Expert: Bennie719 - 12/6/2008

Question
I was in an accident on April 1st 2008. I was hit by an uninsured motorists who fled the scene after handing me his license plate, and telling me that he was intoxicated. After the 6 week waiting period, the police report stated that he was uninsured. My shoulder was injured, and after months of treatment, my most recent MRI shows that I have labral tears and will require surgery to repair them. I carry uninsured motorist coverage, and medpay, with limits if 50,000. My predicament is that with over 10,000 already paid out for medical expenses, and my lost wages increasing daily, I have nothing left to pay for the surgery. My adjustor had recommended that I go ahead and settle, but I am not sure how the surgery will be paid for then. Will I have to use my lost wages to cover the procedure? or is there a way to make sure that a lien cannot be placed on that? My recovery time may be up to six months. I will be unable to work during that time as well, and need to be able to live while I am recovering. I am a hairstylist, so my job is at risk if I do not have the procedure. Any advice would be greatly appreciated. Thank you.

Answer
Hi Yoshiko,
Based on the wording of your question, it appears that the maximum settlement that you will be able to receive is less than $50,000.  Most auto policies allow the insurance company to deduct paid medical bills from the UM settlement.
If your company is offering to settle for $50,000, less your medicals already paid, then I see no reason why you should not go ahead and settle the loss at this time.
You may be able to have your health insurance policy cover the necessary surgery.  Some health policies require reimbursement if you receive a settlement for the injury, some do not.  You will need to read your policy and discuss the situation with your agent to learn exactly how your health insurance policy may apply.
I trust that you find this information to be helpful.
Your feedback by rating my answer will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area