Does health insurance or other first – party coverage ever have to be repaid out of the settlement or judgment?
A. First – party insurers such as medical insures typically have provisions in their insurance contract entitling the insurer to a reimbursement for the medical expenses it pays on behalf of the injured person . This “right to reimbursement” is known as the insurance company’s right of “subrogation”. Generally, most every first – party insurer have the right to receive such reimbursement. This applies to automobile PIP coverage, health insurers, and even governmental medical-expense payers like the Department of Labor and Industries (D L & I), Department of Social and Health Services (DSHS), as well as federal agencies. All of these agencies have statutory provisions which entitle them to and regulate their reimbursement.
