You deserve suitable compensation when another person causes a car accident, but a personal injury claim can take several months. Your medical bills will not simply wait for the settlement to go through. This raises the question: Does health insurance cover car accidents?
Your health insurance policy will likely cover some or all of the medical expenses related to a car accident. You might have several types of insurance claims active after an accident, though, so it is important to know how to keep track of it all.
When Does Health Insurance Cover Car Accidents?
If you decide to tap into your health insurance policy after an accident, it can help you cover costs related to surgery, rehabilitation, medication and other emergency costs. There are a few noteworthy situations when health insurance becomes a crucial source of coverage after a car accident.
When No One Admits Fault
When you experience a crash because of someone else’s negligence, you can reasonably expect to get compensation from the at-fault party. Their insurance company will pay for your damages, including medical expenses.
If no one admits fault, though, you might have bills coming in before your personal injury claim can make any progress at all. If your accident was a hit-and-run with an unidentified driver, you might never get the chance to hold the liable party responsible. In these cases, you can rely on your health insurance provider instead.
When the At-Fault Driver’s Insurance Does Not Pay
Another situation that can extend the timeline of your case is when the at-fault driver’s insurance company will not pay a reasonable settlement. If you cannot arrive at a suitable agreement through negotiations, you may choose to sue the other driver and take the matter to court instead.
Resorting to litigation can eventually lead to a favorable result, but you will need a way to manage your bills in the meantime. Health insurance can cover your car accident damages even if a court does not rule in your favor.
When You Need Immediate Coverage
When you seek medical treatment for your car accident injuries, you can choose to use your health insurance right away even if you have a promising personal injury claim underway. While this may entail additional expenses such as deductibles or co-pays, tapping into your health insurance immediately may be worthwhile if you have significant injuries that you cannot afford to cover out-of-pocket and need treatment without delay.
What Types of Health Insurance Covers Car Accidents?
Employer-sponsored health insurance plans and individual health insurance policies will all likely cover medical expenses related to a car accident. However, it is a good idea to familiarize yourself with your policy, as it will have its own coverage terms and limitations.
Government health insurance programs such as Medicare and Medicaid may also cover car accidents. As of 2024, 72,058,701 people have active Medicaid enrollment. As with other health insurance plans, Medicaid can help you pay for hospitalization and other medical expenses.
Do You Have To Reimburse Your Health Insurance Provider?
When your health insurance covers your medical expenses after a car accident, you will likely need to reimburse them if you recover a personal injury settlement later. Many policies describe this as “subrogation” or a lien on the coverage. The reimbursement amount depends on the total amount of your settlement, whether your policy includes a subrogation clause, and state laws regarding subrogation.
Medicare and Medicaid also require policyholders to pay back the lien if they recover a settlement. However, it is possible to request a reduction of the required reimbursement. Your case may warrant a reduction if you believe excessive reimbursement was requested or if a majority of the settlement covers future medical expenses.
What Are Your Other Coverage Options?
Depending on the circumstances of your accident, you may have other coverage options for your medical bills in addition to health insurance. This typically comes in the form of additional coverage you can add to your own auto insurance policy.
Collision coverage, MedPay and Personal Injury Protection can each cover different types of damages you might incur in a car accident, regardless of who is at fault. Adding these coverage options to your plan can ensure you have financial and medical security no matter what type of accident you might experience.
Uninsured or underinsured motorist coverage can also be an effective safety net. Purchasing this coverage means that your auto insurance provider will cover your damages if another driver is at fault for the accident but does not have adequate insurance. While all drivers must carry a certain amount of liability coverage according to various state laws, the possibility exists that you might get into an accident with someone breaching these requirements.
Arizona, New Mexico, Colorado and California are all fault-based states in regard to car accidents. This means that the at-fault driver in an accident is responsible for covering all damages suffered by other parties. You only need to turn to these alternative coverage options if you cannot hold the other party fully liable for all the damages you incur.
Can a Lawyer Help With Your Health Insurance Claim?
A car accident attorney can help you with various insurance issues you might encounter after a crash. Your legal team can negotiate with health insurance providers to reduce the amount of reimbursement they seek to recover from your settlement during subrogation. A lawyer can also make sure that the insurance company is applying coverage correctly and completely at every step.
Lawyers employ specialized methods for negotiating with health insurers, such as:
- Leveraging knowledge and experience to thoroughly review medical records
- Navigating policy terms with the same competence as actual insurance representatives
- Strategically presenting evidence and arguments
- Appealing denied claims and taking other legal action
The right car accident attorney can handle every aspect of your case. Not only can they negotiate with health insurance providers, but they can also handle discussions with auto insurers or take your case to court if necessary.
Sargon Law Group Handles Health Insurance Negotiations for You
Health insurance covers car accidents in almost every case, but complications arise when the insurance company seeks reimbursement from you. At Sargon Law Group, we want to make sure you keep as much money as possible so you can return to your daily life without worry. Contact us today to speak to our car accident lawyers in Arizona, New Mexico, Colorado or California.