When a Buffalo resident suffers a personal injury, his or her medical bills arising from this injury are frequently paid through health insurance or some other insurer. In New York State, the insurer has a right to subrogation regarding any damages related to medical expenses that are recovered in a personal injury lawsuit. This means that, if the insurer asserts this right, it may recover its expenses related to treatment of the injury out of any damages awarded for medical expenses.
This right, however, is limited by the “Made Whole” doctrine. Under the Made Whole doctrine an insurer may not recover its expenses until after the injured party has been made whole. This means that the injured party must recover enough in damages that he or she is fully compensated for the consequences of the injuries.
In cases where, for example, the individual who caused the injury does not have sufficient resources to pay full damages, the injured party may never receive complete compensation. When this happens, under the Made Whole doctrine the insurer is not entitled to recover any of its expenses. The insurer’s expenses may not be recovered unless the injured party is made whole.
If you have suffered a personal injury and have any questions regarding this topic, please feel free to call my office at 716-542-5444.
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