Do I Have to Pay Medical Bills Out of My Settlement Funding?

At High Rise Financial, we provide pre-settlement funding to clients who are involved in a personal injury case and are represented by a lawyer. Not everyone involved in a personal injury case needs pre-settlement legal funding. It depends on your individual financial circumstances.

But if you can’t work because of your injuries or you lost a substantial amount of wages, you could be in a financial bind. That’s especially true if, like millions of Americans, you were living paycheck to paycheck before your accident or injuries.

Accidents Leading to Medical Bills 

Accidents such as pedestrian accidents, motorcycle accidents, boating accidents, and incidents involving defective products can lead to significant injuries requiring extensive medical care. These accidents often result in high medical costs and medical debt for the victims, creating a financial burden that can be overwhelming. 

In addition, accessing treatment at a network hospital or through network providers can further complicate the financial situation due to varying insurance policy coverages and health insurance intricacies.

To apply for free, call (877) 735-0016

What Is Pre-Settlement Funding? 

Pre-settlement funding is a type of financial support provided to plaintiffs involved in a personal injury lawsuit. This funding helps cover medical expenses, current payments, and living expenses during the legal process. Settlement funds can also be used for improvements to property rented. Thus, making your living space more suitable for your recovery needs.

Unlike traditional loans, pre-settlement funding does not require a credit check or credit score evaluation, making it accessible to those facing financial difficulties. Also, it is non-recourse, and you don’t have to repay anything if you lose your personal injury case.

Do I Have to Pay Medical Bills Out of My Settlement Funding?

If you’re considering applying for legal funding, you may wonder if you have to pay medical bills out of your settlement funding. The answer is: only if you want to. There are no legal requirements and no strings attached to your settlement funding.

Once your pre-settlement funding is in your bank account, that money is yours so spend however you see fit. You may want to prioritize your bills. Most of our clients spend the money on necessities, such as:

• Mortgage payments

• Rent

• Car payments

• Credit card payments

• Buy groceries

• Medical bills

But the point is, the money is yours to spend without mandatory payments or restrictions.

If medical bills have you in a panic, you have several options available to you. Your lawyer may have already discussed these options with you.

Medical Care and Expenses

When you receive pre-settlement funding, it’s essential to understand how it should be used. The funds are typically intended to cover medical care expenses and other qualified long-term care services. This may include medical treatment, medical devices, hospital bills, prescription drugs, inpatient care, and other related costs. This ensures you can access the necessary health care services without delay.

Working with Health Care Providers

Your pre-settlement funding company may coordinate directly with health care providers to manage your medical bills. This can alleviate the stress of dealing with multiple invoices for medical services received and provide peace of mind while you focus on recovery.

Managing Living and Essential Expenses

While medical bills are a significant concern, some American families also have to manage other living expenses and essential expenses during the litigation process. Pre-settlement funding can help cover these costs, including the cost of meals, monthly payments, personal care services, and other pocket expenses. This ensures that plaintiffs can maintain their standard of living without falling into further debt.

Impact on Credit History

Using pre-settlement funding does not affect the plaintiff’s credit history or credit score. Unlike personal loans or traditional loans from credit unions, pre-settlement funding does not require a credit check or credit report validation. This makes it an accessible option for those facing financial hardship.

Get Continuing Medical Care from Lien-Based Doctors

If your medical bills are continuing to mount after your accident or injury, you and your lawyer may want to turn to lien-based doctors. Whether this is a good option for you depends on the severity of your injuries and the strength of your personal injury case. Even if you go this route, you will still have to pay your outstanding medical bills from your accident.

Medical providers who work on a lien basis are a network of professionals who specialize in medical evaluation and the treatment of people injured in personal injury cases. These providers can be doctors, physical therapists, and even hospitals.

The way it works is similar to the way your financial agreement with your personal injury lawyer and your agreement with High Rise Financial work. We get paid out of your eventual settlement or jury award.

A medical lien allows your doctor or hospital to join your personal injury case. They agree to treat you without sending you any medical bills and agree to be paid when you recover damages, whether through a settlement or jury award. You also sign a legal agreement with lien-based medical providers guaranteeing your providers will get paid when you get your settlement.

If you lose your case, these medical providers would rather not create financial hardship for you by pursuing collection. Depending on your case, they may write off your bills, but that is not guaranteed.

To apply for free, call (877) 735-0016

Complete a Free Application form now

Negotiating Your Medical Bills

Your lawyer may be able to negotiate your existing medical bills for you. In many cases, they can knock 20% off your bills rather easily. We have also seen cases where lawyers get medical bills reduced by half or more. Of course, every case is different, but you might want to talk with your lawyer about this possibility. He or she may be able to help you negotiate other bills as well.

Also, using a medical bill advocate can be incredibly beneficial in negotiating and managing your medical expenses amounts. They can help ensure that you are not overcharged and assist in handling excess amounts that may arise from your medical bills.

When You Get Your Settlement or Jury Award

When you eventually get your personal injury case settlement or jury award, there are some rules that must be followed. First, the third party will send the funds to your personal injury lawyer. Your lawyer will then pay High Rise Financial and deduct their own legal fees. In addition, if you received medical treatment from a lien-based doctor or hospital, those medical bills will be paid by your lawyer. The rest of the money is yours.

At that point, you will be required to pay any outstanding medical bills. If you did not have lien-based medical care, you need to make paying medical bills one of your first priorities. You may have negotiated a payment schedule or a payment when your case settled. Pay those bills before they go to a collection agency.

Non-Recourse Funding

Pre-settlement funding is often considered non-recourse funding, meaning you only repay the advance if you win your case. This provides a safety net, ensuring you are not burdened with additional debt if your case is unsuccessful.

Quick Access to Funds

One of the significant advantages of pre-settlement funding is the speed of access. Once approved, you can receive the funds within a few business days. This swift access can be crucial in addressing urgent medical costs and maintaining financial stability.

Financial Relief During Litigation 

Many personal injury plaintiffs face financial hardship during a personal injury lawsuit due to mounting medical debt and living expenses. Pre-settlement funding offers a solution by providing the necessary cash flow to manage these essential expenses without further financial strain.

Also, managing the cost of diet food and necessary cost of equipment for your recovery can be challenging. Settlement funds can help cover these costs, ensuring that you have access to the resources needed for your health and well-being.

Insurance Companies and Policy Limits

Navigating the complexities of health insurance coverage or policies and negotiating with insurance companies can be challenging. Pre-settlement funding gives you the financial flexibility to hold out for a fair settlement rather than accepting a lower offer due to immediate financial pressures.

The Role of Legal Funding Providers

Selecting a reliable legal funding provider is crucial for ensuring you receive the best terms and support. Reputable companies like Rockpoint Legal Funding and Express Legal Funding offer transparent terms and personalized assistance to help you manage your finances during litigation.

Getting Proper Legal Representation and Support

Your personal injury attorney can work with the legal funding provider to ensure that the funds are used appropriately and in your best interest. This collaboration ensures that your financial needs are met while pursuing the best possible outcome in your lawsuit.

Avoiding Additional Financial Strain 

The non-recourse nature of pre-settlement funding means you won’t owe repayment if you lose your case. This aspect provides an added layer of protection, preventing financial hardship in the event of an unfavorable outcome.

Maintaining Financial Health

By opting for pre-settlement funding, you can manage medical expenses and other essential expenses without negatively impacting your credit history or increasing medical debt. This can help maintain your overall financial health during a challenging time.

Future and Qualified Long-Term Care Services

For plaintiffs with severe injuries resulting in long-term or permanent damage, settlement funds can be used to plan for future care. This includes covering costs for qualified long-term care services provided by licensed health care practitioners and ensuring access to necessary health care services for dependent care.

Dependent Care and Community Property

Settlement funding can also address expenses related to dependent care and improvements to property that may be necessary for the well-being of dependents with disabilities or those with a disabled condition. 

Understanding the intricacies of community property and family coverage ensures that all members of the household are adequately provided for. For those with dependents, it’s crucial to account for the needs of a child under age or a foster child.

Apply for Settlement Funding Today

To help make ends meet while you wait for your personal injury case to resolve, you can apply for pre-settlement funding. Our risk-free lawsuit loans can provide you with the immediate funds you need. However, the amount you may be eligible for will depend on the specifics of your case and the state in which you live.

Begin the process by filling out the form on the Apply Now page. If you have additional questions, you can also call us at (866) 407-6404.

Call or text (877) 735-0016 or fill out our form to apply today for free.

Call or text (877) 735-0016 or fill out our form to apply today for free.