Sometimes your health insurance policy says this in the fine print: if they pay your medical bills and you later receive money from someone else for the same injury, you must repay the insurance company.
This rule almost always applies if you have Medicare, Medicaid, Tricare, or federal employee health coverage. This right is often called a lien or reimbursement claim, depending on the policy and the law. It simply means they have a legal claim to part of the money you recover.
Even if you don’t have a government health plan, your insurance company may still say you have to pay them back.
If you receive a letter from your health insurer asking questions like, “Were you in an accident?” or “Do you have a lawyer?” that’s usually a warning sign. It often means the insurance company is looking to get repaid from any settlement or money you recover.
A good personal injury lawyer will handle this for you and try to reduce the amount the insurance company wants to be repaid. In some cases, they can even get the lien reduced to zero. Our team has helped clients get private insurance companies and even Medicaid to drop their repayment claims. Talk with one of our Norfolk car accident lawyers today to learn how we can help.
How Are Medical Liens Helpful in Norfolk Car Accident Cases?
After a car crash, it’s important to get medical care right away, even if you don’t think you need it. In an emergency, a hospital emergency room must treat you and make sure your condition is stable. They are not allowed to turn you away just because you don’t have insurance or can’t pay.
This rule comes from a federal law called the Emergency Medical Treatment and Labor Act. Under this law, the hospital must conduct a medical exam and provide the treatment needed to stabilize your condition, regardless of your insurance or financial situation.
Once the emergency is over, the hospital does not have to keep treating you. After you are stable, they can discharge you.
If you don’t have health insurance, it can be very hard to find doctors and specialists for follow-up care. This can include bone doctors, nerve doctors, pain specialists, and physical therapists, even when that ongoing treatment is important for your recovery.
Medical liens can sometimes help you get care. Some doctors and clinics will treat you now and agree to wait to be paid until your case settles. That means you may be able to get treatment even if you don’t have insurance or can’t pay upfront.
A medical lien gives the provider a legal right to be paid out of your settlement or court award. Put simply, it makes sure the medical provider gets paid from the money you recover in your car accident case.
How Can a Medical Lien Impact My Car Accident Settlement?
The law is set up to make sure people hurt in car accidents caused by someone else can get the medical care they need. Medical liens also protect doctors and other providers because they should not have to wait a long time without payment while a legal case is ongoing.
With a medical lien, you usually do not have to pay money upfront. Instead, the provider is paid later from your settlement or court award.
Valid medical liens are typically resolved from the settlement before final funds are distributed. They make sure the doctors and other providers who treated you get paid for your care.
A good car accident lawyer can explain how liens affect your case and work to help you keep as much of your settlement as possible.
Can My Medical Lien Be Reduced?
Lowering medical liens takes a good understanding of Virginia’s laws and strong negotiation skills. Two common strategies for reducing liens are:
Federal Program Negotiations
When your case settles, Medicare usually has to reduce the amount it seeks to be repaid under a set formula that accounts for your lawyer’s fees and case costs. Medicare may sometimes reduce or waive part of its claim in limited hardship or equity situations.
Virginia Medicaid must provide a written claim amount and supporting details so the claim can be reviewed and disputed if the charges are unrelated. This lets you review the charges and dispute any that are incorrect or unrelated to your injury before you pay.
Hospital Lien Negotiations
Virginia law puts limits on many healthcare liens, which can help keep the payoff amounts more manageable. But sometimes a hospital may still try to collect payment under a separate agreement you signed, not just under the lien law.
Medicaid recovery follows different statutory rules and is not controlled by the same hospital lien caps, but it is still subject to federal limits and allocation rules. Even then, your lawyer’s fees and case costs are usually taken out first before those claims are paid.
If, for example, a private Norfolk hospital files a $2,500 lien and also claims another $15,000 based on a contract Hugh signed, both against his $50,000 slip-and-fall brain injury settlement, his lawyer can try to negotiate those amounts down. The lawyer may argue that the settlement is limited and that fault is disputed.
This kind of negotiation often reduces the total amount due, helping the client keep more of the settlement while still paying valid medical bills.
How Can a Norfolk Car Accident Lawyer Help Me with My Medical Liens?
A Norfolk car accident lawyer can review your medical liens and explain what they mean. They can also:
- Protect your interests: Your Norfolk car accident lawyer will work to ensure you are not charged for incorrect bills or unfair lien amounts.
- Check every bill and lien: Your lawyer will also review your medical bills and lien claims to make sure they are correct and actually related to your accident injuries.
- Try to lower the amounts: Your lawyer can often talk with medical providers and programs to lower the amount that must be paid back, helping you hang on to more of your settlement.
Do You Need Legal Counsel for Your Norfolk Car Accident Claim?
Many injury victims are surprised and worried when they learn that medical liens may have to be paid from their settlement. The good news is that an experienced Norfolk car accident lawyer from Shapiro, Washburn & Sharp can review these liens, challenge wrong charges, and often negotiate the amounts down. In some cases, providers will agree to major reductions so the client keeps more of the recovery. For example, in one recent case, our firm recovered a settlement of $1.275 million for the family of a woman who passed away after heart complications during a catheterization procedure.
If you have questions about medical liens or how they may affect your personal injury settlement, call (833) 997-1774 or fill out the online contact form to schedule a free case review. We have offices in Virginia Beach, Hampton, Norfolk, and Portsmouth for your convenience.
