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The Subrogation Process and How We Can Help

October 10, 2016

Party A is driving his/her car when Party A is struck by Party B’s vehicle, through no fault of Party A. Party A is injured, and Party A’s car is severely damaged. Party A decides to use her own insurance company to fix her car, and her own health insurance company to cover the medical bills incurred by the accident.

Despite the fact that Party A was not responsible for the accident, her own health insurance company may seek reimbursement from her or Party B’s insurance company for the amounts it pays for Party A’s medical bills.

If Party B did not have liability insurance on its vehicle, or if Party B’s insurance company refuses to pay Party A enough money to cover her damages, Party A will have to file a lawsuit to recover his/her damages from the accident. If Party A files a personal injury lawsuit against Party B for injuries and property damages sustained in the accident and Party A wins the case, the matter is not complete.

In any event, Party A’s health insurance company, may assert a right to part of the money Party A is awarded by as a result of the lawsuit or through a settlement of it in advance of trial. This is a classic and frequent subrogation situation.

Subrogation is a legal term that refers to an insurance company’s ability to seek reimbursement from a third party for the money it paid out on a claim. In most cases, subrogation is the attempt by the health insurance company to seek reimbursement from the party responsible for the accident that resulted in the claim, in this case, Party B or his/her liability insurance company.

In most cases, the health insurance company has a legal right to recover the money they’ve paid out pursuant to the health insurance plan, depending on the type of plan. Such an attempt can drain the injured party, like Party A, of any sound recovery through her/his lawsuit. This is an increasing, complex problem that is developing in personal injury law.

If you have been in a car accident and you hire, The Law Office of Christopher Kalis, they also assist their clients in defending and resolving, where possible, the health insurance claims process, including subrogation. We have a proven record of successfully negotiating the amount of money the health insurance company can collect from the injured parties through the subrogation process.

To contact The Law Office of Christopher Kalis, email us at iankalis@kalislaw.com or call us at 214-871-6005. We look forward to working with you!