Why won't the hospital file on my health insurance for my accident related medical expenses?
Hospitals frequently refuse to file on an accident victim's health insurance and instead file a grossly inflated hospital lien against the insurance of the person causing the accident. This practice is a violation of Texas Civil Practices and Remedies Code Chapter 146.
Years ago Chapter 55 of the Texas Property Code was enacted giving Texas hospitals a lien for the "reasonable and regular" charges for emergency medical services upon the insurance of the person at fault in causing an accident.
The idea was that because Texas hospitals are obligated to provide emergency medical care to injured persons who present with emergency medical needs at an emergency room that the hospital should in exchange have a lien for the cost of these emergency medical services upon the insurance of the person causing the accident.
Unfortunately, most hospitals "regularly" send out bills that are inflated by several times more than the "reasonable" charges. A recent study concluded that hospitals initially charge approximately 250% of the reasonable and necessary charge for emergency medical services.
If the hospital submits the inflated bill to private health insurance then they will be reimbursed only the reasonable and necessary charge.
A Texas hospital bill is like a Texas prison sentence, it doesn't mean what it says. However, if the hospital files a lien for the full amount and gets away with it then they have gotten a 250% "bonus".