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How the practice works

Last update: January 29, 2008 - 12:09 AM

• If someone wins an award in court or as part of a settlement, an insurance company often has the right to recover what it has paid out on that person's behalf. That practice is called "subrogation."

• About 40 percent of Minnesotans have health plans that are governed by federal law that allows plans to get reimbursed for what they have paid out. Those health plans are typically company-sponsored and self-insured.

• Other plans, which are governed by state law, allow the plans to collect reimbursement only after individuals have been compensated.

• Minnesota legislators considering compensation for bridge-collapse victims are trying to find a way to work around the federal rules.

 

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