In legal terms, a lien is the legal right of one person to retain possession of another person’s goods until that person’s claims are satisfied. A valid and legal lien gives the person who holds the lien, known as the lienholder, the right to retain possession of a piece of property until the obligation that formed the lien is satisfied.
In the case of a medical lien, the lienholder is typically a medical provider who has provided medical care to the injured plaintiff. In some cases, a medical provider may provide treatment to an injured individual that the negligent actions of another have injured in return for obtaining a lien on any personal injury funds that the plaintiff recovers against the party or parties that injured them.
For example, if an individual was injured as a result of a vehicle collision as a result of the negligent actions of another party and then they were taken to a hospital via ambulance for treatment of their injuries, then the hospital may file a lien against the individual that received the medical treatment.
Then, if the individual can make a recovery for their personal injuries against the responsible party, the medical lien holder will be paid before any other party receiving money from the settlement or damage award.
It is important to note that medical liens are referred to hand-in-hand with subrogation. In simple terms, subrogation occurs when one party claims to get repaid for bills they paid on another party’s behalf. In the case of a medical lien, the party claiming to get repaid is the medical service provider.
It is also important to note that a subrogation claim is not the same as a medical lien, as a medical lien does not require a subrogation claim made by the medical service provider. Instead, the medical service provider only has to follow the medical lien laws of their jurisdiction to establish a valid medical lien.
When Are Medical Liens Typically Imposed?
Once again, medical liens are typically imposed against a plaintiff who stands to receive money due to a personal injury settlement or damages award. In a claim for personal injury, an injured party, who is known as a plaintiff, claims that they have sustained an injury due to an act or failure to act by a wrongdoer, known as a defendant. If the plaintiff is successful in their claim, a court may award the plaintiff compensatory damages for their personal injury in the form of a damages award.
Personal injury settlements can include damages for a plaintiff’s emotional, physical health, or both. Common examples of mental health injuries include emotional pain and anguish sustained by an accident. Common examples of physical injuries include injuries to organs, limbs, or other parts of the anatomy. Personal injuries can also be long-term or manifest at some point in the future.
Some of the most common examples of personal injuries caused by another individual’s negligent behavior include automobile accidents, slip and fall accidents, and medical malpractice.
Regardless of the basis for the personal injury, a medical lien may be imposed when a medical service provider gives reasonable and necessary medical treatment to a patient who fails to pay. Once again, this is typically in conjunction with a personal injury case that gives rise to the need for the treatment, or shortly after that when it becomes clear that the provider will not be paid otherwise.
In most cases, insurance companies are the ones against whom the lien is filed. For example, in the case of a car wreck, a medical lien may be filed against the responsible or negligent party’s insurance that is liable to pay for the damages of the injured party or even the injured party’s insurance if they carry personal injury protection or uninsured motorist insurance.
It is unusual, but not unheard of, for a medical service provider to file a medical lien on the individual patient themselves. For example, if the patient does not carry any medical or vehicle insurance and has failed to initiate a personal injury claim, the medical provider may put a lien on the person to later alter to the responsible party or insurance provider.
In most cases, medical providers prefer to go through some debt collection process instead of securing a medical lien. This is because it is often less expensive for medical providers to hire and utilize debt collectors than attorneys to secure valid medical liens.
In most cases, medical lien matters will be put on the “back burner” during a personal injury case. This is because the case must first be decided before a medical provider can determine the party responsible for paying for medical damages resulting from the personal injury case.
How Much Can Be Recovered?
In most cases, the medical provider will recover the entire amount of the medical lien. However, that is not always the case, as typically, the injured party, their attorney, or their insurance company will negotiate a settlement on the medical lien so that the plaintiff can recover more money due to their personal injury settlement.
In some states, specific statutes outline in detail how much money a medical provider with a valid medical lien is entitled to in a personal injury case. In most states, the amount that may be recovered for a medical lien is determined by what a Medicare recipient or common medically insured person would have paid for the same medical service to be performed.
This means that if a medical provider bills $50,000 for a service, but insurance commonly pays (and the provider commonly writes off) 50% of that total bill, then the medical lien is only valid for 50%.
How Do I Know If I Have a Medical Lien?
In general, if a medical provider has provided treatment to an individual and claims to have a medical lien against the personal injury settlement, they will have to perfect their lien. This means they will most likely have to file the medical lien with the county clerk in the jurisdiction where the personal injury claim has arisen.
As such, most medical liens may be looked up by searching the plaintiff’s identifying information on their local county or district clerk’s website. Most county or local court websites will have a section dedicated to individuals searching for liens tied to their names.
Importantly, liens will be filed in the county where the hospital is located or the plaintiff resides. Medical liens may also be provided directly to the injured party or responsible party’s insurance, but those liens may not be valid if they are not perfected in concurrence with the medical lien laws of the state.
Do I Need an Attorney for My Medical Lien Issue?
If you have any questions regarding a medical lien issue, it is best to consult an experienced personal injury lawyer. An experienced attorney will help you determine whether or not there is a valid medical lien that has been filed against you or your personal injury claim settlement.
An attorney will also be able to help you determine whether or not another party’s medical lien claim against you is valid. For example, in many states, a health insurance company is not allowed to make a subrogation claim against the settlement for an injured party due to them covering the injured party’s medical damages.
However, they may file a lien if they follow the medical lien laws of the state. Finally, an experienced attorney can also represent you in court, as necessary, should court intervention be required to resolve the medical lien issue.
