What Is a Letter of Protection in Texas and How Does It Work?

You were injured in an accident and need medical treatment, but you don't have health insurance or the money to pay for it. The insurance company hasn't agreed to a settlement, and waiting months to see a doctor isn't an option.

What if you could get medical care now and pay for it after your personal injury case settles?

That's the idea behind a letter of protection in Texas. It allows an injured person to receive medical treatment without paying upfront when a healthcare provider agrees to accept payment from a future settlement or court award.

The treatment still has to be paid for, though. If your case ends without compensation, you could owe the provider thousands of dollars.

Pierce Skrabanek helps injured Texans pursue compensation while addressing questions about medical treatment and outstanding bills. Need treatment but can't afford to pay upfront? Call (832) 690-7000 or contact Pierce Skrabanek for a free consultation.

How Can You Get Medical Treatment Without Paying Upfront?

So, what is a letter of protection in Texas? It's a written agreement involving an injured patient, their attorney, and a healthcare provider. The provider agrees to treat the patient without collecting payment upfront, expecting to be paid from a future settlement or court award.

For example, someone injured in a Houston car accident needs $15,000 in treatment but has no health insurance. A doctor who accepts an LOP provides that care and waits for payment while the claim is pending.

The patient receives treatment immediately but remains responsible for the charges under the agreement.

How Does a Letter of Protection Work?

The process usually involves five steps:

1. You need medical treatment. Your injuries call for care you cannot afford upfront, or your insurance won't cover it.
2. Your attorney contacts a healthcare provider. The attorney asks whether the provider accepts letters of protection.
3. The provider agrees to wait for payment. The agreement explains how the bills will be handled.
4. You receive treatment. This could include imaging, physical therapy, specialist appointments, or surgery.
5. The provider is paid from your recovery. Outstanding charges are addressed before the remaining settlement funds are distributed.

Healthcare providers choose whether to accept LOPs, so understand the payment terms before treatment begins.

Who Can Get Medical Treatment With a Letter of Protection?

Letters of protection can help accident victims who:

• Have no health insurance or cannot afford their deductible.
• Need treatment their insurer has denied.
• Have exhausted available insurance benefits.
• Cannot find a specialist willing to treat them without upfront payment.
• Are waiting for a personal injury settlement.

For Texans recovering from serious injuries, surgery, rehabilitation, and specialist visits can add up quickly, particularly when they're missing work. An LOP allows treatment to continue while their attorney pursues compensation.

What Happens to Your Medical Bills When the Case Settles?

Medical bills under an LOP are addressed when the claim is resolved, typically through deductions from the settlement alongside attorney fees and case expenses.

Let's say your case settles for $100,000:

• Personal injury settlement: $100,000
• Attorney fees: $33,000
• Case expenses: $2,000
• Medical treatment under an LOP: $25,000
• Amount remaining for you: $40,000

If the provider accepts $18,000 instead of $25,000, your remaining settlement increases to $47,000.

Already receiving treatment under a letter of protection? Before accepting a settlement, find out how much will go toward your medical bills. Call (832) 690-7000 to discuss your claim with Pierce Skrabanek.

What Happens if You Lose Your Personal Injury Case?

One of the biggest risks of an LOP is being left with medical bills you cannot afford after a serious accident.

Suppose you receive $30,000 in treatment, but your claim is denied and you recover nothing. The provider could still expect payment. Even with a settlement, the compensation could be too small to cover your treatment, attorney fees, and expenses.

Before signing, ask whether you'll owe the provider if there's no recovery and whether interest or collection fees apply.

Can a Letter of Protection Affect Your Personal Injury Settlement?

Yes. In Texas, medical expenses claimed in a personal injury lawsuit can be disputed, including treatment provided under an LOP.

Texas law limits compensation for medical expenses to amounts actually paid or still owed. Insurers can also challenge charges they believe are excessive.

For example, a provider could bill $5,000 for treatment it normally accepts $2,000 to perform for insured patients. The opposing insurer could challenge the higher amount.

Under Texas law, compensation for medical expenses is limited to amounts actually paid or still owed. Insurance companies can also challenge medical charges they believe are excessive, including treatment billed under a letter of protection.

Letter of Protection Meaning: Is It the Same as a Medical Lien?

No. A letter of protection allows you to receive treatment now and arrange payment later, usually from a settlement. A medical lien gives certain healthcare providers a claim against money recovered through an injury case.

A doctor could treat you under an LOP without holding a statutory lien. A Texas hospital could have lien rights even if you never signed an LOP. Both can result in medical bills being paid from your settlement, but the right to collect comes from different arrangements or laws.

What Should You Ask Before Signing a Letter of Protection?

A letter of protection personal injury arrangement can help you get treatment, but ask these questions before signing:

• What happens if I lose my case? Will I personally owe the provider?
• How much will treatment cost? Request the provider's rates.
• Can I use my health insurance instead? Compare your coverage options.
• Will the provider negotiate the bill? Ask about possible reductions.
• Are there additional fees? Check for interest or collection charges.
• What happens if I change attorneys? Ask how the agreement will be handled.

Keep copies of your agreement, treatment records, and itemized bills.

Need Medical Treatment While Your Texas Injury Claim Is Pending?

You shouldn't have to put off treatment for months while an insurance company decides what it's willing to pay. A letter of protection could help you receive care sooner, but you need to understand what happens if your claim is denied or your settlement falls short.

Pierce Skrabanek represents injured Texans facing insurance disputes and expensive medical treatment. We can help you explore your treatment options while pursuing compensation from the party responsible for your injuries.

Before you sign a letter of protection, talk to Pierce Skrabanek about your injury claim and medical expenses. Call (832) 690-7000 or get in touch with our team.