Understanding TRICARE and Personal Injury Claims
At the Law Office of William Bruzzo, we’ve spent over 30 years helping Camp Pendleton Marines and military families navigate TRICARE liens in personal injury claims. As a former Major in the United States Marine Corps Reserve, we understand how TRICARE’s automatic liens can devastate settlements. Our Orange County personal injury lawyer practice has negotiated substantial reductions, though success requires documentation and realistic expectations.
How TRICARE Creates Automatic Liens on Personal Injury Settlements
When you use TRICARE benefits after a car accident or injury caused by civilian negligence, the federal government automatically puts a lien on your settlement. They have the legal right to get paid back.
Under federal law (42 U.S.C. § 2651), TRICARE can recover medical costs from whoever caused your injuries. According to Health.mil, these liens attach immediately when TRICARE pays for accident-related treatment.
Within 35 days, you must complete DD Form 2527 available on TRICARE.mil. Failing to complete this form can suspend all your TRICARE claims processing.
Why TRICARE Liens Are More Aggressive Than Regular Health Insurance
TRICARE liens work differently than regular health insurance:
No Cap on Recovery
Unlike typical insurance, TRICARE can claim the full amount it paid for accident-related care. For example, if TRICARE paid $50,000, they can demand the entire $50,000, leaving little room for client flexibility.
They Get Paid First
In any settlement, TRICARE is paid before your attorney fees or other distributions. For instance, in a $100,000 settlement with a $30,000 lien, your lawyer’s one-third fee comes from the remaining $70,000, reducing your take-home significantly.
Federal Law Trumps State Law
Many states protect injured parties under “Made Whole” rules, but TRICARE operates under federal law. This means TRICARE has first priority in repayment, regardless of state-level protections, giving it more leverage than private insurers.
The Hidden Costs of TRICARE Liens
A Marine in Orange County gets hit by a drunk driver. TRICARE pays $40,000 in medical bills. The drunk driver’s insurance offers $75,000.
Here’s what happens:
- TRICARE takes $40,000 back first
- $35,000 remains
- Attorney takes one-third ($11,667)
- You receive $23,333
From $75,000, you keep only $23,333 (less than one-third). Understanding TRICARE’s interests is important when calculating military career damages.
Negotiating TRICARE Lien Reductions for Orange County Military Families
TRICARE can reduce or waive their lien if paying it back creates “undue hardship” (32 U.S.C. §§ 2651-2653). However, not every request gets approved.
JAG offices review requests based on:
- Future Medical Needs: You need settlement money for additional treatment
- Lost Income: Injuries prevent working; you need money for basic expenses
- Pain and Suffering: Part of settlement pays non-economic damages
- Settlement Too Small: Total doesn’t fully compensate losses
- Unrelated Treatment: TRICARE paid for unrelated care
Realistic Expectations: Most successful negotiations achieve 20-40% reductions. JAG offices take 60-90 days to respond. Some get denied. Appeals delay settlements for months.
Success requires showing genuine hardship while respecting government’s duty to recover taxpayer funds.
Identifying Which TRICARE Charges Relate to Your Accident
TRICARE can only recover money for treatment directly related to your accident. They can’t take money back for unrelated care.
Example: A Marine injured in a motorcycle accident also visits the hospital for chronic back pain from military service. TRICARE shouldn’t get paid back for that unrelated back treatment.
We review your complete TRICARE claim history and challenge expenses not caused by the defendant. This requires understanding military medical coding that civilian attorneys miss. Separating accident-related care from pre-existing conditions can save thousands.
The DD Form 2527 Process and Your Legal Rights
TRICARE will mail you DD Form 2527 asking about the accident, who was at fault, insurance details, and whether you have a lawyer.
Your answers affect TRICARE’s lien amount and your negotiation ability. We help you complete this strategically, providing required information while preserving reduction arguments.
Important: You must notify TRICARE before settling. If you settle without telling them, the federal government can pursue you personally. According to the Department of Defense, TRICARE coordinates with multiple agencies to enforce these requirements.
How California Law Protects Service Members
Under California law (Civil Code Section 3333), you can recover all economic damages including medical expenses. However, federal TRICARE law overrides some California protections under the U.S. Constitution’s Supremacy Clause.
At-fault insurance companies often argue: “TRICARE already paid your medical bills, so you shouldn’t get that money again.” We prove you’re legally required to pay TRICARE back, making those bills still your damages.
This “collateral source rule” prevents defendants from getting a discount because your health insurance covered injuries. Federal courts consistently rule in TRICARE’s favor, making an Orange County personal injury lawyer who understands military family claims essential.
Why Military Families Choose Our Orange County Personal Injury Lawyer
As a former Marine Corps Major, we’ve used TRICARE ourselves and understand the system from a service member’s perspective.
We calculate your actual net recovery (what you take home) after liens. Many attorneys quote gross numbers that mislead clients.
We know which JAG offices handle claims, how to present effective arguments, and when TRICARE has the stronger position. We’ve helped Marines with PFT failures, CFT complications, and TRICARE negotiations. We provide honest assessments.
We never charge fees unless we recover money. Consultations are free, and we come to you at Camp Pendleton, Irvine, or anywhere in Orange County.
Contact an Orange County Personal Injury Attorney Today
If you’re a Marine or military family facing TRICARE liens in a personal injury case, it’s essential to understand how liens affect your net recovery. The Law Office of William Bruzzo ensures your settlement accurately accounts for TRICARE obligations while maximizing the money you keep.
We offer free consultations seven days a week. Call our Orange County personal injury lawyer at 760-307-4233 or contact us online. There is never a fee unless we recover money for you.
