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2651, TRICARE has subrogation rights for the reasonable value of care and treatment furnished because of injury or disease, when the person has a claim against a third person to pay damages.
Your regional contractor will send you the Statement of Personal Injury-Possible Third Party Liability (DD Form 2527) if a claim is received that appears to have third-party liability involvement. You must complete and sign this form within 35 calendar days.
An Example of a Third-Party Claim Another driver runs their stop sign and hits you. You have vehicle damage, a broken arm, and whiplash. The other driver has an insurance policy that covers liability for physical injuries, including medical expenses, and property damage.
Some diagnosis codes may indicate an injury or illness which a third party may have caused. When the TRICARE contractor gets claims with these types of diagnosis codes, the contractor will send you a Statement of Personal Injury Possible Third Party Liability form (DD Form 2527) to fill out.
The Third Party Liability provisions of the Plan entitle the Fund to collect, directly from any responsible third party or insurance carrier, or from you, any money it advances to pay benefits relating to injuries you sustained and for which a third party is legally obligated to pay.
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As a federal lien, TRICARE has substantial bargaining power and generally seeks reimbursement for the total amount paid for treatment. With this being said, TRICARE does allow for adjustments and can be reduced or waived if justice requires.

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