Minnesota Subrogation Laws

The right of your health insurer to be paid back when your case settles.

Subrogation: The legal right of an insurance company to be paid back for benefits paid on your behalf after your accident. It is also known as a "right of recovery" or "right of reimbursement". The most common form of subrogation is when your health insurance provider pays some of your medical bills, and then demands to be paid back for those bills when you receive your settlement or verdict. Subrogation may also apply to such benefits as Medical Assistance, Medicare, or short/long term disability coverage.

No Fault Benefits are not subject to subrogation. In auto accident cases the amount subject to subrogation is usually limited to those bills paid after no fault coverage runs out (over $20,000) or after benefits have been cut off.

Subrogation does not add to the value of your personal injury case.

We cannot ask for more money because you have to pay subrogation. Your insurer claiming subrogation will reduce your net recovery. By negotiating a reduction in the amount your health insurer gets paid your net recovery is increased.

The policy language in your health plan will control if and how much your health insurer will have a right to get paid back. For example the Mayo Clinic medical plan says:

By enrolling and accepting coverage in this plan, you agree to the following: The Plan will be reimbursed from any recovery before any payment of any existing claims including any claim made by you for general damage...The Plan may collect from the proceeds of any settlement of judgment recovered by you or your legal representative regardless of whether you have been fully compensated.

We will work hard to avoid paying back the health insurer but it is not always possible to avoid. If so, we will try to negotiate a smaller dollar amount with the insurer.

Please feel free to call our office if you have any questions or concerns.