Being involved in an accident can be a stressful experience. If you have been in a car accident and have received a settlement after filing your personal injury lawsuit, your health insurance company will demand repayment. Even if you are covered by Medicare and even if you are not responsible for the accident, such reimbursement is compulsory. Besides, repayment of your settlement is most critical if it concerns government bodies as they can impose hefty if you fail to comply with their requirements.
Understanding Subrogation
The process involvingrepayment to your insurer for your medical bills after receiving your settlement is called subrogation. As a person being insured by the policy, you cannot file a claim with the insurance provider asking for coverage since it would constitute as a double payment. Most people are unaware of subrogation when filing for a claim and do not realize that they owe a percentage of their settlement to the insurer. Hence, it is always recommended to hire a car accident lawyer after your accident as they can inform you about your legal responsibilities.
Health Insurance Contract and Subrogation Letters
Most of the private insurance companies include information about subrogation in their contract informing the insured person about their responsibility to repay the medical bills if they use their expenses to recover from a 3rd party. From the insurance company’s standpoint, they would not require to pay for these expenses if the driver responsible for the accident was not negligent and thereby deem the reimbursement being appropriate. While the other party’s insurance provider is paying for the damages caused by their own client. Only if there is no reimbursement from a 3rd party, you do not need to repay your health insurance.
In most car accident cases, the lawyer receives a subrogation letter also known as a lien from the health insurance provider highlighting the payments that require reimbursement. For example, consider that your emergency room charges amount to $7,000 and the insurance company pays $3,000. However, when you claim medical expenses through the court, you will claim for the entire $7,000 and not just $3,000. Once your settlement verdict has been made, the insurance company should receive the $3,000 in reimbursement, and the remaining $4,000 should be a part of your settlement.
How can a good car accident lawyer help you?
If you are involved in a collision, it may seem like a daunting task to take care of your health while handling your insurance claims and subrogation. Due to the complexity surrounding subrogation, it is suggested to hire a car accident attorney after your accident. A well-informed attorney will be aware of these charges since they are handling your case. A seasoned car accident attorney can help you understand the fees you may owe and fight your case on your behalf. In addition to this, once the case is resolved, your attorney can negotiate with the insurance company to reduce the subrogation amount that you are required to pay. The lawyers at Douglas and London have some additional information for anyone confused about these fees here on their blog: https://www.douglasandlondon.com/car-accident-lawyers-nyc/do-i-have-to-pay-my-health-insurance-back-after-a-car-accident/
