So, you got paid by your health insurance, and now you want to get paid for the same bills, from a car insurance policy.

That’s called “double dipping” and is illegal. Your health insurance is entitled to reimbursement – otherwise, you come out AHEAD of the game! You cannot collect from two different insurance companies for the SAME thing. I’m sure you misunderstood – the settlement isn’t going to pay the doctor a second time, it’s paying back the insurance that’s already paid for your medical bills.

I’m not entirely clear, but this is what I think you’re saying: Your medical insurance paid for medical expenses related to this auto accident. Now you’ve received a settlement and you are being asked to pay back the medical insurance for what they’ve paid. Correct?

The reason for this is because your medical plan is not responsible for charges that should be covered under another insurance plan. Medical expenses related to an auto accident should be covered by your auto insurance. Your auto carrier is responsible for payment of those charges – your medical plan is not. Your medical plan went ahead and paid those charges, as a courtesy to you. But now that you’ve gotten a settlement from the insurance company, the medical plan has the right to ask for its money back.

It’s called third party subrogation.

It would be the same if you got injured at work. Ultimately worker’s compensation most likely would be responsible for paying those bills, but oftentimes your medical plan will go ahead and pay them. They do that because while you’re waiting on a settlement from the work comp carrier (or in your case, your auto carrier), you could potentially be turned over to a collection agency for non-payment of medical bills. But your medical carrier goes ahead and pays them, with the understanding that when the case is settled, they’ll get their money back. It’s actually very simple.