If you’ve been injured in a Michigan car accident, you already know how stressful it can be. There are insurance claims to sort out, medical bills to pay, and paperwork to fill out. What many people don’t realize, though, is that medical liens can come into play and affect how much money you actually get from a car accident settlement.
So, what exactly is a medical lien? Let our seasoned Michigan car accident attorney help you understand how medical liens work, their impact on car accident victims, and what you can do to manage or reduce such liens so you can protect as much of your settlement as possible, ensuring you receive the compensation you deserve.
What Is a Medical Lien?
A medical lien is a legal claim that a healthcare provider or insurance company files against the settlement you receive from a personal injury case. If you receive medical treatment after a car accident, and the provider isn’t fully paid by your health insurance or doesn’t receive any upfront payment from you, the provider can file a lien to recoup costs for your treatment once you recover money through a settlement or verdict.
When you settle a personal injury claim, the settlement check you get usually covers several damages, such as your medical bills, lost wages, and pain and suffering. However, if there’s a medical lien on your settlement, the lienholders have the right to take what is owed to them out of the settlement proceeds. It serves as a safeguard for those who provided your medical care, ensuring payment for their services.
How Medical Liens Are Filed and Enforced
Upon receiving medical treatment after a car accident, the healthcare provider usually bills you or your insurance company. If the bill goes unpaid or the insurer disputes payment, the healthcare provider might decide to file a lien against your future settlement. The process typically involves filing specific paperwork with the court or notifying your auto insurance carrier, your health insurance provider, and your Michigan car accident attorney.
Liens must be documented in writing, stating the amount owed and the reason for the claim. Once properly filed, the medical provider or insurer essentially becomes a creditor to any settlement you might receive. Keep in mind that a medical lien doesn’t necessarily mean you won’t receive any money from your settlement; it just means that the provider is asserting a right to part of it. If a settlement is reached, the party responsible for disbursing the funds must ensure that any liens are paid before you receive your portion.
The Role of Michigan Car Accident Attorneys in Verifying Liens
Not every medical lien filed is necessarily accurate or enforceable. Sometimes, medical providers charge for services that are not related to the accident. A competent Michigan car accident attorney can help you verify the validity of these liens. Your lawyer can check the medical records, billing statements, and any insurance documentation to ensure the charges are legitimate and properly attributed to your car accident injuries. If a lien is found to be incorrect or excessive, your attorney can negotiate with the healthcare provider or challenge the lien in court.
The Impact of Medical Liens on Settlement Amounts
The most direct impact of a medical lien on your settlement is that it reduces the amount you actually take home. In some cases, liens can be substantial enough to leave you with far less than you might have expected. In addition, you have to pay legal fees and other expenses from the settlement. That’s why many accident victims are often surprised at how little is left after all deductions.
Imagine you’re injured in a car accident that wasn’t your fault. You’ve racked up $30,000 in medical bills, but your insurance covers only $20,000 of that. The hospital then files a medical lien for $10,000. Later, you settle your case for $60,000. Because of the lien, the hospital is entitled to $10,000 from that $60,000. Let’s say your attorney fees amount to $20,000 (33%), and the case costs are $2,000; you’re left with $28,000 from the original $60,000.
Even after you’ve agreed on a settlement with the at-fault party or their insurer, medical liens can lead to more delays before you get any money. The reason is that each lien must be reviewed, negotiated if possible, and then paid. Only after all liens are settled can the final check be disbursed to you. If you have multiple liens from different providers, the process can take even longer.
Strategies for Managing Medical Liens in Michigan
One of the best ways to handle a medical lien car accident scenario is to negotiate directly with the lienholder. Many medical providers are willing to reduce their lien amount to get paid without further legal action. Some might even allow a payment plan if you’re unable to pay the full amount at once. The goal is to preserve as much of your settlement as possible while still honoring your obligation to pay for services.
It’s best to keep track of your medical records, bills, and insurance statements. The better organized you are, the easier it becomes to identify potential billing errors or duplicate charges. Working with a local Michigan car accident attorney can help ensure your documentation is in order. If a lien is found to have mistakes or overcharges, your attorney can use that information to negotiate a lower payoff.
Protect Your Settlement—Consult a Michigan Car Accident Attorney Today!
Knowledgeable legal guidance can be the difference between losing a large portion of your settlement and retaining enough compensation to cover your medical expenses and move on with your life after a car accident. So, if you’re facing a medical lien car accident scenario, don’t hesitate to reach out to Shafer Swartz PLC.
Our skilled Michigan car accident attorneys have extensive experience handling personal injury claims. We can guide you through every step of the process, from verifying and negotiating liens to ensuring you get the maximum compensation you’re entitled to. Contact us today at (231) 722-2444 or here for a consultation.