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What insurance companies will not tell you when they settle your personal injury claim is what entities are entitled to be paid back from the monies you have received. For example, Medicare has a right to reimbursement of payments for medical treatment related to an injury resulting from a car accident, worker’s compensation claim, malpractice, and no-fault claims.

Federal law requires the parties notify Medicare of the claim and to make reimbursement within a specified period of time. Medicare’s reimbursement will however give to the injured party a credit by way of reduction in consideration to the attorney fees and costs incurred in pursuing the claim, and a process is in place for waiving its reimbursement or compromising the amount depending upon the individual facts of the case.

Private health insurance companies also have rights of reimbursement, and must be repaid. At the Law Offices of Mitchell Alter, LLC, we have been successful in obtaining waivers and/or reductions in the payback based upon both legal and equitable arguments. BEWARE though that many health insurance contracts require payback of the entire settlement amount even if it leaves the claimant with nothing, and the insurance company will not pay for these subrogation liens after you have signed the release on the bottom line. Consult our firm and visit our website at Law Offices of Mitchell Alter, LLC.