What is a letter of protection?
In our day-to-day lives, there are chances of a person getting injured in a car accident, in the workplace, and even due to a fall. When you sustain any such injury and seek a medical practitioner’s help, they might require upfront payment before starting treatment. A letter of protection or LOP can actually help people under those circumstances. It also guarantees payment of outstanding medical treatment bills upon the conclusion of the services for those people who would have otherwise fail to pay. It is kind of a ‘promise’ given by a law firm to the medical professionals to pay the medical bills at a later date for the services rendered by them.
An official letter that is sent to doctors or medical practitioners by a personal injury lawyer is referred to as the letter of protection. It represents the injured person and pays for all medical services after the settlement of a claim. it is helpful when the insurance company denies responsibilities or the injured person does not have a proper insurance plan.
When is a Letter of Protection Required
Let us now find out the instances wherein getting a letter of protection from an attorney would be beneficial:
- Insurance company disputes: When you meet with an accident leading to an injury, you need to inform the insurance companies involved. Typically, those companies tend to fight over who is responsible for the payment to be made. The tussle occurs when there are different insurance companies of the victim versus the person at fault. While the companies still try to figure out who should pay, at times hospitals call for upfront payment to start with the treatment.
- Delay collections: In case of emergency treatment, your health care provider generally submits a bill for the treatment received to your health insurance company. If your insurance provider refuses to pay the bill for any reason, you can call for a case. A letter of protection, in those circumstances, can help in delaying any debt collection actions until your case is settled.
- No insurance coverage: Data shows as of 2018, there were approximately 27.5 million Americans who did not have health insurance. Moreover, 29% lost their health insurance in 2020, which is nearly 3 out of every 10 persons. Even if people have insurance, a large number of them might not have adequate coverage. A letter of protection helps those people with no health insurance or inadequate coverage receive health treatment when required.
Tips for Writing a Letter of Protection
A letter of protection is written by a legal professional. One can find a lot of letter of protection samples which can ease the process of writing the letter. There are a few points that should be kept in mind while writing a letter of protection.
1. The letter or protection should be a brief document. It should incorporate a few paragraphs which will state that payment will be made after a settlement so that the injured person starts receiving medical aid.
2. The letter of protection should consist of the client’s name, the way the payment will be made, and any dates if applicable.
Top 5 Letter of Protection Samples
A letter of protection can differ from state to state. Let us have a look at a general letter of protection sample at the onset.
Letter of Protection Sample # 1
Name of Doctor
Re: Patient Name: [Name of Client]
Patient Account Number: [Account Number]
Date of Birth: [Date of Birth]
Date of Accident: [Date of Auto Accident or Work Injury]
Dates of Service: [Dates that You Received Medical Treatment]
Account Balance: $[Balance Now Due]
Subject: Letter of Protection Asking You to Hold the Account until the Claim is Resolved
Dear Dr. XYZ:
I represent Mr.AB, who suffered injuries in an automobile accident on January 31, 2021. It is my understanding that he is getting his treatment for injuries caused by the accident under your able supervision.
All medical benefits available through auto insurance that was available to Mr.AB have been exhausted. Unfortunately, currently, Mr.AB does not have any health insurance and does not have the financial ability to pay for your services.
We are seeking monetary damages through the [defendant’s/employer’s] insurance company, but Mr.AB’s claim has not yet been settled or is yet to go to trial.
For the above-mentioned reasons, we ask you to accept this Letter of Protection and set Mr.AB’s account aside while we attempt to settle this claim or have a trial. We would like to promise that in exchange for your compassion, we will contact you and make necessary arrangements for the payment of your bill. It will be done before the funds received through a settlement or a jury verdict are given out to John.
It is also to be noted that the payment of your medical bill is not contingent on the outcome of Me.AB’s lawsuit. He will owe the money for your services regardless of the outcome of the case. By accepting this Letter of Protection, you only agree not to seek payment until the civil action concludes. You will provide Mr.AB the required treatment and work along with Mr.AB to ascertain fair and reasonable charges based on the amount he recovers and other outstanding medical bills.
Thank you for your understanding and patience. Do not hesitate to send any future bills or letters of collection regarding Mr.AB’s treatment to us, pending this claim’s outcome.
[Name of Attorney]
Counsel for Mr.AB
Letter of Protection Sample # 2
RE: Our Client: XYZ
Amount of Bill: $2000
Subject: LETTER OF PROTECTION
Please be advised that XYZ was injured as a result of the negligence of YYY. YYY’s insurance company has failed to take financial responsibility for his actions. Our Firm has been employed in connection with the personal injuries and damages sustained by XYZ as a result of the above-mentioned accident. The accident has caused financial hardship for our client due to the negligence of YYY. We would appreciate your accepting this letter as our agreement that we will protect your interest in the services offered on behalf of XYZ. We would make payment for the treatment rendered out of any settlement recovered from YYY and/or his insurance company in this case.
Of course: should there be no recovery made in this case, XYZ will be entirely responsible for paying off the entire balance of your bill.
Please feel free to direct any future bills or letters of collection regarding our client’s bill to us during the pending of this claim. If you’ve got any questions, please don’t hesitate to contact me.
Name of Client’s Attorney
Letter of Protection Sample # 3
Letter of Protection Confirming Payment of Medical Expenses
Dear [Doctor Name],
On behalf of my client XYZ, I can confirm that he will be paying his outstanding medical bill of [amount]. It’ll be paid once the settlement for his hit and run case in Austin, Texas concludes on [date]. You will receive the full payment on or before the mentioned date.
This payment includes leg surgery and treatments associated with it.
If you have any questions don’t hesitate to call me on: [phone number]
[Name of Attorney]
[Name of Law Firm]
[Address of Law Firm]
Letter of Protection Sample # 4
RE: Medical Costs for [Client’s Name] Road Accident
Dear [Doctor Name],
This letter is to notify you that our client [Client’s Name] has informed us that he will pay for his medical bills associated with the road accident in Miami Florida. He will do so out of his settlement proceeds.
As billed, this includes an arm surgery and x-rays associated with that and comes to no more than [treatment amount]. This will be paid on or before September 07, 2021.
If you have any queries about this arrangement, please contact me at my office on [phone number].
[Name of Attorney]
[Name of Law Firm]
Letter of Protection Sample # 5
Patient Name: Date:
As consideration for medical services received, I hereby irrevocably assign to [Name of Clinic] out of the proceeds from the settlement, judgment, or any recovery from my claim. It will be for medical services for the private injuries which occurred on (Date of Accident). The sum of the settlement will be sufficient to pay fully all amounts I owe to the Clinic for my care for those injuries.
I authorize my attorney, (Name) to pay the Clinic directly out of the proceeds of any settlement or recovery. The payment will be for any and all amounts I owe to the Clinic for treatments provided for my injuries. It’ll be after paying attorney fees and costs and any valid hospital lien. I understand that this suggests my attorney will ensure to pay the Clinic the outstanding amount that I owe for the treatment provided. After that amount is paid, I can receive my proceeds. I further concur to not annul this agreement and direct my attorney not to honor any of my attempts to annul this agreement.
I understand and agree that I’m directly and entirely responsible to pay the Clinic for all treatments provided to me. I am getting into this agreement to offer the Clinic additional protection for payment of my outstanding bill and in consideration of the Clinic’s forbearance of immediate payment. I also understand that might not receive a settlement or recovery in my personal injury case. The amount that I receive might also be lesser than was I was seeking. If the amount is lesser than all fees, costs, and outstanding bills, I will be still personally responsible to pay the Clinic for all amounts I owe.
If my balance reaches [amount] I agree to make payment in full for each visit so that my outstanding balance does not exceed [amount]. My case might not be settled at the time of my discharge from care. In that scenario, I agree to make additional monthly payments of a minimum of $35.00 or 8.5% of the balance, whichever is bigger to the Clinic. It will be until the time my case has been settled or until the balance of my bill has been paid in its entirety.
Both Patient and Attorney are Required to Sign:
Dated Signature of Patient
Driver’s License Number
Date of Birth
As the Attorney of record for the above patient, I comply with the terms of this agreement. I will act in accordance with the agreement between the Clinic and my client. It will be by paying directly from the proceeds of any settlement, judgment, or recovery that [client’s name] is entitled to receive. The payment will be made after attorney fees and costs and any valid hospital liens are paid.
Dated Signature of Attorney
City, State, ZIP
ATTORNEY: Please date, sign and return the original copy to:
[Name of Clinic/ Hospital]
[Address of Clinic/ Hospital]
Though a lot of people are of the opinion that a letter of protection is the same as the advance settlement funding, they are not. With a letter of protection, there is no cash involved, no interest charged, and the payment of the medical bills is done only after the case is settled. When the case is settled and a judgment has been given, the lawyer is duty-bound to honor the letter of protection. The attorney will initiate the process to pay the medical providers in accordance with the terms agreed upon in the letter of protection. If the insurance companies were able to pay the bills at the onset, then a letter of protection would not have been required. However, since that is not the case in a lot of circumstances, a legal document like a letter of protection becomes the savior. It lets the injured person get immediate medical attention by not having to pay anything upfront. Once a settlement is reached the patient can pay the outstanding bill from the money received from the settlement. In case of not receiving any monetary compensation, the patient is still liable to pay the bill fully. A personal attorney will be there at every step to help you in the process. So getting a letter of protection saves you from a lot of headaches.