Settlement & Your Health Insurance Company An Important Warning

It is possible for your health insurance to take your money after a car accident settlement or verdict. It is the result of a federal law called
The Employee Retirement Income Security Act of 1974 (“ERISA” for short). ERISA, in some instances, allows your health insurance company to seize the money they
spent providing for your accident-related medical care if you are ever paid money by the other driver or the other driver’s insurance corporation.

What can happen is that a car accident victim can reach an injury settlement with the other driver’s insurance company–with the victim believing that
the settlement money is his or hers free and clear. Some time later, the car accident victim can get a letter from his or her health insurance company stating
that the victim is legally obligated to reimburse it for the amount of the injury-related medical bills it paid. The letter usually threatens a lawsuit
against the victim unless the ERISA “reimbursement”–which can sometimes be as large as the whole settlement–occurs within a limited amount of time.

It does not seem fair, but this sort of thing does happen. Do not get caught off guard by a health insurance company’s ERISA claim. Before attempting to
settle a car accident claim or deciding whether or not to file suit, it is important to review with an attorney whether or not your health insurance
policy exposes you to a potential ERISA claim. An experienced attorney can often take steps to reduce or eliminate your reimbursement obligations under ERISA.

To find out other things to consider before attempting to settle your car accident case, use the form to the right to download the entire Legal Insider Guide to Iowa Car Accident Claims.