What to do if you can’t afford medical bills after an accident (New Jersey)

Short answer: In New Jersey, immediate medical bills after an automobile accident are usually first handled through personal injury protection (PIP) coverage on an auto policy. If a third party caused the crash, you can also pursue a liability claim against the at‑fault party for past and future medical expenses. Health insurers, Medicare/Medicaid, and medical providers may assert liens or seek reimbursement from any recovery. You should act quickly to preserve your rights and to limit liens or collection efforts.

Detailed answer

1. Immediate medical coverage after an auto accident — PIP (No‑Fault)

When the accident involves a motor vehicle, New Jersey requires personal injury protection (PIP) benefits under the auto insurance system. PIP covers reasonable and necessary medical expenses and related care regardless of who caused the crash. You or someone on your behalf should file a PIP claim with the appropriate auto insurer right away. For more about PIP benefits in New Jersey, see the Department of Banking and Insurance guidance: NJ DOBI — Personal Injury Protection (PIP). You can also review the PIP statute (N.J.S.A. 39:6A‑4) at: N.J.S.A. 39:6A‑4.

2. If a third party caused the injury — liability claims and medical expenses

If another person’s negligence caused the accident, you may bring a liability claim against that person (or their auto insurer). In a successful claim or settlement you can recover past and future medical expenses that relate to your injury, along with lost wages and non‑economic losses (pain and suffering), subject to applicable law and proof. Your settlement or judgment typically pays off medical bills and compensates you for unpaid future care.

3. Health insurer and provider subrogation and liens

If your health insurer (including Medicare/Medicaid) pays your treatment, it often has a legal right to be reimbursed from any third‑party recovery. Hospitals and treating providers may also place a lien against your personal injury claim for unpaid treatment. These claims can reduce the amount you receive from a settlement.

4. Negotiating medical bills and liens

It is common to negotiate down medical bills and medical liens during settlement. Many attorneys negotiate with providers and insurers to reduce outstanding balances or arrange structured payouts. Addressing liens early preserves more of the recovery for your non‑medical damages.

5. What if you have no auto PIP and bills pile up?

If PIP does not apply (for example, injuries from a pedestrian incident where a car was not involved), your health insurance usually covers immediate care. If you lack health insurance or cannot pay, ask providers about payment plans, charity care, or hospital financial assistance programs. You can also apply for Medicaid or other public benefits; New Jersey’s Department of Human Services has information about Medicaid: NJ Medicaid.

6. Statute of limitations — deadlines matter

New Jersey imposes time limits on when you must file a personal injury lawsuit. In most negligence cases, you have two years from the date of the injury to file suit. Missing this deadline can bar your claim. See the statute on limitations for personal injury actions (N.J.S.A. 2A:14‑2): N.J.S.A. 2A:14‑2.

7. How recovery is typically allocated

When you settle, the parties often allocate the money to medical bills, lost wages, and pain and suffering. Allocation matters because lien rights and tax consequences differ. Keep detailed medical records, bills, and proof that the treatment relates to the accident so you can substantiate claims for future medical needs.

8. Hypothetical example

Suppose you are injured when another driver runs a red light. Your hospital bills are $25,000. You file a PIP claim with your auto insurer for immediate care. Your health insurer also pays some bills and tells you it will seek reimbursement. You hire a personal injury attorney, demand damages from the at‑fault driver’s insurer, and negotiate both a settlement and reductions to hospital liens. After paying negotiated lien balances and attorney fees, you receive the remainder for past bills and future care.

Helpful Hints

• Report the accident and seek medical care immediately. Your health and your claim depend on timely treatment and documentation.
• File an auto insurance claim (PIP) promptly if a vehicle was involved. Follow insurer instructions about paperwork and medical releases.
• Keep every medical bill, EOB (explanation of benefits), and appointment record. These documents prove expenses and future care needs.
• Tell your health insurer about the accident. Expect possible subrogation. Don’t assume settlement proceeds are fully yours until liens and reimbursements are resolved.
• Ask medical providers about charity care, sliding‑scale assistance, or lien reduction. Many hospitals will negotiate balances if payment is uncertain.
• Don’t accept a settlement without understanding liens and future medical needs. Consult an attorney before signing releases that settle all claims.
• Be aware of deadlines (statute of limitations). If you wait too long to file a lawsuit you can lose your right to recover.
• If you are low income, apply for Medicaid and ask the hospital about financial assistance programs right away.
• Consult a personal injury attorney early. Most work on contingency (they get paid a percentage of the recovery), so they can help evaluate your claim and handle lien negotiations.

Where to find more information

• NJ Department of Banking & Insurance — Auto insurance and PIP: https://www.nj.gov/dobi/insurance/consumers/auto/auto_pip.html
• NJ Medicaid (financial help for medical care): https://www.state.nj.us/humanservices/medicaid/
• NJ Courts — self help and civil practice information: https://www.njcourts.gov/selfhelp/index.html
• Personal injury statute of limitations (N.J.S.A. 2A:14‑2): https://www.njleg.state.nj.us/Statutes/Title2A/2A-14-2.asp

Next steps: If your bills are mounting, keep a careful record, notify any applicable insurers, and consider contacting a personal injury attorney to review your rights, potential recovery, and options for lien negotiation. If you cannot afford an attorney, ask about free consultations and contingency arrangements.