The Role of “Letters of Protection” in Your Florida Personal Injury Lawsuit
Many South Florida accident victims are reluctant to seek medical treatment because they lack health insurance or adequate funds to pay a substantial doctor’s bill. Of course, if the accident is the result of another party’s negligence, the victim can seek compensation for their medical bills through a personal injury lawsuit. But that does not solve the problem of needing immediate funds to pay for medical care in the short term.
This is where what is known in Florida as a “Letter of Protection” can be helpful. A Letter of Protection (LOP) is basically a written agreement between you and your health care provider. The provider agrees not to charge you (or any insurance you may have) any out-of-pocket fees upfront for your accident-related medical care. In exchange, if you receive any proceeds from a personal injury settlement or judgment, you agree to give a certain amount of that award to your provider as payment in full for your medical care. The amount must be fair and reasonable for both sides and the final agreement is subject to court approval.
Do You Need to Disclose Letters of Protection?
In 2023, Florida passed a tort reform law that requires plaintiffs in personal injury cases to disclose any letters of protection they agreed to “as a condition precedent to asserting any claim for medical expenses.” In other words, if your personal injury lawsuit seeks compensation for your medical bills, you must give the defendant and the court a copy of any letters of protection that you signed with your health care providers along with an itemized bill for any expenses incurred. Additionally, if the health care provider later sells the letter of protection to a third party, which is a common practice in the industry, that must also be disclosed.
If your personal injury case then goes to trial, the current value of the letter of protection limits how much you may claim for that medical expense. For example, if you signed a letter of protection agreeing to pay a specialist $1,000 for services rendered following your accident, the court cannot award more than $1,000 for that bill. But if your doctor later sold the letter of protection to a third-party receivables factoring company for $800, then the court will not award more than $800.
The important takeaway here is that if you have any letters of protection they must be disclosed when you file your personal injury lawsuit. If you fail to do so, the court can bar any compensation for your medical expenses. That said, letters of protection do not apply to other forms of economic damages, such as lost wages or losses related to property damage.
Contact a Miami Personal Injury Lawyer Today
Navigating Florida’s complex web of laws and procedures can seem overwhelming as you struggle to recover from an accident. Our Miami personal injury lawyers can help by taking that burden off of your shoulders. Contact Pita Weber Del Prado today at 305-670-2889 to schedule a free consultation.
