What is Subrogation & How It Affects Car Accident Settlements | KNR
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If you’ve been injured in a car accident in Ohio, you’re likely expecting your settlement to help cover medical bills, lost wages, and other expenses. But what many don’t realize is that your insurance company—after paying for your medical treatment—may try to reclaim part of that settlement through subrogation.
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KNR Legal
Date posted
 
February 3, 2025
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In Ohio, subrogation claims are common with private health insurance, Medicaid, Medicare, and auto policies. Many accident victims unknowingly settle too quickly, only to face unexpected deductions. The good news? An experienced Ohio car accident attorney, like those at KNR, can help you understand your rights, negotiate subrogation claims, and ensure you keep as much of your settlement as possible.

Subrogation in Personal Injury Cases

Subrogation occurs when your insurance company covers your medical expenses after you’ve been injured due to someone else’s negligence—like in a car accident—and then seeks reimbursement from the at-fault driver’s insurance or your settlement. While this process helps insurers recover what they’ve paid, it can often lead to confusion and unexpected financial challenges for injured individuals if not managed correctly.

How Does Subrogation Affect Car Accident Claims?

Imagine you’re driving on I-71 in Cincinnati when another driver hits you. Your health insurance steps in and pays 20,000 for your hospital bills. Later, you recover 20,000 for your hospital bills. Later, you secure a 100,000 settlement from the at-fault driver’s insurance. When you think you’re clear, your insurance company files a subrogation claim to recover the $20,000 they initially covered – leaving you with $80,000.

Subrogation is designed to prevent victims from double-dipping or profiting from their claims. However, working with an experienced attorney is crucial to negotiating subrogation amounts and receiving the maximum compensation you deserve.  Without proper legal guidance, subrogation could drastically cut into your final damages.

Common Subrogation Claims after Ohio Auto Accidents

Subrogation isn’t limited to just one type of insurance. After a car accident, multiple insurers may have the right to seek reimbursement depending on who covered your expenses. Here are the most common subrogation claims:

  • Private Health Insurance: If your health insurance plan through your employer or a personal policy paid for your treatment, they’ll typically file a subrogation claim once you receive a settlement.
  • Medicaid/Medicare: Government programs that cover medical expenses for low-income or elderly individuals often have strict subrogation requirements to recover funds from car accident settlements.
  • Auto Insurance Medical Payments (MedPay): If your auto insurance covers immediate medical expenses under MedPay, they may seek reimbursement once you secure compensation from the at-fault party.
  • Workers’ Compensation: If you were injured while driving for work, workers’ comp may cover your medical expenses and lost wages, but they’ll seek repayment from any settlement you receive.

More on Insurance Issues after an Auto Accident

The Impact of Multiple Subrogation Claims

Subrogation often involves more than one insurer seeking reimbursement. For example, suppose you’re rear-ended in Cleveland, and your health insurance covers your emergency room visit, physical therapy, and follow-up care. In that case, they can file a subrogation claim once you settle with the at-fault driver. Similarly, if you used your auto policy’s MedPay benefit for immediate treatment, your car insurance company may also request reimbursement from your settlement.

These overlapping claims can significantly reduce your compensation if not appropriately handled. By working with an experienced attorney, you can ensure each subrogation claim is thoroughly reviewed, negotiated, and minimized. This strategy helps you avoid excessive deductions and retain more of the compensation you need.

Ohio Subrogation Laws & Considerations

In Ohio, private health insurers, auto insurers, or government programs have the legal right to seek reimbursement from your car accident settlement if they’ve covered your medical expenses. However, they must follow strict rules, such as providing proper notice and documenting the expenses they intend to recover. Failure to comply with these requirements could weaken or invalidate their subrogation claim, making it crucial to review notices carefully.

Ohio’s Medicaid program follows additional protections. Medicaid can only recover a limited portion of your settlement, and attorney fees and legal costs must reduce any claim. This ensures you don’t end up paying back the full amount Medicaid covers. Restrictions on recovering funds beyond the direct cost of treatment can further protect your compensation.

FAQs About Car Accident Subrogation in Ohio

Can Subrogation Reduce My Final Settlement?

Yes, subrogation can significantly reduce your settlement if left unaddressed. For instance, if you receive a $50,000 settlement but your health insurance company files a $20,000 subrogation claim, nearly half of your recovery is gone. However, your attorney can negotiate to minimize what insurers recover. They can leverage factors such as proportional reductions for legal fees or shared liability to protect more of your compensation.

What if I Can’t Repay the Subrogation Claim?

If you’re concerned about repaying your insurance company, don’t panic—there are options. Subrogation claims are often negotiable, and an experienced car accident attorney can work to reduce the amount owed. Sometimes, payment plans or deferrals may be possible, especially if your settlement is limited or doesn’t fully cover your damages. By negotiating reductions or seeking alternative arrangements, you can avoid financial hardship.

How Long Does Insurance Have to File a Subrogation Claim in Ohio?

The time limit depends on the type of insurance policy and applicable laws. In Ohio, insurers must file within the statute of limitations for personal injury claims for two years. However, some policies may have shorter deadlines. Reviewing these time limits with your attorney can help avoid unexpected claims long after the settlement.

Will Subrogation Affect Future Medical Care?

Subrogation generally applies only to expenses incurred before the settlement. However, if your settlement includes compensation for anticipated future medical expenses, insurers may attempt to claim a portion of those funds. A knowledgeable attorney can structure the settlement properly to avoid overreaching claims and protect your future care.

How Do Lawyers Negotiate or Reduce Subrogation Claims?

Insurance companies often have room to negotiate subrogation claims, and skilled lawyers can leverage legal and practical factors to reduce what you owe. For example, Ohio law requires insurers to share in the cost of obtaining a settlement, meaning subrogation claims must typically be reduced by a portion of your attorney’s fees and legal expenses. Additionally, lawyers can argue that subrogation amounts should be lowered based on factors like shared fault, insufficient recovery, or the insurer’s failure to follow proper subrogation procedures. Without this negotiation, many victims end up paying far more than necessary.

Read Our Tips for Preventing Subrogation Issues

Protect Your Settlement & Avoid Subrogation: Call KNR

Navigating subrogation claims after any personal injury can be overwhelming. Without proper legal representation and foresight from an experienced attorney, subrogation could significantly reduce your overall compensation, leaving you with less than you need. However, a dedicated lawyer can negotiate your subrogation claim, minimize deductions, and ensure you receive the maximum compensation you deserve.

At KNR, we understand Ohio’s subrogation laws and insurers’ tactics to limit your recovery. Our team has the knowledge and skill to review your settlement, challenge excessive claims, and protect your financial future. Don’t let subrogation take more than it should.

Contact KNR today at 1-800-HURT-NOW or submit a request for a free case evaluation.