What Does Subrogation Mean in a Personal Injury Case?
After a personal injury event, it is advisable to see a medical professional and have one’s injuries diagnosed and treated. Depending on how extensive one’s injuries are, an injured party may require considerable medical treatment. Injury accidents that occur as a result of another party’s negligence can provide grounds for a personal injury claim to recover compensation for financial damages, such as medical expenses.
In the course of working through the personal injury claims process, a claimant may encounter “subrogation.” It is important to understand what subrogation is, as it can affect the amount of money a claimant will be able to keep from their settlement.
Navigating the personal injury claims process can be complicated. For assistance, you can call the medical lien lawyer at Monaco Law PC.
How Subrogation Affects a Settlement Payout in a Personal Injury Case
Subrogation is a legal concept where insurance companies or other third parties that paid expenses after a personal injury event have the right to be reimbursed through the proceeds of a personal injury settlement or judgment. In other words, if you used your insurance company to pay for your medical bills after your accident, they may be entitled to recover that money from the at-fault party or from your settlement if you were successful with your case.
For example, let’s say you were injured in a New Jersey car accident that was caused by another driver. You are taken to the hospital to have your injuries treated, and your insurance covers $20,000 of the medical bills you incurred for that treatment. Then, after filing a personal injury claim, you are awarded $100,000 from the at-fault driver’s insurance. Before you are able to collect your $100,000 settlement, your health insurer asserts a subrogation claim to recover the $20,000 of medical bills they paid out.
If this happens to you, it is essential that you have a personal injury attorney on your side. It could be possible, based on your state’s laws and the terms of your insurance plan, to eliminate or negotiate the amount the insurance company wants to be repaid. Generally, in New Jersey, a health insurance company is not allowed to collect medical bills that it paid through a negligence liability claim. As a result, the insurance company does not have the right to assert subrogation over the settlement money for medical bills that it paid. Still, not every case is the same, and exceptions to the anti-subrogation laws do exist, which is why it is critical that if you receive a subrogation letter from the insurance company, you should consult with an attorney.
Speak to a New Jersey and Pennsylvania Personal Injury Attorney Today
Call our South Jersey personal injury lawyer at Monaco Law PC at (609) 277-3166 for our New Jersey office and (215) 546-3166 for our Pennsylvania office to discuss your case today.
We are a New Jersey and Pennsylvania personal injury law firm serving Atlantic County, Bucks County, Burlington County, Cape May County, Camden County, Chester County, Cumberland County, Delaware County, Gloucester County, Mercer County, Middlesex County, Monroe County, Montgomery County, Philadelphia, Ocean County, Salem County, Susquehanna County and all of New Jersey.
