What Should I Do If I Receive A Subrogation Letter In The Mail?

A subrogation letter is written by a third party, who in addition to the plaintiff in a case, aims to pursue the defendant for compensation. For example, if someone was injured in a car accident and received care at a hospital, the hospital might end up sending them a subrogation letter. The letter would contain 10 to 12 questions about the car accident claim, as well as a request for the claim number and the name of the defendant’s auto insurance company. Once equipped with this information, the hospital would be able to alert the defendant’s insurance company that the defendant owes them money for medical care that was provided to the injured plaintiff, and inform the insurance company that they need to be reimbursed prior to the plaintiff being reimbursed.

If a plaintiff finds themselves under these circumstances, they should obtain an attorney who will not only fight against the defendant’s insurance company, but also negotiate with the hospital to lower the amount of their subrogation lien. For example, if a patient/plaintiff owes $10,000 in medical bills and doesn’t require any follow-up visits, there may be a lien in the amount of $10,000 from the hospital, which would leave the plaintiff with nothing. By negotiating down the subrogation lien and convincing the hospital to accept only one or two-thirds (or even less) of that amount, an attorney could save the plaintiff a lot of money. A plaintiff who has received a subrogation letter should find a personal injury attorney who can speak on their behalf.

Subrogation lien letters usually come from a person’s health-insurer: Blue-Cross, Blue Shield, United Healthcare, Aetna, and Humana are the largest in Illinois. These health insurers might use a third-party administrator like Rawlings or Optum. If someone receives one of these letters, they should call their attorney right away. Some of the hospitals in this area use law firms called Powers and Moon or Neil J. Greene to negotiate their liens. If someone gets a letter from Powers and Moon or Neil J Greene’s Office, it’s important that they hire a personal injury attorney who can negotiate up the defendant’s insurance company and negotiate down with the third-party administrator or law firm that is representing the hospital.

What Is Subrogation?

Subrogation is a legal concept that every subrogation attorney must be intimately familiar with. In the spheres of law and insurance, subrogation refers to the right of an insurance company to seek reimbursement for the amount it has paid for a loss from the party that is legally liable. It means when an insurance company uses the principle of subrogation, it’s effectively stepping into the shoes of the claimant to recoup funds from the responsible party.

This process can occur in various contexts. For example, in an auto accident, a health insurance company might seek to recover the cost of medical care it provided to an injured policyholder by making a claim against the at-fault driver’s auto insurance. The concept of subrogation is also prevalent in property damage claims, personal injury suits, and workers’ compensation cases. Understanding subrogation and its implications is crucial, and having a skilled subrogation attorney can make navigating the process simpler and more beneficial for the policyholder.

Do I Have To Respond To A Subrogation Letter?

When you receive a subrogation letter, it can be an intimidating experience, but responding in a timely and appropriate manner is essential. Such a letter usually means that a third party, typically your health insurance company or a hospital, is attempting to recover the funds they have spent on your medical care from the person or entity responsible for your injuries, or their insurance company. The third party is asserting their legal right to be reimbursed out of any settlement or compensation that you may receive.

Ignoring a subrogation letter can lead to complications and potentially jeopardize the outcome of your case. Therefore, upon receiving a subrogation letter, it’s a prudent move to immediately consult a subrogation attorney. They can provide guidance on how to respond to the letter, ensure that your interests are adequately protected, and potentially negotiate down the amount of the subrogation claim. A well-versed subrogation attorney can help make the claim process smoother and less stressful.

What Is A Waiver Of Subrogation?

A waiver of subrogation is a contract clause where one party agrees to forego their right to seek reimbursement for losses from another party in the event of a claim. In other words, it means an insurer gives up its right to recover the money it has paid on a claim from a third party that might have contributed to the loss. These waivers are commonly found in various contracts, including commercial leases, construction contracts, and insurance policies.

While a waiver of subrogation can lead to a more harmonious contractual relationship by preventing potential disputes and accelerating claim settlements, it’s essential to fully understand its impact. A waiver can affect your insurance coverage and may lead to changes in your premiums. Due to the far-reaching implications of these waivers, it’s recommended to seek counsel from an experienced subrogation attorney. They can offer comprehensive advice and guidance on whether a waiver of subrogation is in alignment with your needs and circumstances.

For more information on Receiving A Subrogation Letter In Illinois, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (312) 986-8063 today.