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After a car accident in Texas, one of the most pressing concerns for victims is understanding who will pay for mounting medical expenses. While Texas follows an at-fault system that theoretically makes the responsible driver liable for damages, the reality of getting medical bills paid can be far more complex and stressful than many people expect.
Understanding Texas’s At-Fault Insurance System
Under Texas Transportation Code Section 550, drivers involved in accidents must report collisions that result in injury, death, or significant property damage. Texas operates under an at-fault insurance system, meaning the driver who causes an accident is legally responsible for covering the resulting damages, including medical bills, lost wages, and other costs.
However, this straightforward principle doesn’t always translate to immediate financial relief for accident victims. Insurance claims can take weeks or months to resolve, while hospitals and medical providers expect payment regardless of who caused the crash.
Key Takeaways:
- Texas follows an at-fault system, but victims often must handle medical bills before insurance settlements
- Multiple payment sources may be available, including health insurance, PIP, MedPay, and hospital liens
- Hospital liens and insurance subrogation can significantly reduce your final settlement
- Acting quickly and working with an experienced attorney protects your financial recovery
Immediate Steps After a Texas Car Accident
Your health should always be the top priority after an accident. Seek emergency medical treatment immediately, even if your injuries seem minor. Some serious conditions like concussions or internal injuries may not show symptoms right away.
Once you’re safe:
- Contact your insurance company to report the accident
- Gather evidence at the scene (photos, witness information, police report)
- Understand your coverage options for immediate medical expenses
It’s crucial to know that medical providers will expect payment regardless of fault determination. Having a clear understanding of your available coverage options can help you navigate this challenging period.
Payment Options for Medical Bills After an Accident
Health Insurance
Your existing health insurance may cover accident-related treatment, but many policies include subrogation clauses requiring reimbursement from any settlement you receive. While health insurance provides crucial early coverage, be prepared for potential payback obligations later in the process.
Personal Injury Protection (PIP)
Texas requires insurance companies to offer every driver at least $2,500 of PIP insurance, though you can typically increase coverage to $5,000 or $10,000. PIP is optional coverage that provides no-fault benefits, meaning it pays regardless of who caused the accident.
PIP covers:
- 100% of medical expenses
- 80% of lost wages
- Replacement services for essential tasks you can no longer perform
- Benefits for passengers in your vehicle
You have the option to decline PIP in Texas, but you’ll have to submit your refusal in writing. However, declining this coverage could leave you financially vulnerable after an accident.
Medical Payments Coverage (MedPay)
MedPay functions similarly to PIP but only covers medical expenses—not lost wages or replacement services. Insurance companies in Texas aren’t required to offer medical payments coverage (MedPay) as they are with PIP insurance. Like PIP, MedPay pays regardless of fault but provides fewer benefits, making it less expensive than PIP coverage.
Out-of-Pocket Payments and Hospital Liens
When insurance options fall short, many accident victims must pay bills out-of-pocket or arrange payment plans with healthcare providers. In some cases, hospitals may place a lien against your future settlement to ensure reimbursement.
Understanding Hospital Liens in Texas
Under Texas Property Code Chapter 55, hospitals have a lien on a cause of action or claim of an individual who receives hospital services for injuries caused by an accident attributed to the negligence of another person.
Key facts about Texas hospital liens:
- Filing requirements: The lien must be filed in the property records of the county where the services were provided before money is paid to an entitled person
- Time limits: The patient must receive treatment within 72 hours of the accident for the lien to be valid
- Coverage period: The hospital lien is capped at the lesser of the amount of the hospital’s charges for services provided during the first 100 days of hospitalization or 50% of all amounts recovered by the injured individual
- No notification required: The hospital has no obligation to notify the patient, the attorney, or the adjuster attempting to settle a case in which a hospital lien has been filed
This means it’s essential to search county property records for potential liens before settling any case.
The Role of Subrogation in Your Settlement
Subrogation occurs when your health insurance company seeks reimbursement from your settlement after paying your accident-related medical bills. This process can significantly impact your final settlement amount if not properly managed.
Unlike hospital liens, which are capped at 50% of your recovery, health insurance subrogation claims can theoretically seek full reimbursement of benefits paid. However, these claims are often negotiable, and experienced attorneys can frequently reduce the amount owed.
When At-Fault Insurance Delays or Denies Payment
Even when liability seems clear, insurance companies often delay payments by:
- Claiming they need additional investigation time
- Disputing certain expenses or medical necessity
- Offering settlements that don’t cover the full extent of damages
If the at-fault driver is uninsured or carries minimal coverage, you may need to rely on your own Uninsured/Underinsured Motorist (UM/UIM) coverage. In severe cases, filing a lawsuit against the driver personally may be necessary for full compensation.
Why Legal Representation Matters
Medical bills can accumulate faster than insurance claims are processed. Without experienced legal guidance, many victims find themselves overwhelmed by:
- Complex insurance negotiations
- Hospital lien disputes
- Subrogation claims
- Settlement timing issues
At Bryan Fagan’s law firm, we understand the financial pressure that follows a serious accident. Our team works diligently to:
- Coordinate medical billing issues
- Negotiate hospital liens and insurance subrogation claims
- Ensure clients recover maximum compensation
- Protect clients from common settlement pitfalls
We offer free consultations and work on a contingency fee basis—you pay no attorney fees unless we win your case.
Frequently Asked Questions
Do I have to pay medical bills if the accident wasn’t my fault?
Yes, you’re still responsible for your medical bills upfront, even if someone else caused the crash. You can seek reimbursement through insurance claims or a personal injury lawsuit, but healthcare providers won’t wait for fault determination.
Can I negotiate my medical bills after a settlement?
Yes. Hospitals and insurance companies often accept reduced payments through lien and subrogation negotiations. An experienced attorney can negotiate on your behalf to maximize your final recovery.
What if I don’t have health insurance?
You still have options. PIP, MedPay, or payment plans may help cover costs. Some providers also work with attorneys on a “letter of protection” basis—delaying payment until after your case settles.
What is a letter of protection (LOP)?
A letter of protection is an agreement between your lawyer and a healthcare provider to defer medical payments until your injury case settles. This allows you to receive necessary treatment without immediate out-of-pocket costs.
Should I use my health insurance or wait for a settlement?
Using health insurance can help you get care quickly. However, your insurer may later seek reimbursement from your settlement. An experienced personal injury attorney can help weigh the pros and cons based on your specific situation.
Get the Help You Need Today
If you’ve been injured in a Texas car accident, don’t navigate the complex world of medical billing and insurance claims alone. Understanding your rights and options can make the difference between financial recovery and ongoing financial stress.
Contact Bryan Fagan’s law firm today for a free consultation. Our experienced team will review your case, explain your options, and fight to ensure you receive the compensation you deserve while protecting you from common financial pitfalls.
Remember: Time is critical when dealing with hospital liens and insurance claims. The sooner you get experienced legal help, the better we can protect your financial interests and maximize your recovery.
