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Right of Subrogation in Cruise Passenger Injury Claims
When a passenger is injured on a cruise ship, medical bills often pile up quickly. Most passengers rely on health insurance, Medicare, Medicaid, TRICARE, the VA, FEHBA, or private ERISA plans to cover those costs. But once your health plan pays, it gains a right of subrogation — the legal ability to be reimbursed from any money you later recover in a lawsuit or settlement against the cruise line.
What Is Subrogation in a Cruise Injury Case?
Subrogation lets a payer that covers your medical bills step into your shoes to recover those payments from the party that caused your injury or from the money you recover from that party. In cruise passenger cases (maritime law), that usually means:
- You can’t double recover the same medical expense twice.
- Your health plan pays your doctors now, so you can get treatment.
- If you later settle or win against the cruise line (or another responsible party), the plan asks for reimbursement from those proceeds.
How Subrogation Works for Cruise Passengers
- You’re injured aboard ship – slip and fall, gangway accident, deck burn, medical negligence, or other cruise line negligence.
- Your health coverage pays bills – whether that’s Blue Cross, UnitedHealthcare, Aetna, Cigna, Humana, Medicare, Medicaid, the VA, TRICARE for service members, or a federal FEHBA plan.
- You pursue a claim against the cruise line – often under general maritime law in the Southern District of Florida.
- You recover compensation – through settlement or trial.
- Your health plan enforces its lien – meaning it demands reimbursement for the medical expenses it already covered.
Why Subrogation Matters in Maritime Law
Subrogation plays a big role in cruise passenger claims because:
- You don’t get double recovery – you can’t keep both the insurance payout and the cruise settlement for the same bills.
- It impacts your net recovery – negotiating subrogation claims is critical to ensuring you keep as much of your settlement as possible.
- Federal programs are strict – Medicare, Medicaid, TRICARE, and the VA aggressively enforce liens in maritime injury cases.
- Private insurers follow ERISA rules – employer health plans and FEHBA plans often have strong repayment rights under federal law.
Common Providers and Subrogation in Cruise Cases
- Medicare (CMS): Medicare has a statutory right to reimbursement. If you don’t repay them from your settlement, they can charge interest and penalties.
- Medicaid: State Medicaid programs can file liens on settlements from cruise passenger injury claims.
- VA (Veterans Affairs): The VA can recover the cost of treatment provided to veterans injured on cruises.
- TRICARE: Service members and dependents covered by TRICARE face government recovery rights when pursuing cruise claims.
- FEHBA (Federal Employee Health Benefits Act): Federal employee health insurance plans can enforce liens under federal law.
- ERISA Health Plans: Employer-provided plans often assert strong repayment rights that override state anti-subrogation rules.
- Private Health Insurers: Companies like Blue Cross Blue Shield, UnitedHealthcare, Aetna, Cigna, Humana, Kaiser Permanente routinely assert liens after paying for cruise passenger injuries.
Negotiating Subrogation in Cruise Injury Settlements
An experienced cruise injury lawyer can:
- Challenge the scope of a lien (only “related” medical expenses are recoverable).
- Use doctrines like the “make whole” rule or common fund rule where applicable.
- Negotiate reductions with private insurers.
- Ensure compliance with Medicare, Medicaid, TRICARE, or VA reporting requirements.
Subrogation FAQs
Do I have to repay Medicare if I win a cruise lawsuit?
Yes. Medicare has a mandatory reimbursement right for cruise passenger injuries. Failure to repay can result in interest and collection actions.
Can Medicaid take part of my cruise injury settlement?
Yes, but only for bills related to the cruise injury treatment. A lawyer can often reduce or challenge the lien.
What about TRICARE, VA, or FEHBA?
All federal programs (VA, TRICARE, FEHBA) have statutory recovery rights in maritime personal injury cases.
What if I have Blue Cross, Aetna, or UnitedHealthcare?
Private insurers also seek reimbursement, but their rights depend on policy language and federal ERISA law.
Will I lose my whole settlement to subrogation?
Not usually. With skilled negotiation, passengers often keep the majority of their recovery.
Why Choose Our Cruise Injury Lawyers?
At Holzberg Legal, we handle cruise passenger injury claims worldwide. We know how to navigate:
- The complex lien rules of Medicare, Medicaid, TRICARE, VA, FEHBA, and ERISA.
- The aggressive tactics of major health insurers like Blue Cross Blue Shield, UnitedHealthcare, Aetna, Cigna, Humana, and Kaiser.
- The federal maritime law governing cruise passenger lawsuits in the Southern District of Florida.
Our goal is not just to win your case against the cruise line — but also to maximize your net recovery by reducing subrogation claims wherever possible.
Call for a Free Consultation
Were you or a loved one injured on a cruise? Don’t let the cruise line or your insurance carrier control the outcome. Call Holzberg Legal today for a free consultation about your rights, your medical bills, and how subrogation could affect your settlement.
