November 21, 2023
How Do Medical Liens Impact a Personal Injury Settlement?
You may be familiar with the word “lien,” which is a creditor’s or lienholder’s claim against an asset. It is often associated with real estate, referring to an owner’s responsibility to pay the remaining mortgage balance before selling. With personal injury settlements, medical providers and others might be the lienholders.
People injured in car accidents often need significant medical treatment. That can be overwhelmingly expensive, even when you have health insurance. Some medical care providers will temporarily postpone the required payments, putting medical liens on the insurance settlements.
The lien is the injured party’s promise to pay the provider; this is done in exchange for the time needed to settle the claim or lawsuit. This is common when there are significant out-of-pocket costs for:
- Ambulance services
- Emergency room visits
- Lengthy hospital stays
- Physical therapy and rehabilitation
The medical care provider will then have a legal claim for a portion of your settlement to cover their costs for your care. Technically, they will need to be reimbursed for services rendered.
What About Health and Auto Insurance Liens?
Private health insurers can also pay for injury treatment following a car accident. Those providers might seek repayment if another party is liable for your injuries. They might also put a lien on your settlement – this is called subrogation. When that happens, your insurer seeks reimbursement from the settlement you get awarded from the other party’s insurer.
The same thing can happen if you have a Medicare, Medicaid, or auto insurance policy with medical bill coverage. A lien can reduce the amount of money a claimant receives.
Can a Lawyer Help Me With a Medical Lien?
A medical lien can significantly reduce the amount of damages that you were counting on, and an experienced car accident lawyer may be able to help your case. They can help identify the liens and act as your liaison so you can focus on your recovery.
It is not unusual to find errors in medical statements. Your lawyer can ensure that the charges are accurate and reasonable. Depending on the circumstances, your final settlement might cover all your medical expenses, plus enough to recover other damages such as lost wages and pain and suffering.
Contact a Montgomery County Car Accident Attorney at Anthony C. Gagliano III, P.C. for Help With Medical Liens in a Personal Injury Settlement
Receiving a compensation offer that does not fully cover your costs from an accident is frustrating, especially when you are still recovering. A skilled Montgomery County car accident attorney at Anthony C. Gagliano III, P.C. can explain your options. To schedule a free consultation, contact us online or call us at 267-861-7100. Located in Philadelphia and King of Prussia, Pennsylvania, we serve clients in Montgomery County, Delaware County, Bucks County, Chester County, and Norristown.