Have you seen those commercials for personal injury lawyers?
The ones that promise patients big pay outs if they are injured in an accident
that was someone else’s fault?
Those ads lead us to believe that those seriously injured in
an accident can recoup large sums of money; money that will then cover the
costs of future medical bills and costs to make their homes wheelchair
accessible. But the truth is that most accident victims don’t receive
settlements in the millions—even though their lifetime costs will be in the
millions—the settlements are more like the thousands.
That wouldn’t be so bad necessarily if it wasn’t for
something called the subrogation industry. When you’re injured in an accident
that wasn’t your fault your insurance company likely paid medical bills that
should have been paid by the person who caused the accident. It’s not fair for
the insurance company to have to cover someone else’s costs, but the problem is
that insurance companies turn to subrogation companies to recover their money.
Subrogation companies are like bounty hunters. They’re paid
on commission to go after settlements that accident victims receive on behalf
of insurance companies. Because there’s no risk to them, they go after
settlements of any dollar amount—even those only in the thousands of dollars.
These companies use many of the same tactics that collection agencies use to
try to intimate and pressure patients into turning over huge portions of their
settlements. And they’re successful. The self-proclaimed leader in the field, a
Kentucky-based company, boasts on its website that it
“actively lobbies agencies and governing bodies at the state and federal levels
to improve recovery rights for our clients and the entire industry.”
The problem is that the settlements accident victims receive
are the only monies that these patients will ever receive from the person
responsible for their injuries. Those, like Jeff, who are paralyzed, will
require a lifetime of support. Their injuries leave them and their families
financially, emotionally and physically devastated.
We think that the subrogation process should be made fair.
That’s why we are supporting legislation and regulation that would prohibit the
industry from attempting to recovery money from settlements that amount to less
than $1 million and further would place a 25 percent cap on the amount of recoverable
from an eligible settlement.
If you agree, we ask you to write an email to your Member of
Congress expressing your support for making the subrogation process fair. You
can find your Representative here: http://www.house.gov/representatives/find/
and your Senators here: http://www.senate.gov/general/contact_information/senators_cfm.cfm.
Here’s a sample letter you can send:
Dear [Representative/Senator]:
I am writing to ask you to champion legislation and support
regulation to make the subrogation process fair.
Subrogation companies are bounty hunters retained by
insurance companies to capture portions of settlements that accident victims
receive from the person who caused their injuries. Today, these companies can
go after settlements of any amount and since there is no risk to them, they
often target settlements in the thousands, not millions. These settlements are
the only monies that a disabled patient will receive from the person
responsible for their injury.
I believe that the subrogation industry should be prohibited
from attempting to recovery money from settlements that amount to less than $1
million and further support placing a 25 percent cap on the amount of
recoverable from an eligible settlement.
Thank you for your attention to this important matter.
Sincerely,
