After a car crash or other accident, your health insurance provider may pay your medical bills, under the terms of your policy. If you receive a settlement or verdict afterwards, then the medical insurer is entitled under the law to reclaim a portion of those funds. In this video, attorney Phil Chupick explains this concept by answering the question: what is subrogation?
Subrogation is a legal concept that basically means repayment. Oftentimes, when you’re in a car crash your own health insurance will initially pay for your medical bills. But if you receive a settlement or go to verdict and get damages for your crash, your health insurance will want to get repaid back. And in fact, under the law, they’re entitled to get repaid back. That repayment is called subrogation. So, for instance, if you have medical bills of $50,000 and you get a settlement of $100,000, some portion of that $50,000 in medical bills will be paid back to your insurance company, and that’s what subrogation is.