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Author: jeffreyhoward

Healthcare Letters of Protection Present Conflicts of Interest for Personal Injury Attorneys

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

MEMORANDUM OF LAW REGARDING LETTERS OF PROTECTION

I. ISSUE PRESENTED

Whether an attorney licensed in North Carolina may ethically execute a “letter of protection” agreeing to pay a health care provider from settlement proceeds, where doing so creates obligations to a third party that may conflict with the attorney’s duties to the client.

II. SHORT ANSWER

No. The North Carolina Rules of Professional Conduct prohibit a lawyer from undertaking obligations to third parties that materially limit the lawyer’s representation of a client. A letter of protection creates a concurrent conflict of interest under Rule 1.7, risks impermissible financial entanglement under Rule 1.8, and interferes with the lawyer’s duties regarding the safekeeping and distribution of funds under Rule 1.15.

Health care providers are not without remedy. North Carolina law provides a clear statutory mechanism for protection of medical bills through properly asserted liens under N.C. Gen. Stat. §§ 44-49 and 44-50, which attorneys are legally obligated to honor.

III. GOVERNING SOURCES

IV. EXPLANATION

A. Letters of Protection Create a Concurrent Conflict of Interest Under Rule 1.7

Rule 1.7(a)(2) prohibits representation where there is a “significant risk” that the lawyer’s responsibilities to a third person will materially limit the representation of the client.

A letter of protection does precisely that.

By agreeing to pay a medical provider from settlement proceeds, the attorney assumes a direct obligation to a third party. That obligation creates a material limitation because:

  • The client may wish to dispute, reduce, or refuse payment of the provider’s charges;
  • The attorney, having promised payment, is constrained in advising or pursuing those options;
  • The attorney’s independent professional judgment is divided between client and creditor.

This is not a theoretical concern. It strikes at the core of settlement strategy, negotiation of medical bills, and allocation of proceeds.

Even if client consent is attempted under Rule 1.7(b), the lawyer must reasonably believe that competent and diligent representation remains possible. Where the lawyer has pre-committed settlement funds to a third party, that belief is, at minimum, highly questionable.

B. Letters of Protection Risk Violating Rule 1.8 by Creating Improper Financial Obligations

Rule 1.8 strictly limits financial entanglements arising from representation.

While Rule 1.8(e) allows advancement of litigation expenses, it does not authorize a lawyer to guarantee a client’s debts to third parties.

A letter of protection may function as:

  • A guarantee of payment and/or
  • A commitment that exposes the lawyer to personal liability or pressure to pay regardless of the client’s position.

This creates a self-interest conflict, as the lawyer may act to avoid personal exposure rather than to maximize the client’s recovery.

C. Letters of Protection Undermine the Lawyer’s Duties Under Rule 1.15

Rule 1.15-2 requires a lawyer to:

  • Hold funds in trust when there are competing claims, and
  • Distribute funds only to those entitled to receive them.

Critically, when a claim is disputed, the lawyer must retain the disputed portion in trust until resolution.

A letter of protection improperly short-circuits this framework by:

  • Predetermining entitlement before resolution of disputes;
  • Forcing the lawyer to disburse funds even where the client contests the bill;
  • Transforming the lawyer from a neutral fiduciary into an enforcer of a private agreement.

This is incompatible with the lawyer’s fiduciary obligations under Rule 1.15.

D. The Lawyer’s Duty of Loyalty Runs to the Client, Not to Third-Party Creditors

Rule 1.2 requires the lawyer to abide by the client’s decisions regarding the objectives of representation.

A letter of protection shifts practical control toward the medical provider by:

  • Restricting the client’s ability to challenge charges;
  • Limiting settlement flexibility;
  • Subordinating the client’s financial interests to those of a third party.

The Rules do not permit a lawyer to elevate a third-party creditor’s interests above those of the client.

E. North Carolina Law Provides a Clear, Ethical Alternative: Statutory Medical Liens

Health care providers are not left unprotected. North Carolina law provides a specific mechanism:

  • N.C. Gen. Stat. § 44-49 grants medical providers a lien on personal injury recoveries;
  • N.C. Gen. Stat. § 44-50 governs enforcement and distribution.

To assert such a lien, the provider need only:

  1. Provide the medical records and billing, and
  2. Give notice that a lien is being asserted.

Once properly asserted, the attorney is legally obligated to account for that lien in any disbursement of settlement proceeds.

This statutory framework:

  • Protects providers’ interests,
  • Preserves the attorney’s ethical duties, and
  • Avoids creating extra-contractual obligations that generate conflicts of interest.

V. CONCLUSION

A letter of protection places the attorney in an untenable position:

  • It creates a concurrent conflict of interest under Rule 1.7;
  • It risks improper financial obligation under Rule 1.8;
  • It interferes with fiduciary duties under Rule 1.15.

The North Carolina Rules of Professional Conduct do not require, and do not support, such arrangements.

Instead, the law provides a clear and sufficient alternative: health care providers may protect their interests by properly asserting statutory liens under N.C. Gen. Stat. §§ 44-49 and 44-50, which attorneys are legally bound to honor.

For these reasons, refusal to execute a letter of protection is not only permissible but ethically compelled.

Why You Should Carry As Much Uninsured/Underinsured Motorist Coverage As You Can Afford in North Carolina

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

When people think about car insurance in North Carolina, they usually focus on the coverage that protects other people if they cause an accident—liability insurance. That’s required by law, so most drivers know they need that.

What many people don’t think about enough is the coverage that protects them.

In North Carolina, that protection comes from Uninsured and Underinsured Motorist coverage, usually referred to as UM/UIM coverage. And if you ask me what limits you should carry, my answer is simple:

As much as you can reasonably afford.

North Carolina operates under a liability system. That means the person who causes the crash is responsible for paying the damages. In theory, that sounds fine. In reality, the at-fault driver often doesn’t have enough insurance or sometimes any insurance at all. When that happens, the person who caused the wreck may not have the financial resources to compensate you fully. That’s where UM/UIM coverage becomes critical.

Here is a link to a previous post on what that is, precisely:

Uninsured and Underinsured Insurance In Your Accident Claim

North Carolina requires drivers to carry minimum liability limits, but those limits are not particularly high relative to medical expenses. The latest increase of liability limits was in 2025, and that lifted us up to $50,000. That can be one ED visit.

Serious injuries can easily exceed those amounts once you factor in:

  • Emergency room treatment
  • Imaging and diagnostic tests
  • Physical therapy/Chiropractic care
  • Lost income
  • Pain and suffering
  • Long-term medical care

If the at-fault driver only carries minimum coverage, their insurance may run out long before your damages are fully covered.

If that happens, your UIM coverage should be able to help bridge the gap.

A lot of people assume their insurance policy is mainly there to protect others from them. UM/UIM coverage flips that idea around. It protects you and your family when someone else’s insurance isn’t enough.

As a personal injury attorney, I regularly see cases where someone suffers significant injuries and the at-fault driver only has what the state requires (if that) and it’s just not enough to cover their damages.When my client has strong UIM coverage, there’s often a path to recovering fair compensation. When they don’t, the options can become extremely limited.

That’s one of the reasons I encourage people to think about insurance coverage before they ever need it. Increasing your UM/UIM limits is usually one of the least expensive ways to dramatically improve your protection. For many drivers, raising those limits only adds a small amount to the monthly premium. But if you’re seriously injured by someone with little or no insurance, those additional limits can make an enormous difference in your ability to recover.

You can’t control who shares the road with you. Some drivers are uninsured. Others carry the bare minimum coverage. And accidents happen every day. The best way to protect yourself financially is to carry as much uninsured and underinsured motorist coverage as you can reasonably afford.

It’s one of the smartest insurance decisions you can make

If you’ve been injured in a car accident in North Carolina and have questions about insurance coverage or your rights, call me at 919-929-2992.

Why You Should Use Your Med Pay Coverage (Even If Your Insurance Agent Tells You Not To)

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

One of the most common things I hear after a car accident is this:

“My insurance agent told me not to use my MedPay.”

That advice is almost always wrong.

If you paid for Medical Payments coverage (Med Pay), you should use it. That’s what it’s there for. And refusing to use it because someone says “you don’t want a claim on your policy” makes about as much sense as this:

Imagine you had life insurance. You get murdered. Your family says, “Well, yes, he had life insurance… but we don’t want to collect it. We’d rather make the murderer pay.”

That’s ridiculous.

They’re not mutually exclusive.

You can collect life insurance and pursue the wrongdoer. Just like you can use your Med Pay and pursue the at-fault driver.

What Med Pay Actually Is

MedPay is no-fault coverage under your own auto policy. It pays medical expenses after an accident regardless of who caused it. It doesn’t require a lawsuit (at least it shouldn’t). It doesn’t require a fight (see last caveat). It’s a contractual benefit you purchased.

You are paying premiums for that benefit every time you pay your auto insurance bill.

Why would you not use something you’re paying for?

The Insurance Information Institute explains that Medical Payments coverage is designed to pay medical expenses for you and your passengers after an accident, regardless of fault:
👉 https://www.iii.org/article/medical-payments-coverage

That’s not a loophole. That’s the purpose.

“But My Agent Said It Might Raise My Rates”

Here’s where things get interesting.

Insurance agents are typically compensated through commissions based on the policies they sell and retain. Their income can be affected by underwriting performance, loss ratios, and retention metrics. If claims increase, profitability can decrease. Lower profitability can impact agency compensation structures.

In other words, agents often have financial incentives aligned with keeping claims low.

I’m not saying every agent is acting in bad faith. Many are good people. But understand this:

They are not your fiduciary in a personal injury claim.
They are part of the insurance ecosystem.

Using Med Pay can sometimes affect underwriting decisions at renewal. That’s true. But so can not using it and letting medical bills go unpaid, damaging your credit, or forcing you into collections.

You have to weigh real-world consequences—not hypothetical rate adjustments.

And remember, in NC, they can ONLY raise your rates for things that you’ve done in TWO scenarios: You’re convicted of a moving violation, or YOU cause an accident resulting in payment from the policy. When YOU do not cause the accident, they can’t raise your rates for claims.

If you don’t use MedPay:

  • Your providers may send bills to collections.
  • Your credit may take a hit.
  • You may feel pressured to settle early just to get bills paid.
  • You may appear less “injured” because there’s limited treatment documentation.

If you do use MedPay:

  • Bills get paid promptly.
  • You get appropriate care.
  • Your claim is properly documented.
  • Financial stress decreases.

You bought the coverage. Use it.

The Bottom Line

Insurance companies sell products. Med Pay is one of them. It’s not charity. It’s not a loophole. It’s a contractual benefit you paid for.

Telling someone not to use Med Pay after they’ve paid premiums for years is like telling a family not to collect life insurance because “we’d rather just pursue the murderer.”

They are not mutually exclusive.

If you’ve been injured in a car accident in North Carolina and you’re unsure whether to use your MedPay, call me. I’ll give you a straight answer based on your situation—not on anyone’s commission structure.

📞 Call me if you’ve been injured in a car accident and have questions about MedPay.
🖥️ https://jeffreyhowardlaw.com

Duke Student or Staff Injured in a Car Accident? Why You Shouldn’t Handle the Claim

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

If you’re a Duke student, faculty member, or staff employee and you’re injured in a car accident in Durham or the surrounding area, you may assume the insurance company will “do the right thing.”

That assumption usually costs people money.

I represent injury clients throughout the Triangle, including many connected to Duke University, and I’ve seen firsthand how quickly a supposedly simple auto accident claim can go sideways without legal help.

Smart, Capable People Still Get Taken Advantage Of

Duke-affiliated clients are often highly educated, capable, and organized—which unfortunately makes insurance adjusters assume they can push harder.

Being smart doesn’t mean you know insurance law. And in North Carolina, one wrong statement or one misstep can tank an otherwise valid claim.

That’s especially true given our state’s strict contributory negligence rules.

Your Injury Claim Is About More Than Medical Bills

If your injuries interfere with:

  • Classes or exams
  • Research obligations
  • Clinical rotations
  • Teaching or administrative duties

those losses matter—but only if they’re documented and presented correctly.

I’ve written before about how injury claim value is tied to pain and suffering, and that includes academic, professional, and cognitive impacts—not just physical pain.

Durham Traffic Is No Joke

Between I-85, I-40, downtown Durham, and campus-adjacent areas, accidents are common—and often involve distracted or aggressive drivers.

The National Highway Traffic Safety Administration (NHTSA) provides national data on how frequently serious injuries occur even in everyday crashes:
👉 https://www.nhtsa.gov/road-safety

These aren’t rare events, and they shouldn’t be treated casually.

Why Duke-Affiliated Clients Call Me

I take a practical, detail-oriented approach. I don’t overpromise, and I don’t let insurance companies minimize what my clients are dealing with.

If you’re connected to Duke and you’ve been injured in an automobile accident, talking to an attorney early can protect your claim, your finances, and your future options.

📞 If you’re a Duke student or employee injured in a car accident, call me at 919-929-2992.
🖥️ jeffreyhowardlaw.com

Injured in a Car Accident as a UNC Student or Staff Member? Here’s Why You Should Call Me

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

If you’re a UNC student, faculty member, or staff employee and you’re injured in a car accident, your situation is often more complicated than you realize—especially if you assume it’s going to be easy and the insurance companies involved will just “do the right thing.”

They often don’t.

I regularly help people connected to UNC Chapel Hill who are hurt in automobile accidents, and there are some unique issues that come up for university-affiliated folks that make having an experienced personal injury attorney especially important.

You May Be Dealing With Multiple Systems at Once

After a crash, UNC students and employees often find themselves navigating more than just auto insurance. There may be:

  • University health plans
  • Student health services
  • Employment-related leave issues
  • Missed classes, research deadlines, or teaching responsibilities

Insurance companies don’t care about any of that. My job is to make sure your injury claim reflects how the accident actually disrupted your life—not just what shows up on a billing statement.

North Carolina Law Is Not Forgiving

North Carolina follows a pure contributory negligence rule. That means if an insurance company can argue you were even 1% at fault, you could recover nothing. Adjusters know this and will look for ways to use your statements, your actions, or even your campus commute habits against you.

This is one of the reasons I’ve written about why you should call an attorney right after an injury—especially before giving recorded statements.

“Minor” Accidents Can Still Mean Major Problems

Many UNC students and staff are hit in rear-end collisions or low-speed crashes near campus, Franklin Street, or I-40. Those cases are often dismissed as “minor,” even when the injuries aren’t.

Neck and back injuries, concussions, and soft-tissue trauma are common—and frequently underestimated. The Centers for Disease Control and Prevention (CDC) explains why these injuries can be serious even when vehicles aren’t heavily damaged:
👉 https://www.cdc.gov/transportationsafety/whiplash/index.html

Why I’m a Good Fit for UNC-Affiliated Clients

I’m not a billboard firm. I don’t pass your case off to an inexperienced “case manager” (whatever that is) with no training and with whom you’ll never meet. I work directly with my clients, explain what’s happening, and make sure nothing gets missed—especially when you’re balancing an injury with academic or professional responsibilities.

If you’re part of the UNC community and you’ve been injured in a car accident, it’s worth having someone on your side who understands both the law and the practical realities you’re dealing with.

📞 Call me if you’re a UNC student or employee injured in a car accident.
🖥️ jeffreyhowardlaw.com

Arbitration in a Nutshell

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

What Is Arbitration? A Guide to This Alternative Dispute Resolution Method

Arbitration comes up in my practice mostly in the context of claims against your OWN insurance carrier, and most commonly in the Uninsured Motorist or Underinsured Motorist claims context. This article provides a straightforward explanation of what arbitration is, how it works, and its pros and cons.

What Is Arbitration?

Arbitration with your insurance carrier is a form of alternative dispute resolution (ADR) where THREE third-parties, known as an arbitrators, hear and decide a dispute. Unlike court trials, which are public and governed by rigid rules of evidence and procedure, arbitration offers a more private and flexible approach.

Arbitration can be binding or non-binding:

  • Binding arbitration means the arbitrator’s decision is final and enforceable, similar to a court judgment.
  • Non-binding arbitration allows parties to seek other remedies if they are dissatisfied with the arbitrator’s decision.

Arbitration in the context of UM and UIM claims is generally binding.

How Does Arbitration Work?

The arbitration process typically follows these steps:

  1. Agreement to Arbitrate: By having auto insurance in North Carolina, you’ve already agreed to resolve your dispute with your carrier through arbitration due to an arbitration clause in the standard insurance agreement.
  2. Selection of an Arbitrator: We, as the plaintiffs, select an arbitrator and the carrier, as the defendant, selects an arbitratoras well. Those two arbitrators jointly agree upon a third arbitrator who is referred to as the “neutral.”This panel of arbitrators often has a lot of expertise relevant to the dispute. We each pay the hourly rate of our own arbitrator and we split the neutral’s fee with the defendants.
  3. Arbitration Hearing: The arbitrators conduct a hearing where both sides present evidence, witnesses, and arguments. While less formal than a courtroom trial, arbitration still allows for structured presentations.
  4. Decision: After reviewing the evidence, the arbitrators issue a written decision, known as an award. In binding arbitration, this decision is final and enforceable.

What Are the Benefits of Arbitration?

Arbitration offers several advantages, including:

  • Efficiency: Arbitration can resolve disputes more quickly than traditional litigation, which often takes years.
  • Cost-Effectiveness: Without the prolonged procedures of court trials, arbitration tends to be less expensive, but in some cases can be more expensive. It depends!
  • Privacy: Arbitration proceedings are private, which can be crucial for businesses and individuals seeking to keep sensitive matters confidential.
  • Flexibility: Parties have more control over scheduling and procedural rules.
  • Expertise: Arbitrators with specialized knowledge can better understand complex technical or industry-specific issues. This is really nice compared to a random jury panel that may not understand anything of what’s going on in your case.

What Are the Drawbacks of Arbitration?

While arbitration has many benefits, it’s not without drawbacks:

  • Limited Appeal Rights: In binding arbitration, decisions are final, with very limited opportunities for appeal.
  • Costs in Some Cases: Arbitrator fees can be significant, especially for complex disputes requiring multiple sessions. And you still have to have a medical expert, which can really drive up costs.
  • Unequal Bargaining Power: In some cases, one party may feel pressured to agree to arbitration clauses that favor the other party.
  • Lack of Transparency: While privacy can be an advantage, it also means arbitration awards do not create public precedents, which may leave broader legal questions unresolved.

Is Arbitration Right for You?

Arbitration can be an effective tool for resolving disputes, but it’s not a one-size-fits-all solution. If you’ve got a UM or UIM claim, it’s crucial to understand the terms of your arbitration agreement and the potential implications for your case. Consulting with an experienced attorney can help you navigate this process and make informed decisions.

If you have questions about arbitration or need legal assistance, contact me at 919-929-2992.

Why Hiring a Small, Local Law Office for a Traffic Ticket is a Smart Move

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

Traffic Attorney

When you’re handed a traffic ticket, your first instinct might be to pay the fine and move on. However, if you’re considering contesting it or mitigating its impact, hiring an attorney can make all the difference. Specifically, working with a small, local law office offers several unique advantages over larger firms or handling it alone. Here’s why:

1. Local Expertise

Small, local law offices are deeply familiar with the courts, judges, and prosecutors in their area. This local knowledge can be invaluable. For example:

  • They understand the tendencies and preferences of local judges, which can help in crafting a persuasive argument.
  • Local attorneys often have relationships with prosecutors, enabling more effective negotiation for reduced penalties or dismissed charges.

Having someone who knows the nuances of the local traffic court system increases your chances of a favorable outcome.

2. Personalized Attention

Unlike large law firms, small offices tend to handle fewer cases at a time. This means:

  • More time for your case: Your lawyer will dedicate the necessary attention to understand your situation and craft a tailored defense.
  • Direct communication: You’re more likely to work directly with the attorney, not paralegals or junior staff.
  • Responsive service: With a smaller caseload, local lawyers are often quicker to return calls and provide updates.

This personalized approach ensures you don’t feel like just another case number.

3. Cost-Effectiveness

Small, local law offices often have lower overhead costs than big firms, translating to more affordable fees. For traffic tickets, where stakes may not justify high legal expenses, this is a critical benefit. Additionally, their efficiency in handling local cases can mean better results for less money.

4. Tailored Defense Strategies

Local attorneys are more attuned to area-specific issues, such as:

  • Speed traps or notoriously unclear signage.
  • Patterns in enforcement by local police departments.
  • Knowledge of diversion programs or alternative sentencing options offered in your area.

They can leverage this understanding to build stronger, more relevant defenses.

5. Support for Community Businesses

By choosing a small, local law office, you’re also supporting your community. Local attorneys are invested in maintaining a good reputation in their home area, often going the extra mile to ensure client satisfaction. Your support helps sustain a vital part of the local economy.

6. Easier Accessibility

Local offices are conveniently located and easy to reach if you need to drop off documents or meet in person. They are also more likely to be flexible with scheduling, which is helpful when navigating the demands of daily life.

7. Peace of Mind

Dealing with a traffic ticket can be stressful, especially if you’re worried about points on your license or increased insurance premiums. A local attorney can:

  • Reduce your stress by handling court appearances on your behalf.
  • Explain the process clearly and alleviate uncertainties.
  • Increase the likelihood of avoiding severe consequences like license suspension.

Hiring a small, local law office for your traffic ticket case is a smart investment. Their knowledge of the local legal landscape, personalized service, and cost-effectiveness set them apart from larger firms or attempting to handle the matter alone. By working with a dedicated professional, you can protect your driving record, save time, and reduce stress—all while supporting your community.

If you’re facing a traffic ticket, don’t hesitate to reach out to a local attorney. Their expertise could make a world of difference.

I Can’t Practice Law Via Text

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

I know, I know, EVERYONE loves texting. It’s convenient, it’s only as intrusive as the recipient allows it to be, it’s quiet. There are several good things about texting. And yes, I text friends and family. It’s hard to beat it for immediate but subtle contact.

Having said that, I cannot practice law through texting. I just can’t. I understand you want to ask a quick question, I understand you want a quick response, but I’m going to explain to you why it’s just not appropriate in the attorney/client context:

  • When you text your doctor, what do they say? They don’t say anything because you don’t text your doctor. I’m your lawyer. Same thing.
  • To explore the above point, why do you think that is the case? Both doctors and lawyers are HEAVILY regulated professions. We have watchdog groups and governmental organizations waiting to pounce on us when/if we make a mistake. People hate us (which is a whole separate blog post) so we have to try to be perfect. The problem with giving professional advice via text is that it’s too gosh darn small. The screen is small, the keys are small, and it’s a format that is made for convenience, NOT complexity. What we have to explain to our clients can be subtle, and it’s simply too tempting to cut corners on texts because they’re supposed to be short and fast. Believe me, the best lawyer answers are NEVER short NOR fast.
  • Let’s get back to the size thing…it’s progressively a pain (literally) for me to see texts and type with tiny keys as we get older. Please just let me use my big computer screen and keyboard!
  • Email is SUPERIOR IN EVERY WAY. First, you can see it on your phone just as well, if not better than texts. Second, emails are trackable and searchable in a way that texts simply aren’t. I can’t tell you how many times I’ve had to go back through a thread to see what a client wrote (or to show that I wrote something) and doing that through text is just really not possible. Third, texts get lost in the morass of memes and grocery lists and honey-do stuff that come through my phone constantly. If your “urgent” text (that could have been a phone call if it were so urgent…) might get buried below that stuff and I’ll never see it (because I’m not looking for it, because I asked you not to text me in the first place). That’s not my fault. Emails, on the other hand, show up highlighted in my inbox and are gloriously obvious. I can see them, so I’ll respond to them!

If you’re running late to a meeting and choose to text me that you’re late instead of calling, fine. But otherwise, just call me! Or email! If you REALLY just love sending messages with your phone, then use your email app on your phone. It’s really not that bad. You may not be an “email person” and you may see email as 20th century, but I’m here to tell you, I just can’t practice law via text, so please understand why I simply can’t rely on that medium as a method of communication.

To Comp or Not to Comp, That Is The Question

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

When you’re in an automobile accident in North Carolina AND you happen to be working, you might have TWO claims, not just one. What you might have is a plain old liability claim against the at-fault driver (their insurance company anyway) AND a potential worker’s compensation claim with your employer. So what does that mean?

Think of it this way: You’ve got the obvious liability claim. That’s the normal thing where you try to get reimbursed for your losses that the other party’s negligence caused. We would normally go after what I call the “holy trinity of personal injury damages” which includes medical expenses, pain and suffering, and lost income (there can be other stuff, but these sum up damages pretty nicely in most situations). I am happy to help you with these claims, so please call me to discuss any auto accident injury situation you have!

But you have a less obvious thing that might help you out: You have a potential worker’s compensation claim. Check out that link for basic info on comp claims, but essentially, what this means is IN ADDITION to the liability claim against the driver, you might have access to benefits through worker’s comp. What does comp get you? Generally…

  • Payment for time out of work (but only 2/3 of your average weekly wage);
  • Payment of your medical expenses (but they get to control what care you get);
  • And to the extent you have any permanent impairment, payment for that.

So the next question is should you file a worker’s compensation claim in this situation? The answer is one of my favorites: It depends!

Let’s look at why you might want to file for comp benefits

  • If you’re going to have a lot of expensive medical care, it’s nice to have someone else bear the brunt of that care.
  • If you’re going to be out of work for an extended period of time (several weeks? months?) and you really can’t get along without some income, then comp is in a good position to help.

But sometimes it’s hard to answer those questions early in your claim. What’s more frustrating is that technically you should notify your employer within 30 days of the accident, so you kind of have to make this decision early, maybe before you have enough facts to know if it’s the right decision for you. Why might it not be the right decision?

Sometimes having worker’s comp on top of a liability claim is a “robbing Peter to pay Paul” situation. You see, worker’s comp has what’s called a lien against the “third party” (liability) claim. That means if you get something from the auto insurance folks and worker’s comp has paid you benefits, you have to pay worker’s comp back for what they paid out. Now, there are some protections afforded you in this situation, but they are somewhat flimsy.

How do you make this decision? It’s definitely a case by case, personal sort of decision that only you can make, and you should try to have as much info as possible before making it. As a general rule, in a normal situation where you’re just going to get chiropractic care after your accident and that’s it, then you probably don’t need to get comp involved as they’ll harass you about the care you prefer and then rob your liability claim later, so maybe more trouble than it’s worth. But on the other end of the spectrum, if the accident resulted in a need for surgery AND you’re going to be out of work for awhile, it makes a lot more sense in that situation to get comp on board. But there’s no hard and fast rules in this situation.

It’s complicated. If you have questions, call me at 919-929-2992.

BCBS Settlement – another example of how insurance and a for-profit healthcare system is an abomination

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

Here’s the full article: https://www.reuters.com/legal/blue-cross-blue-shield-agrees-pay-28-bln-settle-us-health-provider-class-action-2024-10-14/?utm_campaign=north-carolina-advocates-for-justice-eclips&utm_source=membercentralpublications&utm_medium=email&utm_content=october-15-2024

But in summary, Blue Cross Blue Shield has agreed to pay $2.8 billion to settle antitrust class action claims brought by hospital administrators, doctors, and other healthcare providers who claim they were not paid properly for reimbursements. What? An insurance company didn’t pay what they should have?!? Gasp! This settlement, announced in a federal court filing in Alabama, is the largest healthcare antitrust settlement to this date. Of course, BCBS denied the allegations and stated that the settlement is just an effort to resolve years of litigation and includes operational changes. Reading between the lines, you don’t doll out nearly $3 billion just for the sake of moving on; obviously, there’s some truth to the allegations as it would have cost much less to prove otherwise if that wasn’t the case. The proposed agreement will purportedly transform the BlueCard program for claims submission and enhance transparency and efficiency within what many may argue is a system. It also promises more contracting opportunities for providers and requires Blue Cross to invest hundreds of millions of dollars in implementing non-monetary aspects of the settlement. The settlement covers healthcare providers serving Blue plan patients from July 2008 to October 2024 and is subject to approval by U.S. District Judge R. David Proctor.