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The most straightforward medical lien definition describes a medical lien as a legally binding agreement between an injured person and their care provider. Typically, the agreement states that the injured person will pay the costs of their treatment after pursuing a successful legal claim.
Treatment on a lien allows an injured person to get the care they need without worrying about the costs upfront, but it can also put pressure on the care provider since they’ll have to wait for payment.
How Does Treatment on a Lien Work?
So, what is a medical lien, exactly, and how does it work? If you’ve been injured and you’re worried about the cost of treatment, then you’ll want to know the answer.
In 2022, over one in four American adults (28%) skipped getting the medical care that they should’ve received in order to save money. Unfortunately, this type of tactic could completely negate your legal rights if you were hurt in an accident that wasn’t your fault. That’s because timely medical treatment is required in order to pursue a successful legal claim.
The good news is that many doctors and hospitals understand that not every patient can pay for the care they need. Some offices will work with you by letting you agree to a payment plan, while others will provide you with the care you need while putting a lien on medical bills you acquire throughout the process.
Getting treatment on a lien basis means that the healthcare provider will agree to subrogation, which means they will be willing to provide you with the care you need in exchange for the legal right to request reimbursement in the event you later receive a settlement from the at-fault party.
Once you file a personal injury lawsuit and successfully receive a settlement check, the healthcare provider will receive a portion of your check for recouping medical costs you acquired.
Who Needs Medical Liens?
You might want to consider negotiating a medical lien with your healthcare provider if you were recently involved in an accident, you need medical care, you believe someone else was at fault for your accident, and you plan on filing a legal claim for compensation. In these situations, it makes the most sense to consider a lien.
Most states have enacted their own versions of a healthcare lien act that facilitates this type of legal agreement between patients and healthcare providers. These laws help protect both parties, especially in the event that the lawsuit isn’t successful. When you pursue a legal claim that isn’t successful, then the financial obligations associated with your care are assumed by the provider. When your provider agreed to the medical lien, they also agreed to take on the risk that your claim might not be successful. If your case does produce a settlement, though, then the costs of the medical lien will be taken out of your check before you receive the remainder of your award.
How Long Does it Take to Settle Medical Liens?
It can take several months or even a few years in complex cases for your injury claim to resolve. Once it finally ends, you’ll likely be eager to finally get the compensation you’ve been waiting for. Before you receive your check, however, you’ll need to resolve any medical lien funding and attorney fees you’ve compiled. These fees will come out of your settlement check.
In most cases, your attorney will work to negotiate with your healthcare provider about any medical services on credit you received. Since time has passed, your provider might be willing to accept a reduced settlement amount to resolve your balance. This negotiation process shouldn’t take more than a month or two.
Once an amount due is determined, your lawyer will resolve your liens, which should clear up your balance as soon as it is received and processed by your healthcare provider’s office.
Negotiating a Lien on Medical Bills: Do You Need Attorney Assistance?
Understanding lien medical terminology is far easier than actually working out an agreement with a healthcare provider that’s on a lien basis. Sometimes, working out an initial deal and later negotiating medical liens and settlement proceeds requires the help of an attorney. If you do hire an attorney, then the right lawyer can direct you towards healthcare providers that are comfortable working on a lien basis.
The right attorney will also help you receive a settlement award that fairly matches the damages you’ve suffered. To do so, they’ll help you value your losses, document your claims, and negotiate a fair settlement.
Glossary References
https://www.alllaw.com/articles/nolo/personal-injury/medical-liens.html
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