What is Subrogation?
Subrogation is a critical concept in the world of insurance and legal proceedings. It refers to the process by which one party, typically a healthcare payer or healthcare plan, steps into the shoes of another party to pursue the right to recover costs or damages incurred. When an insured individual suffers a loss or injury and receives compensation, that provider may exercise subrogation rights to recover the amount they paid from the responsible party or entity. Subrogation serves as a mechanism to ensure that the responsible party bears the financial burden rather than the insurer or provider. It is a fundamental principle that helps maintain fairness and accountability in various fields, including insurance, healthcare, and personal injury litigation.
Healthcare subrogation plays a crucial role in the context of mass tort opportunities, where numerous individuals are affected by a harmful product or event. In this complex legal process, healthcare subrogation refers to the practice of healthcare payers and healthcare plans seeking reimbursement for the medical expenses they have paid on behalf of injured patients.