Naturally, it is critical to seek medical attention following any type of personal injury event. The value of the compensation you may be entitled to from the party who caused your injury will be determined in part by the cost of your medical care. Even if you are paid for the whole cost of your medical treatment, this does not guarantee that all of the money will go directly into your pocket. If medical liens have been put on your future personal injury settlement, the amount of money you get will be reduced.
What is a Medical Lien, and how does it work?
A medical lien is a claim that takes precedence over any eventual personal injury settlement. Before any of the settlement money reaches your bank account, the lienholder must be paid.
A medical lien on your personal injury settlement may be held by either your medical insurance company or your healthcare provider, depending on the circumstances.
Liens on personal injury settlements are extremely prevalent among insurance companies. After all, your insurance company will very definitely have covered part of your medical expenses, and they have a right to be compensated if you win a settlement. This is taken into account in the way your personal injury claim is put up.
We want to be reimbursed for the entire cost of your treatment, not just what you spent out of pocket. This guarantees that both you and the insurance company are reimbursed for the costs of services you both paid for.
A medical lien held by a doctor, or a hospital is less prevalent, although it is still feasible. If you don’t have insurance, this may happen. In return for a medical lien on your future personal injury compensation, the doctor or hospital would give care at no expense up front. The lien will be paid from your compensation if you win your lawsuit. If you do not win, you will be responsible for paying your medical expenses.
Is it possible to reduce medical liens?
Medical treatment might account for a large portion of your compensation, depending on what other forms of compensation you are qualified for. If you deduct the amount of a medical lien from your settlement, you may be left with very little money. Fortunately, when the lien is held by a private insurance company, your personal injury attorney can typically negotiate a reduction in the amount of the lien.
Do you require assistance?
Please call The Law Offices of Larry H. Parker at 800-333-0000 immediately once if you have been harmed and need assistance understanding your legal rights and calculating the amount of compensation you may be entitled to. During a free first appointment, we can answer your questions and provide no-risk counsel.
