Rob King & Associates, Trial Lawyers | July 9, 2025 | Personal Injury
After an accident, medical bills and other accident-related expenses can pile up. If you use your health insurance to cover your medical costs, you might assume that your bills are behind you. However, once you pursue a personal injury claim and receive a settlement, your health insurance company may demand reimbursement.
This concept is called subrogation, and it can heavily impact how much money you ultimately recover after a catastrophic injury.
How Subrogation Works in a Personal Injury Case
Subrogation happens when an insurance company steps in and exercises your legal right to recover compensation from the person or entity responsible for your injury. If your health insurer pays your medical bills after a car accident or another incident, it can later seek reimbursement from your personal injury settlement through a subrogation claim.
This system is designed to prevent “double recovery” (i.e., when a person gets paid twice for the same loss). However, for injury victims, it often feels like a reduction of their hard-earned injury compensation.
Medicare, Medicaid, and State Benefits
Government programs like Medicare and Medicaid also have subrogation or reimbursement rights. If your medical care is covered by one of these services, the government can demand repayment from your settlement, even before you receive your share.
How to Approach a Subrogation Claim
Most injury victims expect their settlement to cover all their losses. However, subrogation claims can take a significant bite out of that sum, especially if you face serious economic damages.
An experienced personal injury attorney can help you challenge or negotiate subrogation claims. Your attorney plays a vital role in maximizing the amount you keep after all liens, claims, and costs are resolved.
You can expect your attorney to:
- Carefully review all medical bills and payment records
- Verify the validity and scope of any subrogation claim
- Negotiate to reduce or waive repayment (where possible)
Indiana law also provides some assistance to injured victims facing subrogation claims. For instance, Indiana recognizes the “made whole” doctrine, which means your insurer generally cannot recover any money unless you’ve been fully compensated for all of your losses. Additionally, Indiana applies the common fund doctrine, which often requires insurers to contribute to your legal fees when their recovery is made possible through your attorney’s efforts.
Beware of Settlement Traps and Waivers
Sometimes, the at-fault party’s insurer may include waivers or restrictive language in the settlement paperwork that affects subrogation rights. While these terms may appear helpful, they can actually leave you liable for unpaid medical expenses if your health insurer expects reimbursement.
That’s why you should always have a lawyer review your final settlement agreement to avoid waiving important rights or agreeing to unfavorable terms. Once you sign a settlement release, you typically can’t recover any more money, even if new injuries or bills appear later.
Contact an Indianapolis Personal Injury Lawyer at Rob King & Associates, Trial Lawyers for Legal Help
Subrogation may seem straightforward, but it can have serious and frustrating financial consequences for injured victims. If you’ve been hurt in an accident and are considering a personal injury claim, make sure you understand how subrogation could affect your recovery. You should expect a possible subrogation claim if you used health insurance or government benefits to help cover your medical expenses after an accident.
An experienced Indianapolis personal injury attorney can help protect your interests and ensure you don’t face any financial surprises down the road. At Rob King & Associates, Trial Lawyers, we’ve helped countless clients across Indianapolis navigate subrogation claims while fighting to maximize the compensation they keep.
For more information, please contact Rob King & Associates, Trial Lawyers to schedule a free consultation with a personal injury lawyer in Indianapolis, Indiana, today.
We proudly serve Marion County and its surrounding areas.
Rob King & Associates, Trial Lawyers – Indianapolis Office
22 E Washington St #310
Indianapolis, IN 46204
(317) 916-0000
