It’s gotten pretty common that doctors are getting lower and lower reimbursement rates from health insurance and some doctors, even good doctors have made a decision, particularly when there’s an accident case, that they don’t want to bill health insurance but instead they will wait and get paid for the service that they provide from the settlement proceeds. They use what is commonly called a letter of protection, which is a letter or agreement to not collect until the end of the case.
The letter of protection process is very convenient for any patient. The downside in my view is if someone has health insurance, they’re generally going to be financially better off having the doctor accept and use the health insurance even though they will have to pay that insurance back. But the reimbursement rate is so much lower that at the end of the day a patient will generally pay less and will receive more net recovery on their settlement by using their health insurance. That’s why doctors quite frankly don’t want to do it that way.