How Subrogation Helps You
When you purchase health insurance, you’re paying for the assurance of knowing that your medical expenses will be covered by your health insurance company, within the limits of your policy. Regardless of who is responsible for your injuries in the event of an accident, your insurance provider is obligated to pay your medical bills. Unless you’ve been injured in an accident in which your health insurer was reimbursed for the payments it made, you may not be familiar with the concept of subrogation.
What Subrogation Is
When it comes to personal injury claims, subrogation allows your insurance company to recoup money spent on your medical bills or disability benefits. If you’ve been injured in an accident due to the negligence of another party, your insurance company normally has the right to be reimbursed if you collect damages from anyone who is at fault. Virtually every insurance policy contains a subrogation clause, explaining your responsibility to cooperate with your insurance company in their efforts to recover the losses they paid.
What Subrogation Does
The most important benefit of the subrogation system is this: your health insurance pays for your medical care right away, when you need it. You’re not obliged to wait for your potential lawsuit to settle or to get you an award for damages.
Your health insurance company’s subrogation claim is considered a lien against any proceeds you may collect from the parties responsible for your accident. Therefore, the compensation you receive must be shared with your insurance company. You only have to repay the amount actually paid by your insurance company, and any proceeds in excess of the subrogated amount will belong to you.
You Need an Attorney
An attorney experienced in dealing with subrogation claims can often negotiate with the insurance company to maximize your net recovery. Recovery for your injuries is likely to be based on “list prices” for your medical care, rather than the amount insurance companies typically pay. Your attorney may be able to convince your insurance company to accept the discounted amount paid to your medical providers, allowing you to retain a larger settlement. To learn more, contact the law offices of Steve M. Lee, P.C., by clicking the Live Chat button on this page.
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