Subrogation

Subrogation is an unfamiliar word, but it is a concept which it is important to be aware of in a personal injury claim.  Simply put, it means that you have to reimburse your health insurance and Medicare for medical bills they pay, if you receive any money from a party legally responsible for your injury.  You might wonder why in the world you would have to repay for the benefits you paid for in the first place.  While it seems illogical, you have to do so because your health insurance policy has a provision that obligates you to do so. In the case of Medicare, it’s the law.

Although subrogation reduces compensation to the injured party, the rationale is presumably that it reduces the cost of insurance coverage and Medicare.

It has been said that the law is a reflection of the prevailing social values.  I don’t think I share this one.

By:  Peter G. Webb

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