May 11, 2018
Insurance—it’s a necessary evil we all must purchase and maintain. Car insurance; Health insurance; Home Owner’s insurance…. the list goes on and on regarding the insurance policies we pay monthly premiums towards, just in case something happens to the objects and/or persons that the insurance policies was put in place to protect. Likely, if you are reading this blog, you already understand the importance of maintaining insurance—even though it can seem like you’re figuratively throwing money down the drain every month. As such, I want to tailor this post to a very specific and not commonly known area of owning insurance: subrogation.
The word “subrogation” is a legal term that simply means that a 3rd party is entitled to recovery from a beneficiary if they provided a benefit from said beneficiary AND the beneficiary recovered money from a claim and/or lawsuit. What this means in the context of a personal injury case, in laymen’s terms, is that there is no such thing as a free lunch. For example, let’s say that you were unfortunately in a car accident and were injured. After the accident, you were transferred to the ER. Being the responsible citizen that you are, you have health insurance; which, after the hospital evaluates and medically treats you, the hospital billing department subsequently bills your insurance for treatment you received. Now, let us say that you decide to open up a claim with the insurance company of the party that caused the accident; and then, after months of fighting with the insurance company to get a settlement amount that you rightly deserve, you settle your claim. Out of this settlement, as your attorney likely made you aware, the attorney and all bills that stemmed from the claim get paid from the settlement amount—with the remainder going to you. However, YOUR health insurance company—the one that was originally billed for your medical treatment—will likely place a subrogation lien upon your recovery as well.
At this point, you’re probably asking: why do I have to pay back my health insurance?! Isn’t the point of paying premiums every month about protecting me in case I have unexpected medical bills? Why do I now need to pay my insurance company back for doing exactly what I pay for it to do? Well, in Ohio, you likely will have to do just that. The simplest reason as to why you have to is because a 3rd party’s right to recovery (such as your insurance company) has been set up and established through statue and/or within your policy language. In Ohio, it is believed that in the event you recover money from a claim and/or lawsuit, you should have to pay back the 3rd parties that provided you benefits along the way.
With all that said, it is important to note that, all though a 3rd party’s subrogation interest can’t be ignored, an experienced attorney can often at least negotiate down a 3rd party’s subrogation interest so to put more money in your pocket. Here, at the law firm of Daniel L. Jacobs Jr., LLC., we have a great amount of experience dealing with subrogation interests regarding personal injury claims. As such, we will not only fight for you regarding getting you compensated by a tortfeasor’s insurance company, but we will also work with third parties to make sure that any subrogation interest claimed by them is fair and equitable in relation to the money you were receiving.
Attorney Jacobs believes that everyone deserves a lawyer and always strives to achieve the best available legal outcomes for his clients. Attorney Jacobs cannot make promises as to what legal outcome he will be able to achieve for his clients; however, Attorney Jacobs can promise you that the care and concern he will show for you and your legal needs will be second to none. If you sustained a personal injury, the law firm of Daniel L. Jacobs Jr. LLC and Attorney Jacobs are here to assist you.
If you have any questions about financial compensation for an injury sustained in an accident or during a medical procedure, schedule a free consultation with one of our attorneys.
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