Auto Accident Settlement: Who gets paid first?

by Zuzana
(San Jose, CA)

A year ago I was involved in a car accident. The insurance company of the person who caused the accident is trying to settle this case, and they are offering me $3,000 (they specify $800 is for missed work and pain & suffering inconvenience and $1,000 has to go to the acupuncturist who has not yet been paid).

My medical expenses related to the car accident treatments as of today amount to about $5,000. I understand that my medical insurance will eventually demand reimbursement from my settlement.

I’d like to know in which order I need to start paying all parties involved. The acupuncturist has not yet been paid, so I am thinking $1,000 has to go to him first. My auto insurance/Medpay has already hired an attorney to collect the $200, so I want to clear this up with them.

Now my settlement's remaining balance is $1,800. Am I obligated to hand over this entire amount to my medical insurance? What about my out-of pocket expenses (~$600)? What about my co-pay (~400)? Can you please explain this to me? Thanks.