by xax » Mon May 16, 2011 08:14 pm
** I accidentally posted this in the auto insurance forum, but I feel it would be better suited here.**
I was in an accident but there was a dispute as to who was at fault. I went through my car insurance and paid my deductible to pay my claim. Everything has been fine in regard to that.
My problem comes in that my lawyer's firm decided to keep pursuing the other driver and now they have offered me a settlement. While my lawsuit was up in the air when I submitted my auto claim, there was an outstanding hospital bill that was due. My PIP was exhausted at that point. I contacted my health insurer to see if they would pay the balance. I was honest about the lawsuit and at the time, the other insurance company would not pay a dime. My health insurance paid the bill for me. Obviously, insurance companies do not pay the full amount, but I have received no bill from the hospital in six months since my health insurance paid them.
Now that a settlement is being reached, I realize that I owe my health insurer the for the costs that they paid. However, do I still owe the hospital the balance of the bill if they have already agreed to a payment from my insurance company?
I was in an accident but there was a dispute as to who was at fault. I went through my car insurance and paid my deductible to pay my claim. Everything has been fine in regard to that.
My problem comes in that my lawyer's firm decided to keep pursuing the other driver and now they have offered me a settlement. While my lawsuit was up in the air when I submitted my auto claim, there was an outstanding hospital bill that was due. My PIP was exhausted at that point. I contacted my health insurer to see if they would pay the balance. I was honest about the lawsuit and at the time, the other insurance company would not pay a dime. My health insurance paid the bill for me. Obviously, insurance companies do not pay the full amount, but I have received no bill from the hospital in six months since my health insurance paid them.
Now that a settlement is being reached, I realize that I owe my health insurer the for the costs that they paid. However, do I still owe the hospital the balance of the bill if they have already agreed to a payment from my insurance company?
Posted: Wed May 18, 2011 07:19 am Post Subject:
However, do I still owe the hospital the balance of the bill if they have already agreed to a payment from my insurance company?
No. When the hospital accepts payment from the insurance company in a negotiated claim, they give up the right to collect more than that amount. If they had not accepted a payment, then they would be entitled to full compensation. But you do owe your insurance company 100% of what they paid on your behalf, as you acknowledge.
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