If you have been involved in a personal injury accident in Massachusetts, and your health insurance company has paid some, or all of your medical bills relating to your accident, then they are entitled to be paid back if you receive a settlement. The money they are paid back comes out of the settlement.
This is often referred to as a 'lien' or a 'right of recovery' that your health insurance carrier has, by law, against the money that you recover from the accident. Often, your attorney can reduce the amount that you owe to the health insurance carrier. Many times, the health insurance carrier will take a 1/3 reduction of their lien to reflect the attorney's fee that you must pay out of the settlement. At times, the 1/3 reduction of the health insurance lien can be reduced even more by your attorney.