Subrogation can be a difficult concept for people to understand. In personal injury cases, it is basically the right of an insurance company, based in contract, to recover money from the injured party when the injured party recovers from a third party. For example, if Person A is injured in an auto accident caused by Person B, then Person A’s health insurance company may cover some of his medical bills. However, if Person A recovers money from Person B’s auto insurance company, then Person A’s health insurance may have subrogation rights. Person A would be required to pay his health insurance company back for medical bills they paid. Therefore, Person A is not getting a double recovery.
Fortunately for those injured, insurance companies are often times willing to negotiate the amounts owed to them. This is because the companies acknowledge that they may not have gotten any money reimbursed had the injured party not pursued a claim against the party at fault. Attorneys will diligently work to ensure that the injured party is made whole and that all subrogated parties are reimbursed properly.