First, allow me to use an example to explain subrogation: You are hurt in an accident. You go to the emergency room, are admitted to the hospital for several weeks and then have a few months of follow-up appointments and physical therapy. After deductibles and co-pays, your health insurance company pays all of your medical bills. After you recover from the accident, you settle your injury case with the at-fault party’s insurance company. Using the money you got from your settlement, you buy your first home. Several months later, you get a letter from your medical insurance carrier demanding to be paid back for the medical bills they paid on your behalf after the accident. You no longer have the cash because you bought a home, but they are threatening to sue you.
Can they do that? What about if you are on Medicare or Tenncare? Isn’t that why you paid the premiums for your medical insurance? If they sue me, could they take my house or garnish my wages? What if I never tell them about my accident? Continue reading