With Teixeira scheduled to have wrist surgery soon, he will miss the remainder of the season. Since Teixeira was hurt during the WBC, the Yankees were able to take advantage of the MLB-provided insurance -- worth approximately $7 million -- until Teixeira returned on June 1.
He returned for 15 games before shutting it down. The temporary disability policies work by providing deductibles that protect the insurers until a player moves past 100-to-120 days of inactivity.
This brings us to Alex Rodriguez. If A-Rod were to miss the entire season because of his hip, the Yankees would not receive the full $28 million he is owed from his temporary insurance. The most they would save is $9 million because of how the policy is set up.
The big score for the Yankees would be if Rodriguez's hip won't allow him to play again. If this were to happen, the Yankees would put in a claim on their permanent policy and, possibly, could recoup about 80 percent of the approximate $100M Rodriguez is still owed.