What Is a Personal Injury Medical Lien?

A lien is not necessarily a bad thing. By placing a lien, providers can feel confident that they will be reimbursed for their services, allowing you to receive the necessary care without worrying about immediate payment.

There are several different types of medical liens, including:

Medical Provider Liens

Medical provider liens are common in personal injury claims. Healthcare providers, such as hospitals, doctors, and other medical facilities, file these liens after treating injured accident victims. Medical provider liens ensure that the medical providers receive payment for their services. They can be filed before or after your attorney files a personal injury lawsuit.

These types of liens can significantly impact the settlement or compensation received by the injured party. When a healthcare provider files a lien, they essentially become a creditor in the case and have a legal claim to a portion of the settlement or compensation awarded to the injured party.

If a medical provider files a lien against you after a personal injury claim, you can expect to receive a notice of the lien from the healthcare provider or their legal representative. This notice will inform you of the amount owed to the healthcare provider. It will also tell you how to resolve the lien. If the lien is not resolved, the healthcare provider may take legal action to enforce their claim, which can result in a court judgment against you.

Workers’ Compensation Liens

Usually, injured workers cannot sue their employer for a personal injury if they suffer an injury on the job. However, there are exceptions to this rule. In rare cases, an injured worker may be able to seek compensation both through the workers’ compensation system and through a personal injury lawsuit. In this situation, the workers’ compensation insurance carrier may try to recover some or all of the amount they paid for the injuries by placing a lien on the amount the injured worker recovers from the lawsuit.

Dealing with workers’ compensation medical liens can be complicated and often requires negotiation between the healthcare provider, the workers’ compensation carrier, and the injured worker.

Government Liens

Government liens are filed by federal or state agencies that have provided benefits or services to an injured party through government programs, such as Medicare or Medicaid. If you accepted Medicare or Medicaid benefits and they paid your medical bills after a serious injury accident, the government might file a lien to recover their funds. They want the “at-fault” party to pay your medical bills – not them. By filing a lien, they can recover the money they paid to help you get immediate medical attention.

Motor vehicle accidents are the most common reasons medical liens are filed.

Here is a typical situation where a medical lien may be filed.

• Bill got injured in a car accident after a drunk driver ran through a stoplight and t-boned his vehicle. He suffered severe injuries that required multiple surgeries and spent two weeks in the hospital. After leaving the hospital, he spent another six months in rehabilitation therapy, regaining his mobility and strength. During this time, his medical insurance paid their portion of his medical bills.
• Medical providers and healthcare companies know that a car accident caused Bill’s injuries and subsequent medical issues. Since Bill and the drunk driver have insurance, these insurance companies are responsible for paying the damages.
• In this case, the medical providers who treated Bill may file a medical lien against any potential settlement or judgment that he receives from the liable party or their insurance company. This lien allows the medical providers to get reimbursed for their services and ensures they are paid before Bill receives any settlement or compensation.

If you have suffered an injury in an accident and have outstanding medical bills or other related expenses, you may file a lien to protect your interests in any potential settlement or judgment in your case. Here are the steps you should take:

Without a medical lien, your personal injury settlement or judgment may not cover all of your medical expenses. This can result in a significant financial burden and limit your compensation for your injuries. Therefore, it is important to work closely with their healthcare providers and attorney to ensure that medical liens get properly filed and managed to maximize financial compensation.

Why are medical liens important to accident victims?

To help your injury attorney file your lien, gather any evidence you can about the crash. This might include medical records, accident reports, and eyewitness testimony. Submit photos of the accident and your injuries and a detailed report in your own words of what happened. Collect everything you have to present to a lawyer.