After an accident, your first concern is for the safety of you and your loved ones. Once you’re out of immediate danger, the next thought is often “How am I going to pay for this?” One in five Americans currently has medical debt in collections. Is it any wonder that concerns about affording medical treatment after an accident are at the forefront of our minds?
Most people don’t have the means to pay for a catastrophic accident, even if they have medical insurance. For this reason, doctors and medical facilities will often delay pursuing payment for an accident until after there has been an award or settlement. This is called a medical lien.
What is a Medical Lien?
A medical lien is not just a promise to pay back the cost of health care. It’s more than just a handshake agreement — medical liens are legal contracts and should be understood as such.
Typically, these agreements state that the medical provider will be repaid from a settlement or verdict. Essentially, the doctor or hospital will need to be paid back in full before the person bringing the lawsuit sees any of their personal injury settlement.
Medical liens reassure doctors that they are likely to be reimbursed for medical bills in the event of a recovery. This, in turn, means that they are often willing to offer medical care on a deferred payment basis.
How Can a Medical Lien Help Me?
The biggest benefit of a medical lien is that you can receive treatment, without medical insurance, prior to receiving your settlement or award. Because good outcomes rely so much on prompt treatment, it’s extremely disadvantageous (and often impossible) to put off care for the weeks, months, or years it may take for your case to settle. But with a lien, care can be performed immediately and, hopefully, will help achieve a quicker resolution of your injury.
Liens can help in another way: it can be difficult to bring a personal injury case to court until after treatment has been performed. Most attorneys prefer to wait until a plaintiff has reached maximum medical improvement (MMI), which is the point where a patient has healed as much as they’re likely to heal after an injury.
Until MMI is established, it can be very difficult to predict the long-term healthcare needs of an individual. Patients who have reached MMI may still have ongoing follow-up care to help them maintain their gains – this is called “maintenance treatment”. However, it’s easier to predict what those ongoing costs are after MMI has been established and a doctor has opined on its necessity.
How Do I Pay Back a Medical Lien?
Sometimes plaintiffs forget about their medical lien when they have been awarded a settlement. A medical lien is not a long-term loan, and it typically will not be forgiven if the expected settlement doesn’t come through. Even if you lose your case, you may still be required to pay the medical provider for their bill.
If you receive a settlement or award, medical liens will be paid from that settlement amount before any of the settlement is passed along to you. There’s a possibility that the value of the medical lien could take up the entirety of the settlement, or even more. Regardless of the amount your attorney can help you negotiate the amount you owe to get you the best result possible.
Plaintiffs are sometimes frustrated that their settlement checks are much less than expected. They may have forgotten that they had a medical lien on their case, or they may not have understood what they were signing. This is why it’s valuable to speak with a qualified personal injury attorney before signing any legally binding medical liens.
What Happens If I Don’t Win My Case?
If you lose your personal injury claim, it doesn’t excuse you from paying back any money that you owe. Healthcare providers offer medical liens both because they’re beneficial for patients and because they’re enforceable whether plaintiffs win or lose their cases. The fact that the lien amount needs to be repaid is one of the reasons that doctors and healthcare facilities are willing to take on the risk of providing service before receiving payment.
Most medical lien holders will be happy to work out a payment plan so that you can pay in manageable monthly installments. You will typically not be required to repay the debt immediately after your case concludes.
However, the specifics of your case depend on the language in the agreement that you sign. You should not agree to a lien until you understand exactly what your responsibilities will be, whether you win or lose your case. Make sure you know what you’re agreeing to before you sign.
How Can My Attorney Help Me With Medical Liens?
Medical liens are common in personal injury cases, so your lawyer probably knows more about them than you do. Take advantage of their knowledge to have your questions answered. This will help you be more confident in your understanding of what’s required before you sign.
Medical providers are not required to offer liens. Attorneys often have a good sense of which doctors are likely to offer these arrangements, which can save you time in finding the right medical provider for you.
Your lawyer may also be able to assist with renegotiating the amount of the lien.
Have Questions?
Without medical liens, many people wouldn’t have the ability to receive medical care after a catastrophic injury like a car accident. They’re an essential part of people receiving care when they need it. However, this doesn’t mean that you should ignore the specifics of your agreement. It’s vital that you understand what you’re agreeing to before you sign.
If you’ve been injured, DiPasquale Moore offers a free initial consultation where you can ask questions about your case, including any questions you may have about liens. Get in touch with us today to schedule a meeting and get the answers you need.