Improve Health Agencies' Subrogation Collection Efforts Texas health agencies should coordinate efforts to increase state third-party subrogation collection efforts for medical payments. When a state agency pays for medical services, it has the right to recover its costs from any payments the patient may receive in the settlement of a related lawsuit. This assumption of another's legal right to collect a debt or damages is called subrogation .
Current subrogation practices Several state agencies already make use of subrogation.
The Texas Workers' Compensation Commission, for instance, assumes the injured worker's right to sue the responsible party, up to the amount of the board's payments. TRC assumes its clients' right of recovery from personal insurance, other persons, or any other source to defray the costs of the services it provides. If this person applies to TRC for medical help, his or her right to recover from the insurer is assumed by TRC as soon as the agency accepts his or her application. Recoveries from uninsured parties Some Medicaid payments are related to accidents experienced by their clients. In contrast, some Texas private health insurers have initiated programs to file suit for damages from uninsured individuals who are at fault in accidents.