Short Answer

In North Carolina, a valid TRICARE lien is paid from your settlement before you receive your funds. Your attorney’s fee and case costs are deducted first, then the TRICARE repayment is paid from the remainder based on TRICARE’s final demand letter. Only what remains after those deductions becomes your net recovery. Federal program claims like TRICARE are not limited by North Carolina’s typical medical-provider lien caps.

Understanding the Problem

You settled your North Carolina personal injury case and want to know how a TRICARE lien changes what you take home. Put simply: can TRICARE reduce the money you receive? You (the injured plaintiff) must resolve TRICARE’s repayment claim before funds are disbursed. You plan to sign the release and settlement statement electronically because the office is far from home.

Apply the Law

Under North Carolina law, settlements are disbursed in a set order. Attorney’s fees and case costs come off the top. Medical provider liens created by state law have caps and must be shared within those limits, but repayment claims by government health programs (like TRICARE) are asserted under federal authority and are not subject to the state caps that apply to private provider liens. TRICARE typically issues a conditional amount and a later final demand that controls what must be repaid from the settlement. Electronic signatures are generally valid in North Carolina for settlement documents.

Key Requirements

• Valid repayment claim: TRICARE must have paid accident-related medical charges and asserted its right to reimbursement.
• Order of payment: Attorney’s fees and approved case costs are deducted first; TRICARE’s final demand is then paid from the remaining funds.
• Amount and proof: The Defense Health Agency (TRICARE) issues a final demand letter stating the amount due and the due date; that governs repayment.
• State caps don’t limit TRICARE: North Carolina’s provider-lien limits don’t restrict federal program reimbursement claims.
• Execution of documents: You must sign the release and settlement statement (electronic signature is generally enforceable) before your check can be issued.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Medical provider lien) - Creates liens for certain medical providers on personal injury recoveries.
• North Carolina Gen. Stat. § 44-50 (Priority/limits; attorney fee recognized) - Addresses priority and limits for provider liens and recognizes attorney compensation off the top.
• North Carolina Gen. Stat. § 66-316 (Electronic signatures) - Confirms electronic records and signatures have legal effect.

Analysis

Apply the Rule to the Facts: You have a settlement. Your attorney will first deduct the agreed fee and case costs. Next, the firm will pay the TRICARE final demand from the remaining funds, because federal program claims are satisfied before client distribution and aren’t constrained by state provider-lien caps. After you electronically sign the release and settlement statement, the firm can disburse your net check.

Process & Timing

1. Who files: Your attorney. Where: With TRICARE’s recovery unit (Defense Health Agency/contractor) and your attorney trust account in North Carolina. What: Request/confirm TRICARE’s conditional payment ledger, seek any appropriate reduction, and obtain the final demand; you sign the release and settlement statement (e-sign is acceptable under North Carolina law). When: Pay the final demand by the date specified in the demand letter.
2. After the final demand arrives, your lawyer allocates settlement funds in trust: fees/costs first, then TRICARE’s amount, then prepares your net distribution; county practices on timing vary, but this often occurs within a short period after the final demand and your signatures.
3. The final step is issuing your check and providing a settlement statement reflecting gross recovery, deductions (fees, costs, TRICARE), and your net.

Exceptions & Pitfalls

• Federal program priority: Do not assume North Carolina’s medical-provider lien caps limit TRICARE; they typically do not.
• Relatedness disputes: Ensure only accident-related TRICARE charges are included; challenge unrelated items before the final demand issues.
• Documentation: Delays occur if the release or settlement statement is unsigned; e-sign promptly to avoid funding delays.
• Demand updates: If new payments post, TRICARE may revise amounts; confirm the most recent final demand before disbursing.

Talk to a Personal Injury Attorney

If you're dealing with a TRICARE lien and want to understand how it affects your take-home settlement, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

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.