Bakotopia

larger view

Once upon a time, before being rear-ended by a Sonnet and getting whiplash, I had never heard the phrase: “You can’t receive treatment and be paid for it too.” And the only thing I knew about Farmers Insurance was the check I wrote them every month.

“What do you mean I have to pay Farmers back for any medical bills they pay?” I said frustrated to James, the latest Farmers Insurance adjustor assigned to my medical claim.

“Well, you can’t receive treatment and be paid for it too.” James stated as if I understood what he was talking about.

“I don’t understand.” I said confused.

“Farmers is putting a lien on your medical settlement payment, you have to pay Farmers back any money it pays out on your medical bills.” James snidely replied.

“What the hell are insurance premiums for?” I asked annoyed.

“I don’t understand.” James said as if no one had asked him that question before.

“Well the reason you buy an insurance policy and pay insurance premiums is so that when you have a claim the insurance company will pay for the damages.” I explained as if this was new information.

“Yes, I understand that concept, but in California you can’t receive treatment and be paid for it too.” He explained.

“Then why the hell do I have insurance if I have to pay the insurance company back for my medical treatment out of my settlement?” I angrily asked.

“I know it’s frustrating but that’s how it works in California.” James placated.

“When you negotiate your settlement with the other party’s insurance you need to negotiate enough for yourself over and above what you have to pay Farmers back for the medical expenses they pay.” He continued.

“But the other party’s insurance company is Farmers too!” I exclaimed. “Can’t you settle that in house? Why do I have to pay the medical expenses back out of my settlement?”

“Because the two party’s policies are treated as separate entities. We have to treat the other party as if they were Allstate or State Farm.” James explained.

“Do you understand?” He asked.

“I think I have the gist of it.” I said annoyed.

(Read the rest of this blog here)