Role of Insurance Companies in Maryland Injury Cases
If you have been injured in an accident and have considered filing a claim in Maryland, the following is important information you should know regarding the role of health insurance companies in your injury case. Although it may seem relatively insignificant, your interaction with insurance can have a large impact on your case. An experienced Maryland injury lawyer is also available to help negotiate with insurance companies, or take them to trial if necessary.
To discuss what an attorney can do for you and your claim, call and schedule a free consultation today.
What Is The Role of My Health Insurance Company In a Personal Injury Case?
When dealing with an injury case in Maryland, typically your health insurance will pay for the medical treatment that you need and then at the end assert a lien for the amount they paid due to the acts of someone else. So, for example, if you and your medical bills total $50,000 and you recover $200,000 from your case, then the health insurance company will assert a lien for that $50,000 or some number less that had to be repaid out of the settlement proceeds.
On the other side of the equation, typically the defendant’s insurance company is the source of the payment not the actual defendant. So if you get a verdict or a settlement against the defendant it is not them personally that is usually paying but their insurance company that pays for the damages that are up to the amount that they are insured for.
What Is Your Relationship With Your Client’s Insurance Company?
As an injury attorney, you work with the insurance company to try to reduce the lien as much as possible so that more money goes into the client’s pocket. So we will try to reduce the lien by at least a third which most companies are receptive to because they know that a third of the settlement goes to the attorney so they will try to reduce their lien in order to help increase the client’s bottom-line. Any money expended by the client’s personal health insurance for payment of the medical treatment as a result of the accident will have to be paid back out of any settlement proceeds.
Should I Deal Directly With The Defendant’s Insurance Company?
You can at the beginning but it is usually a better idea to let the insurance company know that you are hiring an attorney. The insurance company will be asking your questions because they are trained to ask questions and gather information in such a way as to harm or take things out of context against you. They are not looking out for your best interests. They are looking for the insurance’s best interest and thereby pay out as little as possible.