A medical lien could reduce the compensation you pocket from a personal injury case

What You Need to Know About Medical LiensFollowing any kind of serious injury, getting proper medical care is obviously important. If your injury was caused by someone else’s negligence, they should have to cover the costs of your medical care. With help from a personal injury attorney, you can seek compensation for the full cost of your medical care (plus other damages). However, this doesn’t necessarily mean you’re going to pocket the full amount.

Why not?

Because it’s highly likely a medical lien has been placed against your personal injury settlement.

What is a Medical Lien?

A lien gives one party a legal right to another party’s property. In the case of a medical lien, the property in question is the personal injury compensation you may receive for your medical bills.

There are two main parties that end up holding medical liens:

Insurance Companies: Health insurance policies almost always include wording that gives them the right to place a medical lien on your compensation if you file a personal injury claim based on medical bills that were paid by your insurance. The lien will only cover the amount that the insurance company paid—not the full face value of your bills or the portions that you paid out of pocket.

Healthcare Providers: If you do not have insurance, or if your insurance is not adequate to cover all your care, your doctor or hospital may agree to provide care if you agree to give them a medical lien against your future personal injury settlement.

The main difference between liens held by insurance companies and liens held by healthcare providers is in your personal liability. If you do not win your personal injury case, the insurance company cannot come after you for repayment of the amounts they spent on your care and hoped to get reimbursed for through the medical lien. But a healthcare provider can. The fact that in the absence of personal injury compensation, you will be on the hook for all your medical expenses makes it extremely important to consult a personal injury attorney regarding your potential claim before you sign a medical lien with a healthcare provider.

How Do Medical Liens Get Resolved?

Medical liens are priority claims, meaning they get paid first—before you pay your attorney and before you get any compensation in your pocket. In some cases, it is possible to negotiate with private insurance companies to reduce the value of the lien. However, this requires skill to accomplish, which is why you need to be sure you have an experienced personal injury attorney working for you.

If you would like to learn more about seeking compensation for a personal injury, please contact The Law Offices of Larry H. Parker at 800-333-0000 for a free consultation.

📞 Call 800-333-0000 Today!