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Balance Billing – Beware! Your RI Medical Treatment Provider May Trick You After Your Car Accident!

Chiropracters, physical therapists and other doctors often require their Rhode Island Personal Injury Patients to sign  a lien against their personal injury claim for the difference between the cost of the  full price of the medical service and the amount they will collect from  health insurance. This is called balance billing. This practice is deceptive and unfair because another patient who was not injured as a result of a car accident would not be required to pay anymore than the health insurance company pays.

If an automobile accident victim has a medpay policy, many medical providers also attempt to trick their patients to put coverage through medpay rather than private health insurance.

Question: Why do medical providers in Rhode Island do this?

Answer: Health Insurance Companies have negotiated a low reimbursement rate with medical providers. Insurance providers such as Allstate, State Farm, Progressive and others have not negotiated a lower reimbursement rate. Therefore, if the medical service is paid by med pay insurance, the doctor gets paid full price for the medical care.

Why is this detrimental for the auto accident victim:

The medpay company has a lien on any settlement that the injured person obtains. Therefore the accident victim has to repay the medpay lien at a much higher rate. Furthermore, the health insurance companies in RI are often required to further reduce the health insurance lien by 25 percent to account for attorneys fees. The Med pay Insurance Company will not lower their lien to account for Lawyer fees.

Balance billing effectively tricks unsuspecting patients to agree to an arrangement that is not in their best interest. Medical providers do not adequately inform their patients of the consequences of this billing arrangement.

 

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