Detailed Answer
If you cannot afford medical bills after an accident in Tennessee, you may be able to recover those expenses through an injury claim. However, recovering medical bills is not automatic. Who paid the bills, what insurance you have, and whether government programs paid for care will affect how much of those bills you actually keep after settlement.
How medical bills are normally handled after an accident
- Immediate care and private health insurance: If you have private health insurance, it will usually pay eligible medical bills first. Later, that insurer may assert a right of subrogation to be repaid from any recovery you get from the person who caused the crash.
- Medicare and TennCare (Medicaid in Tennessee): If Medicare or TennCare paid for your care, federal and state law generally give them the right to recover what they paid from any settlement. TennCare explains its third-party liability and recovery rights here: https://www.tn.gov/tenncare/for-members/third-party-liability.html. Medicare’s repayment authority is set by federal law (see 42 U.S.C. § 1395y): https://www.govinfo.gov/content/pkg/USCODE-2018-title42/html/USCODE-2018-title42-chap7-subchapXVIII-sec1395y.htm.
- Medical payment / personal injury protection (MedPay / PIP): Some auto policies include MedPay or PIP that pays medical bills regardless of fault. Those benefits are separate from your third-party claim against the at-fault driver.
- Provider liens and Letters of Protection: Some medical providers will place a lien or accept a letter of protection (agreement to be paid from your eventual settlement). A lawyer can often negotiate reduced amounts with providers.
What reduces the amount of medical bills the claim will cover?
Even when you recover money in a claim, several things can reduce the amount available to pay medical bills:
- Subrogation and reimbursement claims: Insurers and government payers can demand repayment for what they paid. That reduces your net recovery unless you negotiate a reduction.
- Attorneys’ fees and litigation costs: If you hire a lawyer on contingency, the attorney’s fee (often a percentage of the settlement) and case expenses will come out of the settlement first.
- Negotiated discounts: Many health insurers and providers have already accepted discounted rates; the billed amount often exceeds what a payer actually paid or will accept as payment in full.
Typical scenario — how it can work in practice
Example: You have $30,000 in medical bills. Your private insurance paid $20,000 and you owe the remaining $10,000. You sue the at-fault driver and settle for $60,000. From that settlement:
- Your attorney takes a contingency fee (for example, 33%), and litigation costs are deducted.
- Your private insurer may assert a subrogation claim for the $20,000 it paid. Some insurers negotiate to accept less; others demand full reimbursement.
- If TennCare or Medicare paid any portion, they will seek repayment under their rules.
Result: You may recover some or all of the unpaid medical bills, but the final dollar amount you receive depends on liens, reimbursement demands, and attorney fees.
How Tennessee-specific programs affect recovery
- TennCare (Tennessee’s Medicaid program) has a right to recover benefits paid when another party is responsible. See TennCare’s third-party liability information: https://www.tn.gov/tenncare/for-members/third-party-liability.html.
- Medicare is the same nationwide and can require repayment from any settlement. See federal statute 42 U.S.C. § 1395y: https://www.govinfo.gov/content/pkg/USCODE-2018-title42/html/USCODE-2018-title42-chap7-subchapXVIII-sec1395y.htm.
- Your private insurer’s contract will determine its right to reimbursement and whether it will accept a reduced repayment. You may be able to negotiate these amounts in Tennessee, often with an attorney’s help.
Practical steps to protect yourself and your medical bills
- Get medical care immediately and keep all medical records and bills.
- Notify your health insurer and the at-fault party’s insurer. Ask whether you have MedPay, PIP, or UM/UIM (uninsured/underinsured motorist) coverage.
- Keep copies of invoices showing what was paid and what remains unpaid.
- Do not sign away your rights to future claims unless you understand the paperwork and have considered legal advice.
- Consider contacting a Tennessee personal injury attorney early. An attorney can help handle lien and subrogation claims, negotiate reductions with providers, and protect more of your recovery.
- If you have TennCare or Medicare, notify the program and follow their procedures so you avoid penalties or surprise repayment demands later.
When a lawyer helps
A lawyer can:
- Identify all parties with potential reimbursement or lien rights (private insurers, TennCare, Medicare, providers).
- Negotiate reductions with medical providers and insurers to maximize your net recovery.
- Handle claim paperwork and deadlines to preserve your rights under Tennessee law.
Bottom line: Yes—your medical bills can often be covered by an accident claim, but expect that insurers, government payers, and attorney fees will affect how much of those bills are actually paid from your recovery. Early documentation, prompt notice to payers, and legal help increase the chance you will be made whole.
Helpful Links
- TennCare — Third Party Liability: https://www.tn.gov/tenncare/for-members/third-party-liability.html
- Medicare repayment rules (federal statute): https://www.govinfo.gov/content/pkg/USCODE-2018-title42/html/USCODE-2018-title42-chap7-subchapXVIII-sec1395y.htm
- Tennessee Department of Commerce & Insurance — Auto Insurance information: https://www.tn.gov/commerce/consumer-resources/insurance/auto.html
Helpful Hints
- Save everything: medical records, bills, receipts, wage statements, accident photos, and communications with insurers.
- Tell medical providers the care is related to an accident — that helps establish a connection between the injury and the bills.
- Ask your medical provider whether they will accept a reduced payment if you promise payment from a future settlement.
- Ask your insurer about MedPay and UM/UIM coverage; these can provide money for bills while your liability claim is pending.
- Notify TennCare or Medicare promptly if they paid for your care to avoid surprises later.
- Do not sign away your claim without understanding who will be repaid out of the settlement.
- Contact a Tennessee attorney experienced in personal injury and subrogation issues if you face large bills or complex payer claims.
Disclaimer: This article explains general principles of Tennessee law and common practices but is not legal advice. Laws and program rules change. For advice about a specific situation, consult a licensed Tennessee attorney.