Short Answer

Yes, you can typically finalize the settlement, but you should not disburse funds to the client until you have protected and resolved all known lien or reimbursement claims. Under North Carolina law, attorneys must safeguard settlement proceeds and address statutory medical liens and health plan reimbursement rights before distribution. If a plan hasn’t named a specific recovery representative, provide written notice, request a final lien statement, and hold enough in trust until the claim is confirmed or resolved.

Understanding the Problem

In North Carolina personal injury cases, clients ask: Can we settle now if the health plan has not assigned a specific recovery agent to our case? You, as the claimant’s attorney, contacted the plan’s recovery vendor, received a reference number, and were told the file is in a team queue. The narrow decision point is whether settlement can proceed while still protecting the plan’s potential reimbursement claim.

Apply the Law

North Carolina requires attorneys to protect valid medical liens and known reimbursement claims from settlement funds before paying the client. Medical providers can assert statutory liens on personal injury recoveries. Health plans may assert contractual reimbursement or subrogation rights, and certain public programs (Medicaid, Medicare, the State Health Plan) have special rules. You may settle the underlying claim without a named recovery analyst, but you must give notice, obtain (or diligently seek) a payoff, and hold sufficient funds in trust until the claim is resolved. Disputes can be resolved by agreement or through court processes if needed.

Key Requirements

• Notice and verification: Give the health plan (and any providers) written notice of the settlement and request an itemized, final lien or demand statement.
• Safeguard funds: Hold enough of the settlement in your trust account to cover known or reasonably asserted liens until you receive a final amount or a waiver/release.
• Statutory provider liens: Recognize and honor medical provider liens and the attorney’s fee priority and lien cap rules that apply to providers.
• Plan type matters: Public program claims (Medicaid, Medicare, State Health Plan) and some ERISA plans follow different rules than provider liens and may not be limited by provider lien caps.
• Forum and fallback: If the plan is unresponsive or claims are disputed, use interpleader/declaratory relief in Superior Court to obtain a court-directed distribution.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Medical provider lien) - Gives providers a lien for injury-related charges and outlines notice and itemization.
• North Carolina Gen. Stat. § 44-50 (Attorney disbursement and lien cap) - Prioritizes attorney’s fees up to one-third and limits total provider liens from the balance; pro rata if insufficient.
• North Carolina Gen. Stat. § 135-48.37 (State Health Plan subrogation) - Establishes State Health Plan recovery rights from third-party liability.
• North Carolina Gen. Stat. § 108A-57 (Medicaid lien) - Authorizes Medicaid recovery from third-party settlements.

Analysis

Apply the Rule to the Facts: You can finalize the settlement agreement now. Because you know a health plan may claim reimbursement (a subrogation file was opened), you should send written notice referencing the plan’s file number and request a final, itemized demand. Hold enough in trust to satisfy that claim. If the plan remains unassigned to a specific person and is unresponsive after reasonable efforts, consider court relief so a judge can direct distribution.

Process & Timing

1. Who files: Plaintiff’s attorney. Where: Your trust account; for disputes, North Carolina Superior Court. What: Provide written notice and request a final lien/demand; if needed, file a civil interpleader or declaratory action (no standard AOC form). When: Before disbursing settlement funds to the client, after you receive and verify all final demands or obtain court direction.
2. Follow up with the plan’s recovery vendor and the plan administrator. Document calls/emails, and ask for a written final demand or waiver. Allow reasonable response time; county and vendor practices vary.
3. If still unresolved or there are competing claims, file interpleader/declaratory relief in Superior Court and distribute per the court’s order. Keep detailed disbursement records.

Exceptions & Pitfalls

• Plan differences matter: Medicaid, Medicare, and the State Health Plan have recovery rules that can override typical provider lien caps; verify the plan type early.
• Provider vs. plan claims: Statutory provider liens follow the attorney’s fee priority and pro rata cap rules; contractual health plan claims may not.
• Silence is not a release: A recorded call or “team assignment” is not a waiver. Get a written final demand, reduction, or waiver.
• Competing liens: If total claims exceed available funds (after fees), use pro rata for provider liens and seek court guidance for plan claims.
• Documentation gaps: Always request itemized statements; retain correspondence and settlement statements in the file.

Talk to a Personal Injury Attorney

If you’re dealing with a settlement and unresolved health plan or medical liens, our firm can help you understand your options and timelines. Call us today to discuss your situation.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.