For those who have health insurance, the ability of the insurer to absorb most or all of the cost of medical treatment after a severe crash comes as a great relief. However, it is often the case that reimbursing of health insurance companies after a Memphis motorcycle accident can create some confusion. David E. Gordon, a Board-certified lawyer, can explain to you how health insurance coverage works when it comes time to reimburse.
When a health insurance company learns that the medical care that they are paying for is the result of an injury for which a third party is responsible, they will usually make a claim for a reimbursement. Ordinarily, the health insurance company will send a letter to the injured motorcyclist asking whether they were injured in an accident for which someone else is responsible and whether they have an attorney. This is a piece of correspondence that a client should respond to immediately.
If a motorcyclist accepts money from the at-fault driver’s insurance company without acknowledging the claim from their own health insurance company, they will face a potential lawsuit and the possibility that their health coverage will be terminated until their insurance company is reimbursed. In the event that the health insurance reimbursement claim is greater than the motor vehicle insurance funds available to the biker, the health insurance company will reduce their claim.
It is customary for a health insurance company to reduce its claim to one-third of the settlement amount, even if the total that it is owed is much more than that. They are not required to do this but will usually do so in an effort to satisfy its policyholder and reach an equitable settlement. The result is that a person injured in a local motorcycle accident will likely still retain a substantial portion of compensation even after reimbursing their insurer.
If a person has a small claim, such as an injury that requires only an emergency room visit or an injury that required only one or two visits to the primary care physician, then it is likely that the insurance company will offer them an amount of money that is similar to what they would receive if they had a lawyer.
There is little harm in those situations in waiting to see what the insurance company offers before calling the lawyer. However, the call to David is free and it makes sense to contact him right after getting into an accident. A caller is under no obligation to retain the services of the firm, but they should use that conversation to discuss whether a lawyer is necessary and how it could benefit them.
Individuals in Memphis who are injured in a motorcycle accident sometimes feel that it is unfair for their health insurance company to ask for reimbursement, especially after paying many monthly premiums. In every health insurance policy, however, there is an agreement by the insured to provide reimbursement if they are compensated by another company for their injuries.
In law, this is called subrogation. This means the insurance company steps into the shoes of the patient in order to make a claim against the at-fault party for whatever amounts it has paid on the patient’s behalf. The health insurance company can ask for nothing more than the amount they have actually paid.
For small claims, it may be possible to wrap up an insurance conflict without outside help. In most other scenarios, the Law Office of David E. Gordon is available to guide you down the path that will benefit you the most. Call now to get more information about reimbursing insurance companies after a Memphis motorcycle accident.