You've won your settlement! But before you get the check, your lawyer mentions 'liens.' Suddenly, health insurers, hospitals, and even the government are lining up to take a piece of your recovery....
You've won your settlement! But before you get the check, your lawyer mentions 'liens.' Suddenly, health insurers, hospitals, and even the government are lining up to take a piece of your recovery. Medical liens are a confusing and frustrating part of personal injury law. Simply put, if someone else paid for your medical care (like health insurance), they often have a legal right to be paid back from your settlement. Managing these liens is crucial to maximizing the money that actually goes into your pocket.
What Is a Medical Lien?
A lien is a legal claim against your settlement funds. It means a third party has a right to be reimbursed for expenses they covered related to your accident. The most common liens come from health insurance providers, Medicare/Medicaid, and hospitals.
Health Insurance Subrogation
Most private health insurance policies have a 'subrogation' clause. It says if they pay for treatment for an injury caused by someone else, and you recover money from that person, you must pay the insurer back. However, Florida law and federal laws (like ERISA) have complex rules about how much they can take.
Medicare and Medicaid Liens
Government liens are powerful. Medicare and Medicaid have a 'super lien' status. You are required by law to report your case to them and pay them back. Ignoring a Medicare lien can result in severe penalties and even losing your future benefits.
Hospital Liens
Some Florida counties allow hospitals to place a lien directly on your settlement for the full 'chargemaster' rate of your ER visit, which is often much higher than standard insurance rates. These can eat up a huge portion of a settlement if not negotiated.
The Lawyer's Role: Negotiation
This is where a good lawyer earns their keep. We don't just pay the liens; we negotiate them. We argue that the lien should be reduced because you had to pay attorney fees to get the money (the 'common fund doctrine') or because the full amount would be unfair. We often save our clients thousands of dollars by aggressively reducing these lien amounts.
Contact Emas Law Group Today
Liens are complicated, but they don't have to ruin your settlement. Emas Law Group handles the entire lien resolution process. We ensure that every valid lien is paid, every invalid lien is fought, and that you keep the maximum amount possible.
Frequently Asked Questions
Can I ignore a lien?
No. Ignoring a valid lien can lead to lawsuits against you and your attorney. It must be resolved before funds are disbursed.
Does PIP have a lien?
Generally, no. PIP coverage is yours and does not typically have to be paid back from a settlement with the at-fault driver.
What if the lien is more than my settlement?
In that case, we negotiate hard. Most lienholders will agree to take a reduced amount rather than get nothing, or we can ask a court to determine an equitable distribution.