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What Is a Letter of Protection in Texas?

Grimes & Fertitta > Personal Injury  > What Is a Letter of Protection in Texas?

What Is a Letter of Protection in Texas?

Silver-tipped pen signing an official document.

Letters of protection (LOPs) can provide much-needed financial relief by allowing injury victims to receive medical treatment without immediate out-of-pocket costs. They are particularly helpful for those who lack health insurance or are unable to work due to their injuries, and help ensure that victims can focus on recovery without the added burden of mounting medical debt.

Think about it: you’ve been involved in a severe car accident, hired the best Houston car accident lawyer that you can, and now you just have to sit back and watch your lost wages, opportunities, and medical bills pile up — all while trying to recover from your injuries.

In these situations, letters of protection can lessen the compounding stress of being involved in an accident. In this article, the Houston personal injury lawyers at Grimes & Fertitta will tell you all about LOPs, and whether or not you might need one for your personal injury case.

If you or a loved one has been involved in a serious accident and are concerned that you need a LOP, call Grimes & Fertitta today at 713-224-7644 or contact us online for a case evaluation.

What is a letter of protection in Texas?

A letter of protection in Texas is a legal document used in personal injury cases. It serves as a promise of payment from a Houston personal injury attorney to a healthcare provider on behalf of their client, allowing them to receive necessary treatment without upfront costs, even without insurance or immediate funds.

Letters of protection are often used in personal injury claims including:

  • Car accidents
  • Truck accidents
  • Motorcycle accidents
  • Slip and fall incidents
  • Workplace injuries
  • Medical malpractice cases
  • Pedestrian accidents
  • Bicycle accidents
  • Dog bites or animal attacks
  • Product liability cases
  • Construction site accidents

​​These types of cases often involve significant medical expenses and prolonged recovery periods, making letters of protection particularly useful for helping victims receive necessary care (without the immediate financial burden of medical bills) while their legal claims are being processed.

Continue reading: how long after an accident can you file a claim?

How does a letter of protection work?

A letter of protection from an attorney plays a crucial role in Texas personal injury cases, bridging the gap between immediate medical needs and future case resolutions.

Here’s what you need to know about how LOPs work in Texas:

  1. After a personal injury occurs, the victim’s attorney issues an LOP to healthcare providers who will treat the client.
  2. The healthcare provider agrees to offer treatment without upfront payment, based on the promise of future compensation.
  3. The injured person receives necessary medical care without upfront costs, while the provider agrees not to bill or pursue collections during the ongoing case.
  4. When the case settles or a court judgment is awarded, the proceeds are typically sent to the attorney.
  5. The attorney is obligated to pay the medical providers directly from the settlement or award funds.
  6. After medical bills are paid, the remaining funds (minus legal fees) are disbursed to the client. If the case doesn’t result in a settlement or award, the patient may still be responsible for the medical bills.

It’s important to note that while LOPs facilitate medical treatment during legal proceedings, they don’t guarantee a larger settlement or case success. They simply ensure that injury victims can focus on recovery without the added stress of managing immediate medical expenses.

Are LOPs necessary for a personal injury case?

Letters of Protection (LOPs) are not strictly necessary for every personal injury case, but they can be highly beneficial in many situations. Here’s a breakdown of when LOPs might be needed and when they might not be:

  1. Lack of health insurance: If the injured party doesn’t have health insurance, an LOP can ensure they receive necessary medical treatment.
  2. High deductibles or co-pays: Even with insurance, if out-of-pocket costs are prohibitive, an LOP can help defer these expenses.
  3. Extended recovery periods: For injuries requiring long-term treatment, LOPs can prevent medical debt from accumulating during the legal process.
  4. Specialized care: When specific or costly treatments are needed that insurance might not fully cover, LOPs can bridge the gap.
  5. Lost wages: If the injury results in lost income, making it difficult to pay for medical care, an LOP can be crucial.

Here’s when a certified letter from a personal injury attorney might not be necessary:

  1. Comprehensive insurance coverage: If the injured party has excellent health insurance with low out-of-pocket costs, an LOP might not be needed.
  2. Minor injuries: For cases involving minimal medical treatment, regular insurance or out-of-pocket payments might suffice.
  3. Quick settlements: In cases that settle rapidly, traditional billing methods might be adequate.
  4. Sufficient personal funds: If the injured party can comfortably cover medical expenses upfront, an LOP may not be required.

It’s important to note that while LOPs can be very helpful, they’re not without risks. They can potentially complicate settlements and may limit an injured person’s choice of healthcare providers to those willing to accept LOPs.

Ultimately, the decision to use an LOP should be made in consultation with your personal injury attorney. They can assess your specific situation, considering factors like the severity of your injuries, your financial situation, and the expected duration of your case, to determine if an LOP is the best course of action for you.

Keep reading: Can you sue a car insurance company for negligence?

Letter of protection example

The following is an example of what a LOP from your attorney to a doctor may look like.

ATTN: Billing Department

Provider Address

CLIENT NAME

Accident Date

Date of Service Provided

Bill Amount

Subject: Letter of Protection

Dear DOCTOR NAME,

Because my client was injured on account of the negligence of RESPONSIBLE PARTY NAME, and the relevant parties have yet to take financial responsibility for this accident, we request that you would accept this document as an agreement to protect your interest for medical care and services required by CLIENT NAME, by way of any settlement or compensation received from RESPONSIBLE PARTY NAME in the ongoing case.

Should we not recover the anticipated funds from RESPONSIBLE PARTY NAME, CLIENT NAME will be fully responsible for the outstanding balance for medical services rendered. We request that all communication regarding these medical bills be directed to the undersigned during the duration of this claim and that these bills not be sent to collection.

All the best,

ATTORNEY NAME

FIRM NAME

Letter of protection in Texas — FAQs

Who issues a letter of protection?

An LOP is typically issued by the personal injury attorney representing the injured party. It serves as a formal agreement between the attorney and the healthcare provider, ensuring payment from the settlement once the case is resolved.

Does an LOP guarantee I’ll win my case?

No, an LOP does not guarantee the outcome of your case. It’s simply a promise to pay medical bills from any potential settlement or award. If the case is unsuccessful, you may still be responsible for those medical expenses.

What happens if I lose my case or there’s no settlement?

If your case is unsuccessful or doesn’t result in a settlement, you may still be responsible for paying the medical bills covered by the LOP.

Can I still use my health insurance if I have an LOP?

Yes, you can still use your health insurance, and in some cases, it might be preferable to do so. Discuss the best approach with your attorney, as they can help determine whether using your insurance or relying on the LOP is more beneficial for your situation.

Create your letter of protection with a trusted personal injury lawyer from Grimes & Fertitta

Having your attorney draft a letter of protection can be crucial for accessing necessary medical care after an injury. However, it’s important to consider a few factors first. Hiring a trusted and experienced personal injury attorney is essential to help ensure you or your loved one receives the care and support needed.

The attorneys at Grimes & Fertitta know how the insurance companies nickel and dime victims in their time of need because they used to work for them. But seeing people left out in the cold by the system that is supposed to support them convinced them to create a law firm that would help the Davids of the world take on Goliath.

From rear-end collisions, jackknifed trucks, and t-bone accidents to offshore accidents and plant explosions, if you’ve been injured due to another party’s negligence, you need to call the winning personal injury lawyers at Grimes & Fertitta. Call us at 713-224-7644 or contact us online today for a case evaluation.

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