Q: I was involved in an accident. My health insurer paid for my bills. This is an ERISA plan. Do I have to pay them back?
A: ERISA plans are employer provided plans. In this case, it would be a health insurance plan. Your plan is going to tell you that they have a “lien” on any settlement. Well, they are wrong. They may have a right of reimbursement, but they do not have a lien.
So, now that you know that, do they have to be paid back? Maybe. You are entitled to a reduction under the common fund doctrine, generally, if you have an attorney. You may not have to pay them back at all, but that depends on your plan and you need to read it carefully before this can be determined. If you settle your case yourself, you should have this issue reviewed by an attorney.