Question

The contractual right of a third party payer to recover healthcare costs from the liable party is known as:

1) Coordination of benefits
2) Cost recovery
3) Subrogation
4) A lien

Answer 1

Subrogation is the contractual right of a third-party payer to recover healthcare costs.

Step-by-step explanation:

The contractual right of a third-party payer to recover healthcare costs from the liable party is known as subrogation. Subrogation allows the third-party payer to step into the shoes of the injured party and seek reimbursement for the healthcare expenses paid on their behalf.

It is commonly used in health insurance and other types of insurance to recover costs and prevent the injured party from obtaining a double recovery.