Simply makes me ill...

[mustang_bex1126]

Apparently, if you suffer catostrophic or serious injuries requiring medical care due in part to negligence on the part of another party, and you receive settlement money for such a situation, your work can sue you and claim your settlement money, to recoup the money they spent via your health insurance, on your medical care.  Not all companies are

Comments

[sapphsmum]

It's been that way for at least 10 years that I know of. Any insurance company that pays out for any health care that you subsequently get a settlement for can sue in return to get back their money.

Reasoning behind it? Part of what lawsuits usually pay you in compensation is for medical bills (both past and future) and if you get paid for past medical expenses it stands that the person who paid the expenses in their (insurance company)eyes they should get reimbursed.

Most insurance companies do not go after this money though. A settlement can be written so that it is not paid out for medical expenses or for pain and suffering. Reason, the tax man cometh.

If you get a settlement it can be taxed if it is for pain and suffering, not for medical bills, or vice versa, not sue what the current tax law is on that. I just know that when people do get injured that they need a good tax attorney to write up the settlement. It saves them money and aggravation. And keeps others like an insurance company from getting part of the settlement.

If you pay out for the insurance premiums to pay for possible future injuries, then get hurt and sue you usually get reimbursed for those expenses in a settlement. To get your medical bills paid by your insurance then to get reimbursed from a lawsuit settlement, it is considered double dipping. That is not allowed legally.

Thing is as a insured person your premiums go up if you file a claim whereas the insurance company would pay out if there wasn't a lawsuit just because you bought the insurance for that reason not thinking you'd be suing anyone to cover those bills. So it is something that does get brought up in cases where the insurance has paid out, especially if it is large amounts of money and the injured party sues and gets reimbursed by the lawsuit as well.

Hope that makes sense.

Get well soon! Christina