Medical liens must be considered when calculating the take-home value of your personal injury settlement
Following any kind of personal injury accident, naturally it is very important to get proper medical care. The cost of your medical care will play a key role in determining the value of the compensation you may be entitled to from the party who caused your accident. However, even if you are reimbursed for the full cost of your medical care, this doesn’t necessarily mean all of that cash will go straight into your pocket. If medical liens have been placed on your future personal injury settlement, this will reduce the value of the compensation you receive.
What is a Medical Lien?
A medical lien is a priority claim made on your future personal injury settlement. The lienholder must be repaid before any of the settlement goes into your bank account.
Depending on the situation, there are two possible parties that might hold a medical lien on your personal injury settlement: your medical insurance company and your healthcare provider.
It is actually quite common for insurance companies to hold liens on personal injury settlements. After all, your insurance company will almost certainly have paid for some of your care, and they have a right to be reimbursed for what they have paid in the event that you win a settlement. This is actually accounted for in the way we set up your personal injury claim. We seek compensation for the full cost of your care, not just the amount you paid out of pocket. This ensures that both you and the insurance company will be compensated for the amount you each paid for care.
It is less common, but still possible, for a doctor or a hospital to hold a medical lien. This might happen if you do not have insurance. The doctor or hospital would provide care at no upfront cost, in exchange for a medical lien on your future personal injury settlement. If you win your case, the lien will be paid from your compensation. If you do not win, you will have to pay your medical bills yourself.
Can Medical Liens Be Reduced?
Depending on what other types of compensation you may be eligible to receive, your medical care could represent a significant chunk of your compensation. Deducting the amount of a medical lien from your settlement could leave you with very little compensation. Fortunately, when the lien is held by a private insurance company, it is often possible for your personal injury attorney to negotiate for the amount of the lien to be reduced.
If you have been injured and you need help understanding your legal rights and estimating the amount of compensation you may be eligible to receive, please call The Law Offices of Larry H. Parker at 800-333-0000 now. We can answer your questions during a free initial consultation and provide no-risk representation.