What is subrogation, and how does it affect my car accident case?

If you are involved in a car accident and file a lawsuit against the negligent driver, you may have to deal with a process known as subrogation if you win. This process allows for the healthcare insurance company to be paid back for the medical bills it paid on your behalf if you win your lawsuit and recover damages.

Understanding Subrogation

After an accident, you may have a growing number of medical bills to deal with it. Hospital stays, doctor visits, medication, and other treatment can make the cost of an accident very expensive. Usually, a secondary payer such as a private health insurance company will cover the costs of these expenses. If you take legal action against the negligent driver and receive compensation after the case, that secondary payer will want to be paid back for the amount covered for you. In other words, that company has a right of subrogation.

If you’ve hired a legal representative but don’t have insurance, the attorney can help get you needed medical assistance and have your medical bills paid. However, if you recover damages after your lawsuit, those medical providers who helped with the cost expect to be reimbursed. In this case, the medical provider has a right of subrogation.

Negotiating the Subrogation Process

It’s important to know that subrogation is often negotiable. The amount you owe back to the insurance company or other party may be far less than what is being communicated. And a skilled attorney can help you with this part of your financial obligation of reimbursement. Additionally, your insurance company is required to let you know they are seeking subrogation. Failing to communicate this action is against the law.

We Can Help

If you’ve been in a car accident and need assistance with your case and potential subrogation costs, don’t hesitate to contact the Holton Law Firm. We’ll work with you to determine the specifics of your accident and attempt to lower potential subrogation costs.