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The short answer is yes.
The short answer is yes.Many of our clients are surprised to learn that they may need to repay their health insurance company from their settlement. After all, the medical treatment and bills were caused by someone else’s negligence! It’s understandable to question this system, as it’s a complex aspect of the law that directly impacts your settlement.
What Is the "Right to Reimbursement"?
In personal injury law, a "right to reimbursement" refers to a subrogation or lien interest, where a third party—such as your health insurance company—has the legal right to seek repayment from your settlement or judgment when someone else is at fault for your injuries. Health insurance companies cover your medical bills, ensuring you receive the necessary treatment. However, if another party’s negligence caused your injuries, the insurance company is entitled to reimbursement for the funds they paid on your behalf.
Although this may seem unfair, it's the law. Understanding how this process works is crucial, so you're not caught off guard by a significant health insurance lien after a car wreck or other injury.
When Does a Subrogation or Lien Interest Apply?
A subrogation or lien interest comes into play whenever another party is liable for your injuries. For instance, consider a scenario where Todd is in a car accident caused by another driver running a red light. Todd receives medical treatment, including an ambulance ride, emergency room care, physical therapy, and eventually, surgery. Throughout this time, Todd's health insurance pays his medical bills. However, since the other driver is responsible for the accident, the insurance company has the right to seek reimbursement from any settlement Todd receives for the medical expenses related to the wreck. This means Todd will need to repay the health insurance company for the total lien amount from his settlement.
When Insurance Companies Seek More Than They Deserve
While your health insurance company or a government program has a right to a subrogation or lien interest, they may sometimes attempt to recover more than they are entitled to.
In these situations, it's essential to have an experienced attorney on your side—someone who knows how to navigate the complexities of car accident cases and will ensure the insurance company is only reimbursed for what they are legitimately owed.
How The Button Law Firm Can Assist You
We understand how frustrating this can be. You're focused on healing and moving forward, and now that your case has settled, the last thing you want is to deal with a substantial medical lien cutting into your settlement. Unfortunately, we see this happen all too often. If you have questions about health insurance liens, car accidents, or anything in between, please don't hesitate to reach out. Our goal at The Button Law Firm is to guide and support people like you so you can continue moving forward with your life.
