Can My Health Insurance Take Part of My Settlement?

Yes, in many cases, your health insurance may have a legal right to recover a portion of your personal injury settlement. Most health insurance contracts—including private insurance, Medicare, and Medicaid—contain provisions known as subrogation rights. These rights allow the insurance company to be reimbursed for medical expenses they have paid on your behalf if you later receive compensation from a third party for the same injuries. The goal of subrogation is to prevent what is commonly called “double-dipping,” ensuring that you do not receive full compensation from both your health insurance and the at-fault party for the same medical expenses.

For example, imagine you are injured in a car accident caused by another driver. Your health insurance may pay for hospital visits, surgeries, medications, or therapy related to your injuries. If you later reach a settlement with the at-fault driver or their insurance company, your health insurance could claim reimbursement for the medical bills it already covered. This also applies to Medicare and Medicaid; federal and state laws provide these programs with subrogation rights, meaning they may be entitled to repayment from your settlement to prevent duplicate compensation.

The amount that your health insurance can claim varies based on the terms of your insurance contract, the type of insurance, and applicable laws. However, an experienced personal injury attorney can carefully review your policies, determine which medical expenses are subject to subrogation, and negotiate with the insurer to potentially reduce the amount owed. In some cases, attorneys can even resolve subrogation disputes to protect a larger portion of your settlement for you.