Whats subrogation?
• A: Generally, a health insurance plan or policy has a subrogation provision, which says that the health insurance company of the injured party is entitled to be paid back from the third-party wrongdoer’s insurance company. Your lawyer usually handles this, so that two things occur: • The opposing insurance company settles when the health insurance company has agreed to release whatever claim they have against them. • The health insurance company accepts as full and final payment the amount agreed upon for the services received. Health insurance companies routinely take less than the full amount owed to them because of the costs incurred in going out and getting fair and adequate compensation. Some states have law that provides that the subrogation claim of a health insurance company can’t be paid until you’re made whole.
