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Health Insurance Liens and Personal Injury Settlements

How Do Health Insurance Liens Affect a Personal Injury Settlement?

When an injured person has health insurance, the insurance carrier may be entitled to a portion of the money recovered in a personal injury settlement. This is known as a lien, and it affects how much the injured party ultimately receives from their settlement. The amount owed to the health insurance company depends on contractual language included in the policy agreement with the insured or sometimes state law.

Need Help With Your Personal Injury Claim?

If you are dealing with a personal injury case, be aware of any potential liens that may be associated with the case. The attorneys at Cantor Grana Buckner Bucci are here to help. Our experienced team can provide guidance to ensure that your rights are protected and that you get the maximum compensation possible. Contact us today for a free consultation.

health insurance liens in a personal injury case

What is a Lien?

A lien is a legal claim on an asset or property in order to secure payment of a debt. In the case of personal injury, a health insurance lien is the right of an insurance company to seek repayment from the injured person’s settlement for any expenses from medical treatment covered by them. The amount that can be recovered depends on contractual language in the policy agreement and sometimes state law.

What Types of Health Insurance Liens Are Typically Involved?

The most common type of health insurance lien in personal injury cases involves Medicare and Medicaid. In addition, private health insurers may seek reimbursement for expenses paid out on the injured party’s behalf, such as medical bills or medication costs, depending on the language of the policy. 

How Health Insurance Companies Use Liens to Reclaim Medical Expenses

In many cases, a health insurance company will attempt to recover costs associated with the treatment of the injured party. This typically happens when the settlement amount is more than what was paid out in medical bills. The lien allows the insurance company to recoup any additional expenses they may have incurred relating to their policyholder’s medical care. This type of lien is often referred to as a subrogation lien.

health insurance liens

How Does the Injured Person Receive Their Share of Settlement Funds?

In most cases, the health insurance company will seek to take their portion of the settlement amount before any money is paid out to the injured party. This means that after all medical bills and liens have been paid, whatever is left goes to the injured party. However, some states may require that a portion of the settlement amount must be paid out directly to the injured party before any liens become effective.

What is The Impact of Liens on Personal Injury Settlements?

The impact of health insurance liens on a personal injury settlement amount depends largely on the language included in the policy agreement between the insured and their health insurance company. In some cases, the lien may reduce the overall settlement amount to which an injured party is entitled. In other cases, the lien can be offset by payments made by a third party responsible for causing the injury, such as a defendant in an automobile accident. Ultimately, how health insurance liens affect a personal injury settlement amount depends on the specifics of each case and applicable law, and must be determined by an experienced attorney or legal professional.

Injured parties should understand their rights when it comes to health insurance liens and personal injury settlements so that they can get the most out of their settlements. Experienced personal injury attorneys can help injured parties understand how health insurance liens affect their settlements, as well as explore other options for obtaining the best possible outcome in their case.

woman looking at her health insurance coverage

Health Insurance Liens and Subrogation Rights

In many cases, health insurance companies will use a process called subrogation to enforce their lien claims. This involves the insurance company suing the party responsible for the injury and then reclaiming any monies paid out related to medical bills from the settlement amount.

In some cases, the health insurance company may be able to sue both parties involved in an accident if they can prove negligence on behalf of either one.

Before entering into a personal injury settlement, ensure that you understand how liens may affect the ultimate amount of funds received by the injured party.

An experienced personal injury attorney can help explain these laws and guide individuals through the process of obtaining a fair settlement. Additionally, an attorney can also help identify any potential subrogation rights that may be available in order to maximize the amount of personal injury compensation received.

Are There Strategies for Negotiating with Health Insurance Companies Regarding Liens?

In some cases, individuals may be able to negotiate with their health insurance company in order to reduce or eliminate the lien amount. This is especially true if the health insurance company was slow in responding to the claim or paid out more medical bills than necessary. If you want to negotiate, contact an attorney experienced in negotiations with health insurance companies regarding liens. An experienced attorney will be able to understand the nuances of the contractual language and will have a better understanding of how to best negotiate a reduction or elimination of the lien.

medical services after a personal injury

What Happens if the Lien is Not Paid by the Defendant in a Personal Injury Case?

In some cases, the defendant in a personal injury case may not be able to pay the full lien amount. In this situation, the injured party may need to try and negotiate with their health insurance provider in order to reach an acceptable agreement. Alternatively, they may be eligible for legal aid if they do not have sufficient funds to cover the lien. In any case, contact an experienced attorney so that you can understand all of your options and receive the best possible outcome in your case.

Ways to Protect Yourself from Unfairly High Liens or Denied Personal Injury Claims

Read Your Policy

In some cases, individuals may find themselves facing unfairly high liens or denied claims from their health insurance provider. In order to protect yourself from this, thoroughly read and understand your policy agreement so that you know the provisions and coverage regarding liens. If you have questions about any language included in the contract, seek legal advice from an experienced attorney.

Be Aware of Subrogation Rights

Be aware of any potential subrogation rights that may exist between your health insurance provider and the party responsible for causing the injury. If these rights are not properly addressed, the injured individual could end up having to pay more out of pocket than they should in order to cover their lien amount. An experienced lawyer can help ensure that you are properly compensated and protected from any unfair lien amounts.

contacting a personal injury lawyer

Contact an Attorney

If you are dealing with a health insurance lien and want to ensure that you get the most out of your settlement, contact an experienced attorney at Cantor Grana Buckner Bucci. Our team is well-versed in personal injury law and can help you understand your rights, as well as explore any potential strategies for reducing liens or securing the best possible outcome in your case.

For more information regarding health insurance liens and personal injury settlements, contact Cantor Grana Buckner Bucci today.

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