Most group heath insurance policies contain a subrogation clause. Subrogation is an insurance claims process where a company looks for reimbursement from an at-fault party. In an car accident (as in the episode I saw) the group health plan goes ahead and pays the medical expenses BUT (big but) if/when a third party (auto ins) pays you directly - you are required to reimburse the HEALTH ins for any benefits they issued on your behalf for medical expenses due to that auto accident.
Judge Judy stated something to the effect of : "I've never HEARD of such a requirement!" How could she not know this. (What else doesn't she know?????)