Your health insurance company may be paying your medical bills after a car accident. However, the language of your health insurance contract likely states that the insurance company is entitled to full reimbursement for the medical bills it covers if you are awarded a personal injury settlement from another insurance company.

This Is Known as Subrogation

You may be informed of subrogation when you receive a subrogation notice from the insurance company. The notice may ask for details of your accident, whether a third party was involved, the name of the at-fault driver’s insurance company, and the name of your car accident attorney.

The insurance company is collecting this information so that it can be reimbursed for the money that it pays to your healthcare providers for treatment of your accident injuries if you were hurt by someone else.

The Money Will Be Paid Out of Your Car Accident Recovery

While your health insurance company is covering your costs now, it will expect to be reimbursed from your eventual car accident settlement or court verdict. This money likely will be paid to the health insurance company before you receive any financial recovery.

You likely have a legal obligation to pay this health insurance lien. However, as with most things related to your car insurance recovery, it is important to make sure that you take the right steps to protect your fair recovery. With regard to paying back your health insurance company, this means:

  • Keeping accurate records of what your health insurance paid, when it was paid, and why it was paid. You want to make sure that the health insurance company is only being reimbursed for the costs that were related to your accident and not for any other healthcare treatment you may have received.
  • Working with an experienced car accident lawyer. Your car accident lawyer can make sure that you don’t pay any more than necessary to the health insurance company.

To learn more about your rights in this situation, and about what to reasonably expect when you settle a car accident case, please contact the experienced car crash lawyers of Gray and White Law today for a free, no-obligation consultation.

Matthew L. White
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Founder & Partner of Louisville Personal Injury Law Firm Gray & White Law

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