Subrogation is a legal term you may hear if you file a personal injury claim in Maryland. Unfortunately, subrogation can reduce the amount you receive for a personal injury settlement or verdict. An experienced Baltimore personal injury attorney can advise you of your rights if a subrogation claim is made in your personal injury case.
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What Is a Subrogation Claim?
Subrogation is the right of a party to assume a legal claim of another party. Most insurance policies include subrogation clauses that give the company the right to pursue legal claims on your behalf to recover costs the company pays.
For example, suppose the company pays expenses related to a slip and fall case, and you do not file a personal injury claim. In that case, the insurance company may pursue a claim against the party responsible for your injuries.
Under the terms of the policy, you are required to cooperate with your insurance company to recover the payments. A subrogation clause also requires you to reimburse the insurance company for payments it made from the proceeds of a personal injury claim.
Your insurance policy may also contain language requiring the company’s approval before accepting a personal injury settlement. Typically, the policy prohibits you from including language in a settlement agreement that waives or restricts the company’s subrogation rights.
You should provide copies of your insurance policies to your personal injury attorney. They will review the policies to determine a company’s subrogation rights regarding your personal injury case.
Why Do Insurance Policies Include Subrogation Clauses?
Your health insurance company agrees to pay covered medical expenses. However, it is not liable for the negligence of the party who caused your injury, therefore, the negligent party and their insurance company could be responsible for those costs.
Subrogation prevents injured parties from receiving money for expenses they did not pay. If an injured party were not required to reimburse a health insurance company out of their personal injury settlement, they would be “double dipping” for their accident.
How Does Subrogation Impact a Personal Injury Claim in Baltimore, MD?
It could take months to settle a personal injury claim after you complete medical treatment. Even though another person caused your injuries, you are responsible for paying your medical bills while the case is pending.
Therefore, many people use their health insurance, MedPay auto insurance, or PIP insurance to pay medical bills after a personal injury or car accident. However, you may have to pay these companies back if you receive compensation for damages from the at-fault party.
Generally, a subrogation claim occurs when your health insurance company demands reimbursement for medical bills it paid related to your personal injury claim. Your automobile insurance provider may assert a subrogation claim if it paid medical bills under a MedPay or PIP policy. Even if the company does not demand repayment, your attorney has a duty to confirm whether the company has subrogation rights.
Your attorney must contact your medical providers to determine if you have outstanding medical bills. The attorney is required to pay subrogation claims and outstanding medical bills from your personal injury settlement. These payments must be made before you receive any money for your claim.
Does Subrogation Apply to All Health Insurance Policies?
Most private insurance companies include subrogation clauses in their policies. However, if your employer provides your health insurance, you need to tell your attorney. ERISA health insurance plans are governed by federal subrogation laws, which may differ.
However, Medicaid and Medicare are subject to subrogation, even though they are government programs. If you do not reimburse Medicare and Medicaid for their subrogation claims, it could impact your eligibility for health insurance coverage.
Negotiating Subrogation Claims for a Personal Injury Settlement in Baltimore, MD
If another party injures you in Maryland, you can seek compensation from that party for your economic and non-economic damages. Economic damages include your medical expenses, loss of income, and out-of-pocket expenses. Pain and suffering are included in non-economic damages.
Negotiating a subrogation claim is important in cases where the injured party may not receive a large settlement for pain and suffering. In some cases, the at-fault party does not have sufficient insurance to pay the value of the victim’s damages.
Paying subrogation claims may not leave very much money for the injured party. A personal injury lawyer can attempt to negotiate a lower payment for a subrogation claim.
An insurance company is not required to negotiate a subrogation claim. Whether the insurance provider agrees to lower the payoff depends on many factors. However, experienced attorneys can make compelling arguments for lowering payoff amounts for subrogation claims.
Learn More During a Free Consultation With Our Baltimore Personal Injury Lawyers
Our legal team at WGK Personal Injury Lawyers diligently works to obtain the best possible settlements for our clients. We work to maximize recovery to help our clients as they continue to recover after a tragic accident. Call us today at (410) 837-2144 for a free case evaluation with an experienced Baltimore personal injury attorney.
