Auto Insurance Claims: 3rd party liability insurance, party liability insurance, distribution purposes

Question
I do medical billing for a living and have had a problem a couple of time with this 3rd party liablity issue and it never resolves in the best interest of the doctor.  He doesnt like turning over patients to collections but I feel that by a patient keeping the money for services they have received, they are stealing.  I appreciate your help and will definitely rate you well.  Thank you so much for your help.  I appreciate it.


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Followup To
Question -
I am in the state of Texas.  The auto co. says that they legally have to pay the patient on a 3rd party liability claim.  That patient has not paid the doctor for the medical services he provided even though she got the check. I am wondering how to make the insurance co. pay the doctor directly since they agree that they have an assignment on file.  Any suggestions would be helpful.  Thank you.


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Followup To
Question -
Does a 3rd party liability insurance company pay the patient the settlement money even if a physician has a lien or assignment of benefits on file?  I thought if you had an assignment the insurance co. had to pay the doctor directly but this ins. co is telling me that legally they have to pay the patient only.  Is that true?
Answer -
If a medical vendor has an assignment/lien and they are not paid directly by the settling company that vendor has recourse v the company should the settlement proceeds not be used by the settling party to satisfy the assignemnt/lien.

The only exception that I can think of is if the settling party gives the company a hold harmless for the lien(s).

To be SAFE the best practice is to pay the vendor who has the assignemtn/lien and to send the check/draft to the settling party solely for distribution purposes.

You did not mention the State involved... reason I mention that is that your State MAY have some quirky law(s) on the books which goes contrary to what I above related.

Hope and trust that the above answers your question.

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Thanks
Answer -
What is your interest in this matter if I may ask?

Might want to consider contacting the Texas Dept of Insurance and speak with one of their Consumer types... they should be able to tell you what end is up.

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Thanks

Answer
Sorry.. just saw your FU today....

The fact that the company may "have to" pay the claimant does not ( in my opinion) relieve them of any obligation(s) to the medical provider....

One way to cover all those bases is to name BOTH parties as payees...

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Thanks