The ambulance ride was over in minutes, and the hospital stay lasted only a few hours. The injuries? They will take much longer to heal.
Now, the medical bills are piling up. The total keeps growing, and so do the questions. How medical bills are paid after a car accident isn’t always straightforward. Who covers the costs, and what happens when insurance falls short?
Keep reading to learn who pays for medical bills after a car accident in New Jersey and how recouping those expenses helps avoid unnecessary debt.
Who Pays First? Understanding New Jersey’s No-Fault Insurance System
New Jersey operates under a no-fault insurance system, which means your auto insurance policy covers your medical expenses, regardless of who caused the crash. This coverage, known as Personal Injury Protection (PIP), is required on all New Jersey auto insurance policies.
PIP coverage covers:
- Emergency room visits and hospital stays;
- Doctor appointments and follow-up care;
- Physical therapy and rehabilitation;
- Prescription medications;
- Diagnostic tests (X-rays, MRIs, CT scans); and
- Ambulance transportation.
The standard PIP policy in New Jersey covers up to $250,000 in medical expenses for injuries, but drivers can select limits as low as $15,000 per accident. Lower coverage means more out-of-pocket expenses, so knowing what your policy includes is crucial.
Example: A driver who selected the $15,000 PIP limit and suffered a back injury requiring surgery could face medical bills exceeding $50,000. After using the PIP coverage, the driver must cover the remaining $35,000 through health insurance, out-of-pocket payments, or a claim against the at-fault driver.
Does Health Insurance Cover Car Accident Bills?
Many drivers assume health insurance automatically covers car accident medical bills, but that’s not always true. Some health insurance policies exclude auto accident injuries or only provide secondary coverage after reaching PIP limits.
New Jersey allows drivers to choose health insurance as their primary medical coverage for auto accidents. This option can reduce auto insurance premiums but also comes with potential drawbacks, such as:
- High deductibles before coverage kicks in,
- Co-pays for each medical visit, and
- Limited coverage for accident-related treatments.
Verifying coverage with a health insurance provider prevents surprise expenses later.
What If PIP Coverage Runs Out?
Car accident injuries frequently lead to medical costs that exceed PIP coverage. When that happens, additional payment sources include:
- Health insurance. Once PIP reaches its limit, a health insurance plan might cover the remaining expenses, depending on the policy.
- Medicaid or Medicare. These programs assist eligible individuals with accident-related medical bills after they reach PIP limits.
- At-fault driver’s insurance. Filing a claim against the at-fault driver can potentially recover unpaid expenses, especially in severe injury cases.
- Personal funds. Without enough coverage, accident victims may have to pay the remaining balances themselves.
When medical expenses go beyond what insurance covers, accident victims typically look for additional ways to get reimbursed. New Jersey’s two-year statute of limitations sets a deadline for filing a claim against an at-fault driver. Failing to act within this timeframe can mean losing the ability to seek compensation for unpaid medical bills.
Example: A motorcyclist struck by a distracted driver suffered multiple fractures requiring multiple surgeries. PIP covered the initial $250,000, but ongoing care pushed total expenses beyond $500,000. A claim against the at-fault driver might provide the rider with additional compensation to cover outstanding medical costs.
Who Pays the Medical Bills in a Car Accident When Passengers Are Involved?
Passengers injured in a crash might wonder who pays the medical bills in a car accident. In New Jersey, coverage depends on the situation:
- Passenger’s auto insurance. If a passenger has a New Jersey auto policy with PIP, their insurance covers medical costs first.
- Driver’s PIP coverage. If the injured passenger doesn’t have auto insurance, the policy covering the vehicle they were in will typically apply.
- Household member’s policy. A passenger without insurance might have coverage under a policy held by a family member in their household.
These rules ensure injured passengers receive immediate medical coverage without waiting for a liability determination.
Negotiating Medical Bills After an Accident
Even with insurance, accident victims often receive medical bills they can’t afford. Negotiating medical bills after an accident is one way to keep costs from getting out of control.
- Request an itemized bill. Medical bills often contain overcharges, incorrect billing codes, or never-provided services. Reviewing each charge helps prevent overpayment.
- Ask for a discount. Many hospitals and doctors reduce bills for upfront cash payments. Even a partial lump-sum payment lowers your balance.
- Set up a payment plan. Some hospitals and healthcare providers allow monthly installments that fit within a reasonable budget.
- Get support from a medical billing advocate. These professionals understand medical billing codes and work to dispute overcharges and negotiate lower payments.
- Apply for financial assistance. New Jersey hospitals must provide economic assistance programs for qualifying patients. Asking about available aid can significantly reduce expenses.
Many accident victims don’t realize that medical providers expect negotiations. Hospital administrators and billing departments frequently accept reduced amounts, especially if they believe the patient will struggle to pay.
Medical Bills Are Piling Up—Glugeth & Pierguidi, P.C. Knows What to Do
Medical expenses can quickly spiral after an accident, leaving drivers and passengers overwhelmed with bills. How medical bills are paid after a car accident in New Jersey depends on multiple factors, including PIP coverage and health insurance.
The experienced and knowledgeable team at Glugeth & Pierguidi, P.C. can help you recover medical expenses, fight unfair insurance denials, and pursue claims against at-fault drivers. Insurance companies often try to minimize payouts, but accident victims don’t have to accept less than they deserve.
We take action when medical bills from a car accident start stacking up. Get answers, take control, and claim what you are owed before time runs out. Contact us today for a consultation. Let us answer your questions, develop a plan, and get to work recovering the compensation you need to get back to your normal life.
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