When making a settlement is it common for the insurance company to subtract the medical dollar amount from the settlement dollar amount?

UPDATED: Sep 30, 2022

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When making a settlement is it common for the insurance company to subtract the medical dollar amount from the settlement dollar amount?

The insurance company gave me a settlement amount but then informed me that the medical fees will be taking out of the settlement amount. Why is that and not separate? I just feel that if you say this is what you are giving me then do that, not turn around and say by the way the hospital fees with be taken out of that. Then to me you are not giving me what you stated.

Asked on October 20, 2016 under Accident Law, North Carolina


B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

It is common for the insurance companies to state one settlement amount.... and then out of that amount, vendors get paid first.  Vendors would include doctors and hospitals.  After the vendors are paid, then the individual receives whatever is left.  Think of it like the sale of a house.  If a person offers to purchase a house, they offer one amount-- but the mortgage is paid first and the seller is paid second with the residual.
If you do not think that the amount the insurance company has offered is a fair settlement of your claim, then visit with a personal injury attorney and let them evaluate the value of your case.  From there, you can make an educated decision regarding whether to accept or reject the offer.

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