Car Accidents and Health Insurance Payments

A common misconception I see all the time is that health insurance companies will “pick up the tab” for car accident injury cases. Here’s a quick example:

Joe gets into a car accident that was caused by Bad Driver. Joe goes to the ER and to several doctors for followup treatments. His health insurance company pays for all the medical bills. Guess what happens if Joe settles with Bad Driver’s insurance company?

Joe’s health insurance company will be reimbursed for what they paid. This is referred to as their right of subrogation. The same thing will happen if the case goes to trial. Assuming Joe gets a favorable verdict at trial, his health insurance will want to be reimbursed.

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