After a Georgia car accident, medical bill responsibility is often the most urgent financial concern. Understanding who pays — and in what order — can prevent costly mistakes and protect your settlement.
Georgia Is a Fault-Based State
Under O.C.G.A. § 33-34-1, Georgia follows the traditional fault system. The driver who caused your accident is responsible for your damages, including all medical expenses. However, their liability insurer does not pay bills as they come in during treatment. It pays in a lump sum once your claim resolves — which means you need a plan for the gap period.
What Covers Bills During Treatment
Several sources can pay your ongoing medical costs while your claim is pending:
- Your health insurance — Your health plan pays providers directly. Your attorney handles the resulting subrogation lien at settlement so you repay only what is legally required.
- Medical payments coverage (MedPay) — If your auto policy includes MedPay, it pays your bills regardless of fault up to policy limits (typically $5,000–$25,000). Georgia does not require MedPay but it is common.
- Letters of protection (LOP) — Many Georgia accident providers treat on a lien basis, deferring payment until your settlement funds.
Subrogation: What You Owe Back
If your health insurer paid your medical bills, it has a subrogation right — the right to reimbursement from your settlement proceeds. O.C.G.A. § 33-24-56.1 governs health plan subrogation in Georgia and contains important limitations. An experienced Georgia accident attorney can often negotiate subrogation liens down significantly, increasing your net recovery.
Why You Should Not Settle Before Treatment Ends
Insurance adjusters often pressure accident victims to settle quickly, before the full extent of their injuries — and future medical costs — is known. A lump-sum settlement is final. Once you sign a release, you cannot reopen the claim if you need additional surgery, physical therapy, or specialist care. Settling before reaching maximum medical improvement almost always results in an inadequate recovery.
How Settlement Accounts for Medical Bills
When your case resolves, your attorney accounts for all outstanding bills, MedPay reimbursements, and subrogation claims before distributing net proceeds. Medical expenses are the foundation of your special damages calculation — thoroughly documented treatment records directly drive higher settlement values. The more complete your medical record, the stronger your compensation case.
Georgia accident attorneys work on contingency — no fee unless they win. A free claim evaluation shows you exactly what your medical expenses and other damages are worth before you make any decisions.