Medical liens are an integral part of personal injury cases. They ensure your provider is paid back any monies owed to them after your settlement. Knowing the amount of your medical lien is critical because it will help to determine a fair settlement amount. Without knowing the dollar amount of your medical lien, you could end up owing your medical provider out of pocket – even after your settlement has been received.
What are Medical Liens?
A medical lien is a common occurrence when getting treated for injuries during personal injury cases. It is a legally binding agreement between a healthcare provider and a patient that allows the provider to collect money that is owed to them for treatment by placing a lien on the patient’s personal injury claim.
In the state of California, medical liens are the legal right of a third party to take their fair share of monies recovered in a settlement or trial. Liens work for the patient, not against them. This is because medical liens allow them to receive the medical treatments they need when they are unable to pay out of pocket or lack insurance that may otherwise have covered their medical costs.
Types of medical liens and their purpose
There are essentially two forms of medical liens. Statutory Liens and Contractual Medical Liens. The difference between the two types is pretty basic and straightforward.
Statutory Liens fall under the category of “guaranteed” payment depending on the particular laws governing the incident. These include worker’s compensation claims, EMT services rendered due to presumed negligence of another, etc.
Contractual Medical Liens consist of agreements to treat which is when someone has been injured and doesn’t have the money or insurance to pay for their treatment. The provider then agrees to provide treatment such as diagnosis, surgeries, medical therapies, and medication as needed until the case is resolved via settlement or trial verdict.
Likewise, some car insurance providers have a clause that states they will pay for their own driver’s medical treatment, unless they recover monies from the at-fault driver, in which case, they must repay their insurance provider for the medical costs.
Additionally, some health insurance providers, such as Blue Cross and Blue Shield require repayment when they cover medical costs for their insured if compensation has been claimed by a third party for those same injuries.
The Impact of Medical Liens on Compensation
Medical liens do reduce the amount of the settlement award you receive, however, your attorney will go over all of the details with you, including your medical costs and how much you will receive in the end. In other words, you will not be surprised or shocked at the amount you receive. You will not only be well prepared, but you will also have agreed to all amounts beforehand.
In some cases, you and your attorney can negotiate the final amount that your medical provider will receive. A medical provider would rather negotiate final repayment rather than enter your debt into collections, so it is in their best interest to negotiate rather than to receive nothing at all for an extended time.
If you have state insurance like Medicare that covered your medical costs until your settlement, you can possibly reduce the amount you owe them by challenging the amounts in the Conditional Payment Letter or Final Demand. Medi-Cal, on the other hand, can not take more than 50% of your settlement, so it is unlikely to negotiate down too far with them.
Factors influencing the amount of the medical lien
There are various factors that will ultimately influence the amount of your medical lien during a personal injury case. Understanding these factors will significantly impact your final settlement award, as well as your attorney’s ability to negotiate and get you the best final payout on your lien.
- Medical Treatment: The nature and or extent of your medical treatment will influence the final asking price from your provider. The more serious the injuries, the more complex the surgeries or therapeutics, and the more prescription medications you need, the more compensation your provider will be asking for.
- Healthcare Provider Contracts: These contracts and agreements typically come pre-negotiated with discounted treatment rates. This knowledge helps your attorney presume an approximate amount before the bill comes in.
- Negotiation: Negotiations also have a healthy impact on the final payout to your healthcare provider. Your attorney will skillfully attempt to reduce your payment once the final medical bill comes in. Your lawyer will make their best effort in getting you the lowest payback amount possible.
Strategy for Addressing Healthcare Provider Claims
When it comes to addressing healthcare provider claims in the state of California, there is an effective strategy you can use to possibly lower the amount you repay. It’s called: record keeping.
Collect all documentation and communication with your healthcare providers
When it comes to getting the fairest final bill from your medical provider(s), keeping all records of communication and collecting any documentation related to your treatment can go a long way in keeping track of what kind of final bill you will be looking at in the end. This kind of record keeping consists of collecting any and all receipts, bills that you have access to, and any communications between you and your healthcare provider. By doing this, it will help you to establish whether or not the final bill accurately represents the treatment you received. And if it doesn’t, your attorney will handle the negotiations and get your bill down to a fair amount.
The key here is to keep in contact with your providers at all times. If they make a recommendation for treatment, get it in writing. If they want to talk to you about your progress, afterward, get it in writing. If they call you at home to discuss upcoming appointments or therapies, take notes. Collect everything you can, because, in the end, it will all become evidence for your lawyer to negotiate the final medical payout.
Legal Considerations and California Law
Understanding state-specific laws regarding medical liens
Understanding state-specific laws when it comes to medical liens cannot be overstated. The state of California has its own specific set of laws and regulations that govern the injured party and the healthcare provider. Knowing these laws can help you to know your responsibilities, as well as the responsibilities of your healthcare provider.
Your rights include receiving fair compensation. Although your medical provider does have a right to reimbursement for services rendered, your right to fair compensation remains in spite of that. Your healthcare provider is also obligated to provide you with fair notice and disclose all billing practices and procedures, receipts accounting for all treatments and associated costs, and any additional costs related to their lien and why.
While statutes of limitations, generally 4 years after a failure to pay, may apply, typically, a lien agreement stipulates that the money owed to your healthcare provider from your settlement will remain in a trust until it is paid to them. In some cases, failure to pay because of a lawsuit loss means you are liable for the hospital bill personally. And in others, insurance provider Medi-Cal can sue the at-fault party for the money owed.
In conclusion, a medical lien is an agreement between a healthcare provider and an injured party that allows them to collect money owed for treatment by placing a lien on their personal injury claim. This claim amount may be reduced through negotiations or rebuttals against the claim amount. Medical liens work for injured parties by ensuring their treatment for injuries when they are unable to pay for treatment otherwise.
If you or a loved one have been injured due to the negligence of another, contact Pyramid Legal today. We’ll provide you with a free consultation, discussing your legal options and a clear strategy for moving forward. We will fight to get you the biggest settlement award allowed under California law.