In the vast majority of Texas personal injury cases a subrogation claim is made. Often, handling the subrogation is an important part of a personal injury attorney’s involvement in the case for their clients. And the outcome of a subrogation negotiation can make a big difference in what the client actually receives in their pocket for compensation of the personal injury case.
Subrogation Explained
Subrogation is a situation where someone who has paid medical bills seeks to be paid back those medical bills out of a personal injury settlement. The subrogation interest can arise by contract or by operation of law or both. With a car accident claim, subrogation could arise by virtue of a health insurance company paying medical bills for the personal injury victim and then seeking to be repaid out of the insurance proceeds from the defendant driver. The vast majority of health insurance companies and other entities who pay medical bills such as Medicare and Medicaid have various rights to subrogation or repayment for bills of them paid on behalf of the injury victim.
Personal Injury Victims Must Know About Subrogation
Most personal injury victims don’t really care about the gross settlement of their case but care deeply about the net proceeds after attorney’s fees and expenses. Subrogation claims often are substantial, as the medical bills typically have been increasing exponentially each year with the rising cost of medical care. It is very important that if the subrogation claim is made, the client or the personal injury attorney deals it with as soon as possible. Negotiation of the subrogation interest can have a very positive effect for the bottom line proceeds of the personal injury victim.
It is important that the injury victim select an attorney who is skilled in negotiation of subrogation interests, when they have had their medical bills paid by a health insurance company or other medical bill payer.
Medicare and Medicaid
The subrogation procedure can take some time if Medicare or Medicaid is involved in making payments on behalf of the injury victim. The process of obtaining payouts and negotiation with the subrogation claim can be very complex particularly with Medicaid.
Other subrogation claims can include workers compensation if the injury occurred on the job and the employer carried workers compensation insurance to pay the medical bills but another party was responsible for causing the accident or injury.
Attaining a positive result for an accident victim often requires negotiation of the subrogation claims of a third party. If you have been injured in an accident and received a letter from your insurance carrier or other entity that paid medical bills in your behalf, consider speaking with a reputable and experienced injury attorney soon as possible and prior to any settlement.
