If you have been injured and are pursuing legal action against the person or party who is responsible for your injury, you may find yourself in a position where medical bills are starting to pile up.
At that point, you are faced with making choices on how to stay financially afloat while you wait for a settlement.
A letter of protection (LOP) exists to help injury victims in this situation, but it is important to understand both the benefits and risks before determining the best way to finance your treatment.
What Is a Letter of Protection?
A letter of protection is a legally binding agreement between you, your medical provider, and your attorney.
The agreement promises the payment of any professional services provided once you receive your settlement.
Letters of protection are typically used in situations where an accident victim does not have medical insurance or cannot pay the out-of-pocket costs of treatment.
The letter of protection cannot be a casual agreement. To qualify as a LOP, it must be sent by a licensed attorney to a licensed medical practitioner.
You will want to discuss this with your attorney to understand whether this is the right choice for your situation.
How Does a Letter of Protection Work?
It is important that you do not delay or refuse medical treatment for financial reasons. There is nothing more important than your health and well-being.
When a healthcare provider signs a letter of protection, they agree to provide necessary medical treatment with the expectation that they will be paid at a future date.
LOPs are common in personal injury cases, especially when the victim is facing high medical costs or they are underinsured.
Important Considerations for LOPs
It is crucial that you receive proper medical care, but letters of protection are not the only option. Here are some important questions you should know the answers to when considering a LOP.
What Is a Letter of Protection vs Pre-Settlement Funding?
Unlike with pre-settlement funding, if you lose your case or your settlement is less than the anticipated amount, you have to pay your medical costs out of pocket.
Pre-settlement funding has to be paid back only if you win.
What Is a LOP Going to Do for Your Case?
Unfortunately, a letter of protection can actually be detrimental to your case. The insurance company could claim that the doctor has a vested interest in you winning your case to get paid, and therefore, the validity of their statements could be in question.
What Is a LOP vs a Medical Lien?
Letters of protection are essentially the same thing as medical liens, and providers often use these terms interchangeably. The main difference is that a lien is filed with the county.
Additionally, with a medical lien, the medical provider or facility creates the agreement. It is important to have your attorney approve any legal documents you sign.
Learn More About Pre-Settlement Funding
Now that you understand a little more about letters of protection, you may have some additional questions about pre-settlement funding.
At Ally Lawsuit Loans, we are here to help you get the medical treatment you need at the guaranteed lowest interest rate.
We would be happy to talk through your case and how we can help. Contact us at 213-418-1732.
I was in such a bind after my accident. Bills were piling up like crazy and I was about to get thrown out if my house. Thank God for Ally Lawsuit Loans. They hooked me up with a loan super fast.“
DENISE W.
