There are many catastrophic policies available today, from just about any insurance company. Check it out with AARP, they seem to have insurance for anything and everything.

If your attorney used it – call him and ask him about it.

But each situation is unique. Just because a health insurer did not subro in your case does not mean they can't do it in your friends case.

If your friend has an ERISA (employer sponsor) health plan. The plan has language in it that will allow the health insurer to subrogate against the settlement proceeds. This is how health insurance keep their rates down. If they did not subro – health insurance rates would be higher than they already are.

Medicare, Medicaid, Tri-Care automatically have a lien. Can't get around not paying those guys.

It could also depend on the coverage the claim is being made under. In some states, you can't subro against certain coverages.

It can get tricky dealing with health insurance liens. And there can be lots of different variables that affect it.

The thinking is that when the consumer is paying the insurance premiums, (s)he will gravitate towards lower cost policies. Consumer Driven Health Plans (CDHP's) specifically. Having a CDHP allows you to open up a Health Savings Account (HSA) where you, and your employer, can contribute non taxable money for future medical expenses. With these plans everything is subject to the deductible, except your annual wellness benefit, which used to be called your annual physical. You are expected to pay for all of your medical services out of your own pocket (your HSA) until you reach your deductible.This will demand a more conscientious consumer, bringing market forces to bear. It might also bring some transparency to health care costs, lowering the costs for everyone. Another factor is that with an individual policy, you own the policy, not your employer. Cobra, and it's limitations, goes away with individual policies.

The argument against CDHP's that people won't save for future expenses, and will also simply forgo minor or maintenance types of care which may require more expensive treatment down the road.

I think both sides are right, and everyone agrees something has to change because what we have now isn't working.

Don
http://mtnhealthinsurance.com

The basic notion of a HSA is that you should pay for most of your own medical care yourself, without any insurance. Really what they are is insurance plans with extremely high deductibles (often $10,000+).

The money you spend is then deductible on your taxes. This means that a rich person, paying a high marginal income tax rate, gets a 35%+ discount on medical care, while a poor person gets 10% or even nothing for a discount. So in effect, medical care is cheaper if you're richer.

What HSA advocates are really saying is that the problem with health care is that people have too much insurance. A very curious position to take.

It also would be for less than great benefits – high amounts out of pocket compared to decent plans, etc.

Those 3 employees need to get it together and put things in perspective. They should be thankful they still have their jobs and good insurance! They are in a better situation that millions of Americans.