progressive rehab

Insurance/Medicare help & question?
My 79 year old grandma was in a crosswalk and got hit by a lady and my grandma broke her ankle in 5 different spots and now has to live in a rehab for a while now. My father (my grandmas son) is taking care of her insurance business. The lady who hit my grandma has car insurance with Progressive. My grandma stopped driving and sold her car 6 months ago, cause she can walk every where. So while my dads trying to take care of the business with Progressive, they are trying to say that they will have to bill Medicare first. But isnt that fraud towards medicare? We live in Oregon, a no fault state, however my grandma doesnt have car insurance, plus she wasnt driving. So shouldn’t the ladies insurance cover it, and not bill medicare?
Her medical expenses will be submitted by the various medical providers to Medicare.
The Medicare claims company may or may not work with Progressive to be reimbursed for certain expenses. FYI – some auto insurance plans only have a limited amount of medical coverage.
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