What does subrogation mean in workers' compensation?

• A. A procedure to expedite medical treatment.
• B. Subrogation allows the employer/insurance to recover benefits paid from a third party responsible for the injury.
• C. A process to reduce wage benefits.
• D. An appeal method for claim denial.

Answer: (B)

Subrogation in workers' compensation means the employer’s insurance provider can recover benefits paid to an injured worker from the party responsible for causing the injury. The idea is to prevent the worker from being paid twice and to have the at-fault party (or their insurer) bear the cost of the injury. After benefits are paid, the insurer steps into the worker’s shoes and pursues reimbursement for medical expenses and wage loss from the third party at fault, following state rules. This often involves notices and legal steps to obtain payment or settlement from the responsible party. It’s not about speeding up medical treatment, nor about routinely reducing wage benefits, nor about appealing a denial—it's about cost recovery from the party responsible for the injury.