Medical bills can be extremely expensive, especially if you’ve suffered injuries at the fault of someone else. The financial burden of them can add up to tens or even hundreds of thousands of dollars. Figuring out how to pay for your care while recovering and being unable to work can be terrifying. Depending on your circumstances, a medical lien may be an option for you.
Here is some basic information about medical liens, how they pertain to personal injury cases, and more.
What Is A Medical Lien?
Liens are the legal right of creditors to be repaid for debts through access to the property and/or assets of the debtor. There are many different types of liens, from tax liens to judgment liens to what we will discuss in this blog, medical liens.
A medical lien is a legal document that promises the hospital that you will pay back your medical bills once the personal injury settlement comes in. The at-fault party will be responsible for paying back your medical bills as part of the compensation in the settlement.
Your personal injury attorney will advise you as to whether or not a medical lien is advisable for you and your specific situation. In most personal injury cases, medical liens are unnecessary.
How Do Medical Liens Work?
Medical liens are usually arranged by the victim’s attorney when the victim doesn’t have health insurance and needs to obtain medical treatment. Continuing treatment is important for recovery and for the sake of your case, to show that your injuries were serious. Some doctors are willing to continue treatment without a lien, while others are unwilling to accept liens. Your lawyer will advocate for you in order to ensure the best results possible to help you in your specific circumstances.
The individual or entity responsible for causing the accident/the victim’s injuries can be held accountable to cover the victim’s damages, medical expenses included. However, personal injury claims can take time – and medical bills still need to be paid in the meantime. Medical liens enable you to get medical bills temporarily paused while you wait for your settlement, so you can avoid having to pay with your own funds or having your medical bills sent to collections.
Medical liens can be filed whether or not health insurance covers some of your medical bills. However, the hospital or doctor’s office may not accept payment from the insurer if you’ve filed a claim, because many insurances cover costs at a reduced rate, which would cause the healthcare providers to lose money, if they know that they could charge the total amount and receive it from the settlement. A personal injury attorney can protect you from being taken advantage of by profit-driven systems.
Are There Risks Associated With Medical Liens?
Yes, there are definitely risks with giving your healthcare providers medical liens. For instance, if the case does not settle for its full value, the entire settlement the victim receives may go to medical bills. The healthcare provider is also at risk in these cases, because if the victim is not awarded any money, they will not get paid from the settlement.
This is less than ideal for both the victim and the healthcare provider, as the bills need to be paid eventually. If worst comes to worst, contracts could be negotiated and renegotiated. As sending the victim to collections or taking them to court would yield less money, the lienholder is typically open to negotiating, such as by reducing the owed amount or agreeing to a payment plan.
There is a big difference between insured and uninsured victims. Liens are voluntary agreements, so it’s important for all parties involved to understand the complexities of the situation. No party is forced to accept a lien.
How Come Insurance Can Take A Share Of Your Settlement?
If you file a personal injury claim and win, it may seem unfair that your insurance can then demand that you pay them back for what they paid for your treatment. After all, you’re spending all this money to have insurance. Perhaps you’re thinking that it doesn’t seem right that they can get their money back from your settlement.
This frustration is understandable. However, insurance companies may be entitled to recover their payments from the proceeds of the settlement, based on what the subrogation clauses in your insurance contract are. In many states, accident victims do not have to repay their health insurance company, unless they obtain full compensation for their injuries. Personal injury attorneys negotiate with insurance companies to ensure you receive optimal results.
Do You Want To Pursue A Personal Injury Claim?
In order to know whether or not you have a case, you’ll want to consult with a personal injury attorney. They will be able to advise on the best course of action to take in your specific circumstances. This includes whether or not a medical lien would be a good option for you or not.
LeBaron & Jensen provides personal injury representation. Contact us today to schedule a case consultation to see what we can do for you.
