SKIP TO CONTENTYou’ve had a car or truck accident, and you’re expecting that settlement check any day now. Much to your dismay, though, your lawyer informs you that there’s a medical lien on your settlement. That means your settlement check won’t be as large as you thought.
What exactly is a medical lien, and can your Oklahoma personal injury attorney do anything about it? Learn everything you need to know about health insurance liens below.
What Is a Medical Lien?
After a motor vehicle accident, you can’t delay medical treatment until your case settles. You might need emergency care and need to spend some time recovering in the hospital. After that, you’ll have doctor’s appointments and follow-up visits. You might also need physical therapy.
Most people can’t pay for their medical care out of pocket, relying instead on health insurance or Medicare/Medicaid until their Oklahoma personal injury attorney can negotiate a settlement. If you used your insurance to cover the cost of care, the insurance company has a right to place a lien on your settlement.
A medical lien allows the insurance company to recover money spent on your care from your settlement. You might also see this referred to as a subrogation interest or a subrogation lien.
What Is a Lien Holdback?
A lien holdback is a portion of your settlement that must be set aside or reserved to pay liens. No one, including you and your Oklahoma personal injury attorney, can access this money until a lien resolution has been completed.
The lien holdback process works like this: Your lawyer will split the settlement into two installments and give you a check that includes a portion of the settlement. They’ll hold the rest of the money back to pay any liens. After lien resolution, the lawyer subtracts the holdback and sends you the remaining amount.
How Long Does Lien Resolution Take?
Lien resolution can take a few months to several years. The process is usually the fastest for private health insurance. Medicaid/Medicare liens take the longest to resolve. Unfortunately, there is no way for your lawyer to speed up this process.
The typical lien resolution process is as follows:
- You’re injured in an accident and use your insurance or Medicaid/Medicare to pay for treatment. Insurance places a lien on any potential settlements.
- Your attorney begins investigating your claim.
- You either choose to settle or take the case to court with the help of a trial attorney.
- The court may choose a neutral third party to oversee the lien resolution process.
- You review and sign your settlement documents.
- A third party identifies liens placed on the settlement by insurers, hospitals, etc.
- Your lawyer negotiates to lower the lien amount.
- The insurer takes the agreed-upon amount from the settlement, and your Oklahoma personal injury attorney sends you a check for the rest.
How Can Your Oklahoma City Personal Injury Lawyer Help?
Although your lawyer has no control over the speed of the lien resolution process, they may be able to reduce the amount you owe through negotiations. Some insurance companies are willing to negotiate for a lower payment. In some cases, your insurance company might be willing to waive the lien entirely.
Medicare, for example, is sometimes willing to waive liens if taking money from your settlement would cause “undue financial hardship.” If taking your settlement money impacts your ability to pay for housing or food, your lawyer may be able to waive the lien.
Contact an Experienced Personal Injury Attorney in Oklahoma
Bryan Garrett PLLC has 25+ years of experience in practice areas such as personal injury cases and workers’ compensation denials. For a consultation with an Oklahoma personal injury attorney, call (405) 839-8424.
