When you have an injury due to someone else’s negligence, the negligent party may be responsible for your medical bills. However, you generally get medical care before any determination of liability occurs. For many people, their own health insurance initially covers the cost. This can alleviate the stress and worry of not having the funds to pay for medical care. However, it can also leave you wondering how you pay for your care, and how a personal injury claim might impact your responsibilities to others. One issue that often arises is a health insurance lien. Knowing what a lien is, and how it works, can help you protect your finances and focus on recovering.
At Jan Dils, Attorneys at Law, helping you understand how liens may affect settlement judgment amounts is one way we guide clients by protecting their rights, maximizing their recovery, while still ensuring that they cover their medical care and meet their obligations.
Generally, your health insurance company should cover medical care for injuries, regardless of the cause of the injury. However, health insurers generally reserve the right to recover that money from any settlement or court award. That reservation can result in a lien, which is a claim placed on any recovery you may get from the negligent party, their insurer, or even a different type of your own insurance. For example, if your health insurance pays for hospital care after a car accident, the insurer may file a lien to get reimbursed once you receive compensation from the responsible party.
Private health insurance, Medicaid, Medicare, or even state workers’ compensation programs can all file these liens. Making things more complicated, each has its own rules, deadlines, and procedures for asserting a claim. It is critical to understand which liens apply and the amount they can claim before settling your case.
Health insurance liens do not reduce a judgment or claim: you still get the same award amount. However, the insurer gets to take a share of that award before you get your money. If your settlement is $50,000 and your insurer has a $15,000 lien, that $15,000 typically goes directly to the insurance company. The remaining $35,000 is what you receive for pain and suffering, lost wages, and other damages.
Handling liens improperly can create problems. Failing to address a lien could delay your settlement, result in additional fees, or even cause legal disputes with your insurance provider. That’s why understanding the process and consulting with an experienced personal injury attorney can make a big difference.
Reviewing the lien amounts and confirming the bills are correct helps us manage any potential liens and sometimes results in us reducing what the insurance company can claim. We also ensure that any lien resolution follows state and federal laws.
By handling liens correctly, we help you focus on your recovery rather than worrying about medical bills or legal technicalities. Our free consultations explain how liens might affect your case and what steps you can take to protect yourself financially.
If you’re dealing with medical bills after an injury, a health insurance lien doesn’t have to complicate your personal injury claim. We guide you through the process, advocating for your rights while resolving lien issues efficiently. If you have been injured and your health insurance may have a lien on your claim, contact Jan Dils, Attorneys at Law. We explain your options, handle communications with insurers, and work to protect the money you deserve.
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Jan Dils, Attorneys at Law
