Harry Stump, Esq.

Month: March 2019

  • AVOIDING SUBROGATION IN CAR ACCIDENTS

    In Pennsylvania, the minimum medical payment benefit that you must buy is only $5,000.  Most automobile insurance companies want to sell you either $5,000 or $10,000 worth of medical coverage.  Your insurance company may tell you that your private insurance will take care of the rest.  With today’s high cost of health care, that $5,000 benefit would only cover the most minor injury case.  The minimum amount of automobile medical payment benefit that I recommend is $50,000.  In a recent case, the health insurance subrogation claim was more than $130,000   To avoid that type of lien, I recommend asking for a quote for $100,000 in medical payment benefits.  The cost of this coverage is less than the co-pays and deductibles that may arise and would eliminate most subrogation claims.

    If the other driver only has a minimum limits liability policy of $15,000, a serious injury subrogation claim could be larger than your settlement.  Protect yourself and your family.

  • SUBROGATION & ACCIDENT SETTLEMENTS

    In Pennsylvania, if you are injured in an accident and receive a settlement, there may be a legal duty to repay the health insurer who has already paid your medical bills.  This is referred to as subrogation.

    Subrogation arises out of various laws such as Medicare, Medicaid, Workers’ Compensation, and Veterans Administration heath care.

    Subrogation also arises out of the private health care insurance contract that paid your hospital and medical bills.  Typical language found in a health care booklet states that:  “The Plan also has the right to seek payment and/or reimbursement from you if you receive a payment, settlement, judgment or award from a person, organization, or insurance company in connection with an injury caused or alleged to be caused by the person or organization.”

    Some private health care insurance plans may demand repayment of their entire lien, even if it takes your entire settlement.

  • AUTO INSURANCE CHECKUP

    MINIMUM RECOMMENDED

    • LIABILITY – $100,000-$300,000
    • MEDICAL BENEFITS – $50,000
    • UNDERINSURED AND UNINSURED MOTORIST – $100,000-$300,000-STACKED
    • INCOME LOSS – $1000 –$5000
    • √ FULL TORT

    These are minimum recommended coverages. You should increase your coverage beyond these minimums as you can afford it. A good rule of thumb is to have as much underinsured and uninsured motorist coverage as you will earn the rest of your life. This will help to protect your future earning capacity against a catastrophic loss.

    Read your automobile insurance declaration page carefully. Asking an agent for “Full Coverage” may get you Limited Tort, minimum liability coverage, minimum medical benefits and no uninsured or underinsured motorist coverage.

    Failure to read a contract before signing it is no excuse, absent fraud, is a well-established Pennsylvania rule of law.