Is a Letter of Protection a Lien?
Liens and Letters of Protection are options if you can’t pay for medical treatment right away. They apply to personal injury cases where someone else caused your injuries. But, is a Letter of Protection the same as a lien?
Close, but not exactly.
Letters of Protection Versus 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 lawyer can prepare a Letter of Protection or LOP. The LOP acts as a credit. It guarantees that 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.
If you cannot pay your medical costs, some medical providers will file a medical lien. A lien is something that guarantees a provider will receive payment for their services.
A medical lien ensures that you’ll pay your doctor from your personal injury settlement or award. Your pending settlement provides a guarantee of repayment. Unlike an LOP, the medical provider must file a lien with the county.
Your lawyer 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.
Most Doctors Hate Liens
A lot of healthcare providers discourage liens or won’t use them at all. That’s because substantial medical costs can take years to repay. You might not win your case after all, or your settlement might be too little to cover all costs.
If you cannot repay the liens, your lawyer 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: Money Now without the Risks
Although LOPs and liens provide the medical treatment you need now, they do 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:
- 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 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.
To learn more and get started, click Apply Now above or call (844) 871-0628 today.
How to Apply for Fast Medical Funding
If you need fast cash for your medical bills, we can help. Here is how our process works.
1. Apply within Minutes
Click Apply Now to go to our application page. This is the only step that requires effort from you. We’ll get some basic information about yourself and your case.
2. 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.
3. 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.
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 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. If you need help with medical costs now, 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 call us at (844) 871-0628.