October 22, 2020 Indianapolis
What is meant by Subrogation?
If you have been injured in an automobile, motorcycle or trucking accident, and were hospitalized and/or medically treated for injuries, you may have heard the term, Subrogation Claim. A subrogation claim is a provider’s (innocent payor’s) legal claim to reimbursement of all or a portion of their payments made on your behalf. In legal terms, innocent payors are known as Collateral Sources. In cases involving worker’s compensation, both medical and wage loss payments arising from your accident may be subrogated. Your health insurance carrier, workman’s compensation carrier, automobile insurance carrier (for payments made under your Medical Payment auto policy that covers your own injuries), may be innocent payors and may assert a subrogation claim to your personal injury lawsuit.
What is the purpose of subrogation?
The concept behind subrogation is that the injured party should be allowed to recover damages incurred from the accident, including but not limited to medical, lost wages, out-of-pocket expenses, pain and suffering—but should not profit by receiving double compensation for bills that have been paid by a collateral source. For example, if the injured party receives and pockets legal compensation for medical bills that were already paid by a collateral source such as health insurance, this would create windfall profiteering for the injured party.
Subrogation, settlement, and your personal injury lawsuit
You may ask, how does this affect my personal injury lawsuit? Before a settlement can be reached, your Indianapolis plaintiff’s personal injury lawyer must consider the total amount subrogated and the reimbursement required to compensate all collateral sources to your claim. Resolving a subrogation claim should be conducted by an experienced plaintiff’s personal injury lawyer to protect your interests, past, present and future, and payment of future benefits by your providers.
A word about hospital liens
Your claim for damages may also have a hospital lien attached. A hospital lien differs from a subrogation claim in that the resolution of your settlement does not automatically release you from your responsibility to pay the lien. If a hospital lien has been properly filed within the allowed time period, an experienced personal injury attorney will also take this into consideration before presenting an offer of settlement to you.
Hire an experienced Indianapolis plaintiff’s personal injury lawyer
Whether or not you have hired a personal injury attorney to represent your interests in a claim against the negligent driver, your health insurance carrier will want to know if another person or entity is responsible for your injuries. In an effort to obtain this information, you may be contacted by your health insurance provider to determine if a subrogation claim exists. By this time, you should have hired an experienced legal advocate to represent your best interests.
Immediately after seeking treatment for injuries you have suffered due to the negligence of another driver, contact an experienced Indianapolis, IN personal injury lawyer as soon as possible to protect your rights and secure evidence needed to protect your personal injury lawsuit. Call attorney Charlie Ward of Ward & Ward Law Firm today at 317-639-9501 for a free consultation.