An important factor that may come into play after you file a personal injury lawsuit is your own health insurance. Whether you have one or not, it does not prevent you from seeking compensation. It can, however, influence several aspects of your case which this blog will cover.
How your health insurance status may affect credibility and damages
Defense attorneys and insurance adjusters often look for reasons to minimize your claim. One area they might focus on is your treatment history and any gaps that appear in your records.
Without health insurance, affording timely healthcare can be difficult. If you delayed treatment or skipped follow-up appointments due to cost, opposing counsel can argue your injuries were not as serious as claimed.
Why health coverage can still protect your recovery
California follows the collateral source rule, which prevents defendants from benefiting when plaintiffs have insurance coverage. This legal principle ensures the at-fault party cannot reduce their liability simply because a third party helped pay your bills.
Because of this rule, courts typically exclude evidence of insurance payment when calculating damages. A defendant should not pay less just because a third party helped cover your treatment costs.
That said, state law does place a clear limit on recovery for past medical expenses. In most cases, you can recover only the amount your insurance actually paid or still must pay to satisfy the bill.
For example, if a hospital bills $10,000 but your insurer resolves that bill for $6,000, the law generally limits your recoverable medical damages to $6,000, not the original charge.
When lack of coverage becomes a factor in litigation
If you do not have health insurance after a crash, you still have options for receiving medical care while pursuing your claim.
The most common solution involves treating on a medical lien. Under this agreement, healthcare providers treat you now but agree to delay collection until your case concludes. In exchange, they receive a legal right to collect payment directly from your eventual settlement.
To facilitate this, an attorney may issue a Letter of Protection. This document guarantees the medical provider that your attorney will pay their bill from the funds you recover. This allows you to get the care you need immediately without paying out-of-pocket costs upfront.
