What is Subrogation

Subrogation is a common law and a contractual doctrine that was first established in English common law. Subrogation is the legal process by which one who has paid benefits, by virtue of that payment “steps into the shoes of the person or entity for whom benefits have been paid” and assumes the beneficiary’s cause of action or right as against the person or entity that caused the loss. OPL on behalf of employers TPA’s and insurance companies recover funds for valid claims paid on behalf of their clients or members which are the responsibility of another person or entity. .

A simple Example of Subrogation For Employers in a Nutshell:

“ John Doe was injured and broke his leg when a box fell on him while shopping at store X. John works for the City of P who provides him health insurance through a national health insurance carrier. When John goes to the hospital, he gives them his Medical card provided to him by his employer who pay the medical bills”.

Here…. John’s employer has paid for the surgery to Johns leg that was caused by the box falling at store X. John’s employer, the city of P, through the equitable and contractual right of subrogation, has the right to recover the medical bills paid to the hospital for Johns injuries, from store X. If it can be shown that Store x had primary medical Coverage for the incident or was otherwise responsible for John’s injuries