Understanding the Problem

In North Carolina, can you take home more of your personal injury settlement when your health insurance says it is not asserting a lien, even though you are still waiting on lien amounts to be finalized and one treating provider expects to be paid from the settlement?

Apply the Law

In a North Carolina personal injury settlement, “liens” and “reimbursement claims” are the main reasons settlement money may be held back before you receive your final check. A health insurer may have a contractual right to be reimbursed (often called subrogation or reimbursement) if it paid accident-related medical bills. Separately, North Carolina law also gives certain medical providers a statutory lien on personal injury recoveries for “just and bona fide” charges for treatment related to the injury, but the provider must follow specific notice and documentation steps for that lien to be valid. If an insurer truly is not asserting any reimbursement claim, that removes one potential payout from the settlement; however, other lienholders or unpaid providers can still reduce what you take home.

Key Requirements

• Confirm what “no lien” means: Make sure the insurer’s position covers all accident-related payments (not just a partial date range) and is in writing so the settlement can be disbursed safely.
• Identify any statutory medical liens: In North Carolina, certain providers can have a lien on personal injury recoveries for treatment charges connected to the injury.
• Check whether the provider perfected the lien: A provider’s lien is not valid unless the provider gives written notice of the lien claimed and, when requested by the injured person’s attorney, provides an itemized statement/records within the statutory timeframe.
• Holdback before disbursement after notice: Once the person holding settlement funds (often the injured person’s attorney) has notice of a medical lien claim, North Carolina law generally requires retaining enough funds to pay valid claims before disbursing the rest.
• Disputed amounts can delay payment: If the amount of a medical lien claim is genuinely disputed, North Carolina law allows the dispute to be resolved before payment is compelled, which can affect timing of your final disbursement.

What the Statutes Say

• N.C. Gen. Stat. § 44-49 (Medical provider lien on personal injury recovery) - Creates a lien for certain medical charges tied to the injury and sets key validity requirements, including notice and providing itemized statements/records upon request.
• N.C. Gen. Stat. § 44-50 (Duty to retain funds after notice; 50% cap) - Requires retaining enough settlement funds to pay “just and bona fide” medical lien claims after notice, before disbursement, and caps medical liens (exclusive of attorney’s fees) at 50% of the recovery.
• N.C. Gen. Stat. § 44-51 (Disputed medical charges) - Provides that disputed medical service amounts generally do not have to be paid until the claim is established and determined by law.

Analysis

Apply the Rule to the Facts: Here, health insurance has reported it is not asserting a lien. If that means the insurer is not seeking reimbursement for accident-related payments, then there is one less claim that would reduce the settlement proceeds available for disbursement to you. But because a chiropractic provider treated you on a lien basis and still expects payment from the settlement, your take-home amount can still be reduced by that provider’s valid lien/bill, and your attorney may still need to hold back funds until that amount is confirmed or resolved.

Process & Timing

1. Who files: Usually no court filing is required just to resolve ordinary medical liens in a settlement. Where: Most lien resolution happens through your attorney’s communications and the attorney trust account in North Carolina. What: Written lien notices, itemized statements, and written lien “final” or “waiver/no-claim” letters. When: Before final disbursement, once lien notices are received and amounts are confirmed.
2. Verification step: Your attorney typically requests written confirmation from the health insurer that it is not asserting a reimbursement claim and confirms whether any provider has sent a lien notice and supporting itemization/records required for a valid lien.
3. Disbursement step: After valid lien amounts are finalized (or disputed amounts are addressed), your attorney pays lienholders/providers as required and then disburses the remaining net settlement to you with an accounting.

Exceptions & Pitfalls

• “No lien” may be narrower than it sounds: Sometimes an insurer means it is not asserting a lien right now, or only for certain dates, or it may still reserve contractual reimbursement rights. Get clear written confirmation of the scope.
• Provider “lien basis” vs. statutory lien: A provider may say it treated you “on a lien,” but whether it has an enforceable statutory lien can depend on compliance with North Carolina’s notice and documentation requirements.
• Disbursing too early: If settlement funds are disbursed without properly addressing valid lien notices, the person holding the funds (often the attorney) can face problems under North Carolina lien law and professional obligations.
• Disputed bills: If you dispute the amount or whether treatment was related to the injury, that can slow disbursement because the dispute may need to be resolved before payment is compelled.
• Other payors: Different rules can apply to government-related coverage (for example, Medicaid), so “health insurance isn’t claiming a lien” does not automatically clear every possible reimbursement issue.

Conclusion

In North Carolina, if your health insurer is truly not asserting any lien or reimbursement claim for accident-related payments, that often increases what you take home because there is one less claim to pay from the settlement. But you may still have to pay other valid medical lien claims—such as a provider who treated you on a lien basis—before the settlement can be fully disbursed. The practical next step is to have your attorney obtain written “no-claim” confirmation from the insurer and finalize the provider lien amount before disbursement.