Some people believe that once they recover compensation from a personal injury case or settlement, someone cuts them a check, and they can move forward with their lives. That isn’t always reality. There may be entities lining up to request a portion of the settlement. That could include hospitals and medical providers that have taken out medical liens so they could provide medical care without the injured person having to pay upfront.
Paying off medical liens can be confusing and overwhelming without someone to guide you. An experienced Tampa attorney can help you understand how medical liens may impact your car accident settlement. You need this information so you can take home maximum compensation for your injuries.
What Is a Medical Lien in a Car Accident Claim?
Third-party medical liens in injury lawsuits are relatively common in car accident cases. These are legal claims by a medical facility or healthcare provider placed on a Florida car accident settlement or award. At best, paying medical bills following a car accident can be challenging. Many individuals may not have the means to cover their necessary medical expenses immediately after a car accident. Some private healthcare providers and government medical programs like Medicare or Medicaid can bill patients for treatment costs and services provided. Placing a medical lien on a car accident settlement ensures that these entities get paid for their services. How do hospitals recover unpaid medical bills after an auto accident? The answer is typically through a medical lien.
Private insurance companies can also place a medical lien on a Florida car accident settlement or award if the company pays the medical expenses related to your auto accident claim. The health insurance company has the right to seek reimbursement for the payments it makes to cover the cost of your care.
Health insurance subrogation in accident claims may also be common depending on the circumstances and cause of the accident. Subrogation means an insurance company can pursue a claim or legal action to recover costs associated with paying a policyholder or accident victim. In most cases, subrogation involves the insurance company seeking compensation from the at-fault party of their insurance provider. In Florida, subrogation is more common in uninsured or underinsured motorist accidents.
Types of Medical Liens in Car Accident Cases
Florida law recognizes several distinct types of medical liens. These medical liens include:
- Hospital liens—Hospital liens are filed by a hospital or medical facility and typically cover hospital-related expenses such as emergency care, inpatient treatments, and surgeries.
- Doctor liens – Doctor liens come from medical professionals such as doctors, anesthesiologists, or other medical providers. Medical provider liens on settlements can cover costs related to services or treatments rendered by a physician.
- Insurance liens- When a private health insurance provider pays for medical expenses related to a car accident, the insurance company can seek reimbursement for those payments via an insurance lien.
- Medicaid/Medicare liens – Similar to insurance liens, government-funded medical coverage from entities like Medicare and Medicaid can also seek reimbursement for medical costs covered by their policies.
Federal law dictates that paying off Medicare and Medicaid liens always comes first. These liens take priority over other types of medical liens.
How Medical Liens Affect Your Car Accident Settlement
Personal injury settlement liens can significantly impact a Florida car accident settlement. Payments to medical providers come from an individual’s settlement before they are issued their share. Florida law dictates that lienholders must be paid before the remaining funds can be distributed to the car accident victim.
One of the challenges with medical liens is that many providers charge their full rates, inflating the lien estimate significantly. Hospitals often discount their rates to insurance companies and sometimes to individuals paying cash for their treatment, called self-pay patients. Typically, these rates are not what the hospital puts in their lien on your settlement. They’ll charge the inflated price, putting more money in their pockets and less in yours.
Managing Medical Liens
However, there are legal options for contesting medical liens. There are also methods for negotiating medical liens after a car accident. Working with an experienced Florida car accident attorney is the best way to learn about your legal rights and explore your options for negotiating down medical liens and taking home more of your car accident settlement. An attorney can help confirm that the lienholder provided timely notice of their claim, verify that all charges cover accident-related treatment, and review itemized bills for errors, inconsistencies, and overcharges.
Unfortunately, hospital and medical bills tend to be overly complicated to understand. As a result, many patients won’t contest the costs associated with their treatment. Managing hospital billing can be a frustrating task, even when you are not coping with traumatic car accident-related injuries. A car accident attorney can pick through these complicated bills. They can ensure that the lien is valid. They can work to negotiate down costs by requesting a reduction or offering a smaller lump-sum payment.
Settlement distribution and medical liens can be frustrating, leaving car accident victims feeling as if they’ve been short-changed. A car accident attorney can work with an accident victim to pursue the most favorable outcome possible by pushing for maximum compensation and negotiating down exorbitant medical liens.
A Tampa Car Accident Attorney at Jurewitz Law Group Injury & Accident Lawyers Can Fight for You
At Jurewitz Law Group Injury & Accident Lawyers, our mission has always been to help protect individuals against big insurance companies. That means advocating for car accident victims, seeking maximum compensation for their injuries, and helping to prevent them from being taken advantage of by insurers and medical providers. You deserve fair compensation for your injuries. Let us help you seek the compensation you deserve and keep as much of it as possible.
Call our office today at (619) 233-5020 or contact us online. You can request a free consultation with a Tampa car accident lawyer to discuss your case’s circumstances and how we can protect your legal rights regarding medical liens.
