Should I Use Health Insurance If I Was Injured in a Car Accident?

If you are involved in an

auto accident and are covered by health insurance, the answer is clear, you need to

use your health insurance. When I tell people this they always ask the

question, “Why should I use my health insurance if the other driver

was at fault?” There are a number of reasons which will be explained

below, but the most important reason is that it will mean MORE MONEY FOR

YOU when the claim resolves.

In order to understand this, you have to understand the basic premise of

how health insurance works. Most importantly, health insurers have negotiated

rates with their participating providers. This means that if you go to

the emergency room after your car accident and the bill that the hospital

typically charges is $1,000.00, the health insurer only has to pay a fraction

of the cost and the hospital accepts it as payment in full. If you do

not have health insurance you owe $1,000.00. The irony of the situation

is that people that may not be in a position to afford health insurance

actually pay more than those with health insurance.

With a foundation for how health insurance works we will compare how two

separate clients fare in the exact same wreck, with the exact same injuries,

and the exact same offer from the car insurance company. The only difference

between these two clients is that one has health insurance and the other

does not. Here are the assumptions. Assume that each has medical bills

totaling $5,000.00. Assume that the offer is $12,000.00 and assume that

attorneys’ fees are one third of the settlement or $4,000.00. Thus,

the person that has no health insurance owes attorneys’ fees and has

to pay $5,000.00 in medical bills leaving him with only $3,000.00 (this

is not fair and should not happen as the attorney should never receive

more than the client, but we will leave that for another discussion).

What does the person with health insurance receive?

Under this scenario, let’s assume that the health insurer is one that

is entitled to get their money back

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ation about this

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and let’s assume that they are entitled to receive $2,000.00. Under

this scenario with the payment of attorneys’ fees and the payment

back to the health insurer, the client receives $6,000.00. This is a very

real world situation that happens everyday in personal injury. It is the same wreck, same injuries, same offer, yet the person with health

insurance gets double the money!

There are a number of different variables that we have assumed in the above

example for the sake of simplicity, but the analysis in every case is

the same. You need the best personal injury attorney in Atlanta who understands

how all of the different types of insurance are coordinated so that you

can maximize the amount of money that you receive.