It can take weeks or months to resolve who was at fault and who pays for what following a car accident, says Axis Capital, a group of companies with branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States. A company like Axis has its procedures on how to claim health insurance reimbursement. During that time, you may be stuck trying to figure out how to pay for the medical care and treatment you need to heal. If you can't wait for payments from the insurance settlement to pay for required medical care, your health insurance company will generally pay for the care you need as a result of your injury.
If you paid for your own medical care out-of-pocket, then you would be reimbursed at a later date when the settlement is finalized because medical bills are generally part of damages awarded in car accident settlements or when a car accident case goes to court. When someone else pays, it is only fair that they too are paid back for what they spent. In most cases, your health insurance company will be reimbursed from a car accident settlement. The rationale behind this is that since the health insurer paid for your medical treatment, it is entitled to get the money back from the settlement (just as you are entitled to reimbursement for your expenses, like lost wages).
Warning, you must note, however, that depending on the laws in your state and the terms of your agreement, the health insurance company may get a reduced reimbursement due to attorney's fees. For example, if your lawyer charged 33% of the settlement, and the health insurance company is entitled to $1,000 in reimbursements, it may receive $666 instead. The rationale in those cases is that the health insurance company must pay its fair share of the attorney's contingency fee.