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Structuring settlement to avoid subrogation

by Mike
(Los Angeles)

I was in an auto accident in Los Angeles, my medical bills were a little above $5,000, my health insurance I get through work has notified me that they will exercise their right of reimbursement/subrogation? for any settlement I may get.

I would like to know if there is a was for me to structure the settlement with a written agreement maybe saying something like "I accept the $15,000 offer as settlement of my pain and suffering claim" so that the insurance company could not collect the paid medical expenses from me?



Hello Mike,

There is not a way to get around a subrogation lien that we are aware of. You need to talk to a local attorney to help with that if such structure settlement exits.

The health insurance will probably lien against your settlement, so that they will get paid directly before you even see the funds. Usually, what occurs is, you settle for $15,000 (sign documents), send them in, the insurance company pays the health provider first, and the remainder is sent to you (for example, if the medical bills are $5,000, then they will send $5,000 to the health insurance, and $10,000 to you).

Note, some states do not allow subrogation of health insurance (AZ and MT among others). You need to check with an attorney, but I believe California does allow this type of subrogation. Again talk to a lawyer. To find a lawyer near you, please see:

For more information about injury claims, please see:

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