Do I have to pay my health insurance company back out of my personal injury or wrongful death recovery?

Generally, the answer to this question is “yes.” Take the example of a person that is injured in a car accident. In most cases the injured party will be taken to the hospital for treatment of his or her injuries. If this person has health insurance, then health insurance will pay for their hospital stay, as well as costs associated with any other treatments, such as surgery, physical therapy or follow-up appointments. If the injured party later receives any financial recovery from the responsible driver, either from a settlement or a verdict at trial, the insurance company would generally have a right of “subrogation” as to those settlement funds. In other words, if the injured driver received a settlement of $ 50,000.00, and his or her health insurance paid $ 5,000.00 for medical care, then the health insurance would have a right to be reimbursed
$ 5,000.00 from the recovery obtained from the responsible party.
It is also worth remembering that are many exceptions, loopholes and different factual scenarios that can alter the general rule. Some of these include when the insurance company providing the recovery is your own uninsured motorist coverage, or if the insurance is provided by a program such as TennCare. Also, in many cases, your attorney will be able to negotiate with the insurance company to lower the amount that you have to pay back to the health insurance provider. There are also some scenarios in which money will have to be paid back, such as when the recovery is less than the amount of the injured parties medical bills.
Regardless of the situation, your attorney will advise you of the best way to handle your situation so that you are able to maximize your recovery.