Health Insurance Reimbursement: Should You Still Use Your Health Coverage Since You Have to Repay Your Health Insurance Company?

When you’re injured in an accident, you may wonder how your medical expenses will be paid. If you have health insurance, your policy may cover some or all of your medical bills after an accident.

However, if you receive a personal injury settlement, you may be required to repay your health insurance company for any payments they made on your behalf. Let’s explore health insurance reimbursement for personal injury cases and what you need to know.

Understanding Health Insurance Reimbursement

When you have health insurance, your policy typically includes a provision that requires you to reimburse the insurance company for any payments they make on your behalf if you later recover money from a third party for your injuries. This is known as “subrogation.” Essentially, your health insurance company has the right to be reimbursed for any medical expenses they paid for that were related to your personal injury case.

Negotiating With Health Insurance Providers

If you’re involved in a personal injury case, your attorney will negotiate with your health insurance provider to reduce the amount you have to reimburse them. Because health insurance companies have already negotiated discounts with various providers, they may be willing to accept a reduced reimbursement amount.

Sometimes, your attorney may get the health insurance company to waive their right to reimbursement. This is more likely to happen if the case involves child injury, as there is favorable case law in Illinois that allows for the waiver of liens for the treatment of minors.

Why You’re Better Off Using Health Insurance

Even though you may have to reimburse your health insurance company for payments they made related to your personal injury case, you’re still better off using your health insurance. Your health insurance provider has already negotiated discounts on your behalf, so you’ll pay less for your medical expenses overall.

If you were to negotiate directly with medical providers, you would likely have to pay the full sticker price for your medical treatment. This can add up quickly and result in significant financial hardship for you and your family.

Unable to Repay Your Health Insurance Company? A Bloomington Personal Injury Lawyer Can Help

If you’re involved in a personal injury case and have health insurance, you may be required to reimburse your health insurance provider for any payments they made on your behalf. However, your attorney can negotiate with the provider to reduce the amount you must pay.

If you’re struggling with liens and reimbursement in a personal injury settlement, Onward Injury Law can help. We can guide you through the process and help you get the best possible outcome for your case.

Contact us today for a free consultation.

Author Bio

Josh Rohrscheib

Joshua Rohrscheib is the Owner of Onward Injury Law, a Central Illinois personal injury law firm. With more than 17 years of experience in injury law, he is dedicated to representing clients in a wide range of legal matters, including car accidents, trucking accidents, construction accidents, medical malpractice, nursing home abuse, and other personal injury cases.

Josh received his Juris Doctor from the University of Illinois College of Law and is a member of the Illinois State Bar Association. He has received numerous accolades for his work, including being named among the “Top 40 Under 40” in 2019 by The National Trial Lawyers and a “Rising Star” in 2019 by Super Lawyers.

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