What is Subrogation and How Does it Affect My Car Accident Case?
Guide on subrogation in Personal Injury Cases.
IntroA subrogation lien is an equitable assignment under a policy of insurance and entitled the insurance company to be reimbursed for payments made on behalf of an insured if a recovery is made from a third-party. In short, if your health insurance pays for care related to a car accident and you recover money from the at-fault driver, you must reimburse your health insurance company the money they paid out. In this blog post, we will explain how subrogation works and list some of the most common types of liens you may encounter throughout the personal injury claim process.
Health Insurance:After your PIP no-fault coverage has been exhausted, your medical providers may submit your medical bills to your health insurance carrier for payment. However, the health insurance company has a contractual rate of reimbursement for these payments. If you make a recovery from the at-fault party, you must repay the health insurance company for payments made on your behalf that are related to the car accident. In most cases, an attorney can negotiate a reduction of this subrogation lien.
Medical Payments Coverage:Medical payments coverage under your automobile policy is in excess of your PIP no-fault coverage. Most automobile insurance policies have the same subrogation lien language as health insurance policies which means you must also reimburse them for payments made on your behalf if you make a recovery from the at-fault party. However, in many cases, an attorney can negotiate a reduction of this subrogation lien.
Worker's Compensation:If you were injured in a car accident while on the job, you should qualify to make a Worker’s Compensation claim. If you receive benefits from your employers Worker’s Compensation carrier, such as payment of lost wages or medical treatment, the Worker’s Compensation carrier has a subrogation lien on your recovery from a third-party. However, this lien is not paid back dollar for dollar. Repayment of this lien is calculated using a specific formula.