SUBROGATION & ACCIDENT SETTLEMENTS

In Pennsylvania, if you are injured in an accident and receive a settlement, there may be a legal duty to repay the health insurer who has already paid your medical bills.  This is referred to as subrogation.

Subrogation arises out of various laws such as Medicare, Medicaid, Workers’ Compensation, and Veterans Administration heath care.

Subrogation also arises out of the private health care insurance contract that paid your hospital and medical bills.  Typical language found in a health care booklet states that:  “The Plan also has the right to seek payment and/or reimbursement from you if you receive a payment, settlement, judgment or award from a person, organization, or insurance company in connection with an injury caused or alleged to be caused by the person or organization.”

Some private health care insurance plans may demand repayment of their entire lien, even if it takes your entire settlement.