Hospitals Allegedly Reject Insurance in Car Accident Cases to Collect From Settlements

Lawyers are going after hospitals that allegedly reject patients' health insurance after treatment for auto accidents in hopes to collect from an auto insurance settlement, and more lawyers are keeping an eye out for such a practice, according to a Kansas City Star report.

This is how the process goes, according to the Kansas City Star: Hospitals first refuse to submit bills to a health insurer. They then calculate bills without the health insurer discounts and instead file a lien against whatever settlement the patient might receive from an auto insurer. Finally, the hospital gets paid from that auto settlement, according to the report.

While no figures are available to show how often bills aren't submitted to health insurance, the practice is thought to be growing as hospitals look for new sources of revenue, according tot he report.

In Kansas City, Mo., Research Medical Center and St. Luke's Hospital and SSM DePaul Health Center in Bridgeton, Mo., are facing lawsuits involving allegations of the practice.

Patients are then left in the middle to dispute medical bills they thought would be covered with their health insurance, according to the report.

The practice also has payers concerned. Some specialized companies are emerging to help hospitals boost their reimbursement for car accident patients. Brentwood, Tenn.-based Medical Reimbursements of America reportedly has a system that ensures hospitals receive more when treating patients injured in auto accidents, often 100 percent of gross charges, according to the report.

More Articles on Hospitals and Reimbursement:

Most Americans Don't Understand Health Insurance, Study Finds
3 Necessities for Successful Transition to Value-Based Contracting
17 Recent Issues Between Hospitals and Payers

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