After a Personal Injury Settlement, Why Do I Have to Pay Back My Health Insurance Company ?

Stethoscope, calculator, and money lying on top of health insurance paperwork

If you suffered a personal injury caused by someone else’s negligence, you can seek compensation from the at-fault party’s insurance company. Depending on the accident that hurt you, it could be an auto insurance, homeowner’s insurance, renter’s insurance, or business liability insurance claim.

While your lawyer works to resolve your case and secure financial compensation, your health insurance company will pay your medical bills. However, your policy most likely contains a statement giving your health insurance provider the right to reimbursement.

You may wonder, can my health insurance company take part of my settlement? Yes, it can and likely will if you recover compensation for medical costs. The argument for this is that your insurer would not have had to pay the medical expenses if not for the liable party’s actions.

Our experienced personal injury attorneys can assist you with paying back the insurance company after a settlement. Working with our law firm can also help minimize what you owe.

What Is Health Insurance Subrogation in a Personal Injury Case?

Health insurance subrogation after a settlement is the process of paying back your health insurance provider. In many personal injury cases, it happens behind the scenes between insurance companies and an injured party’s attorney.

For example, if you have hospital bills, your health insurer will likely not pay the total amount. Instead, it will pay a portion to satisfy the debt. Your insurer will then send a claim for this amount to your lawyer to demand reimbursement from your personal injury settlement.

Do you have to pay back insurance after a settlement? Yes, you typically must reimburse your health insurance company when you receive compensation from the at-fault party’s insurer.

What Impact Do Attorney’s Fees Have on Subrogation Claims?

Alabama follows a common fund doctrine. Under this rule, health insurance companies that demand reimbursement through a subrogation claim must pay a portion of the injured party’s attorney fees. Any money you owe your health insurance company will be reduced by the portion of the attorney fees it owes.

Are There Ways to Minimize the Impact of Subrogation?

Our lawyers can help you keep careful track of your medical bills and the amounts paid by your health insurance provider. That will help you know how much your insurance company may claim through subrogation and ensure that what you believe you owe matches its demands. Our attorneys may also be able to minimize the impact of subrogation by negotiating a lower payment amount.

Can an insurance company take back a settlement? Once you sign an agreement with an insurance company, it is difficult to renegotiate. An insurer cannot take back a settlement, but you also cannot ask for more after you accept a settlement offer. It is vital to work with an experienced personal injury attorney who will consider all of your needs when negotiating an insurance settlement.

Our Alabama Personal Injury Lawyers Can Help with Your Case

The attorneys at Morris, King & Hodge, P.C., stand ready to represent you throughout your personal injury claim. We can fight to maximize the compensation you receive from at-fault parties. We can also safeguard your settlement by working to minimize subrogation claims from health insurance companies.

Contact us today for a free consultation to learn more about how we can protect your rights and financial future.

Since 1966, our lawyers have been standing up for injured victims and taking cases to court in North Alabama and all across the state. If you’re hurt in an accident, you want to be sure that you have the most qualified injury & accident lawyers representing you with a proven track record representing injured victims in the courts.