How “subrogation” may reduce your personal injury claim – Virginia attorney Ben Glass explains

Subrogation is an insurance concept. Subrogation
says that if I’m an insurance company and I pay part of your medical bills, and you
sue someone – in an auto accident case, or a medical malpractice case – and you get your
money from the other person, that I’m entitled to be repaid what I paid for your medical
bills. Now, subrogation isn’t involved in every case in Virginia, we actually have a
law against subrogation, but if your insurance policy is governed by the federal law of ERISA,
that is, in most cases the insurance plan is coming from your employer, then the likelihood
is that you’re gonna have to repay your insurance company if you get a recovery. If your bills
are paid by medicaid or by medicare, by law you will have to repay either the state government
or the federal government. That’s what subrogation is. The important point is that it’s something
that you and your lawyer need to talk about near the beginning of the case. Not necessarily
the first day, but you need to have a good understanding in your case about whether you’re
gonna have to repay any insurance company or medicare or medicaid out of the proceeds
of your case.

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