Contributor: Collins & Collins, P.C.
Many with personal injury claims are very surprised to learn that their medical insurance carrier has asserted a subrogation interest in their personal injury settlement or judgment.
Personal injury victims often are frustrated that they have paid medical insurance premiums for years and now they must reimburse their insurance company for medical benefits related to their injuries. The frustration is understandable but is based on a misunderstanding of the basis for the claimed interest.
In essence, the insurer is asserting a claim against the party responsible for the injuries. The medical carrier is entitled to recover from the person or entity causing the injuries for which medical benefits are necessary. It is really the party responsible for the injuries that is repaying the medical bills. The injured party is really just a conduit through which the bills are reimbursed.