Detailed answer

1. First sources of payment: health insurance and no-fault (auto) benefits

After an accident, the immediate sources that usually pay medical bills are your health insurance and, for motor vehicle crashes, Minnesota’s no-fault personal injury protection (PIP) benefits. Minnesota’s no‑fault laws require automobile policies to provide personal injury protection that covers reasonable medical and rehabilitation expenses regardless of fault. For the no-fault statute and details, see Minnesota Statutes Chapter 65B: https://www.revisor.mn.gov/statutes/cite/65B.

2. If another party caused the accident: recovering medical expenses in a liability claim

If someone else caused the accident, you can usually pursue a third‑party claim (lawsuit or settlement) against the at‑fault driver or other negligent party. In a successful claim you can seek recovery for economic damages, which typically include past and future reasonable medical expenses related to the injury, lost income, and other out‑of‑pocket costs. If your case settles, the settlement often covers bills you already owe plus amounts for future treatment.

3. Liens, subrogation, and repayment obligations

Even though your claim may produce a recovery, other entities that paid your medical bills often have the right to be reimbursed from your settlement or judgment:

• Health insurers and private healthcare plans commonly have subrogation or contractual reimbursement rights. That means the insurer may claim a portion of your settlement to recoup what it paid.
• Medicare and Medical Assistance (Minnesota’s Medicaid) have mandatory repayment and lien rules. Minnesota’s Medical Assistance statutes cover state rules about third‑party liability and recovery: https://www.revisor.mn.gov/statutes/cite/256B. Federal Medicare rules also require repayment from settlements when Medicare has paid related medical care.
• Healthcare providers or hospitals may assert liens or collection claims against your recovery in some situations. Minnesota law governs liens and related procedures; see Minnesota Statutes Chapter 514 for statutory lien topics: https://www.revisor.mn.gov/statutes/cite/514.

These reimbursement demands can reduce your net recovery. Common practice is for claims to be negotiated so providers and insurers accept less than the billed amount, but you or your attorney should address subrogation and liens before accepting a settlement.

4. What if you can’t pay bills now while your claim is pending?

Being unable to pay medical bills while a claim is pending is common. Options include:

• Ask providers for payment plans or reduced amounts. Many hospitals and clinics will negotiate, especially when an injury claim is pending.
• Use health insurance or PIP benefits first; they typically pay for medically necessary treatment. PIP can cover reasonable medical costs up to policy limits regardless of fault.
• Your provider may agree to a “letter of protection” (an agreement from an attorney to pay the provider from your future settlement). This is a private agreement—not automatic—and providers may require proof of representation and case merit.
• If public benefits (like Medical Assistance) pay your bills, expect state recovery actions. Minnesota law authorizes recovery for public payers from third‑party recoveries under certain rules (see chapter 256B link above).
• If creditors pursue you, federal and Minnesota consumer protection rules limit some collection practices; consult counsel about aggressive collection or garnishment threats.

5. Settlement planning: net recovery and negotiating liens

Before you accept any settlement, determine how much of the gross recovery will satisfy liens, subrogation claims, attorney fees, costs, and taxes (if any). A settlement that looks large can yield a small net amount after these claims. Experienced counsel or a lawyer review can identify likely reimbursement claims, negotiate reductions, and prepare the documents needed to close the case.

6. Timing and statute of limitations

Minnesota law sets deadlines to file a lawsuit. If you wait too long you may lose the right to recover anything. Do not delay critical actions: preserve evidence, report the accident to insurers, seek medical care, and learn your statute of limitations for personal injury claims. For timelines on certain civil actions and other procedures, consult Minnesota statutes or an attorney promptly.

7. When to get legal help

If your bills are high, multiple payers assert claims, or an insurer denies coverage, seek legal help. A lawyer can estimate true economic damages, negotiate medical lien reductions, coordinate with insurers, and structure a settlement that protects your net recovery and future medical needs.

Helpful hints

• Document all medical visits, bills, and insurance payments. Clear records help prove what treatment is related to the accident.
• Notify your health insurer and (for car crashes) the auto insurer early. PIP and health insurance often pay first and create subrogation rights—knowing the amounts early avoids surprises later.
• Before signing any settlement, ask for a written breakdown of how much will go to liens, subrogation, attorney fees, and your net proceeds.
• Don’t ignore collection calls. Contact the provider and explain you have a related claim in progress—ask about temporary holds, payment plans, or reduced balances.
• If Medicare or Medical Assistance paid your care, notify the agency about any settlement. Federal and state rules require repayment or claim filing to protect those programs’ interests.
• Be cautious about early “full and final” release offers. If you may need future care, an early settlement without funds for future treatment can leave you responsible for those bills later.
• Consider consulting an attorney early if medical costs are substantial; many personal injury attorneys consult free or work on contingency and can evaluate subrogation and lien issues for you.