are much different from the requirements needed to get a bank loan. For a bank loan, you will need to have the following:
- Excellent credit
- Proof of income
- Credit references
Apply Now for Pre-Settlement Funding
How to Know if You Qualify for Medical Legal Funding
In order to qualify for medical funding and receive money for your bills and losses, you must meet a few requirements. To receive medical funding, you must:
- Have filed a personal injury claim against the at-fault party
- Have a personal injury attorney that is working on contingency fees
If you meet these two requirements, we encourage you to apply for medical funding so that you can overcome the financial hardship your injuries have caused. We’re here to help you get back on your feet and start living again.
When you apply for medical funding, you don’t have to worry about getting a credit check or submitting a pay stub as proof of employment. We don’t require you to provide us with any information about your financial background to qualify. So, regardless of your financial situation, you can qualify for legal funding to cover your costs.
How to Apply for Fast Medical Funding
Other methods of getting financial assistance with medical expenses can take a long time and often have application fees. However, when you work with our team, you don’t have to worry about a long and expensive application process. If you need fast cash for your medical bills, we can help, here is how our process works.
Apply within Minutes
Click Apply Now to go to our application page. This is the only step that requires action and effort from you. We’ll ask for some basic information about you and your case.
As the injured party, please ensure that the information you provide us with about your injury and case is as accurate as possible. If you have any questions about anything on the application, our team members will be happy to help you.
We Review Your Application
Our financial wizards are standing by to check your application. We’ll look over your details and contact you if we need anything else. Much of the time, we can get you an answer in as little as 24 hours.
You’re Approved and Paid
If you qualify for medical funding, we’ll get started immediately. We pay your healthcare costs directly—no need to worry about the doctor or hospital bugging you about payments.
With your bill paid, you can focus on your personal injury case.
What You Can Use Your Medical Funding for
When you receive your medical funding, you can use it for any losses you have suffered from your injury. There are no restrictions on what you can use your legal funding for. Here are some of the most common losses people use their medical funding for:
- Loss of income
- Property damage
- Loss of earning capacity
- Loss of enjoyment of life
- Physical therapy
- Medical devices
There are many other costs you can pay for with your funding. And if you have a specific expense in mind and want to know if medical funding can cover it, our team will be happy to help.
Paying Back Medical Funding
Most settlements are much higher than just medical costs. That means you pay us back with your compensation and keep the rest!
Unlike other “loans,” our medical funding is non-recourse and does not come with strings attached. If you don’t end up winning compensation, you don’t have to pay us back.
Apply for Pre-Settlement Medical Funding Today
Many personal injury damages can’t wait, and medical liens and letters of protection can be risky. If you need help with medical costs now, applying for medical funding is the right action to take. Our team at Silver Dollar Financial is here for you.
We provide the highest quality customer service to our clients. We believe that every injury victim deserves justice. To apply for the funds you need now, click Apply Now or give us a call.