insurance

Medical Liens

When you’ve been in a serious car crash and experienced personal injuries as a result of the accident, one of the most overwhelming problems to manage are the ensuing medical bills that you receive. Regardless of who pays for your medical bills, or if they remain unpaid, you will likely be subject to medical liens after the accident. In this post we’re going to discuss what medical liens are and how they should be handled after a car crash, motorcycle accident, or other catastrophe that results in personal physical injuries.

When you are injured, whether you see a doctor, a chiropractor, or any other medical expert, if you are not the one paying their bills, there will be liens. Sometimes, these “liens” are placed by a medical insurance company that covers your injuries, and then “subrogates” the right to seek payment. In other instances, where the bills remain unpaid, its ultimately the hospital that is eating the costs of your medical treatment. As a result, they can continue to seek payment of these unpaid bills after you’ve obtained a settlement for your injury claim.

In any event, those who pay your medical bills, whether it’s the hospital or an insurance company, will expect to be repaid out of any personal injury settlement that you receive. Because they have paid the costs of your treatment, they have a right to be repaid out of a settlement or judgment you obtain at trial. This right operates as a “lien” on your recovery under the law. Accordingly, if you receive a personal injury settlement through your attorney or privately from the car insurance companies involved, you’re going to have to turn around and pay some of that back to the companies that paid for your treatment. This is where having an experienced personal injury attorney can help you tremendously.

What is “subrogation”?

Subrogation is an equitable legal doctrine that allows an insurance company that paid a bill to “step into the shoes” of the billing party to seek repayment. Essentially, the insurance company agrees to pay the hospital, and they take the insurance company’s right to payment as their own. So even where your medical insurance pays your bills, they can seek repayment from you if you receive a settlement of your injury claim. This is true regardless of whether the case settles or goes forward to trial.

What will a personal injury lawyer do about my medical liens?

An attorney who represents victims of car accidents can help by negotiating these liens. While the lien-holder is typically entitled to payment, there may be statutory or other reductions to these liens that you can insist on under the law. In other instances, experienced lawyers can negotiate a lower payment on the liens for other reasons. By negotiating a lower satisfaction of these liens, your recovery can be increased by eliminating some of the payments you will have to make after settlement.

Conclusion: Medical liens don’t have to be intimidating

At Cornerstone Law Firm, we help clients every day who are facing mounting medical bills and intimidating medical liens after a car crash or other accident. If you’ve been injured, call us for a free consultation on your rights. You have a limited amount of time after a crash to seek compensation, so don’t delay. Let us help you determine your rights today.