Health Care & Hospital Law,
Administrative/Regulatory
Jul. 11, 2024
Legal restrictions on third-party carriers’ negotiations of medical bills in personal injury suits
Third-party carriers use outside organizations to negotiate lower medical bills with healthcare providers without informing the patient or their attorney, a practice that violates HIPAA, California law, and public policy.
Recently, an unprecedented situation has emerged in California’s personal injury cases: third-party carriers are utilizing independent organizations to negotiate reduced medical bills directly with healthcare providers. These bills are then paid without informing the plaintiff’s attorney or the patient.
In most cases, the providers are not aware that they are discussing the patients’ cases with third-party carriers as the unaffiliated organ...
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