We’ve previously written about the problems of personal injury subrogation and ERISA subrogation. Now, a Minneapolis television station has run a story outlining the problems that a husband has encountered surrounding subrogation in the medical malpractice context.
There are two things that are interesting about the story. First, it’s a good background on subgrogation. The story gives the uninformed a good idea for the flavor of the issues surrounding subrogation claims. But the case itself may not be a great example of subrogation abuse. The story says that the insurance company substantially reduced its subrogation interest. But, because the individual is not allowed to disclose the terms of the settlement, we don’t know what percent of the recovery the insurance company is seeking.
I do know, in Texas, there are certainly good examples of insurance companies attempting to take entire recoveries leaving personal injury victims with nothing. Unfortunately, it seems with each passing decision from the Texas Supreme Court or the U.S. Fifth Circuit Court of Appeals it’s easier and easier for insurance companies to keep your money.
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