How to Handle Medical Liens on Personal Injury Settlements - How Much Can Lawyers Negotiate Medical Bills? - Negotiating a Medical Lien After Settlement

How to Handle Medical Liens on Personal Injury Settlements

A Guide to Protecting Your Recovery

 

When you’re dealing with a serious injury, medical bills can quickly pile up. In many personal injury cases, clients are concerned about how their medical bills will be paid, especially when they have health insurance or are covered by a government program like Tricare.

 

What Is a Medical Lien, and How Do They Affect Your Personal Injury Settlement?

 

A medical lien is a legal claim placed by your health insurer or other parties (like government programs) on the settlement or judgment you receive in a personal injury case. Essentially, the lien represents the money your insurance provider spent to treat you, and they have the right to be repaid from any settlement or judgment you receive.

 

For example, in a recent case we handled, a young boy was severely injured in a golf cart accident. He required surgery and had extensive medical bills. Fortunately, his parents had health insurance, but this created a complication: the insurer placed a lien on the settlement.

 

Negotiating a Medical Lien After Settlement

How Much Can Lawyers Negotiate Medical Bills?

 

Medical liens can be a challenge, especially when they’re high, and the client’s settlement is far lower than the total amount owed. In the case mentioned, the medical costs were over $1 million, but we were able to negotiate down the lien significantly, reducing it by over $600,000.

 

Negotiating medical liens is an essential part of our job as personal injury lawyers. In many cases, we can work with health insurance providers and government programs to reduce the amount they claim, ensuring our clients receive a more substantial portion of the settlement.

 

How We Use Health Insurance to Your Advantage

 

In the case above, the client’s parents had Tricare, a government health insurance program for military families. We were able to leverage this by negotiating with the Tricare lien and getting it reduced.

 

The key is to be proactive. If you have health insurance, make sure your insurer bills your health plan first, not the accident recovery. This ensures the insurance provider doesn’t overcharge or try to double-dip on the settlement. Once the insurance is taken care of, we can negotiate the lien and get you the compensation you deserve.

 

What Happens When a Client Doesn’t Have Health Insurance?

 

If you don’t have health insurance, the process becomes more complicated, but we have networks of doctors who are willing to treat clients and work with us on letters of protection. This means that doctors and medical providers agree to be paid after the case is resolved, so you can receive treatment without paying upfront.

 

Medical liens are a reality in personal injury cases, but with the right legal strategies, you don’t have to lose out on the compensation you deserve to cover these costs.

 

Every case is different. Results vary.