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In health insurance, subrogation refers to the legal right of an insurance company ? after payment of a loss ? to recover monies from the responsible party's insurance carrier. For Health Advantage, it refers to those times when another insurance carrier may be responsible for payment of medical care.
As another example, a guarantor guarantees a borrower's loan to a bank. If the bank demands payment from the guarantor and the guarantor repays the loan, the guarantor is subrogated to the bank's claim against the borrower and takes on all the rights that the bank had against the borrower for reimbursement.
The principle of subrogation in insurance enables the insurer to take over the policyholder's legal right to recover damages. In other words, the insurance company has the right to pursue any third-party liable for the damages that it has paid out to the policyholder.
Subrogation in auto insurance For example, suppose you have suffered injuries due to an accident caused by a third party. In that case, subrogation gives your insurance company the legal right to step into your shoes and seek compensation for the damages caused to your car.
When factoring comparative negligence and improper referrals, the recovery rate should be somewhere in the range of 85-90%. This requires adjusters properly identifying subrogation, assessing comparative negligence and pursuing only what they are entitled to.
Through subrogation, the Ministry of Health and Long-Term Care can recover expenses or treatment paid to an injured party through the Ontario Health Insurance Plan. The Ministry's subrogation right is outlined in Ontario's Health Insurance Act, RSO 1990, c H. 6.
There is no requirement to respond, but it can be in your best interests to reply. The subrogation claim will likely be sent to a collection agency, and that collection agency may be willing to accept less than the total amount owed in order to settle the debt.
The West Virginia Supreme Court of Appeals has held that Med Pay stacking may be precluded by the applicable policy; that Med Pay may be subrogated; and that Med Pay can be excluded by the work exclusion. (See Generally, Hamric v. John Doe, et al., 499 S.E.2d 619, 201 W. Va.