Can anyone help me with florida subrogation laws?

Question

In 2005 I was in a serious car accident that left me in a hospital for almost a month, I was on life support for several days & in the car accident I was involved as a passenger. After we spoke with all involved insurance companies I settled with the owner of the car I was in and the driver (2 separate auto insurances) After which my health insurance picked up the remaining medical bills. We made them (health ins)aware of one of the PIP settlements(10,000) and paid them back half of that (5,000) Over the years most of my settlement paid for chiropractor appointments/etc. in 2007 I had to have some of my serious scars revised as tissue was separating & causing pain - and after several months the health insurance paid on the claim. Just recently a subrogation service that works for the health insurance sent a letter to recoup from the other driver & car owner. I have already settled & the money we got from them is gone - I will still cooperate with this company but I am pretty sure that they cannot take any money from the other insurances, as we agreed upon settlement not to come after them. (these are progressive auto companies) Does this mean I'll likely be responsible for the amount they're trying to recoup? And in Florida, how much can they require me to pay, being a no fault state? I cannot afford a lawyer, and I want to do the right thing, but I'm terrified that I might not be able to pay back whatever amount my surgery cost. Will I have to go bankrupt? I have no car or home, no savings, nothing for them to take, really. Only my credit score which is very, very good. I don't want to have to turn to chapter 11. Please help!

Answer 1

Your question is reproduced below to preserve the original fact pattern to which this answer applies:

Q: "Can anyone help me with florida subrogation laws? In 2005 I was in a serious car accident that left me in a hospital for almost a month, I was on life support for several days & in the car accident I was involved as a passenger. After we spoke with all involved insurance companies I settled with the owner of the car I was in and the driver (2 separate auto insurances) After which my health insurance picked up the remaining medical bills. We made them (health ins)aware of one of the PIP settlements(10,000) and paid them back half of that (5,000) Over the years most of my settlement paid for chiropractor appointments/etc. in 2007 I had to have some of my serious scars revised as tissue was separating & causing pain - and after several months the health insurance paid on the claim. Just recently a subrogation service that works for the health insurance sent a letter to recoup from the other driver & car owner. I have already settled & the money we got from them is gone - I will still cooperate with this company but I am pretty sure that they cannot take any money from the other insurances, as we agreed upon settlement not to come after them. (these are progressive auto companies) Does this mean I'll likely be responsible for the amount they're trying to recoup? And in Florida, how much can they require me to pay, being a no fault state? I cannot afford a lawyer, and I want to do the right thing, but I'm terrified that I might not be able to pay back whatever amount my surgery cost. Will I have to go bankrupt? I have no car or home, no savings, nothing for them to take, really. Only my credit score which is very, very good. I don't want to have to turn to chapter 11. Please help!"

A: There is no quick answer to your question.

You have provided a very complicated fact pattern that omits certain details that may change the value of this answer.  Consequently, this answer is only intended to provide you with general guidance.

If your Health Insurance company was involved in the settlement with the auto insurance companies, then they are bound by whatever agreement you all entered into.  But if the health insurance company didn't sign the agreement, you could not have given up any rights they may have had.  They are now free to pursue subrogation on their own behalf even where you released any further claim on your own behalf.

You have a contract with your Health Insurance provider that they will pay for medical services you require.  While they can attempt to collect from a liable third party to pay for those services, that doesn't affect your agreement with them.  They should still pay for your medical expenses insofar as you have applicable coverage.

However, it doesn't appear that your Health Insurance company was made aware of one of the settlements you made.  And they may now be able to seek all or a portion of that settlement from you if the provisions of their coverage require you to disclose to them such settlements and you failed to do so.  It may matter if you used the money to pay for expenses that the Health Insurer would have had to pay anyway.  (Assemble those records to have available.)  If you can show them how that money was used in paying costs they themselves would have had to pay, they might not pursue the matter.

But that's probably all you would be responsible to pay-- a portion of the undisclosed settlement made with one of the insurance companies but not the full amount of your medical bills.  And if the money was used for bills that the Health Insurance company would have had to pay, then you probably wouldn't be responsible for those monies either.

Either way, wait and see how the Health Insurance company handles it.  There's no need getting all worked up over it before they come after you for the money.

[This is not legal advice. You should consult a licensed attorney-at-law for legal advice or representation before making decisions that may affect your legal rights.]