Dealing With The Financial Aspect of a Catastrophic Injury

If you or a loved one have experienced a traumatic injury, the last thing you want to worry about is your financial stability. Our team of experienced catastrophic injury attorneys at Elite Litigation Group wants to make sure you are aware of the resources and options available to you and your family. Our team of personal injury lawyers can help you in your pursuit of legal advice by offering you a free consult on your catastrophic injury case. 

What is a catastrophic injury?

Catastrophic injuries are described as chronic life-altering injuries. These types of injuries often require long-term medical care as they are injuries sustained to the brain, spinal cord, or spine. Long-term medical care can become incredibly expensive very quickly. Knowing how to manage and lower out-of-pocket costs is crucial for most individuals. 

It is not only medical expenses that can cause financial strain following a catastrophic injury but also loss of work due to the injury sustained. You may have found yourself in a position where you must change jobs if you can no longer perform the functions necessary due to your catastrophic injury, a change that can result in lower pay. In some cases, individuals who have sustained a catastrophic injury may be out of work altogether because they can no longer physically or mentally handle the strain and demand of employment due to injuries sustained. 
So, what resources are available, and what can you do to pay for your medical costs and ensure financial stability? In his book “Unthinkable,” Kyle Bachus discusses how insurance benefits and other resources can be used to cover expenses and circumvent financial difficulties.

Auto and medical payment insurance

In the state of Colorado, it is not required for drivers to carry medical payment insurance (MedPay). However, if you opted to include medical payment insurance on your auto policy, this is one option for ensuring that your or your family member’s medical expenses can be covered. Medical payment insurance will pay for a number of medical expenses, such as:

• Fees from the ambulance and medics
• Hospital fees
• Doctor appointments
• Surgery and X-rays 
• Nursing services
• Prosthetic equipment
• Dental procedures resulting from the accident
• Funeral costs

Personal Injury Protection (PIP)

PIP is required in no-fault states and elective in others. The reach of PIP is slightly larger than Medical payment insurance. PIP covers:

• Health costs
• Psychiatric care
• Rehabilitative care
• Lost wages

However, PIP does set limits on the amounts that they will cover. Any costs that exceed your PIP limit will have to be paid another way.

Health Insurance

The majority of your financial hardship due to medical expenses will be alleviated by medical insurance. What your health insurance covers varies from company to company and policy to policy. You should make sure you are knowledgeable about the policy you purchased. Insurance companies generally require a co-pay when services are rendered. This co-pay is a percentage or predetermined set amount that is a fraction of the full cost of your medical expenses. Co-pays are required prior to receiving treatment in most cases.

Government insurance (Medicare, Medicaid, Retroactive Medicaid) and Extra Help

• Medicare is government-paid health insurance available to individuals 65 and older. This insurance covers almost all medical expenses. 
• Medicaid is government-paid insurance for individuals who fall below their state’s income limit. This limit varies depending on family size, income, and living expenses. This type of insurance also covers most medical expenses. 
• Retroactive Medicaid is insurance that covers medical expenses incurred up to three months prior to the date of application. If you meet the financial requirements of Retroactive Medicaid and have suffered from a catastrophic injury, applying may be beneficial. Medical expenses accumulated three months prior to the date of application can be reimbursed. 
• Extra Help assists with Medicare medication costs. In order to receive Extra Help, you must already be receiving Medicare and have limited resources and income.

Disability Insurance

Disability insurance can cover up to two-thirds of your income and is provided through your employer. Disability insurance comes in two forms, short-term and long-term disability. Short-term disability covers an average of three months of lost wages due to injury, while long-term disability is contingent upon your policy, nature, and severity of your injuries.

Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI)

SSDI pays benefits to individuals who paid in enough to social security to be eligible. If you worked long enough and recently enough and paid into social security, you may qualify for SSDI. 

SSI pays benefits to adults and children who meet the requirement of a qualifying disability and have limited income and resources. 

Both pay benefits monthly if the disability is expected to last more than a year or result in death.

Nonprofit Assistance

Nonprofit assistance is another option to help with the financial burden following a catastrophic injury. Many nonprofit organizations can help provide food, housing assistance, financial support, and other resources to help you manage your difficult reality. Available resources vary by state.

Legal Resources

Depending on the circumstances of your catastrophic injury, you may be entitled to financial compensation. Bachus & Schanker and their team at Elite Litigation Group would be honored to have the privilege to speak with you and discuss your legal options. We offer a free consultation and no fee unless we win. 

We promise to handle your case with the care, compassion, and understanding it deserves. You are not alone in your battle following a catastrophic injury. Our team of legal experts is ready to help you get the financial compensation you deserve so you can cope with your new reality and relieve some of the stress that comes with these life-altering situations. 

We have offices throughout the state of Colorado. Let one of our locations get you on the path to resolving your financial instability as the result of a catastrophic injury. 

Denver Office
Colorado Springs Office
Englewood Office
Fort Collins Office
Aurora Office

Sources

¹Disability Benefits. (2022).

²Fitzpatrick, M. (2022). What Is Medical Payments Coverage? How Does It Work?

³What is a Catastrophic injury: Definition, Causes, and Prevention. (2022)