If a person’s insurance paid the medical bills and did not assert a lien against the case, the individual would not be able to go after the other driver for medical bills. The only way health insurance could limit the amount recovered would be what the State of New Jersey calls “The Collateral Source Rule”. The Collateral Source Rule is to prohibit double dipping, i.e. getting paid twice for the same loss; to avoid a person’s health insurance paying for the medical bills and then try to collect that amount from the other driver.
With regard to paid sick leave, a claim could be made against the other driver for recovery of time out from work and that person’s lost wages. If a person is paid for that time, the question becomes if sick time could be carried over to subsequent years. If that sick time could be used in other times, an attempt can be made to seek compensation for lost wages. An experienced bicycle accident attorney can make the argument their potential client could have used that sick time for something other than the accident injury. A lawyer can help the individual understand the dynamics of health insurance in a Cherry Hill bicycle accident case.
Likelihood of Required Reimbursement
In the State of New Jersey, a health insurance carrier only has a valid lien. If they could prove that they are a self-funded ERISA Plan, they could have a valid lien in the State of New Jersey. When involved in a car accident, if a person’s health insurance company is an ERISA Plan, then they cannot be that person’s primary insurance under the law. That would have to be the car insurance, or the State of New Jersey through New Jersey Property Liability Insurance Guaranty Association (“NJPLIGA”).
They would not be able to assert a lien, even if they have a valid self-funded ERISA Plan, because the law does not permit that. That would be the only way they could assert a lien, is if they were a self-funded ERISA Plan. But, if they are, they also cannot be the primary insurance, so that is why it is kind of a complicated question.
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Impact of an Accident on Insurance Rates
Every insurance company is different in how they evaluate an increased rate and things of that nature. Technically, the insurance company should not increase their rates, because if the bicyclist is tasked to make a claim against their own car insurance, it would simply be called a “No-Fault” benefit to pay medical bills. If an individual is not at fault for the accident, there is no pay-out being made for an at-fault accident, and the insurance company should not increase their rates for paying no-fault benefits that have been paid for the life of the policy.
If someone gets into a bicycle accident and they have their own car insurance policy, their car insurance company should be put on notice. Even though their vehicle was not involved because ultimately the car insurance is going to be responsible for the medical bills. In order to clarify the dynamics of health insurance in a Cherry Hill bicycle accident case, contact a personal injury attorney as soon as possible.
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