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Does Health Insurance Reduce Car Accident Settlement

Health insurance payments should not reduce what an injured person is entitled to from the negligent driver for injuries and damages as a result of an automobile accident.  Most often the injured person's health insurance, Medicaid or Medicare will pay the medical bills incurred as a result of a car accident.  The health insurance is called a collateral source. Under Wisconsin law, the collateral-source rule provides that an injured person's recovery from the bad driver cannot be reduced by amounts received from collateral sources such as health insurance.

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