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After a crash, medical bills add up fast. But did you know that even if the at-fault party’s insurance eventually pays, you might still owe money?
Medical liens allow you to get treatment now without paying upfront, but providers stake a claim on your future settlement. Once your case settles, the owed amount is deducted from your compensation.
Knowing how medical liens work helps you plan and avoid unexpected deductions from your settlement. Our Syracuse car accident lawyers can help manage outstanding liens, reducing what you owe so you take home a larger share of your award.
What Is a Medical Lien?
A medical lien allows healthcare providers, insurance companies, or government programs to recover the costs of medical treatment from a personal injury settlement. Instead of requiring immediate payment, providers agree to treat a patient with the understanding that they will be paid once the case is resolved.
If you can’t afford out-of-pocket medical expenses after a collision, a lien can help you get the care you need. However, you must pay it back before receiving your settlement funds.
It’s important to remember that delaying a claim due to uncertainty or financial concerns can harm your chances of recovering the compensation you need. Always seek medical attention and file immediately to protect your health and establish your case.
Who Can Place a Medical Lien on a Settlement?
Depending on the situation, different parties can place a medical lien on a personal injury settlement, including:
- Hospitals and Medical Providers: New York law grants emergency rooms, physical therapists, surgeons, and other healthcare providers the right to place liens for any treatment provided without upfront payment.
- Health Insurance Companies: In New York, if a private insurer pays for medical treatment related to an accident, it cannot seek reimbursement under Section 5-335. The law assumes settlements don’t include money for medical costs that insurance already paid.
While Section 5-335 limits private insurer reimbursement, some employer-provided ERISA health plans may still seek repayment due to federal laws. An attorney can help determine if your settlement is protected.
No-fault insurance, Medicare, Medicaid, or workers’ compensation insurers may still be entitled to reimbursement.
- Government Programs: Medicare, Medicaid, and the VA may file liens if they cover medical expenses related to the injury. Failing to satisfy these liens can result in legal consequences.
Because multiple parties can place liens on your settlement, it’s important to understand how they impact your final payout.
Impact of Medical Liens on Your Settlement
Medical liens reduce the amount you receive from a settlement. Before any funds are distributed, lienholders, such as your doctor or the hospital that provided initial treatment, must be paid. This can be frustrating, especially if the final settlement is lower than expected due to factors like disputed liability or policy limits.
For example, if your case settles for $100,000 and medical providers have $40,000 in liens, that amount is deducted first. Without proper management, a large share of your settlement could go to these obligations instead of covering lost wages, ongoing treatment, or other expenses related to your recovery.
Negotiating Medical Liens
Medical liens can often be negotiated to reduce the amount due. Healthcare providers and insurers may be willing to accept less than the full amount if they recognize that collecting a smaller payment is better than risking none at all.
These strategies can help limit how much you owe for medical liens:
- Requesting a Reduction: Many providers have policies allowing for reductions based on financial hardship or the overall settlement amount.
- Challenging Unreasonable Charges: Some medical bills may contain inflated or unnecessary charges that can be disputed.
A qualified car accident attorney can negotiate with medical providers and insurers to lower the overall amount you owe for medical expenses and treatment.
Why Legal Representation Matters
Dealing with medical liens while recovering from an injury can be overwhelming. A personal injury attorney can help minimize what you owe and protect your settlement.
Legal representation helps with:
- Reviewing all potential liens to avoid unexpected deductions from your settlement
- Negotiating lower payments with hospitals, insurers, and government programs to cut down on what you owe
- Managing lien repayment to ensure the least impact on your final settlement amount
Unpaid liens can lead to legal action, delayed settlements, or collection efforts. Addressing them early with your attorney helps protect your financial recovery.
Take Control of Your Settlement With Catalano Law
Medical liens can take a major portion of your settlement, but legal representation can help reduce this liability. The personal injury attorneys at Catalano Law know how to negotiate reductions, manage lien repayment, and help you secure the best possible financial outcome.
If you were injured in a crash, call us today for a free consultation. We work to maximize your settlement while minimizing medical liens so you keep more of your compensation.
