Subrogation is substituting one person or group for another for a debt or insurance claim, accompanied by transferring any associated rights and duties. Subrogation typically arises in property insurance claims and health insurance claims.
Why Does My Health Insurance Want Money From My Settlement?
Your health insurance (including Medicare/Medicaid) will want reimbursement for the money it paid for your treatment.
This must come from any money you recover from your legal action. However, you or your Louisiana personal injury lawyer may be able to negotiate with them how much you pay back. It often depends on your insurance contract.
To understand whether you’ll need to pay future medical bills out of your injury settlement, see Do I Have to Pay Medical Bills Out of My Injury Settlement?
Health Insurance Subrogation Example
As a result of the same automobile crash, you are injured. When you go to the doctor, you present your health insurance card to receive treatment for your injuries.
The total cost for medical treatment in your case is more than $150,000.
Because the crash was caused by someone else, your healthcare carrier is subrogated to your rights against the offending driver for the amount of medical expenses it paid (more than $150,000).
That means if you recover money from the other party or their insurance carrier, $150,000 must be repaid from that money to your health insurance company. (Suddenly, those big amounts that are flashed on the “Get a Check” commercials don’t seem quite as large!)
Do I Have to Pay Back Disability After a Settlement?
Another often forgotten subrogation claim, any short-term or long-term disability company that paid you (like AFLAC or CIGNA or sometimes your own employer) for missed time from work.
They are entitled to recover that money from any money that you receive from a settlement.
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FREE Confidential Case Review (985) 240-9773Can My Own Insurance Company Take Money From My Settlement?
If you have MedPay coverage and filed a claim, your auto insurance company may want reimbursement when you recover from another party.
Also, if your car insurer pays for your property damage repair or replacement while awaiting payment from the other party, they will be entitled to the money that you recover from the at-fault party.
Car Insurance Subrogation Example
You are involved in a car crash that damages your brand-new truck. The damage costs $25,000 to repair. You file a claim, and your insurance company pays to get your truck repaired quickly.
Your carrier is now subrogated to your right to sue the other party and/or their insurance carrier for the $25,000 it paid to you and will seek reimbursement when you receive payment from the at-fault driver’s insurance.
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FREE Confidential Case Review (985) 240-9773Can You Get Your Deductible Back Through Subrogation?
If you used your own auto insurance to fix your car, you likely paid a deductible. Many people ask, “Do I ever get that money back?” The answer is yes, sometimes.
When your insurance company pursues the at-fault driver’s insurance, it is not only trying to recover what it paid. It may also try to recover your deductible as part of that claim. This process is still called subrogation.
How Deductible Recovery Works
After your insurer pays for repairs, it will contact the at-fault driver’s insurance company. If the other driver is clearly at fault and their insurance accepts responsibility, your insurer may recover the full amount it paid. When that happens, your deductible is often included in the recovery.
Once your insurer gets paid back, it should return your deductible to you. This can take time, especially if fault is disputed or the other driver’s insurance delays payment.
What if the Fault is Shared?
Louisiana follows a modified comparative fault system. This means fault can be split between drivers. If you are found partially at fault, your deductible may only be returned in part.
For example, if you are 20 percent at fault, you may only recover 80 percent of your deductible. Your insurance company will explain how this applies in your case.
What If the Other Driver Has No Insurance?
If the at-fault driver has no insurance or cannot be found, your insurer may not be able to recover anything. In that case, your deductible may not be refunded unless the other driver has personal assets that can be recovered against.
Why This Matters for Your Claim
Getting your deductible back can make a real difference, especially after a stressful crash. It is one more reason why having the right coverage matters. It also shows how subrogation can affect the total money tied to your claim.
If you are like most people, you have never dealt with this before. It can feel confusing. The team at LJBLegal helps clients understand every part of the process, including what money may come back to you and what may be owed. That way, you are not left guessing when the case is over.
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FREE Confidential Case Review (985) 240-9773What Is the Takeaway About Subrogation?
Subrogation can have a major impact on how much money you actually receive from an injury settlement. An experienced New Orleans personal injury lawyer can help identify these claims, negotiate reductions when possible, and make sure you understand what must be repaid before accepting a settlement.
When considering if a settlement offer is fair, consider the subrogation process and all of the money that may be owed or subrogated to other parties.
You need to ensure that an offer covers all of your expenses and any money owed to other parties. What initially seems like a huge amount may not cover all of the money owed to other parties seeking compensation.
What Should You Do Next if Subrogation Affects Your Claim?
If you are dealing with an injury claim, subrogation can quietly reduce what you take home. You might have a strong case and still walk away with less than you expected if these claims are not handled the right way.
If you are like most of us, you have never hired a lawyer before. It can feel uncertain trying to figure out what to do, who to trust, and how much your case is really worth.
The team at Loyd J Bourgeois Injury & Accident Lawyer (LJBLegal) takes the time to look at every part of your case. That includes identifying all subrogation claims, working to reduce what must be paid back, and building a case that reflects the full impact of your injuries. Some cases settle quickly. Others need a stronger push. Either way, you want a team ready to handle both.
If you have questions about your case or want to know what your claim may really be worth after subrogation, reach out today. A simple conversation can help you understand your options and avoid costly surprises later.
Contact LJBLegal today for a free consultation and get clear answers about your next steps.
