Health Insurance Subrogation Following an Auto Accident in California

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Following an auto accident injury, your insurance will likely cover your medical costs. Subrogation allows your insurance company to recover compensation from the damages you eventually obtain from the party responsible for the accident.

Sorting through the aftermath of an auto accident can be overwhelming. As you focus on receiving the necessary care for any injuries you sustained, you may also be facing unexpected medical costs, lost wages, and questions about what steps to take moving forward. For example, how will you be able to cover these medical bills stemming from the accident? Will the other driver cover these costs, or will your insurance company step in? Let’s take a closer look at the subrogation process following an auto accident in California and how it can help you obtain the compensation you need to get your life back on track.

Understanding Subrogation

The term “subrogation” refers to the process in which your insurance company recovers the money it paid you for your injuries from the other party. In many cases, accident victims sustain injuries that require medical attention right away. The expenses for such treatment can add up quickly, and you may need to pay these bills long before you receive any sort of compensation from the individual responsible for the accident. Your insurance company can give you the means to cover these costs incurred by your injuries, and subrogation allows your insurer to collect these funds out of the compensatory damages that the other party’s insurance company will eventually pay.

Health Insurance & Subrogation

According to California Civil Code 3040, private health insurance companies are limited in how much reimbursement they can receive from the compensatory damages awarded to you. Depending on how your insurance company compensates medical providers, it will be able to recover the lesser of either the cost of the medical services or a percentage of the total settlement. In cases involving Medicare, Medi-Cal, or employer-sponsored health insurance, there may be other factors or rules that determine how the subrogation process proceeds.

A Knowledgeable Auto Accident Attorney Can Help

Cases involving subrogation can quickly become complex, so it’s helpful to work with a trusted and experienced auto accident lawyer who understands the nuances involved in the process. While you focus on your physical recovery, your attorney will handle the communications with insurance providers to ensure that you obtain the compensation you are owed. 

For more information on what steps to take following an auto accident in the Murrieta, Temecula, or Riverside area, contact the knowledgeable attorneys at Hales & Associates, A Professional Law Corporation today by calling (951) 489-3320.

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