Understanding Subrogation: How Insurance Companies Affect Your Settlement

When you’re injured in a car accident, slip and fall, truck collision, or any other sudden incident in Florida, the last thing you want to think about is complicated insurance terminology. One term that often catches people by surprise is subrogation. It sounds technical, but it can significantly affect the amount of compensation you ultimately take home after a personal injury settlement.

Understanding how subrogation works — and how insurance companies use it — is essential to protecting your rights. At Kogan & DiSalvo, we help injury victims navigate this process every day so they are not blindsided when settlement negotiations begin.

What Is Subrogation?

Subrogation is a legal process that allows an insurance company to seek reimbursement for money it has paid on your behalf.

For example:

• Your health insurer pays for your emergency room visit
  
• Your auto insurer pays for your property damage
  
• Your MedPay coverage pays for part of your medical bills
  

Later, when you receive a settlement from the at-fault party, the other insurers may demand repayment from those proceeds.

This may feel frustrating — and it often is — but subrogation is a standard part of most insurance contracts.

Why Does Subrogation Matter in a Personal Injury Case?

Subrogation directly affects how much money you actually keep from your settlement. Even if the at-fault driver’s insurance agrees to pay for your medical bills, your own health or auto insurer may still have a legal claim to part of that payout.

This comes as a surprise to many Florida accident victims. You might assume that because you pay monthly premiums, your health or auto insurer shouldn’t be able to take part of your settlement. Unfortunately, most insurance policies contain strong subrogation language that gives them the right to reimbursement.

At Kogan & DiSalvo, we understand how to negotiate these claims and work to minimize what has to be repaid — often keeping thousands of additional dollars in our clients’ pockets.

How Subrogation Typically Works After an Accident

Here’s how the process generally unfolds in Florida personal injury cases:

1. Your insurance pays some of your expenses

Examples include:

• Health insurance covering initial treatment
  
• Medicare or Medicaid paying for follow-up care
  
• Auto insurance MedPay covering medical bills
  
• Property damage coverage paying for vehicle repairs
  

2. You pursue a claim against the at-fault party

This could involve:

• A negligent driver
  
• A property owner in a slip and fall
  
• A trucking company
  
• A product manufacturer
  
• A negligent medical provider
  

3. You receive a settlement or verdict

Once compensation is awarded, your insurers may file a subrogation claim.

4. Your attorney negotiates the claim

A skilled personal injury attorney can often reduce subrogation demands significantly by challenging:

• Billing errors
  
• Unrelated treatments
  
• Excessive charges
  
• Failure to comply with Florida subrogation requirements
  

5. The insurer receives a portion of the settlement

After reimbursement and attorney’s fees are accounted for, the remaining compensation goes to you.

Common Types of Subrogation in Florida Personal Injury Cases

Health Insurance Subrogation

Private health insurance policies usually include subrogation clauses. If they paid for accident-related treatment, they may seek repayment later.

Medicare and Medicaid

Federal law requires Medicare and Medicaid to seek reimbursement for medical expenses related to third-party injury claims.

These programs have strict timelines and compliance rules. Failure to resolve subrogation with Medicare or Medicaid can delay — or even jeopardize — your settlement.

Auto Insurance Subrogation

Your own auto policy may include subrogation rights related to:

• MedPay coverage
  
• UM/UIM claims
  
• Property damage payouts
  

Workers’ Compensation

If you were injured on the job and a third party contributed to the accident — for example, a negligent driver on I-95 or a contractor at a construction site — workers’ compensation may seek reimbursement.

How Subrogation Impacts Your Final Settlement Amount

Many people are surprised to learn that their initial settlement amount is not the same as their net recovery.

For example:

• Settlement amount: $100,000
  
• Attorney fees and costs: -$33,000
  
• Subrogation claim: -$5,000
  
• Total received by client: $62,000

Without legal advocacy, subrogation demands can be unnecessarily high.

One of the most important roles Kogan & DiSalvo plays is reducing or challenging these claims through strategic negotiation.

Can Subrogation Claims Be Reduced or Waived?

Yes — subrogation claims can often be negotiated.

Attorneys may reduce subrogation by:

• Challenging unrelated charges
  
• Negotiating under Florida’s “made whole doctrine”
  
• Disputing excessive billed amounts
  
• Requesting reductions based on hardship
  
• Applying federal procurement cost principles (Medicare)
  
• Using ERISA and non-ERISA distinctions
  

These legal arguments can dramatically reduce how much money goes back to insurers.

What Is the “Made Whole” Doctrine in Florida?

The “made whole” doctrine says an insurer cannot take money from your settlement unless you are fully compensated for all your losses.

However, insurers often attempt to override this rule through policy language. This is why legal review is essential — some policies allow subrogation even if the victim has not been fully compensated.

Need help understanding your rights? Let’s talk.

Kogan & DiSalvo has represented injury victims across South Florida for decades, and we know how to stand up to aggressive insurance companies.

Real-World Example of Subrogation

Imagine you’re injured in a motorcycle accident on the Florida Turnpike:

• You require surgery
  
• Your health insurance pays $80,000 in medical bills
  
• You settle your claim for $300,000
  

Your health insurer may request reimbursement — but your attorney may be able to reduce this demand by tens of thousands of dollars.

Without strong legal representation, many victims unknowingly overpay.

How Kogan & DiSalvo Protects You During Subrogation

Our attorneys work to ensure:

• All subrogation claims are valid
  
• Only accident-related bills are included
  
• All reductions are pursued aggressively
  
• Medicare and Medicaid compliance is handled properly
  
• You keep the highest possible portion of your recovery
  
• Your settlement isn’t delayed by insurer errors
  

This is a critical part of the personal injury process, and it directly affects your financial future.

Call Kogan & DiSalvo Today

You don’t have to navigate subrogation alone — and you shouldn’t risk losing part of your settlement because an insurance company is overreaching.

Call Kogan & DiSalvo today for your free consultation. We’ll explain your rights, negotiate subrogation claims on your behalf, and fight to ensure you receive the compensation you deserve.