Many people hesitate to use their health insurance after an auto accident if they have a high deductible. It is common to assume that insurance will not help if thousands of dollars must be paid out of pocket first. Attorney Jobeth Bowers explains why using health insurance in a Maryland accident claim still makes financial sense, even with a high deductible.
Why Health Insurance Still Matters With a High Deductible
Health insurance provides one major benefit that applies regardless of deductible status: contract pricing. Medical providers agree to accept significantly reduced rates when bills are submitted through health insurance. Even if the insurance company does not pay immediately, the provider must accept the lower negotiated amount as payment in full.
How Contract Pricing Reduces Medical Bills
Accident related medical services are often billed at very high rates. For example, an MRI may be billed for several thousand dollars. When submitted through health insurance, that same service is typically reduced to a few hundred dollars under the insurer’s contract. If the deductible has not been met, the injured person pays the reduced amount rather than the full invoice, resulting in substantial savings.
How Deductibles Are Met Through Accident Care
Auto accident treatment frequently involves emergency care, imaging, and ongoing therapy. As these reduced charges are processed, they apply toward the deductible. In many cases, accident related care meets the deductible early in the policy year, making future medical treatment later in the year far less expensive.
How This Impacts a Maryland Injury Claim
Even though health insurance reduces what is paid, Maryland law allows injury claims to be evaluated using the full billed amounts. This means the value of the claim reflects the original charges while the injured person benefits from paying only the reduced contract pricing.
Why Skipping Health Insurance Can Cost You
Avoiding health insurance because of a high deductible often results in higher medical bills and less money at settlement. Self pay rates are typically far higher than insurance contract rates, and the difference comes directly out of the injured person’s recovery.
Final Thoughts
High deductible health plans do not eliminate the benefits of using health insurance after an auto accident. In many cases, submitting bills through health insurance significantly reduces costs and improves the overall financial outcome of a Maryland injury claim.
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