DO I HAVE TO PAY BACK MY HEALTH INSURANCE OUT OF MY PERSONAL INJURY SETTLEMENT? WHAT IS SUBROGATION?
When you are injured in an accident because of another person’s negligence, the person or business that injured you is responsible to pay your medical bills. (Of course, also lost wages, pain and suffering, and other compensation.)However, that only happens at the end of the case when there is a final settlement: If you have medical insurance, your health insurance company will usually pay the medical bills in the meantime.In that situation, your health insurance is entitled to get its money back.That is called subrogation.
Whenyour health insurance makes a payment,the insurer is subrogated in a corresponding amount to your case or claim. Their subrogation applies to any third-party who caused the injury.However, the medical insurance company cannot directly sue the person who caused the injury.The law in Minnesota requires the insurance company to recover its payments by working through their insured (you). Our accident injury lawyers will track the correct amount that has to be repaid the health insurance company. We make sure they don’t get reimbursed on unrelated expenses. In addition, we often get the amount reduced for our clients through negotiation.
MEDICAL BILLS PAID BY HEALTH INSURANCE
Because MN law requires the health insurer to only go through their insured to get its money back, you must take that into account when settling your case. The law generally gives you two choices; you can either: (1) Receive benefits from your health insurance policy, i.e. have your health insurance pay your medical bills. Then, they get to subrogate against your compensation case. Or, (2) pay all the medical bills yourself without using health insurance. Then, you can keep all the settlement money and reimburse yourself for medical expenses.
Nor surprisingly, most people choose option one. If you choose to go through your own health insurance first, any money you later receive for medical expenses must be paid back to the health insurance company. This requirement is part of the law in Minnesota and is also part of your contract with your medical insurance company.
DIFFERENT TYPES OF HEALTH INSURANCE HAVE DIFFERENT SETTLEMENT REQUIREMENTS
However, this explanation is only a part of the story.The law is a bit more complicated because there are different kinds of health insurance policies, and the law treats them differently. Some health insurance policies are subject to federal law (ERISA) instead of state law, so different rules may apply.Also, private medical insurance coverage you buy and pay for yourself has some different rules. In addition, medical insurance that comes through the government, such as Medicaid and Medicare, as well as workers compensation insurance have different rules.
In almost every health insurance policy, you are required to repay the health insurer from your settlement. However, the exact amounts and procedures will vary depending on the type of medical insurance health care you have.
LAWYERS FOR INJURY ACCIDENT MEDICAL BILLS PAYMENT
If you are injured in an accident that was not your fault, please call us and speak with an experienced personal injury lawyer. Our top personal injury attorneys have more than 25 years’ experience successfully representing hundreds of people. We handle case for people who have been injured in a car accident, because of a defective product, or dog bite.Also, slip fall accidents, drunk driver, motorcycle accident, semi truck accident, and many others.
An accident injury lawyer will provide you with a free consultation at our offices in Edina, Minneapolis, St. Louis Park or Woodbury. Our lawyers also make house calls to injury victims in St. Paul, Roseville, White Bear Lake, Lino Lakes, and Forest Lake. Also, Brooklyn Center, Brooklyn Park, Maple Grove, Rogers, Anoka, Champlin, and other cities throughout Minnesota. We will look at your specific situation and advise on your rights, including your obligation to repay your health insurance for medical bills.