Depending on your auto insurance coverage, the circumstances of your accident, and whether there was a court settlement involved, you may have to reimburse your health insurance company.
If you suffer bodily injury as a result of a collision, and your vehicle is insured in South Carolina, you should bill your health insurance company for your medical expenses. Often, medical providers try to avoid going through insurance because they don’t want to pay the negotiated discounts (the amount the doctor’s office or hospital agrees to accept as full payment from the insurance company). However, billing your health insurance is the best plan of action. You do not want to risk having your medical bills go to collections because you are waiting for an insurance payout to settle your bills.
Your auto insurance company may pay for all or part of your medical bills, depending on the coverage you have and whether it’s an underinsured or uninsured claim. If the collision is determined to be your fault, your car insurance will not pay. If the accident is not your fault, and you max out the at-fault driver’s liability policy, then your underinsured coverage can come into play. If the at-fault driver does not have coverage, and you have uninsured motorist coverage, then your medical expenses can be covered up to the limits of your UM policy.
Your health insurer will often place a lien on the settlement that you stand to receive, regardless of whether the matter goes to court or not. They must perfect their lien to attempt to collect reimbursement for what is paid. This means that once the auto insurance company agrees to pay out on your claim, your health insurer will be able to recover some or all of the payments that it made to cover the cost of your medical expenses. This is known as subrogation.
Under S.C. Code § 38-71-190, South Carolina health insurance companies have the right to seek reimbursement from your settlement or jury award, but only up to the amount they actually paid for your medical care. However, if you believe the demand is unfair, you may petition the South Carolina Director of Insurance for a hearing. The Director can deny subrogation entirely if it would be inequitable or commit an injustice to you.
If you don’t have health insurance or have questions about this complicated topic, talk to a South Carolina car accident lawyer at Stewart Law Offices to determine the best course of action. Call us today at 866-783-9278 or contact us through our online form.
Note: This information is for informational purposes and does not constitute legal advice. You can only receive legal advice by meeting with an attorney.