Short Answer

Yes. In North Carolina, you can and usually should use your health insurance to pay hospital and rehabilitation bills after a crash. Medical providers and some insurers may claim repayment from any injury settlement, but provider liens are capped by law and paid in a set order. Extra costs like deductibles, copays, uncovered rehab, and lost wages are typically pursued from the at-fault driver’s liability insurance or your own auto coverages.

Understanding the Problem

You want to know if your health insurance will pay your hospital and rehab bills after a car crash and, if so, what happens to amounts it doesn’t cover. This question sits squarely in North Carolina personal injury law and insurance claims. You have health insurance.

Apply the Law

Under North Carolina law, you may submit crash-related treatment to your health insurer. If you later recover money from the at-fault driver, medical providers and some health plans can seek repayment from your settlement. North Carolina’s medical lien statutes limit how much providers can collect and set the order of payment. Most claims resolve with the at-fault driver’s insurer; if suit is needed, it is filed in civil court in the county where the crash occurred. Personal injury lawsuits generally must be filed within three years, and medical provider liens are limited to a percentage of the recovery after attorney’s fees.

Key Requirements

• Use your health insurance: Submit emergency, inpatient, rehab, and therapy bills to your plan; coverage follows your policy terms.
• Provider liens on your recovery: Hospitals and other providers may claim a lien on settlement funds for reasonable charges if they supplied treatment for your injuries.
• Repayment rights: Some health plans (and government programs) may seek reimbursement from your settlement per plan terms or statute.
• Statutory cap and priority: After attorney’s fees, all provider liens together cannot exceed 50% of the injury recovery; payment follows a set order.
• Where and when: Claims are typically handled with insurers; if no settlement, file suit in civil court within the general three-year period for personal injury claims.

What the Statutes Say

• N.C. Gen. Stat. § 44-49 (Medical provider lien) - Allows providers to claim a lien on personal injury recoveries for reasonable treatment charges.
• N.C. Gen. Stat. § 44-50 (Distribution and cap) - Sets payment order and caps all provider liens at 50% of the recovery after attorney’s fees.
• N.C. Gen. Stat. § 135-48.37 (State Health Plan subrogation) - Describes reimbursement and lien rights for the North Carolina State Health Plan.

Analysis

Apply the Rule to the Facts: Because you have health insurance, submit your hospital, inpatient, and month-long rehab bills to your plan. If you recover money from the at-fault driver, providers can assert liens, but the total of those liens cannot exceed 50% of your recovery after attorney’s fees. Your copays, deductibles, any uncovered rehab sessions, and lost wages are not waived; they are typically pursued as damages from the at-fault driver’s insurer and resolved when the claim settles.

Process & Timing

1. Who files: You (or your attorney). Where: Submit medical bills to your health insurer; open a third-party claim with the at-fault driver’s auto insurer; file suit in the county civil court if needed. What: Notice of claim, itemized bills, explanation of benefits, and treatment records (limit releases to relevant providers). When: Submit insurance claims promptly; file any lawsuit within the general three-year personal injury deadline.
2. Health insurer processes bills and pays per your policy. Providers and plans may send lien or reimbursement notices. Your attorney obtains itemized statements, verifies balances, and negotiates lien reductions where allowed. This often takes weeks to months, depending on records and responses.
3. When the liability claim resolves, funds are disbursed: attorney’s fees and costs, then valid medical provider liens up to the statutory cap, then plan reimbursements as applicable, with the remainder to you. You receive a closing statement showing payments.

Exceptions & Pitfalls

• Provider lien perfection: If a provider does not supply an itemized statement upon request, its lien rights may be limited; ask for itemized bills early.
• Plan-specific reimbursement: Private, employer, Medicaid, Medicare, and State Health Plan rules differ; confirm who must be repaid and negotiate within the statutory cap and plan terms.
• Balance billing/out-of-network charges: These can increase out-of-pocket costs; verify network status and appeal billing errors.
• Overbroad medical authorizations: Do not give the at-fault insurer unlimited access to your medical history; limit releases to crash-related records.
• Ignoring the cap and order of payment: Settlement funds must be distributed in the statutory order, and provider liens are capped after attorney’s fees.

Talk to a Personal Injury Attorney

If you're dealing with medical bills, insurance claims, and lien notices after a crash, our firm has experienced attorneys who can help you understand your options and timelines. Reach out today. Call us at (919) 341-7055 or email intake@piercelaw.com.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.