Yes, in Alabama, hospitals must bill health insurance after a car accident.
In 2019, the Alabama House of Representatives passed House Bill 11 (HB 11), which significantly changed how hospitals handle billing for patients injured in car accidents.
Under this law, effective August 1, 2019, hospitals are required to bill a patient’s health insurance provider for medical treatment related to a car accident, rather than automatically placing a lien on any personal injury settlement or award to secure higher payouts.
This applies unless specific exceptions exist, such as the patient lacking health insurance or the insurer denying the claim.
What Are the Key points of HB 11?
HB 11 addresses past practices where hospitals would avoid billing health insurance and instead place liens on personal injury settlements for the full, undiscounted amount, which often resulted in higher costs for patients.
By requiring hospitals to bill health insurance first, HB 11 reduces the financial burden on car accident victims and ensures fairer billing practices.
If a patient has Medicare or Medicaid, hospitals must also bill these programs, which often have even lower contracted rates
Here are the key points of HB 11
- Mandatory Billing to Health Insurance: Hospitals must seek compensation from the patient’s health insurance provider for treatment provided within one week of the injury, billing at the negotiated rate agreed upon with the insurer, which is typically lower than the full rate charged to uninsured individuals.
- Limits on Hospital Liens: Hospitals can only file a lien if the patient has no health insurance, the insurer denies the claim, or the insurer fails to pay within six months of submission. Even then, the lien must reflect the discounted rate negotiated with the insurer, not the full billed amount.
- Lien Withdrawal: If a lien is filed and the health insurer later pays the bill (at the contracted rate or an agreed amount), the hospital must withdraw the lien within 10 days of payment.
- Patient Protections: The law prevents hospitals from bypassing health insurance to attach liens for inflated amounts, ensuring patients benefit from lower, negotiated rates and keep more of their settlement or award.
Need Help With Medical Bills after a Car Crash in Alabama?
If you or a loved one were recently injured in a car accident, don’t assume that you are without options. Instead, reach out to the Fob James Law Firm to schedule a free, no-obligation consultation.
Our Alabama personal injury lawyers will meet with you to discuss your case and provide you with an honest assessment. We take all cases on a contingency basis.
This means that if you decide to pursue a claim, we will take your case at no upfront cost to you. We only charge you for our legal representation if we can recover compensation on your behalf.
To learn more and to schedule a free consultation with Birmingham car accident lawyer, contact the Fob James Law Firm at 205-407-6009. You can also reach us through our online contact form.
Fob James
Fob James obtained a B.S., in software engineering from Auburn University and then continued his education by getting his J.D. from Vanderbilt University School of Law. After working for a large regional firm for several years where he obtained awards for both individual and corporate clients, Fob found that his passion was fighting for individuals who have been seriously injured or wronged by others. Fob believes that the jury is the great equalizer to the power and influence that large corporations have in society.