My health insurance company said they have subrogation rights related to my auto accident case. What does that mean?

My Health Insurance Company Said They Have Subrogation Rights Related As a general rule, any insurance company (health, auto, workers compensation) has recovery rights, sometimes referred to as subrogation rights from any recovery in an auto accident case. A subrogation right is the right of the insurance company to be reimbursed money it paid on your behalf if you are awarded damages against a negligent driver. (http://www.dmv.org/insurance/subrogation.php). In the case of most health insurers, the subrogation rights are a contractual provision that an insured must comply with pursuant to the terms of their policy.

However, an insurance company must tell you ahead of time if it is planning on exercising its right to subrogation. By exercising this right, the insurance company must reimburse all or part of your deductible. Sometimes, an attorney is able to negotiate for an insurance company to waive its subrogation rights.

Most car accident attorneys will advise an injured person of these recovery rights and will also negotiate any insurance liens before disbursing any proceeds from a settlement. Failure to address subrogation interests may result in an insurance company's termination of a policy or even a lawsuit to recover payments made.

Why You Need to Be Aware of Insurance Subrogation if Your Were Injured in a Car Accident

The lengthy part of most insurance policies likely has subrogation language in there. As an insured, part of the contract that you have with your insurance company is that you will comply with the language set forth in the policy. Consequently, you must address subrogation interests or risk possible jeopardizing your coverage or your financial wellbeing. Failure to protect a companies subrogation interests in an auto accident case may open the door for the company to directly pursue you for their expenses.

Hypothetically, if you were injured in a car accident and took an ambulance to the emergency room for treatment and your health insurance company paid those bills, they would be entitled to get those payment reimbursed from you if recovered from a third party. If you failed to reimburse them, they could ask you directly to repay them for these costs.

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Why Hiring a Lawyer For a Car Accident Case Frees You From the Subrogation Headache

At Rosenfeld Injury Lawyers almost all of our car accident cases involve insurance subrogation or liens asserted from medical providers. We know the law when it comes to the rights of these providers and always work with you interests in mind to ensure that these companies get what they are entitled to—but not a penny more.

Our attorneys regularly work to negotiate these bills to get them reduced so you can maximize your portion of a recovery from an auto accident case. In every Illinois car accident case we handle, you will receive a ‘settlement statement’, which clearly sets forth all medical and insurance company liens and obligations. You will see the amount the original charge and the amount your attorney was able to negotiate. We believe that you deserve to know where the proceeds from your settlement go.

If you were injured in an Illinois car accident and have questions about the subrogation rights of insurance companies or medical providers, contact our office for a free review of your case.

For additional information see the following pages:

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