If you've been in an auto accident in Florida, it's likely that you're feeling overwhelmed and uncertain about what to do next. One of the questions you may be asking yourself is whether you should sign a letter of protection (LOP) to get the medical treatment you need after getting injured in the accident. In this article, we'll explore what a letter of protection is, how it works, and whether it's a good idea for you to sign one.
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What is a Letter of Protection in the Context of a Car Accident Lawsuit?
A letter of protection is a legal document that a patient signs in order to ensure that their medical bills will be paid out of any settlement or judgment that they may receive in a personal injury case. Essentially, it's a way for a patient to get medical treatment without having to pay for it up front. An LOP is also a way for medical providers to ensure they are receiving payment for the medical costs they incur, assuming there is a settlement or recovery.
Emergency rooms, ambulance services, and other emergency services don't typically work under a letter of protection. However, other medical providers that injured people see after an accident may be willing to provide medical services under an LOP.
How Does a Letter of Protection Work?
When you sign a letter of protection in Florida or any other state, you're essentially telling the medical provider that you won't be paying your bills right away. Instead, you're promising to pay them out of any settlement or judgment that you may receive in the future. This allows you to get the medical treatment you need without having to worry about the cost upfront.
However, it's important to note that signing a letter of protection doesn't guarantee that your medical bills will be paid in full. If you don't receive a settlement or judgment in your case, you may still be responsible for paying your medical bills out of pocket. Additionally, if your settlement or judgment doesn't cover the full cost of your medical treatment, you may be responsible for paying the difference.
While this basic framework remains in place, recent changes to Florida law have added new requirements and considerations that you should understand before signing an LOP.
How Florida's HB 837 Changed Letters of Protection
In March 2023, Florida's legal landscape for personal injury cases shifted significantly when Governor Ron DeSantis signed House Bill 837 into law. This tort reform legislation brought sweeping changes to how letters of protection work in Florida, making it essential for accident victims to understand these new requirements before signing an LOP.
New Disclosure Requirements for Letters of Protection
Under HB 837, if you're using a letter of protection to secure medical treatment, your attorney must now make specific disclosures to the insurance company and defense attorneys. These aren't optional – they're mandatory conditions that must be met before you can claim any medical expenses in your personal injury or wrongful death lawsuit.
Here's what must be disclosed:
- Complete itemized billing from every medical provider treating you under the LOP
- Your health insurance status at the time of treatment
- Any bill sales or transfers – if your medical provider sold your bills to another company
- The actual terms of your letter of protection agreement
This transparency requirement means the defense will know exactly how your medical treatment is being financed and what arrangements you've made with your providers.
Changes to How Medical Bills Are Valued in Court
Perhaps the most significant change involves how courts determine the reasonable value of your medical treatment. Before HB 837, the focus was primarily on the amount billed. Now, defendants can introduce evidence about what your medical provider typically accepts as payment from health insurance companies or Medicare.
This means if your doctor charges $5,000 for an MRI under a letter of protection, but typically accepts $1,200 from insurance companies for the same procedure, the defense can present this information to the jury. They can also explore whether your medical provider might be biased – for instance, if the doctor regularly works with your attorney or charges significantly higher rates for LOP patients than for those with insurance.
What These Changes Mean for You
These reforms make it more important than ever to work with an experienced personal injury attorney who understands the complexities of HB 837. While letters of protection remain a valuable tool for getting necessary medical treatment after an accident, the new disclosure requirements and evidentiary rules can significantly impact your case's value.
The defense now has more tools to challenge your medical expenses, potentially reducing the amount you can recover. However, with proper documentation and the right legal strategy, legitimate medical expenses incurred after an accident can still be recovered – it just requires more careful navigation of the legal requirements.
Is Signing a Letter of Protection a Good Idea?
Given the disclosure requirements and evidentiary changes under HB 837, whether signing a letter of protection is a good idea depends even more heavily on your specific circumstances. Understanding when an LOP makes sense, recognizing the risks, and getting proper legal guidance are all crucial to making the right decision.
When an LOP Makes Sense
Signing a letter of protection may be the right choice in several situations. If you've been injured in an auto accident and need immediate medical treatment, an LOP can provide access to care when you don't have health insurance or when your insurance doesn't cover the full cost of specialized treatment.
LOPs are particularly valuable when you need treatment from specialists who don't accept your insurance or when you've exhausted your Personal Injury Protection (PIP) benefits. They ensure you can get necessary medical care without delaying treatment due to financial concerns, which could both harm your health and weaken your personal injury claim.
Important Risks to Consider
Under HB 837's new rules, signing a letter of protection carries significant risks that you must understand. Defense attorneys now have powerful tools to challenge your medical expenses, using evidence of letters of protection to suggest that your medical treatment was overpriced or unnecessary. They can compare what your doctor charged under the LOP to what they typically accept from insurance companies, potentially reducing your compensation.
Remember that a letter of protection is a legally binding contract. You'll be obligated to pay your medical bills out of any settlement or judgment you receive, even if the amount is less than expected. If you're unable to reach a settlement or win your case in court, you may be responsible for paying your medical bills out of pocket. This financial obligation remains regardless of your case outcome.
The new disclosure requirements also mean the defense will have complete visibility into your medical financing arrangements, which they may use to argue bias or inflate charges. This transparency can impact negotiations and potentially reduce your overall recovery.
Why Legal Guidance is Essential
If you're considering signing a letter of protection, consulting with a personal injury lawyer first isn't just recommended—it's essential. Choose an attorney who regularly handles LOPs and understands the complexities of HB 837. Your attorney can help you understand your legal rights and obligations, evaluate whether an LOP is appropriate for your specific situation, and develop strategies to protect your interests despite the new legal requirements.
An experienced attorney can also help you find medical providers who charge reasonable rates under LOPs, ensure proper documentation to support your medical expenses, and navigate the disclosure requirements while protecting your claim's value. They'll advise you on alternative options if an LOP isn't in your best interest and help you understand how signing one might affect your overall case strategy.
Making Your Decision
Overall, signing a letter of protection can still be a valuable tool for getting the medical treatment you need after an auto accident in Florida. However, the potential risks and drawbacks under HB 837 make it more important than ever to make an informed decision. If you're unsure whether signing a letter of protection is right for you, contact Spetsas Buist Accident Injury Lawyers at 321-LAWSUIT for a free consultation about your case and whether a letter of protection fits your situation.