Personal Injury claim being settled but Insurance Co.explained they are hiring an Attorney because the case…?

What would have been a large personal injury case dragged on and lawyers dropped it.There was new knee replacement with complications.Anyways,decided to just settle alone for a few thousand to put and end to it.Ins.Co says they are doing something very unique,something they don’t usually do.They are hiring and ‘Attorney’ to make it as clear as possible(For Medicare) that they only take date of fall till ‘the knee pop occured’.This is under 3 months that popping occured from date of injury,to knee.The case could be won but my Mom can’t go on and on.Been thru too much.Why would they want to pay extra for an Attorney to do this? They know this case is ligit but ALLSTATE does not like 0,000 payouts.Adjuster made a clear this is very rare for them and I will get a call from the Attorney,but,we have to decide to settle first to go further.Just curious cuz it sure sounds strange to me.

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    2 Responses to “Personal Injury claim being settled but Insurance Co.explained they are hiring an Attorney because the case…?”

    1. MSAD Says:

      Recently there have been some new federal laws affecting claims involving Medicare. As is typical of the federal government, they made sure that the penalties for insurance companies not complying with the law are very very stiff. However, when it comes to what an insurance company has to do to actually comply with the law….the law is very very fuzzy. From the little bit you posted, sounds like they have hired the attorney to help them get this settled once and for all and protect them from the possible penalties associated with a poorly written law. The cost of the attorney will be much less than the Medicare penalties.

      When the attorney calls you and your mom- ask them to explain why they are needed. You can ask the attorney questions. Perhaps the attorney can explain it to you more clearly.

    2. mbrcatz Says:

      Your whole scenario is completely unclear, but insurance companies don’t pay extra for attorneys – they have legal departments with staff attorneys.