Negotiating Medical Liens
Seeking fair and just compensation for your injuries involves understanding
and negotiating your claim’s medical liens and subrogation interests
arising from a North Carolina personal injury claim. Medical liens and
subrogation interests are a significant obstacle to receiving the compensation
you deserve, even after a settlement or award.
In essence, the goal of negotiating your medical liens is to attempt to
reach an agreement or compromise with lien holders for a reduction in
the amount of money owed to the lien holder. While not all liens are negotiable,
the majority are, and those lien holders are often willing to consider
a lesser amount. Negotiating a lien before your case settles will likely
increase your net recovery and can save you money in the long run.
Negotiating your medical liens can often be as difficult as pursuing fair
and just compensation from the insurance company. It is important to note
that negotiating medical liens can be extremely technical, and should
you need advice or guidance we would recommend contacting an experienced
personal injury attorney as soon as possible. This article will provide
you with an overview of the negotiation process and tips for negotiating
your liens.
When Should I Negotiate a Lien?
It is important that you consider the timing of when you should address
your medical liens. It often helps to handle and negotiate your medical
lien before the settlement rather than after the settlement, if possible.
Negotiating your medical lien, or at least knowing what the lien holders
may be willing to accept as early as possible, will provide you with information
regarding your actual recovery after expenses.
It is important to note that certain lien holders have more incentive than
others to negotiate before the final settlement, given that your ability
to compensate the lien holder is drastically reduced if you decide to
litigate and are ultimately unsuccessful in that endeavor.
Negotiating or resolving your liens is essential to being able to conclude
your claim. Remember that you are obligated by law to reimburse lien holders
as required by law. However, the only exception that exists is if the
lien holder agrees in writing to accept a different amount than what they
are legally permitted.
Who Should I Contact to Negotiate a Lien?
Generally, you should contact the lien holder in writing to negotiate your
lien. If you have received a notice of lien, for example, by letter or
some other form of documentation, you should refer to those documents
for a point of contact. Also, when contacting the lien holder, it is a
good idea to have your reference or claim number handy, as it will speed
up the process of identifying the case or claim in their system.
The negotiating process often can be tedious and time-consuming. You will
likely have to contact the lien holder several times to discuss the lien.
Also, be prepared for a lien holder to be firm and hold their ground,
as most do these negotiations on a daily basis. The negotiation process
is just that, “a process,” so do not become discouraged. Be
prepared to make several offers and counteroffers. However, before you
consider entering into the negotiation process, consider your legal obligations
against what you believe you could have the lien holder accept as a full
and final satisfaction of the lien amounts.
What Type of Medical Liens Should I Negotiate?
There are several different types of liens that can affect your settlement.
Having knowledge about the types of lien attached to your recovery is
essential. The list below provides a general description of what to expect
in negotiating certain liens.
Physician’s Liens or §44-49 Liens
One of the most common liens or subrogation interests that can attach to
your personal injury settlement or judgment is those allowed for in North
Carolina Statutes by medical providers known as physician’s liens.
In general, a physician’s lien is a healthcare/medical provider’s
financial interest on the proceeds received in a personal injury settlement
or judgment.
For example, Roger goes to the chiropractor and does not have insurance.
The chiropractor agrees to treat Roger for his accident-related injuries
so long as Roger pays the chiropractor out of his accident settlement
or award pursuant to N.C.G.S §44-49.
Before paying a physician’s lien, it is recommended that you try
to negotiate the lien amount, especially if the recovery does not cover
the amount due. While physician’s liens look daunting, the statute
(N.C.G.S §44-49) provides accident victims with several tools to
ensure that the lien holder does not take the entire settlement or award
as reimbursement of the lien. That being said, when your settlement does
not cover your medical liens and several medical liens are attached, the
medical providers will likely receive only their pro-rata share as defined
by statute. Consider trying to negotiate this amount paid pursuant to
the statute as a full and final satisfaction of all monies owed to the
lien holder. The medical provider may be inclined to accept this amount
and forgo pursuing the difference between what is owed and what is payable
under §44-49.