Why Should Insurance Companies Charge You Twice For The Same Coverage ?

It is now common practice for insurance companies to charge you a premium for health insurance or medical payments coverage on your automobile insurance and then if you have to use your insurance and the insurance company pays your medical bills they want to be paid back if you, the injured person, obtains a recovery from someone who is "at fault" for injuring you.  This just is not fair.


You pay a premium for your health insurance or medical payments coverage on your auto policy, the insurance company's actuary ("Actuary" - a person who computes premium rates,dividends, risks, etc., according to probabilities based on statistical records) has already figured out what to charge for insurance premiums to make sure that the insurance company is going to make a profit.  Then the insurance company "double dips" or "takes back" the insurance benefit it has already been paid to provide and wants to be repaid from the settlement or recovery that is obtained by the injured person who has already "bought" insurance.  


The injured person ends up paying twice - they purchase insurance coverage - and then if they  have to use it - they then have to repay their insurance company if they obtain a recovery from some another person or entity that wrongfully caused their injury.  


The problem for consumers is that we/you do not have any bargaining leverage with the insurance companies.  It is a pretty much, "a take it or leave it proposition" when it comes to buying health and auto insurance.  At the moment, each State separately regulates the insurance companies that operate in each State (there are exceptions where the federal government either exclusively or shares regulatory powers with the States - but that is a topic for another posting, i.e. ERISA, etc.).


It is up to the State's legislature to limit any over-reaching by the insurance companies.  In the case of demanding repayments for benefits paid - each of us should let our state legislative representatives know that we want to be protected, do not want to allow the insurance companies to "double dip" or take back benefits. The insurance consumer should not be paying more than the agreed premiums to support the insurance company.


Let me know what you think !


Thanks for checking in.


Regards - George


PS If you have any questions or would like a free consultation regarding a personal injury case please call my 24 hour phone service 847-362-2800.


Remember:  Nothing contained herein is intended to constitute legal advice - if you have a legal problem make sure you obtain legal assistance for your own particular legal issues and questions.