What is Letter of Protection?

What is a letter of protection in personal injury law?

A letter of protection (LOP) is a written agreement between an injury victim’s attorney and a healthcare provider stating that medical bills will be paid from the proceeds of the case settlement or judgment. It allows injured people to get treatment without paying upfront when they cannot afford it.

• Agreement to delay medical bill payment.
  
  
• Ensures provider is paid after settlement.
  
  
• Helps victims get care without upfront costs.
  
  
• Common in personal injury cases.
  
  

When is a letter of protection used?

It’s typically used when the injured person has no health insurance, cannot afford deductibles, or when the provider agrees to wait for payment. This can be crucial for victims needing immediate medical care.

• For uninsured patients.
  
  
• When deductibles are too high.
  
  
• When provider agrees to wait for payment.
  
  
• Used in ongoing treatment situations.
  
  

How does a letter of protection work?

The attorney sends the letter to the provider, promising that medical bills will be paid directly from any settlement or court award. The provider then agrees not to send the account to collections while the case is pending.

• Attorney guarantees payment from settlement.
  
  
• Provider pauses collections.
  
  
• Medical care continues during case.
  
  
• Paid when case resolves.
  
  

Are there risks with a letter of protection?

Yes. If the case is lost or the recovery is less than expected, the injured person may still owe the medical bills. Also, some providers may refuse to accept an LOP.

• Risk of owing full balance if case is lost.
  
  
• Some providers won’t accept LOPs.
  
  
• Bills can be substantial without recovery.
  
  
• Legal guidance helps manage LOP agreements.
  
  

Conclusion:
A letter of protection can be a lifeline for injury victims without the ability to pay for care upfront, but it also comes with financial responsibilities if the case does not result in sufficient recovery.