Make Certain You Are Using Language In Your Settlement Order To Extinguish Potential Claims For Underpaid Medical Bills

The Full Commission in the recent Opinion of Powell v. Haverty Furniture Company, Inc., JCN: 2317668 (November 18, 2024) reversed the decision of the Deputy Commissioner and allowed a claim for alleged “underpaid” medical bills after the parties had reached a settlement and an Order was entered. The Order provided that defendant would pay for “any unpaid, reasonable and necessary medical expenses for treatment rendered” to the claimant through date of entry of the Order.

The Full Commission held that this language, again, did not preclude the claimant from seeking full payment of medical expenses incurred by the claimant but only partially paid by the defendants.

The Full Commission held:

We do not find the language of the Settlement Order draws any substantive distinction between medical bills that are “unpaid” and those that are “underpaid.” Indeed, “Medical bills” are not expressly referenced in the Order. Rather, the operative language obligates the defendants to pay “any unpaid, reasonable and necessary medical expenses.” We deem the plain meaning of this language sufficiently general and expansive to include the unpaid portion of any charges rendered for qualifying medical treatment, regardless of whether the expenses were paid in part or not at all.

The Full Commission reversed the ruling that the settlement discharged the defendants from obligations to pay in full those medical expenses which were previously paid in part. The matter was also remanded on a waiver defense.

The important takeaway for the Virginia Adjuster with this case is to make certain that your Settlement Order clearly extinguishes responsibility for “underpaid” medical bills through date of entry of the Order (presuming the terms of the settlement do provide for payment of medicals through date of Order Approving Settlement).

Should you have any questions about the issues discussed here or other legal issues, please do not hesitate to contact the lawyers at Ford Richardson.

Ford Richardson is a full-service law firm with headquarters located in Richmond’s financial district and satellite offices in Roanoke, Fairfax and Virginia Beach and Washington, D.C..

Our commitment to our clients is simple: offer top-tier clear legal solutions that allow our clients to excel in their business.

We are privileged to give back to our community and believe it is our responsibility to do so. Our attorneys and support staff serve as leaders and volunteers to a wide array of civic and charitable organizations.

Posted In: E-Blast