Have you ever had medical treatment and then been contacted by your health insurance company asking you whether someone was responsible for causing your injury?  Most people have, and that is called subrogation.

Your insurance carrier is probably trying to determine if someone is fully or partially to blame for your injuries so that it can try to recover the money that it paid for your care.  The insurer wants to determine if you are planning on suing another party for your injuries.  The insurer may also demand that you spend your own funds and hire an attorney to recover money for your own insurance company.

The health or med-pay insurance company creates the right of subrogation in your insurance policy.  It is important that you read the language in any health insurance or med-pay policy to see what rights you have.  Many insurance companies now claim 100% of the funds they have paid and will refuse to reimburse you for the money you spent to get a recovery for attorneys fees and costs. 

Another Catch-22 situation also arises where the person at fault has minimum coverages, and the bills for health care far exceed what can be recovered.  In these circumstances more and more we see insurance companies trying to take all funds recovered in a settlement, even though the injured person needs additional medical care and funds to cover lost wages and disabilities. 

Its a great deal for insurance companies.  Injured people pay premiums.  The insurance company merely temorarily pays the health care bills and then gets all of its money back at the injured person’s expense.  Injured people are left without funds for future care or funds to live.    Insurance companies profit.

In Court, juries are not told that the Plaintiff will have to pay all of the medical bills back to their health insurance carrier.   But, juries are told by insurance defense lawyers that Plaintiffs will be over-compensated if the jury awards more than the medical bills. 

If you find your self battling an insurance company over subrogation, you will need an experienced attorney to help you through this process.  Call the attorneys at Klein | Frank, P.C., and we will be happy to review your situation.