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Why does the other party want to know if I have Medicaid or Medicare?

Question Details: The at-fault driver's insurer wants to know if I have Medicaid or Medicare. I was in an auto accident in VA; I live in NC. The insurer has admitted their insured's fault and wants me to sign HIPPA and medical release forms. I honestly don't want to because I have all my medical bills and medical records already from each visit. They want my SSN, as well because they said that federal law requires them to provide information concerning my Medicare/Medicaid eligibility. I have Medicaid but I didn't use Medicaid for any of my doctor bills. Why do they care? What will it do for my claim?

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