Auto Insurance Claims: Settlement w/UIM and Medicare, waiver of subrogation, fault insurance

Question
My 76 yo father was hit on his motorcycle and has been offered the policy limits of $50 from the tortfeasor's liability policy.  His uim limit is $100.  Currently Medicare is paying hospital bills which are $70K and mounting.  Will the uim offset be against the total damages or against the $100k limit (less $50K)?  His company has already said they would sign a waiver of subrogation.  Also, will Medicare talk most of the settlement anyway for reimbursement?  Should we hire a lawyer?  Thank you for any help on these complicated issues.  Regards, Carole Todd, Charlotte, NC.

Answer
Hi Carol,

UIM claims can present some unique and difficult issues. You can take the $50K from the at-fault insurance company only once you have 2 signed documents from your insurance company.  1) is the subrogation you mentioned 2) an offer to settle your UIM claim for the total of $150,000.00 which would include the $50k from the other company and the $100k from your father UIM policy.

If this sounds confusing, it is. You may need to hire an attorney but only if you fathers insurance company gives you a hard time.

As for medicare offset, I do not know if medicare has a right to reimbursement from your settlement. Most private insurance does have that ability but i'm just not sure with Medicare.

I hope this helps
Richard Hixenbaugh