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What Is Subrogation and How Can It Affect Me?

February 14, 2020

Picture of person signing an insurance claim discussing what subrogation is and how an attorney in Lebanon TN can help.
cropped view of client signing insurance claim form in medical office

If you have ever been in an accident and needed a health insurance company to make payments on your behalf, then you might already be familiar with the term “subrogation.”

In situations where a health insurance company or Medicare/Medicaid issue payments to the hospital for someone’s injuries, they may contact the injured party seeking partial repayment, which might come as a surprise. The truth is that once a case is settled, insurance companies are within their rights to seek reimbursement for the payments they made on an individual’s behalf.

If you would like to learn more about the details of subrogation as it pertains to your situation, give the lawyers at Hagar and Phillips a call at 615-784-4588 to learn more.

Why Should I Have to Pay My Insurance Company Back?

“Subrogation” as a term means one person standing in the place of another. This is essentially what health insurance companies are doing when they step in and pay your medical bills; they are acting on your behalf.

When an insurance company requests to be paid back after a case is settled, they are doing so to protect themselves. Even if your injury was due to the negligence of another party, your insurance company is legally allowed to pursue subrogation.

Your health insurance company must hold up their end of the deal when you are injured, no matter the cause. That being said, health insurance companies are only incurring the costs of medical coverage because of negligence on either side, which is why they will seek repayment after a case is settled.

Can Subrogation Be Avoided?

Most people will be quick to ask if there is anything they can do to get out of paying back their health insurance company. It’s important to remember that insurance companies are just that – companies. They know what they are doing and why they are in business. They understand their role and will never agree to insure someone that hasn’t signed a subrogation clause.

“Why would I sign a subrogation clause?” you might be asking. Simply put, you probably didn’t have a choice. Insurance companies will always look to protect themselves, so subrogation language will be in virtually every health insurance agreement.

How Can a Lawyer Help?

Whenever you find yourself in a situation where negotiation is imminent, you should always seek the guidance of an attorney. An experienced lawyer can help recognize unreasonable requests from insurance companies and will often be able to negotiate with your health insurance company to reduce the amount of subrogation they are seeking.

Sometimes a health insurance company will look to take advantage of your ignorance and seek more than a reasonable repayment. If this happens to you, it would be incredibly beneficial to have a trusted personal injury lawyer on your side, like the attorneys at Hagar and Phillips.

If you find yourself facing subrogation and feel that they are asking too much, do not hesitate to contact us, or call us today at 615-784-4588 to schedule a consultation.


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