If you suffer an injury in an accident and file a claim against the at-fault party in Tennessee, you might encounter the term “subrogation” and wonder what it means.
Many people first encounter the word “subrogation” in a letter from their health insurance company, usually after the company has paid for treatment of injuries from an accident. The letter might mention that if you recover money from the person who caused your injuries, the health insurer may have the right to demand reimbursement for what it paid for treating your injuries.
Before you move forward with your case, it can be useful to understand exactly what subrogation involves and how it can affect the payout you ultimately receive from your injury claim.
What Is Subrogation in Tennessee Personal Injury Cases?
Subrogation is both a legal right and a legal process that allows an insurance company to step into your shoes after it pays for your injury-related expenses and seek repayment from the at-fault party.
In a Tennessee personal injury case, subrogation claims usually arise when a health insurer covers medical treatment tied to a car crash or another type of accident. If you later recover compensation through a third-party claim settlement or a verdict in a lawsuit, your health insurer may assert a claim to recover money for expenses it covered.
The idea is that the at-fault party should ultimately be financially responsible for your injuries, not the health insurer that stepped in to pay your bills while your personal injury claim was pending.
Who Could Have Subrogation Rights in Tennessee?
Several different entities could assert subrogation rights in a Tennessee injury claim, including:
- Your private health insurance company might have subrogation rights if it paid for hospital visits, surgeries, or other care related to the accident.
- An employer-sponsored health plan could also seek reimbursement, though federal law may govern how that claim is enforced.
- Government programs such as Medicare or TennCare can also assert recovery rights if they cover accident-related treatment costs.
- A workers’ compensation insurance carrier may pursue subrogation if you suffered on-the-job injuries that are initially covered by workers’ comp but later bring a claim against a third party.
How Subrogation Affects Your Settlement or Award
A subrogation claim or medical liens in a personal injury case can directly affect how much money you ultimately take home from a settlement or court award.
If a health insurer asserts a valid subrogation claim, you might need to repay some portion of any medical expenses it covered out of the compensation you receive from your personal injury claim. The repayment does not reduce the total value of your case, but it can reduce the net amount you keep.
The timing of your settlement may also depend on confirming the exact amount owed. An experienced personal injury attorney from The Terry Law Firm can analyze any subrogation claims from your insurer and negotiate aggressively to keep as much money in your pocket as possible.
Contact The Terry Law Firm to Protect Your Injury Settlement
Do you have questions about a subrogation claim in a personal injury case? Get in touch with The Terry Law Firm to arrange your free consultation session and learn how we can help you protect your personal injury settlement or verdict from health insurance subrogation.
