Certified Revenue Cycle Representative (CRCR) Practice Exam

What does subrogation mean in the context of healthcare?

1. Transfer of ownership of medical records

2. Reimbursement from another party responsible for medical expenses

3. Employment of patients in research studies

4. Coordination of care among different providers

The correct answer is: Reimbursement from another party responsible for medical expenses

Subrogation in the context of healthcare refers to the process where an insurance company seeks reimbursement from another party that is responsible for the medical expenses incurred by a patient. This often occurs when a patient has received medical care due to an injury or illness caused by someone else's negligence. In such cases, the patient's health insurance may initially cover the costs of treatment. However, the insurer has the right to pursue recovery of those costs from the responsible party, which could be another insurance policy or the liable individual themselves. This mechanism helps to ensure that the party at fault ultimately bears the financial responsibility for the medical expenses, preventing multiple sources of coverage from being unjustly exploited for the same costs. The other options do not accurately reflect the concept of subrogation; they pertain to different aspects of healthcare management and patient care.