A letter of protection is issued by plaintiff's counsel assuring a provider that its charges will be paid from any recovery. The provider treats without requiring payment at the time of service and holds the balance until the case resolves.
Charges under a letter of protection are typically billed at undiscounted rates rather than at negotiated insurance rates.
Alternative Names:
LOP, Provider Letter of Protection
Why it Matters?
Letters of protection are a significant defense issue in injury litigation because they inflate claimed medical specials, sometimes by a large multiple over what an insurer would have paid. They also raise questions about the relationship between counsel and the provider, including referral patterns and whether the provider expects to be paid in full. Discovery into LOP arrangements, billing rates, and referral history is routinely contested and often productive.
Frequently Confused with
Related terms
Frequently asked questions
Why do letters of protection increase claimed damages?
Is the arrangement discoverable?
