Among other things, this story is a cautionary tale about how you should insure yourself not only for cycling, but for driving as well.
HIs hospital bills are certainly enormous, even after insurance. The hospitals have liens on any recovery from the at-fault driver. While some of that is negotiable, low insurance limits from the driver's insurer will guarantee that the whole recovery is taken up by medical bills. If the driver does not have substantial other assets, or jppe's buddy lacks the will to spend years fighting an uncertain battle to get them, an injured person can only look to himself for relief.
The only way you can protect yourself is with uninsured/underinsured motorist coverage, or an umbrella policy. Too many people, when trying to save money on insurance, are advised to cut out the UM coverage. That coverage is probably the most valuable coverage in your auto policy.